While the debt ceiling negotiations drag on in Congress with no end in sight, the feds keep spending away, all while official US debt remains capped at $14.345 Trillion.
Since US debt hit the ceiling on May 16th, the feds have spent (borrowed out of federal employee pensions) $265 billion!!
What this means is that when the debt ceiling increase finally is approved, Turbo Timmy will be forced to auction off an ADDITIONAL $265 Billion in treasuries BESIDES the $100 Billion/month normally required, just to refund the public pensions.
Still think QE is over? Who in the heck is going to buy at additional $265 billion in treasuries?
No one anywhere on this planet not named The Fed or The Bernank will touch an additional $265 billion in t-bills.
Now do you understand why we will see QE to Infinity...AND BEYOND!! ?
From Zerohedge:
Since May 16, the cumulative divergence between where total debt is and where it should be is now a whopping $265 billion. That's right: when the debt ceiling cap is finally lifted, and it will be lifted, with republicans "kicking and screaming", Geithner will suddenly find himself needing to plug a gap of over 2 months worth of accrued treasury issuance. Mathematically, this means the Treasury will have to sell not the $100 billion or so in net debt but well over double that in August and September.
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