Uncle Sam needs to borrow a ton of money this week — in the middle of a fight with its biggest creditor.
The United States plans to sell about $294 billion of debt, according to the Treasury Department. That's the highest for a week since the record set during the 2008 financial crisis.
Federal revenue is declining because of President Trump's tax cuts, so the government needs to borrow more to make ends meet. At the same time, Washington's borrowing costs have climbed rapidly in recent months.
"The amount of debt coming on the market this week is extremely large," said Rick Rieder, global chief investment officer of fixed income at BlackRock, the world's largest asset manager.
Awkward timing
The government is auctioning all this short- and longer-term debt at an awkward time. Last week, Trump vowed to impose wide-ranging tariffs on China, which owns of more Treasury bonds than any foreign country.
China responded by saying it would fight any trade war "to the end." When asked by Bloomberg Television whether China was considering scaling back purchases of US debt, China's ambassador to the United States said, "We are looking at all options."
China holds $1.17 trillion of US debt. It trimmed those holdings by 1.4% between December and January, the latest data show.
We want China to keep out debt. That way they can't afford the USD to default
Michael Morgan
China is the biggest SINGLE holder of US debt. The vast majority of the debt, however, is not owned by Chinese – the majority is actually owned by US investors
economy is too hot. worried about inflation
Sebastian James
Why can't they shut down the United States Social Security Administration instead of borrowing more money? The United States Social Security Administration budget is 1.01 trillion US dollars so if they shut it down then they will get 1 trillion dollars to spend on the stuff they need.
Brandon Kelly
classic
Jason Ortiz
wrong, you dipshit. It's illegal to use the payroll tax to fund the general revenue. cutting social security benefits, paradoxically increases national debt.
Elijah Hernandez
Why is it illegal to use the payroll tax to fund on other things?
How?
Xavier Thomas
Because the payroll tax was instituted, in the first instance, specifically to pay for SSI - Social Security INSURANCE. Payroll tax is the "premium" you pay for the insurance program and the condition for payout is if you get to age 65 (or are disabled) with a few other stipulations. It's works exactly like your car insurance. You are ENTITLED to a payout under certain conditions because you PAID A PREMIUM in the meantime. This is why SSI is referred to as "entitlement spending." For this reason, this part of the budget is considered non-discretionary.
Because when the SSA runs a surplus – which it always does – the US government is required to issue debt that the SSA keeps in trust for future payouts. These government bonds are referred to as the "Social Security Trust Fund."
So you have expenditure streams: a) Entitlement Spending aka SSA & Medicare/Medicaid b) The General Revenue aka Discretionary Spending which is everything else – mostly military and alphabet soup agencies (and interest on the national debt) Likewise you have two revenue streams: a) above is funded by the payroll tax and b) above is funded by mostly the income tax (but also corporate tax, capital gains tax, some fees and other miscellaneous revenue)
Cutting Social Security would be taking away your grandma's retirement check, which the government OWES to her because grandpa paid the payroll tax for 50 years while he worked. Make sense?
Luke Cox
Congratulations on your nation's ability at Jewing itself.
If they want to have pension then maybe they should save up and invest their own earnings in private pension instead of expecting the social security from the government.
Jose Morales
That is factually false. The majority of USD in circulation in fact, is in foreign countries. Please do not spread conjecture on shit you know nothing about
Easton Williams
The only people who can rely on handouts from the government are boomers and niggers. Jew's.
Levi Nguyen
They are dying so they will not suck on for much longer now.
They are breeding like rabits so the solution is to pay them to be sterile but I doubt that will happen because it is racist to reduce their nigger population.
Jason Sullivan
I read the rest of the article. Nothing in it says it's actually happening. Just tons of suggestions and talks with unconfirmed results. FAKE NEWS
Colton Perry
These sentences are not mutually exclusive.
Isaiah Wilson
Trump has said that having debt would be okay only if that money would be spend properly. On infrastructure and economy. But before then trillions were wasted on useless spending with no returning profit from it. Debt will not go anywhere in the near future, but borrowed money right now will be used for good.
Christian Price
Tbh I think they should borrow less money.
Xavier Martinez
but when obama does it then it's bad. cant admit trump is also wasting money no sir that would break my cognitive dissonance
Dominic Hall
Trump sees the world for what it is and then knows what needs to be done. If he needs to borrow money then so be it.
Obama was a disaster, any of that borrowed money American people didn't saw. I scratch my head thinking where that money was spent.
Camden Williams
10 rubles have been deposited into your account
Anthony Flores
That is incorrect. the population of blacks in America is stagnating at the same rate as whites in America. They aren't "breeding like rabbits". Mexicans are, but not nigger
It is right but conservative whites outbreed niggers
Carson Perez
and there's nothing the chinks can do differently since their economy requires US to stay afloat
Joseph Gonzalez
Excellent work on schooling these motherfuckers in here
Nathaniel Wright
Have a reader's digest. Make sure to replace red shield with jew and corroborate facts you may be interested in with actual sources. hooktube.com/watch?v=mII9NZ8MMVM
