Source; Monthly Treasury Statement, February 2023 FY2023 Cumulative Net Interest; $235 Billion Same period last fiscal year; $168 Billion ……equates to a 40% increase. Fiscal 2023 year end estimate; FY2022 Net Interest; $475 Billion + 40% = $665 Billion!!!!!!! Nearly an increase of $200 Billion ————- Next, Monthly Treasury Statement, “Miscellaneous Receipts” What the heck is this? Well, MR is the interest our Treasurer paid to the Federal Reserve, and then, approx. 75% of their earned interest was “Returned to Sender” MR prior to the Pandemic; $85 Billion (FY2019) MR after the Fed significantly increased their Treasury Securities holdings; $135 Billion (FY2022) …….an increase of $50 billion However, it’s a short term “Token of appreciation”, due to the fact that the Fed will eventually shrink/sell X amount of their Treasury Securities Holdings to XYZ Foreign Nation, ABC Mutual/Pension fund, and other investors. Last, to the Republicans who believe that Biden’s record receipts was solely due to Trump’s tax cuts…….Huuuuummmm, I could show you at least $120 billion of additional receipts that certainly aren’t tax cuts related, such as “Miscellaneous Receipts”
Yeah, not 75% Return to Sender. Fed remittances to the treasury fell off the cliff when interest rates started going up https://fred.stlouisfed.org/series/RESPPLLOPNWW
We are not on the same page so to speak. Google; Federal Reserve Board announce Reserve Bank income and expense data, and transfers to the Treasury 2022 Also, their U.S. Treasury Remittances are ANNUAL, whereas the + $50 billion I stated is FISCAL.
The only difference between annual and fiscal is when to start the year. The federal government starts their year in October as long as I have been alive. Your MR are nose diving as shown by the chart I provided. You act as if this is an political left right thing. It isn't. It is an economics and finance thing. Quantitative tightening as they like to call it is all well and good, but it is not without its consequences. In this case, it is not being terribly effective at its stated goal of lowering inflation and as my chart would show you if you think about it, it is creating a liquidity problem. A big chunk of that money not going to the treasury as it normally would is being used, along with the money from the liquidation of bonds from their balance sheet, to prop up the financial sector that is struggling to meet their reserve requirements and have money to lend and cover interest they pay. People are cleaning out their savings to cope with inflation, maxing out their credit, and are faced with growing interest rates when they borrow. Many businesses are in no better of a situation. There is just a whole lot of ugh in front of us economically. There is nothing political about it all. It is just reality. Vote red won't change it. Vote blue won't change it. I really see no way the Fed can keep trying to forestall the inevitable "correction" for much longer as we are at the point they are reinforcing the inflation they are supposedly fighting. They need to just stop adding to the interest and let the deferred COVID recession happen.
