Goldman Sachs: US Treasury will run out of cash by June 8-9

The US Treasury Department will run out of cash needed to fund the federal government's obligations by June 8 or 9 unless the debt ceiling is raised. This conclusion was made by the experts of the bank Goldman Sachs in their report.

They explained that the Treasury is now implementing "extraordinary measures" as the US hit its $2023 trillion debt ceiling in January 31,4. The measures include moving funds between certain accounts to pay government bills. However, the Treasury can only use emergency measures as long as the balances in these accounts remain above $30 billion. Then it will not be able to fulfill the obligations of the federal government.

Goldman Sachs experts have already informed clients about this.

Receipts could slow more than expected and the Treasury will soon run out of cash

Bloomberg quotes a note from experts to clients.

The bank's experts also pointed out that on May 18, the Finance Ministry's cash balance was just over $57 billion, although the day before it had about $92 billion.

We are confident that Congress will avoid the deadline without action, but there are many paths this could take.

economists warned in their report.

They believe that both the US administration and Congress will agree to a debt ceiling deal this week. They estimated this probability at 30%. Experts assigned another 30% to the option in which the transaction takes place "shortly before" the deadline.

Earlier it was reported that on March 10, bankruptcy объявил Californian Silicon Valley Bank. It was the largest financial event of its kind since the 2008 crisis. Along with it, the bank pulled many legal entities affiliated with it to the financial bottom. Along with this, the positions of other financial groups also fell sharply. To some extent, the fight against inflation led to this banking crisis.
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  1. Monster_Fat Offline Monster_Fat
    Monster_Fat (What's the difference) 22 May 2023 14: 43
    (Yawning). They will increase the range of "debt" that's all. Every year there is such a tradition - "in the beginning chants", and then - the expansion of "debt". Here it is necessary to understand a little the role of the dollar. Prior to the Breton Woods Conference, each country used either gold or its own currencies in the exchange of goods when converted through the gold coefficient. During the Breton Woods Conference, it was decided to shift the role of gold to the dollar. What does it mean? And this means that the dollar is no longer the equivalent of only the American economy, it is the equivalent of the American economy plus the foreign trade obligations of other countries. Guess what's the point? wink That is, how many deals are concluded between countries in dollars, so much is the increment in dollar debt. Plus, external and internal credit obligations in dollars, which the Fed should cover. So, it is absolutely natural that the "debt" of the United States is constantly growing, as the world economy is growing and the obligations of all banks in dollars are growing. And now added to this is an unprecedented dollar inflation.
    It's okay - the "ceiling" of debt and that's it.
  2. Vladimir Tuzakov (Vladimir Tuzakov) 22 May 2023 20: 40
    How not to remember Popandopulo their movie "Wedding in Malinovka". Popandopulo to his "friend": - Yes, take more, take everything (money), I'll draw myself more. So is the Fed, antics for the sake of form, but in fact they will increase the debt ceiling for the 35th time, an old circus act for the suckers of the world. Yes, only the numbers of the FRS circus have already become boring and the audience can leave.