By David Stockman. Posted On Tuesday, July 23rd, 2019
The US Treasury has been running down its GTA account for months to pay salaries and keep the government going.
This has been a net injection of money into the US economy.
It is akin to QE and has overwhelmed the effects of quantitative tightening (bond sales) by the Fed pulling in the opposite direction.
Or put another way, it has masked the underlying withdrawal of dollar liquidity.
US debt ceiling
“This agreement is a total abdication of fiscal responsibility by Congress and the president,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget, a Washington advocacy group.