“It Blows My Mind”: 100-Year Austrian Bond With Record Duration 3x Oversubscribed

“It Blows My Mind”: 100-Year Austrian Bond With Record Duration 3x Oversubscribed:

“This new 100 year will be the most price-sensitive bond that exists. In any currency. A one basis-point change in yield will move the price of this Austria 2117 issue by 43 cents, or 0.43 percent.”

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It’s Official: US Debt Finally Tops $20 Trillion, Jumps By $318 Billion In One Day

It’s Official: US Debt Finally Tops $20 Trillion, Jumps By $318 Billion In One Day:

Following President Trump’s sign off last Friday on a short-term debt-ceiling/government funding/hurricane aid deal (thanks to Democrats’ votes), the US Treasury was finally freed from the shackles of the debt ceiling which it hit nearly one year ago  and which meant that US federal debt would be at roughly $19.808 trillion for months.

Well, no more: according to the latest Daily Trasury Statement as of Friday, total US debt surged by $317.6 billion from its Thursday closing print of $19.845 trillion, following the short-term debt suspension which kicked the can through December 8, to finally rise above the “psychological barrier” of $20 trillion, or $20,162,176,797,904.13 to be precise.

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“Worst Possible Choice For US Economy” – Peter Schiff Slams Plan To Repeal Debt-Ceiling

“Worst Possible Choice For US Economy” – Peter Schiff Slams Plan To Repeal Debt-Ceiling:

Of all the absurd Washington pantomimes none has been as reliably entertaining and maddening as the annual debates to raise the debt ceiling. Although the outcome was always a foregone conclusion (the ceiling would be raised), the excitement came when fiscal conservatives bemoaned the perils of runaway debt and “attempted” to exact spending restrictions through threats “to shut down the government,” (which often led to news coverage of tourists being turned away from national parks.) On the other side of the aisle Democrats would rail that the ceiling must be raised “because America always pays her bills.” Lost was the irony that “paying” bills with borrowed money was fiscally responsible, and that raising the ceiling actually enabled America to continue to avoid paying its bills. After these amateur theatrics, the ceiling would be lifted and Washington would go on as if nothing happened. But at least the performance threw occasional light on the nation’s debt problems.

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Trump Wants To End The Debt Ceiling, Schumer Agrees

Translated: Trump suggests that there should be no constraint at all, not even the fiscally conservative pretense of the debt ceiling law, over how much debt the government can pile on the backs of future generations of Americans. If Obama can add $10 trillion, we are sure Trump can do “better.”

Trump Wants To End The Debt Ceiling, Schumer Agrees:

If you are wondering what is dragging the dollar down to 32-month lows, perhaps you should add this to the calculus…

Politico reports that President Donald Trump suggested to congressional leaders on Wednesday morning that votes to raise the debt ceiling could be done away with altogether, according to three people familiar with the conversation.

In a meeting with GOP and Democratic leaders, in which Trump sided with the Democrats on a fiscal deal to raise the debt ceiling, the president said he believes the votes are unproductive, those people said.

With Congress set to lift the debt ceiling into December as part of the deal, Trump floated the idea that the next time Congress votes to raise the debt ceiling, it could be the last.

He said conversations should happen over the next three months, according to people in the room.

President Trump has now added his thoughts, telling reporters “we have great respect for the sanctity of the debt ceiling,” as he meets with Emir of Kuwait. “There are a lot of good reasons” to get rid of debt ceiling altogether, Trump says, adding that he discussed it with congressional leaders yesterday, and adding that “there will never be a problem” on the debt ceiling.

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In Latest Reversal, Trump Weighs Tying Debt Limit Increase To Harvey Disaster Aid

In Latest Reversal, Trump Weighs Tying Debt Limit Increase To Harvey Disaster Aid:

In the latest U-Turn, Trump has reportedly given up on the idea of a “clean” debt ceiling bill and is now considering attaching an increase in the debt limit to an initial $6 billion request to Congress for disaster relief funding for Hurricane Harvey, Bloomberg reports.

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Russia Pays Off the Last of Soviet Union’s Debt

Very interesting timing!

Russia Pays Off the Last of Soviet Union’s Debt: 

Russia has paid back $105 billion worth of external debt of the USSR completely unaided by the other former Soviet republics

Moscow made the final payment on the remaining foreign debt inherited from the Soviet Union. Russia took on the debt after the other former Soviet republics refused to pay.

H/t reader squodgy:

“In contrast the US applies the blackmailing principles laid out by John Perkins in “The Confessions of a Economic Hit Man””

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This $5 Trillion Time Bomb Will Devastate Americans

This $5 Trillion Time Bomb Will Devastate Americans

H/t reader squodgy:

“They, with California, & NYC are at the cliff edge, thanks to stupid, selfish management.
Taking bets on which one first….oh! what about Maryland?
Either way…the knock on effect will be interesting.”

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Former Fed Chairman Alan Greenspan Ominously Warns That The Biggest Bond Bubble In History Is About To Burst

Former Fed Chairman Alan Greenspan Ominously Warns That The Biggest Bond Bubble In History Is About To Burst:

Are we right on the verge of one of the greatest financial collapses in American history?  I have been repeatedly warning that our ridiculously over-inflated stock market bubble could burst at any time, but former Federal Reserve Chairman Alan Greenspan believes that the bond bubble actually presents an even greater danger.  When you look at the long-term charts, you will see that an epic bond bubble has been growing since the early 1980s, and when it finally collapses the financial carnage is going to be unlike anything we have ever seen before.

Since the last financial crisis, global central banks have purchased trillions of dollars worth of bonds, and this has pushed interest rates to absurdly low levels.  But of course this state of affairs cannot go on indefinitely, and Greenspan is extremely concerned about what will happen when interest rates start going in the other direction…

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Netflix Is Racking Up a Staggering Amount of Debt

Netflix Is Racking Up a Staggering Amount of Debt:

From the outside looking in, it appears as if Netflix is absolutely killing it. From Orange is the New Black and House of Cards to Stranger Things and Fuller House, the streaming service has a collection of buzzy original series and revivals on top of its improving movie presence. As of right now, Netflix paces the entire streaming industry with a whopping 104 million worldwide subscribers, according to the company’s quarterly reports. But trouble may be brewing in paradise.

According to the LA Times, Netflix has accrued a long-term and short-term debt of $20.54 billion. Yes, that’s billion with a B. But investors don’t sound too worried, if the LA Times is to be believed.

H/t reader kevin a.

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Total Government And Personal Debt In The U.S. Has Hit 41 Trillion Dollars ($329,961.34 Per Household)

Total Government And Personal Debt In The U.S. Has Hit 41 Trillion Dollars ($329,961.34 Per Household):

We are living in the greatest debt bubble in the history of the world.  In 1980, total government and personal debt in the United States was just over the 3 trillion dollar mark, but today it has surpassed 41 trillion dollars.  That means that it has increased by almost 14 times since Ronald Reagan was first elected president.  I am searching for words to describe how completely and utterly insane this is, but I am coming up empty.  We are slowly but surely committing national suicide, and yet most Americans don’t even understand what is happening.

According to 720 Global, total government debt plus total personal debt in the United States was just over 3 trillion dollars in 1980.  That broke down to $38,552 per household, and that figure represented 79 percent of median household income at the time.

Today, total government debt plus total personal debt in the United States has blown past the 41 trillion dollar markWhen you break that down, it comes to $329,961.34 per household, and that figure represents 584 percent of median household income.

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Illinois “Budget Deal” Is Likely The Death Knell For The State’s $130 Billion Underfunded Pensions

Illinois “Budget Deal” Is Likely The Death Knell For The State’s $130 Billion Underfunded Pensions:

“The phase-in of the actuarial assumption is another exercise in kicking the can down the road, but we’re not sure how far the can travels.  You pay less now, pay more later.”

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Fed Chair Janet Yellen Warns Congress: US Debt Trajectory Is Unsustainable

Fed Chair Janet Yellen Warns Congress: US Debt Trajectory Is Unsustainable:

“Let me state in the strongest possible terms that I agree” the U.S. federal debt trend is unsustainable, may hurt productivity, and living standards of Americans.

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The World Is Now $217,000,000,000,000 In Debt And The Global Elite Like It That Way

–  The World Is Now $217,000,000,000,000 In Debt And The Global Elite Like It That Way:

The borrower is the servant of the lender, and through the mechanism of government debt virtually the entire planet has become the servants of the global money changers.  Politicians love to borrow money, but over time government debt slowly but surely impoverishes a nation.  As the elite get governments around the globe in increasing amounts of debt, those governments must raise taxes in order to keep servicing those debts.  In the end, it is all about taking money from us and transferring it into government pockets, and then taking money from government pockets and transferring it into the hands of the elite.  It is a game that has been going on for generations, and it is time for humanity to say that enough is enough.

According to the Institute of International Finance, global debt has now reached a new all-time record high of 217 trillion dollars

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