Treasury to Borrow $776 Billion in the Final Three Months of the Year (Micro News for November 4, 2023 – November 10, 2023)

The U.S. Department of Treasury announced it would borrow another $776 billion in the fourth quarter of 2023. While high, this amount is less than the $1.01 trillion the government borrowed in the third quarter. The government borrows these funds by issuing U.S. Treasury securities which include Treasury bills, notes, and bonds.

Janet Yellen Warns Shutdown Would Be “Dangerous and Unnecessary” (Macro News for September 30, 2023 – October 6, 2023)

Janet Yellen, Secretary of the U.S. Department of the Treasury, plans to issue a stern warning to Congress about the negative impact of a government shutdown. Yellen stated a shutdown would "undermine the American economy" and disrupt government operations. Without immediate action, it appears a government shutdown is becoming more probable.

Denmark Has a Debt Ceiling, Too. It’s Never Been a Problem (Macro News for May 6, 2023 – May 12, 2023)

The United States is approaching its self-imposed debt limit again and the political fiasco threatens the global economy as well as the U.S. economy. The U.S. has been forced to raise its debt limit 78 times since 1960 and it needs to bump the limit up again to continue operating. Denmark is the only other developed nation that has a debt limit, but the European country sets its limit high enough to avoid political dramas associated with raising the debt limit. Danish lawmakers have only increased their nation's debt limit one time since it was imposed in 1993 and it was a precautionary increase due to the financial crisis of 2008. Government borrowing was not even near the limit, but the nation's lawmakers wanted to calm investors' fears.

Christine Lagarde Says She Has ‘Huge Confidence’ That the U.S. Won’t Default on Its Own Debt (Macro News for April 15, 2023 – April 21, 2023)

The former managing director of the International Monetary Fund (IMF) and the current president of the European Central Bank (ECB), Christine Lagarde, stated that she was confident the U.S. would not default on its debt. Lagarde also said it would be a major disaster that would have a "very, very negative impact" on the U.S. and the global economy if a default did occur.