US National Debt Tops $22 Trillion

For 8 years, we took every opportunity to point out that under Barack Obama's administration, US debt was rising at an alarmingly rapid rate, having nearly doubled, surging by $9.3 trillion during his term.

And while the absolute pace is slower, the trajectory of US debt under the Trump administration looks set to be no different.

We note this because as of the close of Monday, the US Treasury reported that total US debt has risen above $22 trillion for the first time, or $22,012,840,891,685.32 to be precise (11 months after topping $21 trillion).

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“Reaching this unfortunate milestone so rapidly is the latest sign that our fiscal situation is not only unsustainable but accelerating,” said Michael A. Peterson, chief executive officer of the Peter G. Peterson Foundation, a nonpartisan organization working to address the country’s long-term fiscal challenges.

Putting this in context, total US debt has now risen by over $2 trillion since Trump took office... but notably slower than Obama's pace of borrowing...

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We doubt today's milestone will be celebrated on Trump's twitter account.

And while some can argue - especially adherents of the socialist Magic Money Tree, or MMT, theory - that there is no reason why the exponential debt increase can't continue indefinitely... the CBO's long-term forecast of debt issuance is, basically, apocalyptic as the following chart confirms...

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But it gets worse, as Double Line's Jeff Gundlach recently noted...

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“Net borrowing needs will continue to increase due to the expected increase in the deficit combined with funding needs coming from the Fed’s debt run off,” said Margaret Kerins, global head of fixed-income strategy at BMO Capital Markets Corp.

“Given the global backdrop with Brexit and China’s economy slowing down, there is really a bid for safety, liquidity and quality -- which means Treasuries -- and that’s keeping yields in check to some degree.”

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