Fed Revises Total US Debt To 350% Of GDP, After "Discovering" Another $2.7 Trillion In Debt

How long can this go before a currency reset? It is inevitable at some point.


Fed Quietly Revises Total US Debt From 330% To 350% Of GDP, After "Discovering" Another $2.7 Trillion In Debt
www.zerohedge.com...

Everyone has seen the chart of "Total Credit Market Instruments", which as of its most recent update on March 31, 2015, was just over $59 trillion, or 330% of US GDP.

For those who have not seen it, as well as for those who are familiar with this chart, take a long look, because this is the last update of this particular data series, pulled straight from the Fed's Z.1 Flow of Funds (section L.1), you will ever see.

So did the Fed spontaneously terminate the reporting of what until the second quarter's update of the Flow of Funds, was the most comprehensive official summary of Household, Financial, Corporate and Government debt in existence? And if so why?

Many Fed watchers assumed that this is precisely what happened, and indeed, searching high and low for the infamous L.1 Section revealed nothing.

We can only assume that the vocal outcry that emerged in the aftermath of the Fed's release of its Q2 Flow of Funds statement missing this most critical of data sets on September 18, was so loud that three weeks later, this past Friday on October 9, the Fed released an official follow up explanation what exactly happened.

Here is what happened to the missing so very critical data series, straight from the horse's mouth:

See Very Long Article for details and charts at the link.

The bottom line:

The total revision to the level of debt outstanding (debt securities plus loans) due to these methodology changes is approximately $2.74 trillion 2014:Q4.

And so the Fed has managed to kill two birds with one stone: it no longer provides a simple, one-stop-shop way to reconcile the total US credit stock, and it quietly boosted total US consolidated credit by $2.7 trillion to $62.1 trillion as of June 30, 2015.

Luckily, for those who still care about such trivial memorandum items as "data" - made up as it may be - and would like to keep track of total US credit exposure, now better known as total debt and total loans, they can simply add up the two line items, with debt (found here) and loans (found here).

This is how the old and new data look like: as noted, the consolidated total has risen by $2.7 trillion as of March 31, the last time the Fed reported the "old" series, and is currently a total of $62.1 trillion.

The end result is that the ratio of Consolidated Credit to GDP, has quietly risen from 330% to 350%, without anyone in the broader public saying a word and without any of the official institutions, so seemingly concerned about the total stock of global debt, even noticing. And why should they: the S&P500 is back over 2000 so all is well.

How do you "just" find 2.7 trillion in debt?

a reply to: crazyewok

It's easy if your entire existence is to create money out of thin air.

Isn't it great, that we have this entity known as the Federal Reserve, pumping and dumping money into the ponzi scheme to keep things going, into perpetuity.

Isn't it great that, as long as people have faith in the system they'll keep playing along, allowing themselves to become deeper ensconced in the Fed's pocket, like slaves being in debt to the "Company Store".

Isn't it great that no one has any over-sight of the agency that is responsible for the most misery on this planet?

Keep playing the game people. Keep borrowing and buying.

It's only money....

a reply to: crazyewok

I think it sort of works like when you look down the edges of your sofa and find a few extra coins.....but in reverse.

This will make no difference really....because either way this collapse is coming. What it looks like I don't know. But all I can do is prepare as best I can with food etc. With a budget so low like mine there is only so much you can do. I hope that those scum who have created this mess will be held to account and create nice decorations from the nearest trees.

a reply to: infolurker

I could end this all in 1 step. Take all the fake money on the planet and shove it where the Sun never shines, the ocean.

originally posted by: soulpowertothendegree
a reply to: infolurker

I could end this all in 1 step. Take all the fake money on the planet and shove it where the Sun never shines, the ocean.

It's all Zeros and ones, these days..

You'd need an EMP..

originally posted by: crazyewok
How do you "just" find 2.7 trillion in debt?

Hey look! I found an IOU for 2.7T between the cushions on the couch.

Remember, the Treasury hasn't changed the federal debt level since March.
www.wsj.com...

The Treasury Department has used emergency measures to avoid breaching the debt ceiling, at $18.1 trillion, since mid-March. In August, the Congressional Budget Office estimated the U.S. would be unable to pay its bills without an increase in the borrowing limit by late November or early December.

$2.7 Trillion is what it has cost to keep the gravy trains rolling, the Meal Ticket's supporters subsidized, the bombs being produced, the POTUS jet setting, and thee illusion of economic "health" displayed for the past 7 months. In reality, it has cost much more than that because there's also the nearly $2 Trillion in tax revenue generated since March. So it took about $4.7 Trillion to ensure America didn't get sidetracked on it's journey straight to hell.

Geez

Just did a rough calculation

$62 trillion total debt
pop of US 325 million
equals a debt of $190 thousand (and climbing) for each and every person.

Come on people. You guys just need to work a lot harder and a lot longer...(sarcasm)..

HTF can an individual/collective ever hope to put a dent in this over their lifetime let alone live and prosper.

Most other countries arnt much better.

A currency reset is the only option or just keep playing the game again and again and again......

Another game of monopoly anyone?
Ill be the bank and Ive got infinitely deep pockets. Honest!

a reply to: crazyewok


It was discovered in Hilary's deleted emails...I didn't know you could spend that kind of money on shoes...

a reply to: DrumStickNinja

Did you gorge how expensive golf clubs were? Barry must be going through a set a week.

Also don't forget Michelle Obama sex change op is pretty expensive. As we can see she is only half way there so expect the rest to be found in a couple of years.

It would be nice if we had some other countries figures using the same metrics to compare against.

I just don't see how this much matters, tbh. We have the biggest guns, and most circulated currency. Debt kinda doesn't matter cause the system stopped being rational long ago.

The fed finding new debts is like someone getting a raise just because they want to.

Remember when rumsfeld and co. lost 2.3 billion and what happened next.

Just to through a spin on it.

What a joke all of this is. I truly do not see why it matters, 1% of the money in the world is physical only. And i said physical, this does not make it any more real than the digital money. The other 99% is ones and zeroes on computers.

Why not just hit the reset button on that debt counter, and keep up with the fake printing.

Honestly, the whole system is an utter sham. It is about time they admit it and start openly operating it as a sham. We could reset every few years, have a beer party!

No worries. We can just print more Treasury Bills, sell them to ourselves and pay them off at some future date.

Problem solved!!!

originally posted by: liteonit6969
a reply to: DrumStickNinja

Did you gorge how expensive golf clubs were? Barry must be going through a set a week.

Also don't forget Michelle Obama sex change op is pretty expensive. As we can see she is only half way there so expect the rest to be found in a couple of years.

That explains it all. Thank you for your valuable insight. I'm glad you were able to share it, rather than spend the time to put this into the perspective it so desparately needs.

originally posted by: AugustusMasonicus

No worries. We can just print more Treasury Bills, sell them to ourselves and pay them off at some future date.

Problem solved!!!

fuggedaboutit at this point there is no coming back my friend let's just say toilet paper will have less value than money!!!

originally posted by: dogstar23

originally posted by: liteonit6969
a reply to: DrumStickNinja

Did you gorge how expensive golf clubs were? Barry must be going through a set a week.

Also don't forget Michelle Obama sex change op is pretty expensive. As we can see she is only half way there so expect the rest to be found in a couple of years.

That explains it all. Thank you for your valuable insight. I'm glad you were able to share it, rather than spend the time to put this into the perspective it so desparately needs.

Seriously at this point, we're 62 Trillion in debt. What's another 2 or 3 or 500? It is all so outlandish and unfathomable. We're getting numb at all this extreme debt bullsh#t. It means nothing to me anymore it's so bizarre. It makes no sense and there's not a damn thing anyone of us can do about it.