#US Treasury

[workersolidarity]

🇨🇳⚔️🇺🇲 💵 🚨

CHINA DUMPING US DOLLARS AS TRADE WAR BREWS

China has sold nearly $100 billion in US Treasury holdings since 2023, and nearly $49 billion in US Treasury bonds in just the last quarter.

The findings were published by the US Treasury Department and reported in the Business media, detailing a pattern of the People's Republic of China dumping US Treasury bonds as a trade war begins brewing between the two economic powers.

#source

@WorkerSolidarityNews

[eternalistic]

"The American government’s big pile of IOUs is about to get even bigger.

That was the conclusion of the latest report from the Congressional Budget Office, which forecast this week that the US is on track to add $19 trillion to its national debt by 2034, with payments on that debt totalling some $12 trillion as higher interest rates increase the burden of the nation’s borrowing.

‍Serious interest

‍In the latest fiscal year, which ran to the end of September, the federal government raked in more than $4.4 trillion in receipts from individual taxpayers, with nearly half of that sum stemming from individual income taxes ($2.18 trillion). But, as many of us can surely relate to, the government's spending appetite consistently outpaces its income, resulting in a deficit of $1.7 trillion.

The magnitude of the national debt, currently ~$34 trillion in total, means that the government is shelling out nearly $2 billion a day on interest payments (~3% of GDP) just to service the debt. Were the government to somehow magically wipe out its debt — leaving it with no interest to pay — it would have saved a whopping ~$660 billion last year, though that still wouldn't be enough to get the overall federal budget back into the black.

The CBO forecasts have sparked a national conversation about the right level of federal spending, raising questions that beg political answers, rather than definitive economic ones."

[randomberlinchick]

The People's Republic of China | United States Trade Representative

Not even taking into account how much US debt China holds (currently 870 billion dollars) and concentrating strictly on trade, I'm not sure why some politicians are so comfortable with the "enemy" rhetoric. Pay off the debt and manufacture/assemble your own products, then you can talk shit. Or as my mom used to say, "Don't let your mouth write a check your ass can't cash."

But we all know how this story will play out: the debt ceiling will likely be raised, as the alternative would create havoc in global financial markets. For more see this article in Foreign Policy.

[thinkingofyours]

Did You Know? The United States Department of the Treasury Was Established in 1789

On September 2, 1789, the United States Department of the Treasury was established by an Act of Congress. This pivotal moment in American history marked the creation of an institution responsible for managing the nation’s finances, ensuring economic stability, and fostering growth.

The Treasury Department was founded to address the financial challenges faced by the young nation. It played a crucial role in managing government revenue, collecting taxes, and overseeing public expenditures. Alexander Hamilton, the first Secretary of the Treasury, laid the groundwork for the department’s operations and introduced policies that shaped the economic foundation of the United States.

Over the years, the Treasury has evolved to include various bureaus and offices, each dedicated to specific financial functions. From printing currency to regulating financial institutions, the Treasury’s responsibilities have expanded significantly.

Today, the Department of the Treasury continues to play a vital role in the economic health of the country, ensuring fiscal responsibility and promoting prosperity. Its establishment in 1789 remains a cornerstone in the history of American governance and economic policy.

[whats-in-a-sentence]

The Institute of International Bankers in New York, of which Tony Walton was vice-chairman, had addressed the problem in an April 1991 paper submitted to the US Treasury and the Internal Revenue Service, and continued to raise the issue in meetings with Treasury and IRS staff. The institute noted:

The key issue affecting the international banks arises in the context of cross-border interbranch transactions. For example, a US branch of an international bank that has entered into an interest rate or currency swap with a customer will often enter into a cross-border interbranch swap, the terms of which mirror the terms of the swap with the customer. The US branch's counterparty in such a 'mirror' interbranch swap will often be the bank's head office or another branch responsible for managing worldwide swap risk. The result is that the US branch has hedged its position economically through the mirror interbranch swap, and the bank's head office will be in a position to hedge the bank's overall position.

However, the IRS position is that US tax law does not recognise interbranch swaps or other interbranch transactions (although many countries treat branches of American banks as separate entities). Accordingly, a US branch of an international bank that hedges its swap transactions in this way will be treated by the IRS as if it held an unhedged position for federal tax purposes, even though the US branch is fully hedged economically. As a result, the back can have US taxable income far in excess of the bank's hedged economic income depending on the movements of interest or currency exchange rates. Likewise, depending on these market factors, a bank can generate a substantial tax loss in the United States, even though the bank has economic income on its hedged transaction.

The IRS has attempted to address the cross-border interbranch transactions arising from global trading operations by offering to enter into so-called 'advance pricing agreements' . . . between the affected taxpayer, the IRS and the home country tax authority of the taxpayer.

"Westpac: The Bank That Broke the Bank" - Edna Carew

[nationallawreview]

The SEC Continues Its War On Crime Victims

More than a decade ago, I expressed concern when the Securities and Exchange Commission charged Koss Corporation and one its CEO, Mr. Koss, with filing materially false financial statements after the corporation had discovered that it had been the victim of employee embezzlement. In the post, I decried the SEC’s decision to punish the victims of crime: The SEC’s decision to prosecute this case is…

[head-post]

US Treasury allowed transactions with 10 Russian banks for energy payments

The US Treasury Department extended transactions with official Russian banks for energy settlements, according to a document dated April 29 and signed by the director of the Office of Foreign Assets Control, Bradley T. Smith.

The Treasury Department issued General Licence 81 authorising “transactions related to energy” previously prohibited by Executive Order (EO) 14024. The authorisation would be “valid until November 1, 2024, unless renewed”, the Treasury announced.

The term “related to energy” means “the extraction, production, refinement, liquefaction, gasification, regasification, conversion, enrichment, fabrication, transport, or purchase of petroleum, including crude oil.”

The definition also implies “lease condensates, unfinished oils, natural gas liquids, petroleum products, natural gas, or other products capable of producing energy in any form, as well as the development, production, generation, transmission, or exchange of power, through any means, including nuclear, thermal, and renewable energy sources.”

The list includes the Central Bank of Russia, Vnesheconombank, Otkritie Bank, Sberbank of Russia, VTB Bank, Alfa-Bank and other major banks of the country.

Read more HERE

[workersolidarity]

🇺🇲 🏦 🚨 U.S. NATIONAL DEBT RISES ABOVE $34 TRILLION FOR FIRST TIME

The United States Federal Government's total public debt has risen above $34 trillion for the first time.

According to a U.S. Treasury statement from Friday, the Federal Government's total public debt topped $34 trillion on Thursday.

Maya MacGuineas, President of the Committee for a Responsible Federal Budget, said in a statement that "the U.S. gross national debt hit $34 trillion dollars Friday, which is barely three months after it hit $33 trillion, and this truly a depressing achievement."

"There is not a single economic reason to add to the debt at the rate we are, but sadly our political leaders are unwilling to make the changes we need to turn the fiscal situation around," MacGuineas added.

#source

@WorkerSolidarityNews

[pendantandring]

the 1T$ Coin - Let's Review

Up for discussion: The 1T$ coin. How do you vote? Yea or Nay?

The discussion of the one trillion dollar coin has returned to the news cycle. The New York Times posted an article titled, “The Coin, the Constitution, Premium Bonds: The Debt Limit Workarounds.” The mythical 1T$ coin is at the top of the page in Google search results, and we talked about it in our article, “Potential New Coin Law” a few weeks ago. In short, a senator from Utah and a state…

[revdrjamesjshowersjr]

Terrorist finance tracking program

SO Help Me God..Amen, Ameen, Amun Amin, Aum..

[m-ultraarticles]

Treasury: America is on the path to default on the first of June

US Treasury Secretary Janet Yellen confirmed Monday that it is unlikely that the department will meet all US government debt obligations by early June, leading the United States to default for the first time in its history.In her second message to Congress in two weeks, she added that the debt ceiling could become binding by June 1. The new date reflects more data on revenue and payments since…

[watchdogclue]

First Republic Bank to get $30 bn from Wall Street banks.

Global markets rebound after 11 US lenders rescued First Republic Bank. First Republic Bank (FRC) is set to receive a $30 billion lifeline from a group of 11 America’s largest banks, including JPMorgan Chase, Bank of America. Read more

[gentlemans-code20]

#Luminaries - Hank Paulson

Henry "Hank" Merritt Paulson Jr. (born March 28, 1946) is an American banker and financier who served as the 74th United States Secretary of the Treasury from 2006 to 2009. Prior to his role in the Department of the Treasury, Paulson was the Chairman and Chief Executive Officer (CEO) of major investment bank Goldman Sachs.

[head-post]

Chinese firms helping Russia face “significant consequences”, US Treasury Department says

US Treasury Secretary Janet Yellen has warned China’s banks of “significant consequences” if they provide material support to Russia to bolster its military capabilities, Bloomberg reports.

Yellen said on Monday in prepared remarks for a press conference at the US ambassador’s residence in Beijing, using an abbreviation for the People’s Republic of China:

“I stressed that companies, including those in the PRC, must not provide material support for Russia’s war, and that they will face significant consequences if they do. Any banks that facilitate significant transactions that channel military or dual-use goods to Russia’s defense industrial base expose themselves to the risk of US sanctions.”

Yellen’s threats came as Russian Foreign Minister Sergey Lavrov arrived in Beijing to discuss issues including Ukraine.

Read more HERE

[notayesmanseconomics]

What is the fallout from the failures of Silicon Valley Bank and Signature Bank.

We began the weekend with the US Federal Reserve on full alert to find out the extent of the current problems for the US banking system. There were elements of a bank run in play as there were some depositor queues and shares related to Silicon Valley Bank told a pounding, after trading in its shares was halted. Indeed we can start with an element of that became this on Friday. People lining up…