- The Treasury General Account (TGA) is maintained by the US Treasury Department at the Federal Reserve Bank. It is used to manage the government’s cash flow and spending activities.
- Receives various deposits, including tax collections, and makes payments for federal spending, an important indicator of meeting financial obligations.
- The TGA drops like a stone; it had lost $50 billion this week while it lost $130 billion this month.
- The data on Fred is a weekly average currently reporting $109 billion left; however, daily account statements report only $87 billion left in the account.
- The new tax bills are not making it through the runoff created by Secretary Yellen and Congress continuing to spend.
- What does this mean? The government will run out of money shortly in a matter of weeks. The FDIC will not be able to insure deposits and we could face a government shutdown.
- We would expect more discussion on raising the debt ceiling, which means printing more money and further debasing the currency.
- Are Gold and Bitcoin smelling this downgrade that could happen anytime soon? As Bitcoin is up 10% this week and gold continues to hit new highs.
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