While foreign nations under the BRICS+ umbrella have accelerated a de-dollarization process and sharply reduced their holdings of United States Treasury bonds amid a soaring U.S. national debt and deficit crisis, them wagging the wardog by its tail brings to mind ancient symbolism. The ouroboros is the symbol of a snake or serpent eating its own tail, which is derived from the Greek word meaning “tail-devourer.”

 

Here’s an excerpt from the “Tail Wagging the Dog Before the Next Bond Storm” published last month:

“Lurking behind a surge in United States government bond yields since the spring of this year are the two largest players in the market that have stopped buying U.S. Treasury debt… China has rapidly reduced its Treasury holdings since 2021… lowered by a total of $500 billion since 2014, which adds China to the net seller category. Foreign central banks usually purchase short-term bonds for dollar reserves to achieve policy goals no matter what the yields are because they are not a long-term safe haven investment such as gold reserve holdings… Treasury Secretary Janet ‘Yellen does not live in reality’ when she says the U.S. can ‘certainly’ afford military war support for both Israel and Ukraine. I guess all is good if Janet says so. Unfortunately, the math does not add up, and a deluge of U.S. debt issuance is slated to flood the bond market in 2024 to finance our government that’s devoid of a debt ceiling and fiscal responsibility… Jamie Dimon’s (JPMorgan CEO) biggest fear is the insane level of national debt along with ‘the largest peacetime fiscal deficits ever.’” – TraderStef

After a brutal debt ceiling battle in congress, House Speaker Kevin McCarthy was voted out of office on Oct. 3 and replaced by Mike Johnson on Oct. 25. Congress has until Nov. 17 to legislate an updated debt deal to keep the government’s lights on a bit longer or risk a shutdown. After two decades of kicking that can down the road and hopium that the next congress and White House administration would solve a debt crisis that is morphing into a U.S. sovereign debt credit rating crisis, the most likely course of action is another short-term funding bill to literally buy more time for more meetings about the meetings.

 

Peter Schiff’s team penned an article on the U.S. sovereign debt and deficit situation after the latest temporary debt Band-Aid prior to McCarthy’s ousting from office. Here’s an excerpt:

The Ticking Time Bomb Gets Closer to Zero as the National Debt Quietly Blows Past $33 Trillion… “It took the Biden administration just three months to add another $1 trillion to the debt. It eclipsed $32 trillion back on June 15. The debt has gone up at a dizzying pace. The government has added $1.58 trillion to the national debt since the end of the fake debt ceiling fight. In just one year, the Biden administration has added $2.16 trillion to the debt… It’s hard to overstate just how bad the US government’s fiscal situation has become. We have a trifecta of surging debt, massive deficits and declining federal revenue… Uncle Sam’s interest expense is already rising at an astronomical rate, and it’s set to explode… The national debt has been growing for so long that most people just shrug when we talk about it. Nobody seems particularly concerned outside of a handful of contrarians.” – SchiffGold, Sep. 19

 

What does the ouroboros symbol have to do with our zombie debt situation? Well, unbeknownst to us plebes is that Hamas would invade southern Israel on Oct. 7 and slaughter 1,400 civilians of various nationalities, grabbing a couple hundred hostages and launching another meat grinder battlefield on the road to WW3 when Israel declared war against Hamas in the Gaza Strip. That unexpected wrench in the works came at a time when the collective West’s support for NATO’s proxy war against Russia in Ukraine was waning.

I opined on Zelensky’s ultimate trip to a despotic trash bin in “The Surge of ‘Little Green Men,’ and Metal is Poised to Strike” Part XV: Z’s End (Twitter thread) and Checkmate in XVI (ongoing thread). Yesterday, TIME magazine published a cover article that quotes Zelensky’s closest aides describing him as stubborn and delusional since Ukraine is not winning the war against Russia. The new battlefield in the Mideast is covered in “Revisited: JERUSALEM! The Hamas in the Box Effect” published on Oct. 7 (thread), and then Reckoning (ongoing thread) the following week. It was reported today that Israeli forces are advancing and surrounding Gaza City from two sides, and is dividing the Gaza Strip in two.

Financing war is extremely expensive, and the U.S. is faced with supporting Ukraine and Israel at the same time. Zelensky is not thrilled with the new House Speaker because he is not hip to throwing more billions and weapons to Ukraine. Johnson favors focusing on Israel instead since Ukraine is no longer the West’s focus in the legacy media presstitute machine. The political winds of change are fluent nowadays. Consider the following interview clip with Rep. Matt Gaetz where he revealed what happened behind closed doors that cleared the way for Johnson to be the new Speaker.

Kevin McCarthy Tried to Sabotage the Speaker Race and FAILED! – Matt Gaetz, Oct. 25

 

While Halloween is underway in the U.S., the House and Senate are in a dogfight on funding our debt problem with major disagreements over aid to Israel and Ukraine and only a couple of weeks left before a government shutdown. An issue at hand is that GOP and Democrat neocons want taxpayer funds for Israel and Ukraine in the same spending bill and have refused to consider any legislation that is not a “one and done” approach. An emboldened Republican majority in the House wants Israel’s supplemental aid package to be separate from Ukraine, and Biden is gunning to jam $105 billion (including $14B to Israel and $60B to Ukraine) through the halls of congress. The House’s plan to have separate funding bills is DOA in the Senate, and the Senate’s “one and done” package is DOA in the House. It’s quite a dilemma we have going on. Both chambers must pass 12 appropriations measures for 2024 or deal with a 1% across-the-board cut to defense and nondefense spending. Here’s a taste of how the political chaos is playing out on Capitol Hill.

Congress eyes aid package for Ukraine, Israel – ABC News, Oct. 30

 

Rand Paul on McConnell Combining Aid Packages – Forbes, Oct. 31

 

Anti-war protest disrupts Congressional hearing on war funding – CNBC, Oct. 31

 

Meanwhile, the U.S. debt burden is exploding as the world faces total annihilation due to the growing likelihood of a widening Middle East war. Billionaire hedge fund manager Stanley Druckenmiller had a chat with Paul Tudor Jones that was released yesterday where he verbally eviscerates the government and Treasury Secretary Janet Yellen for “fiscal recklessness.” Buckle up, savvies, because our near future is wrought with expanding battlefields of war and bickering among politicians. The current administration continues to put forth spending like a drunken sailor and is complicit in destroying themselves and our country in the process. They are “tail-devourers” while the U.S. debt market is on a quickened road to ruin and default.

“When rates were practically zero, every Tom, Dick, Harry, and Mary in the United States refinanced their mortgage… Unfortunately, we had one entity that did not, and that was the US Treasury…  I literally think if you go back to Alexander Hamilton, it was the biggest blunder in the history of the Treasury. I have no idea why she’s not been called out on this, she has no right to still be in that job… The math has gone crazy.” – Druckenmiller

 

Interested in a deep dive of how dire the sovereign debt situation is that’s developing? Larry Lepard’s interview at Quote the Raven is worthy of a must-listen-to hour.

“The point is, as more and more people come to realize they can never stop printing money, they can never stop debasing a currency… Having 12 policymakers and 400 PhDs at the Fed who set the interest rate, that is not a free market.” – Lepard

Unprecedented Fiscal Doom Loop, Think ‘Quadrillions’ – QTR, Oct. 26

 

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TraderStef on Twitter, Gettr / Website: TraderStef.com