BY TERENCE P. JEFFREY
(CNSNews.com) – The federal debt moved above $19,400,000,000,000 for the first time as of the close of business on Tuesday, according to the data released today by the U.S. Treasury.
At the close of business on Monday, July 18, the total federal debt was $19,391,094,247,028.26, according to the Treasury. By the close of business on Tuesday, July 19, it had risen to $19,402,361,890,929.46.
On Friday, Oct. 30, 2015, Congress passed the “Bipartisan Budget Act,” which suspended the legal debt limit until March 15, 2017. President Obama signed that bill into law on Monday, Nov. 2, 2015
At the close of business on Oct. 30, the federal debt stood at $18,152,981,685,747.52.
In the less than nine months since then, the federal debt has increased by $1,249,380,205,181.94
Title IX of the Bipartisan Budget Act is entitled “Temporary Extension of Public Debt Limit.” The Congressional Research Service summary explains that part of the law this way: “The public debt limit is suspended through March 15, 2017. On March 16, 2017, the limit is increased to accommodate obligations issued during the suspension period.”
Prior to President Obama signing the Bipartisan Budget Act, the Treasury had been in a “debt issuance suspension period” that Treasury Secretary Jacob Lew had declared on March 16, 2015. During that “debt issuance suspension period” the Treasury took what it calls “extraordinary measures” to prevent the debt from exceeding what was then the legal limit.
The U.S. created 287,000 jobs in June, massively topping analyst expectations.
The national unemployment rate, meanwhile, rose slightly more than expected in June, to 4.9 percent, according to data released Friday by the Bureau of Labor Statistics.
Jobs watchers had been expecting Friday’s jobs report to show a substantial rebound from May’s unexpectedly weak growth, but the June number easily topped expectations.
Economists surveyed by Reuters said they were, on average, expecting nonfarm payrolls to show growth of 175,000 for June, and the unemployment rate to rise to 4.8 percent.
U.S. market futures jumped on the report.
“The economy added 287,000 jobs in June, a bounce-back from May’s low number and a clear indication that the economy continues to make solid progress,” White House Council of Economic Advisers Chairman Jason Furman said in a statement.
The already weak payrolls growth from May was revised even further downward, to 11,000. April’s growth, meanwhile, was revised upward from 123,000 to 144,000. Last month, the initial May report showed the U.S. unemployment rate came in at 4.7 percent, a recent low, but nonfarm payrolls only grew a dismal 38,000 jobs.
Over the last three months, job gains have averaged about 147,000 per month.
The BLS also reported that the average workweek for all employees on private nonfarm payrolls was 34.4 hours — the fifth consecutive month for that result. U.S. average hourly earnings for private nonfarm payroll employees moved 2 cents higher in June to $25.61.
Fed funds futures show low expectations for a rate hike this year. After the June data release, there was just a 24 percent chance of a hike priced in for December — it had been 12 percent on Thursday night, according to Jefferies.
Despite the market’s expectation for a dovish central bank, Fed Chair Janet Yellen has struck a generally positive tone in recent addresses.
In a post-May jobs report speech from Philadelphia, Yellen said her overall assessment of the labor market is quite positive. Although the slowdown indicated by the May numbers bears “close watching,” she said, wage growth may “finally be picking up.”
“Although this recent labor market report was, on balance, concerning, let me emphasize that one should never attach too much significance to any single monthly report,” she said in prepared June 6 remarks.
Still, the Fed opted to leave rates unchanged in June and officials only weakly committed to two more rate hikes this year.
Friday’s jobs report will also likely factor into the ongoing U.S. presidential election, which has seen presumptive Democratic nominee Hillary Clinton spar with the GOP’s Donald Trump, the latter of whose support has largely come from districts with high joblessness.
—Reuters and CNBC’s Patti Domm contributed to this report.
Financial analyst Gregory Mannarino contends, “We are in uncharted territory. It’s occurring right under everybody’s nose.
Barely anyone is aware of what is going on because it’s not getting any media coverage. There is this phenomenon where trillions of dollars of currency are being moved or rushing towards the debt market that is squeezing bond yields to historic lows. We are making history in the United States for the second week in a row, and I am talking about the bond market. Last week, we hit an historic low with regard to yield. People are so desperate, people are so desperate they are willing to accept negative returns. This is how desperate they are. . . . This is, and I can’t stress this enough, this is the biggest red flag I can possibly imagine. We are on the cusp of some event that is going to change the landscape of the world.”
The other warning sign that something is very wrong can be seen in the price of gold and silver. Mannarino says, “Both gold and silver, since the beginning of this year, have taken off like rockets, and they are not going to stop. This environment is on the edge. . . . These are monetary metals. People refer to them as precious metals. They are real money, and they have been real money for thousands of years. No central banker is going to make it different just by saying they are not money. The system is illiquid, and the banks are insolvent.”
The real cost will be in lives lost. Mannarino contends, “We have seen debt rise in tandem with human population. We understand the debt is not sustainable, and we understand the world central banks are going through very desperate measures to try to keep that debt bubble sustained. The debt bubble is the greatest threat to humankind—bar none. It is greater than a nuclear exchange. There is going to be a point when we cannot borrow anymore from the future. When that happens, the debt bubble pops, and we get a correction in human population. Millions and millions of people are going to die.”
Join Greg Hunter of USAWatchdog.com as he goes One-on-One with Gregory Mannarino, founder of TradersChoice.net.
Check out this video:
Consumer Spending in the U.S. Continues to Rise
The U.S. national debt is creeping up again, after holding steady for the last few months thanks to the annual flood of individual and corporate tax receipts.
Total government debt hit a record $19.38 trillion on Thursday, up nearly $98 billion from the day before. It’s the first time it has ever exceeded $19.3 trillion.
The debt will soar higher still in the coming months, and is expected to approach $20 trillion by the time President Obama leaves office.
The total debt had been essentially flat since March, when it hit $19.2 trillion. Growth in the national debt often slows or plateaus in the spring and early summer, as tax receipts in April help balance out federal spending that’s on a current pace to exceed receipts by $500 billion.
The federal government collected a record high $1.48 trillion in tax revenues in the first half of the year, which helped offset growth in the deficit over the last few months.
Total public debt on Thursday was $13.93 trillion, and government loans to itself are $5.45 trillion.
Aside from tax receipts or lower spending, another way to reduce the national debt is through gifts to the Treasury Department. But so far, the Treasury has received just $1.6 million in gifts, and during the April tax season, people donated just $42,000 to the effort.