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America Will Pass $13 Trillion In Total Debt Next Tuesday; $397 Billion In Debt Rolled Month To Date

Tyler Durden's picture


Total US debt just hit $12,987,823,000,000, $13 billion from lucky $13 trillion. As next week the US Treasury is auctioning off another gross $140+ billion in Bonds, we will pass this totally irrelevant resistance level on May 25, when Timmy issues another $42 billion of 2 Year Notes. The next important support level of $14 trillion will be surpassed around the time the Democrats get destroyed in the mid-term elections, while the statutory debt limit of $14.3 trillion will likely have to be raised in January 2011 by a new republican majority, an action which will promptly reduce popular republican support following their ladnslide election victory, thus starting the pointless D->R->D->R etc cycle all over again. Also, at approximately that time headlines that US debt is now 100% of GDP will bring the US bond vigilantes out of hibernation and will send US interest rates soaring, assisted by Ben Bernanke's most recent announcement that the Fed will is once again"forced" to purchase another $1.5 trillion in treasuries and mortgages. 

Stepping away from the Ouija board, we also notice that so far in April, the Treasury has rolled another unsustainable amount of Treasuries: $397 billion, of which $$359 billion is in Bills.

The clock to the US' hyperstagflationary period is now ticking louder than ever


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Fri, 05/21/2010 - 18:14 | 366796 Argos
Argos's picture

Ho hum, just another day in Crazyland.

Fri, 05/21/2010 - 20:51 | 367038 Rusty Shorts
Sat, 05/22/2010 - 09:35 | 367499 Crime of the Century
Crime of the Century's picture

No sorry - you skipped the first tune:

your dance party has been preempted...

Sat, 05/22/2010 - 11:11 | 367581 66Sexy
66Sexy's picture


ah.. that explains last weeks volatility, perhaps even the fat finger discount.

Sat, 05/22/2010 - 11:34 | 367608 Damn the Federa...
Damn the Federal Reserve to Hell's picture

We need this man to be elected President!!!!!!

Sat, 05/22/2010 - 15:33 | 367866 chumbawamba
chumbawamba's picture

President?  More like Mother Fucking Global Dicator for Life!!!

I am Chumbawamba.

Fri, 05/21/2010 - 22:00 | 367133 ISEEIT
ISEEIT's picture

Is it just me or does 'community activist' as Prez seem like a somewhat short of brilliant idea? I just finished observing the 'ONE' on CSPAN. Haven't laughed so hard, nor felt so gut check sick before in my life.

We are living the definition of surreal.

Sat, 05/22/2010 - 15:49 | 367892 chumbawamba
chumbawamba's picture

A Community Activist has every bit of succeeding at President as anyone in any other profession.  Exceptionalism can be found in all walks of life.

The problem is duping an entire populace into believing they have "elected" a leader who is in reality a pre-chosen figurehead for a hidden group of "elites" that actually call the shots.

I am Chumbawamba.

Sat, 05/22/2010 - 19:53 | 368084 spekulatn
spekulatn's picture

Al Sharp would call that an UNCLE TOM, no?

Sat, 05/22/2010 - 21:51 | 368171 tip e. canoe
tip e. canoe's picture

i believe he would.  perhaps one day he will.

Sun, 05/23/2010 - 13:04 | 368754 ISEEIT
ISEEIT's picture

With all due respect (lots), I would say that the larger problem is a populace so easily duped. American idol as prez...WTF?

Mon, 04/04/2011 - 03:26 | 1131541 jessiejune
jessiejune's picture

it is really a question i meet too.
the day after tommorow will be a happy day and maybe we should go anywhere else to make fun .just say something about Maize Milling Machine

Fri, 05/21/2010 - 23:22 | 367211 Clinteastwood
Clinteastwood's picture

When they call the roll in the Senate, the Senators do not know whether to answer "Present" or "Not guilty." Theodore Roosevelt

Sat, 05/22/2010 - 20:01 | 368089 Moneygrove
Moneygrove's picture

but the tax cuts are just kicking in !!!!!!!! GDP to the moon !!!!!!!!!!!!!!! 5.5 trillion plus the 2 wars on g.w`s watch suckers !!!!!!!!!! p.s. can I get a no bid contract to clean up the gulf oil spill ??????????????????

Fri, 05/21/2010 - 18:19 | 366809 Common_Cents22
Common_Cents22's picture

We can buy time as long as other countries continue to blow up financially.  You can't outrun a bear in the woods, but you can buy time by outrunning your buddies.

Fri, 05/21/2010 - 19:04 | 366869 VegasBD
VegasBD's picture

Ha! Great analogy!

Fri, 05/21/2010 - 19:56 | 366941 UGrev
UGrev's picture

Thread winner!

Sat, 05/22/2010 - 03:05 | 367359 John_Coltrane
John_Coltrane's picture

And smear some "greece" on their European asses just to make sure!  Bears love greece.

Sat, 05/22/2010 - 11:13 | 367585 66Sexy
66Sexy's picture

grease and bears stop it im gettin horned up

Fri, 05/21/2010 - 19:59 | 366946 LeBalance
LeBalance's picture

The Great and Proud United States of America:: tier together of friends' shoelaces.

Sat, 05/22/2010 - 01:45 | 367306 DaveyJones
DaveyJones's picture

From the film Collapse, Mike Ruppert

Sat, 05/22/2010 - 08:55 | 367477 tizzleofdoom
tizzleofdoom's picture

if any of your buddies are faster than you.........trip them!

Fri, 05/21/2010 - 18:21 | 366813 bigdumbnugly
bigdumbnugly's picture

Yeah but you know, a couple umteen trillion here and a couple umteen trillion there, and pretty soon your talking real money.

Fri, 05/21/2010 - 18:21 | 366814 sheeple
sheeple's picture

hey Miscreant, time to rehearse your "roll roll roll your debt"

Fri, 05/21/2010 - 19:11 | 366836 Hephasteus
Hephasteus's picture


Roll roll roll your debt gently down the stream. Merrily merrily merrily life is but a dream.

Kite kite kite your check gently cross the sky. Merrily merrily merrily life is but a cry.

Kick kick kick your can. Gently down the road. Merrily merrily merrily freedoms going to corrode.

Fri, 05/21/2010 - 19:46 | 366921 SayTabserb
SayTabserb's picture

...brilliant.  But for cadence:  2nd verse -

we're all gonna die

3rd verse -

merrily merrily merrily, waiting to explode...

Although we need as many verses as possible - this game is going to go on for a while...

Fri, 05/21/2010 - 19:59 | 366947 Hephasteus
Hephasteus's picture



Sat, 05/22/2010 - 03:45 | 367372 akak
akak's picture

Since we're singing debt songs, I had one from another thread that I might interject here:


My charge card 'tis of thee

sweet tool of usury

please bring me bling.


Land where my credit died

land of the card: DENIED

from gallows far and wide

watch debt slaves swing!

Sat, 05/22/2010 - 05:55 | 367403 i.knoknot
i.knoknot's picture

generally clever, but "please bring me bling" hit a 'chord' - classic.

Sat, 05/22/2010 - 15:58 | 367907 chumbawamba
chumbawamba's picture


Here's mine:

27 EU Nations in the EMU

27 EU Nations

Take one down, in debt make it drown,

26 EU Nations in the EMU

Eh, they cadence is all fucked up :(

I am Chumbawamba.

Sat, 05/22/2010 - 03:06 | 367360 John_Coltrane
John_Coltrane's picture

"A rolling loan carries no loss"  Famous quote from Depression era banker.

Sat, 05/22/2010 - 09:42 | 367503 Crime of the Century
Crime of the Century's picture


Fri, 05/21/2010 - 18:21 | 366816 Henry Chinaski
Henry Chinaski's picture

It was $11,700,000,000,000 only 10 months ago.

Sat, 05/22/2010 - 01:52 | 367316 Celsius
Celsius's picture

Let it ride on black 14. We are the USA! We can never lose...

Fri, 05/21/2010 - 18:23 | 366817 cougar_w
cougar_w's picture

It's less scary if you write it as "$13T".

Actually no, it isn't. Just kill me now.

Fri, 05/21/2010 - 19:05 | 366871 dumpster
dumpster's picture

even better


DR death

Fri, 05/21/2010 - 19:14 | 366884 MaxVernon
MaxVernon's picture

or, in scientific notation (!)  1.3 x 10^10 !!!

Fri, 05/21/2010 - 20:01 | 366951 silvertrain
silvertrain's picture

or just say it real fast.

Sat, 05/22/2010 - 01:43 | 367303 EscapeKey
EscapeKey's picture

float's will run out of precision soon... time to start emigrating all that code to double's.


Sat, 05/22/2010 - 06:24 | 367415 JacksCompleteLa...
JacksCompleteLackOfSuprise's picture


Sat, 05/22/2010 - 16:00 | 367909 chumbawamba
chumbawamba's picture

Naw, just store it as a text string.  PHP will handle the rest.

I am Chumbawamba.

Sat, 05/22/2010 - 03:09 | 367362 John_Coltrane
John_Coltrane's picture

Hey, its still smaller than a mole (6 x 10^23) of $!

Sat, 05/22/2010 - 09:26 | 367494 Byte Me
Byte Me's picture

It is now, but in a few years?

Sat, 05/22/2010 - 09:44 | 367506 Crime of the Century
Crime of the Century's picture

Better get that mole checked, looks like cancer...

Sat, 05/22/2010 - 16:04 | 367918 chumbawamba
chumbawamba's picture


You don't have to be a chemisty nerd to appreciate that one.

I am Chumbawamba.

Fri, 05/21/2010 - 18:32 | 366826 hambone
hambone's picture

Yeah, whatever...but more importantly - who's going to win American Idol next week...Lee or Chrystal?  I'm kinda pulling for Lee.  He's got that good grunge thing going but Chrystal really has a great voice.  I'm on pins and needles!!!

Sat, 05/22/2010 - 16:05 | 367919 chumbawamba
chumbawamba's picture

You actually know the names of the AI contestants?

I am aghast, and Chumbawamba.

Fri, 05/21/2010 - 18:34 | 366829 RobotTrader
RobotTrader's picture

So far, the more debt we rack up, the appetite for our bonds has become even more voracious.

To wit, note that the 30-yr. yield came within a hairsbreadth of 3.99% this morning, and the 10-yr. at 3.1%.

Thirty years ago, our debt was less than a fourth of what it is now and interest rates were driven up to 15% by the "bond vigilantes".

Seems like as we lurch from one "convulsion" to the next, investors will instantaneously flee to our gilt-edged bonds and our currency for safety.

Bond shorts have been destroyed the last two months.



Fri, 05/21/2010 - 20:49 | 367036 Kina
Kina's picture

If the bus slows down too much it explodes. The never ending journey. Hope it is a solar powered bus, as the stock market tells us the sun is always shining.

Sat, 05/22/2010 - 01:48 | 367312 Double down
Double down's picture

When this is over I doubt there will be any currencies left other than the USD.

That debt sealing is as fragile as a soap bubble is to a bullet.  

Sat, 05/22/2010 - 03:13 | 367363 John_Coltrane
John_Coltrane's picture

But once we go negative bond holders will "owe" the government interest for selling them bonds and we can finally get a big GDP boost!  Then all we ZH polllyannas will be singing a different tune!  (Negative interest rates-Ben's real plan)

Sat, 05/22/2010 - 03:42 | 367373 dumpster
dumpster's picture

soort of like junkies om narcotics,  just because the idiots are living off  borrowed time . may as well double down on the drugs ,, the problem comes in the withdrawal.

the shorts have been destroyed .. so they are just closer to the dry heaves . the screw will turn .

in the meantime longs eat your guts out

Sat, 05/22/2010 - 11:18 | 367593 Carl Marks
Carl Marks's picture

Not destroyed because I haven't taken the loss yet. Kinda like the US of A. I got an idea from the gold bugs. Demand payment from Uncle Sam in physical paper. 

Fri, 05/21/2010 - 19:08 | 366839 hambone
hambone's picture


you are so right that the world is so F'ed up that they are coming to US T's for "safety".  So, you think we got problems, look around.  Only trouble is this further encourages massive borrowing at subprime rates for debt we never intend to pay back (only roll over into infinity...we haven't reduced national debt since 1960).  So, we are encouraged to take more and more until some day, bang.  People will become cognizant of the fact that not only can we not pay the principal, we can't pay the interest (think $13 or $14 or $15T at 5% interest - that's $750b interest payments alone (not even including rollover costs on existing T's) on less than $2T tax revenue).  All this with the shortest maturities (4yrs?) of any G20 country.  That day of recognition is the end of the game (ask Greece, they know that day when their rates went ballistic).  Look at the fallout from that.  Think Spain, UK, Japan, Mexico, US, any of those coming to that day of recognition.  Imagine this happening like domino's chasing more money into the remaining countries making the fall that much more spectacular.  Good thing is you don't really have to have much of an imagination to foresee the implications.

Fri, 05/21/2010 - 19:36 | 366911 Nonconformist
Nonconformist's picture

Not to worry.  When the day comes, the G20 will get together and agree on a "one time" 100% of GDP monetization of government debt.  Instantly, governments are solvent again and free to start the whole process all over again.  The banks will be saved and only the poor individual citizens will be left to deal with their individual bankruptcies.  With a little luck, the monetization will happen at a rate that approximates the deflationary forces so prices remain fairly constant.  The only trick to all this is that the economy still hasn't grown so eventually the news has to be broken to the general population that we are not as prosperous as they think we are and everyone will need to take a 10%-20% cut in pay inorder to get back to full employment.  Of course the easiest way out for the politicians would be to monetize enough debt to cause 20% inflation while wages remain stagnate.  Fudge the CPI enough that no one really notices too much and entitlements don't have to rise and we are back to full employment and no one is the wiser.  I'm quite confident Ben is the man for the job or at least congress is hoping he is.

Fri, 05/21/2010 - 20:21 | 366987 silvertrain
silvertrain's picture

 Im leaning heavily in that direction.Something along those lines with maybe a wrinkle hear and there..

 What about metals?

Fri, 05/21/2010 - 21:03 | 367060 Nonconformist
Nonconformist's picture

If monetization, stagflation and muddling through are our future, I really don't know how well PMs will act as a store of value.  I prefer commodities when they are trading for less than the cost of marginal new production.  The closer to cash operating costs the better.  

Fri, 05/21/2010 - 22:55 | 367187 silvertrain
silvertrain's picture

Thanks for your response..I always value and welcome with open arms well informed views such as your's..

Sat, 05/22/2010 - 03:45 | 367375 dumpster
dumpster's picture

well informed lol

commoditys ..  gold is  monetary real money .

and for ten streight years it has been going up  .. senseing the flight to the bottom even on the gilt american pile of sludge


Sat, 05/22/2010 - 09:03 | 367479 silvertrain
silvertrain's picture

 I agree that gold is money and nothing else.I own silver and will continue to buy as much as I can. But I want to hear as much as I possible can from as many angles as I can and then will use that to do what I think Is in my Best interest..Thanks

Sun, 05/23/2010 - 03:28 | 368364 dumpster
dumpster's picture

 burma shave

heck the side that refuses to see gold .. is not a side to consider,

here i have a toxic transferable cancer   touch me .

the time has come to face the rot with dignity and forsquare deligence.

they have no case.

Sat, 05/22/2010 - 02:24 | 367345 Burnbright
Burnbright's picture

I very much doubt that people will just lay down and take their anal probe. It isn't even going to be a matter if they can or not, we have been pushed to the brink at which production is in the hands of the few and so is all the capital. It will end in either revolt or an end in confidence. The currencies themselves will lose all meaning when a majority of the world population no longer owns any capital, can't produce any capital legally for themselves, and doesn't have access to money. They will simply stop using paper currency because it will be a greater liability than asset.

The dollar and all other currencies with each bail out destroy themselves a little at a time.

Sat, 05/22/2010 - 02:41 | 367351 Hellholeratrace
Hellholeratrace's picture

I'm not so sure.  This "revelation" could take a very long time.  My current personal experince is showing me that people are very stubborn in believing that anything is really wrong and they are tending to believe that it is something they have done wrong. Oh, what a perfectly designed system.  Too much built in, designed complacency for any one to actually do anything.  I have a hard time even trying to convince my husband of where we are heading, and he's a smart guy.  And that is what scares me. 

Sat, 05/22/2010 - 09:07 | 367480 silvertrain
silvertrain's picture

 There comming around.My wife use to NOT be on board but has changed recently.Patience is the virtue.

Sat, 05/22/2010 - 11:42 | 367615 Rainman
Rainman's picture

I cannot discuss macro finance with the missus ever. I have learned that when she becomes despondent or confused she runs out to buy even more " cute" shoes. That is never good for my wallet.

Sat, 05/22/2010 - 00:48 | 367259 ElvisDog
ElvisDog's picture

Try to think before you post. Who would benefit from a monetization "jubilee"? Debtors, aka poor and working class people. Who would have their wealth destroyed through monetization? Creditors, aka rich people. Since rich people control the world, therefore such a monetization will never occur.

Sat, 05/22/2010 - 01:07 | 367274 primefool
primefool's picture

Bingo. Exactly. The elite need a viable currency in which to store the loot. Gold- is not liquid, is not money and is trouble to store ( remember we are talking about billionnaires).

Therefore the Dollar will be protected at all costs. The Fed has NOT been "printing money". They have merely been taking on the banking system's toxic assets in exchange for reserves at the Fed ( ie. Money). The Fed has ensured that the elite get wealthier - but has clearly not "printed money" or handed out easy credit to mom&pop. Quite the reverse.The elite dont cause inflation - billionnaires cant spend all their money on consumer goods. At that level of wealth - we are not really talking about spending money but rather political power.

So the Fed is enabling the concentration of political power amongst a few elite. The maintenance of their power hinges on protecting the dollar. I mean it is no good being a billionaire in Zimbabwe dollars is it ( wont even buy a cup of coffee - literally).

So - I think it is a good bet that the Dollar will not only be preserved , it will be enhanced as all competitors to the Dollar are pushed off the cliff. Those without unencumbered dollars will be forced to perform labor and pay taxes - ensuring that they never will manage to accumulate enough dollars to pose a threat.

Sat, 05/22/2010 - 01:58 | 367320 Double down
Double down's picture

Well said.  That is why there is a run on dollars.  There will be political resistance to this.

However, the extent to which competitors balance their budgets will be the extent to which those currencies remain viable.  

I know, sounds weak does it not

Sat, 05/22/2010 - 02:33 | 367349 Burnbright
Burnbright's picture

"Bingo. Exactly. The elite need a viable currency in which to store the loot. Gold- is not liquid, is not money and is trouble to store ( remember we are talking about billionnaires)."

lol! And what happens when I set fire to a building with dollars in it, or hack a computer and destroy digits? Right no risk holding dollars - lawl.

"Therefore the Dollar will be protected at all costs. The Fed has NOT been "printing money". They have merely been taking on the banking system's toxic assets in exchange for reserves at the Fed ( ie. Money)."

Wait so where did the FED get the money to purchase the toxic assets? And how does the FED giving banks money for stuff they couldn't sell not constitute increase that banks cash reserves? Are you on drugs?

"The Fed has ensured that the elite get wealthier - but has clearly not "printed money" or handed out easy credit to mom&pop. Quite the reverse.The elite dont cause inflation - billionnaires cant spend all their money on consumer goods. At that level of wealth - we are not really talking about spending money but rather political power."

Yes thats right, the rich get richer through the transfer of wealth, it however doesn't mean that inflation doesn't happen. It just means that inflation in some markets happen while deflation in other markets occur both at the same time.

Sat, 05/22/2010 - 03:01 | 367357 Double down
Double down's picture

I take back what I said below. 

Obligations are denominated in currency and a currency is strictly speaking only a unit of measure.  Genuine power is located in the strained relation between debtor and creditor.  In fact it is the obligation that conveys power not the dollar and this power exists only to the extent that that relationship exists.  Extinguish the debt through payment or default and the power is gone regardless of currency.  This is nothing new.  The strength of the dollar is relative to the integrity of the underlying obligation, trust.

Acounting will always trump Finance.  The best the latter can do is buy time.

In the case of the financial melt down; to save the patients the Fed had to assume the failing debts.  This saved financial aristocrats, the price for which was less power. 

Protecting the dollar is like insisting on the use of particular unit of measure.  This is done not to protect its store of value but to control the context of interpretation of obligations.  It is absolutely essential that they are recorded, measured and reported in dollars otherwise the power of the aristocrats unravels.  It is therefore essential as well as counter intuitive to the US to have high debts, as this anchors the dollar in reality, as a reserve currency.

The day of reconing will not come during the crisis, the day of reconing will come when the economy begins to recover.


Sat, 05/22/2010 - 06:33 | 367419 JacksCompleteLa...
JacksCompleteLackOfSuprise's picture

i think you may be onto something...

Sat, 05/22/2010 - 03:49 | 367376 dumpster
dumpster's picture

prime fool well named

Gold- is not liquid, is not money and is trouble to store ( remember we are talking about billionnaires).

gold is money .. highly liquid . for billionnaries easy to store.. for the common man a way to protect the assets of years ,and as the future unfolds best to get some of your own


Sat, 05/22/2010 - 09:53 | 367515 Crime of the Century
Crime of the Century's picture

Does anyone really believe the Rothschild's sold off their bullion after leaving the gold pool? There may be wealthy people who cling to paper chits, but history shows that wealthy people DO get wiped out.

Sat, 05/22/2010 - 16:08 | 367922 goldfreak
goldfreak's picture

gold is trouble to store? if you're a billionaire?

Do us a favor, go to Kitco and get some new BS from Jon NAdler

Sat, 05/22/2010 - 01:47 | 367310 EscapeKey
EscapeKey's picture

Who gets access to the money first? Rich people.

Only once the money's been funneled through various governmental and banking systems does the prole get access to it. By then, inflation has taken its toll.

The middle classes get wiped out during hyperinflation, the rich does not. Check your facts.


Sat, 05/22/2010 - 02:02 | 367325 Celsius
Celsius's picture

There you go again repeating Von Mises' "The Theory of Money and Credit". Get with the propaganda program. This is a Keynesian country. There is no room for unbelievers.

Arbeit Macht Frei --- Now move along, get to work, buy government bonds, and then head to the showers.


Sat, 05/22/2010 - 05:59 | 367404 i.knoknot
i.knoknot's picture

don't forget the wooden bar of soap...

Sat, 05/22/2010 - 11:59 | 367625 EscapeKey
EscapeKey's picture

I apologize. Despite never having run a surplus during the good times, uncontrolled deficit spending is OBVIOUSLY Keynesian economics, and therefore must be good and true.

Sat, 05/22/2010 - 09:56 | 367520 Crime of the Century
Crime of the Century's picture

Hyperinflation? I would say that the "connected" do better than the nominally wealthy.

Sun, 05/23/2010 - 03:31 | 368365 dumpster
dumpster's picture

you think not ?   the rich are blind , if not what is this fire we see,

Fri, 05/21/2010 - 18:48 | 366842 cbaba
cbaba's picture

Tyler  Excellent, i like your sarcasm,

What we Cannot see is the Maturity rate of bonds.

6-7 months ago the maturity rate of 46% all bonds was less than 1 Year. Now may be this number is much higher and above 50%.

Its like a time bomb, ticking and time is accelerating, at some point it will explode.





Fri, 05/21/2010 - 18:48 | 366846 Crook County
Crook County's picture

Theme music to the hit new gameshow: The $13 Trillion Dollar Pyramid (scheme)


Fri, 05/21/2010 - 19:33 | 366907 Miss Expectations
Miss Expectations's picture

I didn't want to laugh, but I did.

Sat, 05/22/2010 - 08:50 | 367474 Christobevii3
Christobevii3's picture

It would definitely be a decent song for Ben Bernanke to shimmy out to for fed meetings.

Fri, 05/21/2010 - 19:01 | 366862 kaiten
kaiten's picture

US debts LIVE:

Fri, 05/21/2010 - 19:08 | 366874 wang
wang's picture

and the oil spill in the Gulf will likely pass 100 million gallons (that's 10 Exxon Valdez equivalents)

but the government stands by its estimate, which would amount to a little more than one half of an Exxon Valdez

Sat, 05/22/2010 - 02:18 | 367338 merehuman
merehuman's picture

the same government claims there is no such thing as "chem trails"

Kathryn Austin Fitts has a long , well done vid at her solary site. Scary as hell and very damn real.


I will have to teach myself how to do links, please be patient. Thanks, Harry


Fri, 05/21/2010 - 19:10 | 366876 Reese Bobby
Reese Bobby's picture

13 trillion seconds is only 412,227 years

Fri, 05/21/2010 - 19:55 | 366937 A Nanny Moose
A Nanny Moose's picture

Even a trillion seconds is 32K yrs...longer than civilization has existed...and the debt was eliminated by Pres Jackson

Sun, 05/23/2010 - 16:42 | 367125 Rusty_Shackleford
Rusty_Shackleford's picture

Not sure where I saw this but I was reading somewhere recently that if you made $1 FRN = 1 drop of water, then 14 Trillion would be 20 times the amount of water in all of the Great Lakes put together.

Fri, 05/21/2010 - 19:10 | 366878 SayTabserb
SayTabserb's picture

Not to worry, Krugman said it's all good again this morning. Thank God for that Nobel Prize winner and his sunny optimism. Our borrowing costs just keep going down! Come one, come all and take a piece of us. There's a lot more where that came from, and when we don't borrow, we can sQuEeze it out of our a**. This will end well. I just don't see a problem at all.

Fri, 05/21/2010 - 19:26 | 366899 hambone
hambone's picture

Krugman really is a f*#ktard.  How somebody so smart can say things so stupid is hard to comprehend...but then again I've never really understood the whole father, son, holy ghost thing either so maybe it's just me?

Fri, 05/21/2010 - 19:52 | 366930 SayTabserb
SayTabserb's picture

Is it possible that the answer to the riddle, how can someone so smart say things so stupid, is that he's actually not nearly that smart? Recently (last week) he wrote a column about the CBO being right about "surging" personal income taxes. Say what? They're lower this year than last year. He writes some of his columns while sitting in a lawn chair on St. Croix.  There must be no wi-fi available, or he could try looking at the Treasury's monthly statement.  He makes HUGE errors of fact on a routine basis.

Fri, 05/21/2010 - 20:50 | 367037 LeBalance
LeBalance's picture

Ahhh...The Nobel Prize....The Rhodes Scholar....Phi Beta Kappa...Etc.  Welcome to the Elite Circle Jerk...The Old Boy's Network...The CFR...

You are better than they are.  Handpicked in fact because you are so smart (read: gullible) that you will aid us in our goal and decorate lamp posts when TSHTF.  You are very valuable to us.  Valuable cannon fodder.  Please hold yourselves in highest regard and be The POTUS, The Senators, The Bilderbergers, we offer you this temptation!

/burp/ ... won't get fooled again?

Fri, 05/21/2010 - 21:55 | 367128 Rusty_Shackleford
Rusty_Shackleford's picture

Krugman = Ellsworth Monkton Toohey

Sat, 05/22/2010 - 10:39 | 367559 Gwynplaine (not verified)
Gwynplaine's picture

Exactly right Rusty.   Toohey is the best villain in literature; he's never directly responsible for anything, just leads everyone else to disaster.

Sat, 05/22/2010 - 03:52 | 367378 dumpster
dumpster's picture

birds of the feather  ,, al gore ... nobel prize for lie of the century//

Sat, 05/22/2010 - 00:52 | 367261 ElvisDog
ElvisDog's picture

Krugman is not smart at all. He really knows nothing about real-world economics. But he was extraordinarily good at playing the academic game. Publish the right papers with the correct Keynesian lean, get on the right councils and boards, somehow leverage all that crap into a Nobel prize, and voila you are a "made man".

Fri, 05/21/2010 - 19:12 | 366880 hambone
hambone's picture

the internets is so's Friday night and I can't decide if I should watch the "Debt Clock", the live feed of the "Oil Spill", or monitor the Ekyystlkjghs;lk and sister Katla volcano.  So many choices.   Ohhh, I've decided to go w/ Bank Failure Friday watch instead!!! Grab the popcorn.

Fri, 05/21/2010 - 19:22 | 366896 hambone
hambone's picture

6 million to the DIF?!?  This show sucks...I'm going to back to the Debt Clock where they've got some real zeroes.

Fri, 05/21/2010 - 21:02 | 367056 faustian bargain
faustian bargain's picture

Yeah no kidding. A few ZH'ers coulda pooled together and taken that one.

Fri, 05/21/2010 - 21:03 | 367059 fThis
fThis's picture


Fri, 05/21/2010 - 21:44 | 367110 ajax
ajax's picture



Hambone, just

head over to

Justin tv, there's

a live channel

showing vats of

beer fermenting.


Fri, 05/21/2010 - 19:23 | 366893 plocequ1
plocequ1's picture

Thats great. On to more important news, My I pad comes next week. I just ordered my $3,500 Mac book pro today. Anybody have the newest Macbook pro? Please share your review..  Thanks. I hope the deficit doesnt affect the delivery of my Mac Book pro.. I have porn that needs downloading..

Fri, 05/21/2010 - 22:49 | 367182 Iam_Silverman
Iam_Silverman's picture

Ahhhh, another SEC troll, eh?

Sat, 05/22/2010 - 02:24 | 367344 merehuman
merehuman's picture

plocequ1  i will be watching you on the preinstalled web cam offered by a friendly shool system (catholick]

Big Brother is your friend. Free fries with every hundred dollars borrowed!

Fri, 05/21/2010 - 19:35 | 366908 Harbourcity
Harbourcity's picture

I like this incarnation of Tyler.  He's funny.  I particularly like the idea of the R - D - R - D election process.

Is it possible to elect someone who is honest enough not to be corrupted by a hot tub full of a $1,000 bills?  Yes.

Is it possible to elect enough honest people to enact change?  No.

Buy gold.


Fri, 05/21/2010 - 21:28 | 367094 Dread Pirate Roberts
Dread Pirate Roberts's picture

R-D-R-R is funnier.  (Get it? If you sound it out ..... oh never mind.)

Sat, 05/22/2010 - 06:02 | 367405 i.knoknot
i.knoknot's picture

took me a few too many times to finally ...

worth it tho'


Fri, 05/21/2010 - 22:57 | 367188 Thorny Xi
Thorny Xi's picture

I liked Dmitri Orlov's take on it a few months ago - he calls America the "Hokey-Pokey-ocracy."  "You put the left one in, you take the left one out, you put the right one in and you shake it all about..."  (see for his excellent work)

Sat, 05/22/2010 - 01:59 | 367321 DaveyJones
DaveyJones's picture

I'll second that, Orlov's humor comes from a clown who's seen it go down in his town

Fri, 05/21/2010 - 19:35 | 366909 chet
chet's picture

There are a lot of forehead slapping events that come across ZH, but I must say that it is a real jaw-dropper that Congress has to raise the limit again already.  And to what?  And how many months will that buy us?

They get away with a lot of fiscal shenanegins because people are too distracted or don't understand it.  But raising the debt ceiling every six months will get the notice of the MSM and people with above-average awareness pretty darn quick.  Especially if they're raising it in trillion dollar increments.

I wonder if Congress will do away with the cap altogether to end the embarrassment of having to raise it twice a year....

Fri, 05/21/2010 - 19:41 | 366917 hambone
hambone's picture

I'd prefer a statutory change from Debt limit to "infininty and (wtf) beyond".

Fri, 05/21/2010 - 21:40 | 367103 bigkahuna
bigkahuna's picture

This is indeed serious sh!t. Unless the freakin' aliens are coming in 2012--or we pass through the galactic freakin' ecliptic and disintegrate or something like that--these fools are digging a hole that they will very likely perish in along with a lot of others. So there better be a good reason for all of this OUTSIDE of raw greed and lust for power. The probable cause here is just plain and simple old-fashioned greed. Too bad for us all.

Fri, 05/21/2010 - 19:39 | 366913 A Nanny Moose
A Nanny Moose's picture

I never signed up for this.

Fri, 05/21/2010 - 19:47 | 366922's picture

So much snow I can’t remember what it’s like to see the ground
It all started in November and now March is rolling ‘round
Let it all fall down, let it freeze me to the bone
I’m gonna let it all ride, I got nothin’ left to hide, nothin’ left unshown

Fri, 05/21/2010 - 19:47 | 366923 Treeplanter
Treeplanter's picture

Every one with a stock market will default.  Vegas should run a book on what order and when.  The Domino Book.  I'm betting Canada will be standing longer than most.  Then what?  Mad Max?  I don't think so.  Need some freelance thinking on that.  

Sat, 05/22/2010 - 02:07 | 367332 Double down
Sat, 05/22/2010 - 10:03 | 367527 Crime of the Century
Crime of the Century's picture

Darn - I thought for sure it was going to be Running Man...

Fri, 05/21/2010 - 19:49 | 366924 Caviar Emptor
Caviar Emptor's picture

Super Size Me!!

That was the national watchword which led to a new "new normal" featuring an obesity epidemic, 10 bedroom cardboard McMansions throughout the land, 60-foot Hummers for shopping at the mall, a Gulfstream for every C-suite executive and a new casino in every county. 

So when it comes to debt we know how to do it right. 

Shock 'N Owe, Baby!! Super Sized!

Fri, 05/21/2010 - 19:59 | 366945 Apostate
Apostate's picture

I just had the hilarious vision that the US could possibly just keep pulling this shit off forever.

They can continue to act like complete morons, fix prices, allow public union thugs to run around setting shit on fire without comment, quietly liquidate unarmed government employees, let the stock market tank, draft every kid over 16 to do "public works," and then outlaw literacy. 

President Comacho, 2012. Coming your way.


Fri, 05/21/2010 - 20:03 | 366957 Caviar Emptor
Caviar Emptor's picture

And we're doing all this just to keep TPTB in Manolo Blahniks. That's it. I know that sounds extreme. 

But all this "Deflation Prevention Medicine", which is what most of the deficit spending amounts to, is just in the name of protecting the creditors from mass default. It's preventing the reset button from being pressed, preventing prices from coming back into alignment with incomes. 

Fri, 05/21/2010 - 20:07 | 366964 Todays Tom Sawyer
Todays Tom Sawyer's picture

Do correct me if I am wrong, but aren't we forgetting about another 6.5 Trillion of debt on Freddie & Fannie's balance sheets that we're on the hook for? 

Fri, 05/21/2010 - 20:45 | 367030 hambone
hambone's picture

Gotta be honest, is this $6T Fan/Fred debt actual debt to us or is this the total exposure if all mortgages blew up?  What the hell is this stuff?

Sat, 05/22/2010 - 06:13 | 367409 papaswamp
papaswamp's picture

No including off the books debt now...that number is too big ~$50 Trillion..oh wait that doesn't include F&F either....oh I see it's way at the bottom. Total including unfunded liabilities is ~ $107 Trillion. pfffft that's no big deal.

Wonder what the debt is including intragovernmental loans?

Fri, 05/21/2010 - 20:23 | 366990 unununium
unununium's picture

When the mainstream media muses, as it did yesterday, that "the economic recovery story has started to look like a mirage," how much longer can it last?


Fri, 05/21/2010 - 20:47 | 367022 Crab Cake
Crab Cake's picture

I would suggest you are misreading it a bit.   The media, mostly a cog in the psyop arm of TPTB, is getting you ready for the next stage of planned demolition. 

The issue at hand is not whether collapse is coming, but how the reformation is formed, by whom, and who will ultimately benefit.  They will want you scared, panicked, and pliable.  National sovereingnty is the mark in this Kansas City Shuffle.

Fri, 05/21/2010 - 21:00 | 367054 Kina
Kina's picture

Amazing what they can see when they stop drinking their own urine.

Fri, 05/21/2010 - 20:31 | 367002 Strider
Strider's picture

Ive seen this movie before , we all have. Remember the OJ trial? Wall Street is OJ and Congress is the "Dream Team" defense and  the masses in awe are ? Well just that, the awed masses of disbelief. .

We all know how it ends heads they win tails we lose.

Fri, 05/21/2010 - 22:53 | 367185 Iam_Silverman
Iam_Silverman's picture

Yup, right down to the suicide scene.  If you don't leave me alone I'll shoot my hostage (even if I am my hostage)!

Fri, 05/21/2010 - 20:39 | 367014 hambone
hambone's picture

Anybody have a good site showing historical Treasury interest rates accross all maturities?  I had a great one on a gov site but they've taken it down (I wonder why).  Anyway, instructive to show people how abnormally low interest rates are accross all maturities...but especially on the very short maturities where we are doing all our nearly free borrowing.  10yr rates attached for giggles;range=my

Fri, 05/21/2010 - 20:44 | 367027 buzlightening
buzlightening's picture

Tyler Durden! Thanks for zero hedge and waking up America with out violence!  We can yet vote out the sanctimonious bastards!  I'm from UT and we voted out boob bennett but now he's so delusional, he thinks he can win with a write in!!   The people have spoken and his vote for TARP was contrary to the will of the people of Utah!!  Good-bye boob and take the other 535 santimonious prick inscumbents with you!!

Sat, 05/22/2010 - 09:24 | 367493 silvertrain
silvertrain's picture

that dude is in denial.said he would do the same thing again?

Fri, 05/21/2010 - 20:54 | 367045 buzlightening
buzlightening's picture

Burnokio time man of the year? lil scamBO Nobel Peace Prize!  Jiffy Lube takes over BP oil spill!??  I'm bending over and getting ready to take it up the tailpipe as other good patriot Americans but being prepared for the bastards to kick down my door helps!  I say let them alone in dead head fed goon district of corruption!  goons come to my place without a warrant and kick down my door let them shoot and be damned!!  I will shoot back!!

Fri, 05/21/2010 - 21:23 | 367083 cowdiddly
cowdiddly's picture

13 Trillion plus 6 Trillian for the F/F twins= about 20 trillion to roll over. Funny thing I don't remember things being quoted in Trillions a couple years ago. My pea brain has not gotten around this trillion number and already we have 20. If we are already at 20 trillion tthen I need to get used to the next one. What comes next? Quadrillion,Kajjillion, Benakadrillion? Fatfingajillion? We are seriously going to need something larger than a 100 dollar bill. I find it amusing that the biggest bill Uncle Sambo will let us mere peasants have today has a value of about 2 bucks since creation and headed to 2 cents. What are they trying to say? Here's some bubble gum kid now get back in your cubicle>

Fri, 05/21/2010 - 21:29 | 367096 hambone
hambone's picture

OK, so regarding Fan / Fred, $6T in total liabilities for the mortgages they hold and lets say (for sake of argument) the portfolio of mortgages lose another 20% of we are on the hook for another $1T in losses (not interest cost but actual lost capital)?  This is money we have already spent we just won't be getting back?  Have I got this part straight?

Fri, 05/21/2010 - 21:45 | 367113 lbrecken
lbrecken's picture

Like I said prepare for stagflation........

Fri, 05/21/2010 - 21:52 | 367126 Kreditanstalt
Kreditanstalt's picture

SOMEONE keeps buying that stuff...

Sat, 05/22/2010 - 00:45 | 367257 Al Gorerhythm
Al Gorerhythm's picture

THEY do, don't THEY.

Fri, 05/21/2010 - 22:03 | 367138 BurningFuld
BurningFuld's picture

But wait!  Let me calculate that debt when the USD becomes worthless. 14T x 0 = 0. Hummm somebody is on to something.

Fri, 05/21/2010 - 22:33 | 367165 scsurfer
scsurfer's picture

Someone talked about an idea I have been floating around in my head.  The debt will be forgiven by the G20 and the game starts again.  Does anyone really believe that could happen?  Thanks for your input...ZH

Sat, 05/22/2010 - 09:48 | 367511 silvertrain
silvertrain's picture

   The information is on the IMF website..Lots of good information there concerning SDR's etc. I am mixed on it..Although I do think thats what there going to try to pull off, I just dont know if it can work or not..Lots of hurdles..Lots of people have to agree,thats a problem in itself..

 Today I am on the side that it can work but the time in which it could be implemented is still a ways off..

Fri, 05/21/2010 - 22:59 | 367190 Iam_Silverman
Iam_Silverman's picture

Boy howdy, this is just like several folks I knew who would get a new credit card every six months just to roll the balance into!  The crazy thing was that he kept getting offers in the mail.  He would make the minimum payments and that kept his credit good enough to keep getting new cards.

Eventually it caught up with him.  God bless bankruptcy....

Fri, 05/21/2010 - 23:15 | 367203 mchawe
mchawe's picture

Does anyone know the actual date of the Treasury Auction next week ?

It is important to know this because we have options expiry for gold next Tuesday, and the pressure will be kept on till after the auction if it takes place on a day after options expiry.

Fri, 05/21/2010 - 23:17 | 367207 Madhouse
Madhouse's picture

No paga. No paga. No paga. No paga.


No major government has been so delusional since, well, the end of Rome...

Sat, 05/22/2010 - 20:45 | 368124 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Rham plays Caligula?

Fri, 05/21/2010 - 23:32 | 367219 Madhouse
Madhouse's picture

Worry is the interest paid by those who borrow trouble.
George Washington

Fri, 05/21/2010 - 23:43 | 367225 kurt_cagle
kurt_cagle's picture

Something that no doubt keeps Tim up at night - with the bond market rapidly collapsing, the day of reckoning on interest rates having to go back up is approaching like a speeding train. Even at historical interest rates (5% or thereabouts), interest on $13T is around $70B a month (back of napkin calculations, not taking into account compounding), while we're adding around $1T to the debt now in about 9 months, or about $1.3T per annum.

At the moment, interest rates are effectively zero, which means that the $110B or so that we're adding every months to the debt load is not coming from that interest. Continuing to play funding shell games (the analogy of two buddies writing each other checks for beer money to get through a weekend) will only work for so long as the bank (taxpayers) remain in the dark about what's actually happening, and its becoming increasingly obvious that the taxpayers, as fat, dumb and happy as they've been portrayed, are in fact getting suspicious (the 10 year bond rate's flattening is very much a signal that the smarter ones are already talking to their lawyers). If the bond vigilantes do strike, the Fed borrowing rate could shoot up to well above 10 percent, which will force weekly turnover requirements to start pushing $50B or more.

I just don't see things remaining even quasi-stable much longer. 

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