AMERICA'S DEBT HITS $40 TRILLION, AHEAD OF SCHEDULE
The Supreme Court struck down Trump's tariffs and took $250 billion of revenue with them. His war kept billing. In the same quarter his two largest creditors stepped back. The ceiling is one trillion away.
Treasury counted $39,933,634,466,112.78 in federal debt on Friday. It passes $40 trillion this week. Six months ago the Congressional Budget Office, which does the government's arithmetic, projected that borrowing would top out at $39.4 trillion for the whole fiscal year. Washington blew through that number in the spring and has not stopped.
Trump's own Supreme Court is why. The justices struck down his Liberation Day tariffs, and the government lost an estimated $250 billion of revenue it had already been spending. Treasury borrowed more on top of that to rebuild the cash it keeps on hand. The war with Iran keeps billing.
Then his creditors moved. Treasury's own release last night shows foreign holders cut $72.1 billion of American government debt in June, down to $9.299 trillion. Japan sold $26.4 billion. China sold $25.9 billion. The Cayman Islands sold $18.2 billion, Hong Kong $16.1 billion, Britain $8.7 billion. Strip out the private money and it is worse: foreign central banks and government funds together pulled $69.9 billion out.
Traders noticed. The 30-year Treasury touched 5.337 percent this morning, a one-year high, before easing back. The 10-year sits at 4.72. Germany's 10-year is at its highest since March 2011. Drudge ran the whole thing under two words: SELL AMERICA.
