The last time the Obama Administration ran the Treasury Department this time of year, the Federal government issued $232.5 billion in net new supply during the period of January 20-March 15. That's a huge number, but it's completely typical for that time window, when new debt issuance has typically run $200-$300 billion. The government needs a lot of cash during that time frame because it is sending out the largest chunk of tax refunds. People who are due refunds tend to file earlier, and February is the biggest month for refund checks to go out.
Cash Ark For 40 Days and 40 Nights, But Big Flood Comes Later
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David Stockman’s Contra Corner isn’t your typical financial tipsheet. Instead it’s an ongoing dialogue about what’s really happening in the markets… the economy… and governments… so you can understand the world around you and make better decisions for yourself.
David believes the world -- certainly the United States -- is at a great inflection point in human history. The massive credit inflation of the last three decades has reached its apogee and is now going to splatter spectacularly.
This will have lasting ramifications on how governments tax and regulate you… the type of work you and your family members will have available and what you get paid… the value of your nest egg… and all other areas comprising your quality of life.