The Government's New Debt Plan and The Line Congress Won't Move: Two Quiet Ambushes Hiding in the American Housing Story

And look, the United States Treasury just announced a brand new borrowing plan, and it quietly turned the extra mortgage payments you've been sending into a $138,000 mistake.

August 3rd, the official press release.

The Treasury needs to borrow $739 billion this quarter.

That's July, August, and September.

That's $68 billion more than they asked for back in May.

They need more, they said.

And in the exact same breath, they casually mentioned, oh, by the way, next quarter we'll need another $628 billion.

Cool? Cool.

And if you take whatever extra cash you can scrape together every month, 100 bucks, maybe 500 bucks, and you hurl it at your mortgage, you're doing exactly what responsible people do.

It's what your parents likely told you to do.

And they weren't necessarily wrong.

Until maybe now.

You see, the Treasury's announcement just put a new price tag on that action.

And I'll show you the math behind it.

And whether it applies to you comes down to one single line item on your mortgage statement.

Let's start with why the government needs $739 billion this quarter.

It's pretty simple, because of their old bills.

That's why they need it.

You see, this year, for the first time in American history, the interest on the national debt passed Medicare.

Over $1 trillion a year, just interest.

Not roads, not aircraft carriers, just interest.

Meaning the government's fastest growing expense is the bill for its old bills.

That's like taking out a payday loan to pay off the credit card you used to buy Crocs in 2019. the government doesn't have the cash flow to cover their bills.

The net effect here is that the U.S. will go deeper into debt by $739 billion in what's called privately held net marketable debt.

Five words to avoid saying the four real ones.