If the US government owned every single bitcoin and each BTC was worth $1 million, it still wouldn't be enough to pay off the US national debt. - Charlie Lee
The US gross national debt jumped by $72.8 billion in one day, on Thursday, the Treasury Department reported Friday afternoon. This March 16 is a historic date of gloomy proportions, because on this date, the US gross national debt punched through the $21 trillion mark and reached $21.03 trillion. Here’s the thing: On September 7, 2017, a little over six months ago, just before Congress suspended the debt ceiling, the gross national debt stood at $19.84 trillion. In those six-plus months – 132 reporting days, to be precise – the gross national debt spiked by $1.186 trillion. And with 2017 GDP at $19.74 trillion in current dollars, the gross national debt now amounts to 106.4% of GDP.
In the chart below, the flat spots are the various debt-ceiling periods. This is a uniquely American phenomenon when Congress forbids the Administration to borrow the money that it needs to borrow in order to spend it on the things that Congress told the Administration to spend it on via the appropriation bills. And this is happening in a booming economy when the debt shouldn’t increase at all as booming tax receipts would match, or more than match, government expenditures. But hey, not in this brave new world. Despite the boom times – and they’re likely as good as they’re going to get – the government is already forecasting record issuance of net new Treasury debt in order to fund the surging deficits. And the market will have to absorb this debt, just as the Fed has started to unload Treasuries from its balance sheet.