It's official: the Department of Treasury is now issuing debt at pandemic levels.
In raw numbers, the latest numbers for Q4 2023 show Treasury issued $7 trillion in new debt.
Given we're not in a World War - in theory - nor are we in a pandemic, why is there so much debt? Easy: it's buying growth.
Or, as Balaji Srinivasan puts it: "The economy isn't real. It's propped up by debt. They will fake it till they break it."
Even the Wall Street Journal, which loves debt, is sounding the alarm, writing that rapid growth in debt often ends badly, and given the enormous size and alleged safety of the Treasury market, any "Instability" could be catastrophic.
Why catastrophic? Because US treasuries are treated like cash by everything from banks to pension funds to large corporations and individual 401k's.
Everything depends on the illusion that every penny of federal debt will be repaid in full, with interest.
https://mises.org/mises-wire/americas-fiscal-collapse-accelerates
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