The extraordinary output of new debt from the U.S. Treasury, which clearly played a role in triggering Republican Congressional fighting and ferment this month, is continuing to rise and is set to keep driving up yields on U.S. Treasury securities. The net new debt issued by the Treasury in September and the first half of October alone, appears to total $600 billion. Moreover, the Assistant Treasury Secretary announced in September, as EIR reported at the time, that beyond this incredible level of debt emission, “Further gradual increases in coupon auction sizes will likely be necessary in future quarters.”
Forecasts by major banks such as Bank of America and JPMorgan Chase expect this increasing size in the mass of new debt to continue for at least the coming three quarters (through mid-2024), and simply make no forecasts beyond that. Very soon total U.S. Federal debt will reach $34 trillion while some who are not following it closely will still be writing “$32 trillion.”
