Empty coffers

The cash balance of the US Treasury has dwindled from USD 800 billion a year ago to just USD 60 billion as of last Friday, the latest data shows. Politicians all the way up to the White House are frantically talking about a potential deal that will probably be a combination of raising the USD 31.4 trillion debt limit and a slower increase in spending by the US federal government. Meanwhile, Janet Yellen, the secretary of the treasury, continues to warn for a default, which she believes would be catastrophic. Estimates by Goldman Sachs show the Treasury is likely to run out of cash by 8 June. At the same time, influential investor Warren Buffet continues to buy short-term US government debt.

Source: US Treasury, 2023.