I Can Break Your Debt Limit Any Time I Like (But Not Today)
Those of you shocked to see the official Treasury Direct debt ticker break the statutory debt limit number of $12.104 trillion may have overlooked a clever loophole. See, the debt limit doesn't limit total public debt. It limits the "total public debt (subject to limit)."
While the former figure did indeed finally break the ceiling on 11/30/2009, the latter is still comfortably (sort of) below the statutory limit.
Total Public Debt 11/30/09
Outstanding 12,113,048Less:
Debt Not Subject to Limit:
Other Debt 489
Unamortized Discount 42,797
Federal Financing Bank 11,921Hope Bonds (HAH!) 492
Plus:
Other Debt Subject to Limit
Guaranteed Debt of:
Government Agencies 14
Total Public Debt
Subject to Limit 12,057,363
Statutory Debt Limit 12,104,000
Phew, close one! You can see the details here. (Who wants to bet on the size of the "Federal Financing Bank"'s balance sheet in a week?)
(3 votes)
on Tue, 12/01/2009 - 17:18
#148449
Hope Bonds (HAH!)
you are such a naughty, naughty....
That line was the bestest that i have read all day.
Thank you Marla.
on Tue, 12/01/2009 - 17:37
#148458
Somebody looking for Hope?
http://laughingsquid.com/wp-content/uploads/bob-hope-20081012-110532.jpg
http://rlv.zazzle.com/a_new_hope_print-p228418347483261961vsu7_325.jpg
Or, if you prefer a less optimistic view, I offer a beautiful sonic backdrop matched with wonderfully poetic political commentary:
http://www.youtube.com/watch?v=F1xxHQBIITA
on Tue, 12/01/2009 - 17:19
#148450
Where can I get me some 'a that Federal Financing Bank cash? I got a Federal I'd like to finance.
on Tue, 12/01/2009 - 17:26
#148466
http://www.zerohedge.com/article/consumer-credit-bleeding-will-not-cease-down-12-billion-august-2-billion-worse-expected
Hope Bonds - Told ya!
on Tue, 12/01/2009 - 17:34
#148482
Depends on (how) sophists interpret "public", "outstanding", and "nominal" (relative hope). We plebians know what "bonds" are.
http://www.youtube.com/watch?v=e7mmrF-4rUE
on Tue, 12/01/2009 - 20:34
#148721
From Mark Twain's, "Roughing It", Chapter 14, Mr. Street "I am a businessman-have always been a businessman-do not know anything but business-and so you can imagine how like being struck by lightning it was to find myself in a country where written contracts were worthless!-that main security,that sheet anchor,that absolute necessity of business. My confidence left me."
Mr. Street had work to be finished before the bonds came due on said work. The sub-contractors decided not to honour the contracts that they had agreed to and signed for said work.
I wondered what Mr. Street would think today about the bondholders of GM and the contracts today?
Indeed!
on Tue, 12/01/2009 - 17:40
#148492
Comes to a head this month--they have to raise the debt ceiling due to fund transfers--there will be a bit of game end of the month and a possible government shutdown..
on Tue, 12/01/2009 - 17:44
#148500
a possible government shutdown..
When do we start?
on Tue, 12/01/2009 - 20:53
#148744
I wasn't sure they were open?
on Wed, 12/02/2009 - 13:33
#149379
"Your federal government needs your money so that it can perform vital services for you that you would not think up yourself in a million years." Dave Barry
on Tue, 12/01/2009 - 17:49
#148505
Jews and Israelis own a major chunk of the world and are pushers of socialist communitarianism and carbon tax so they can control everyone even more through the US foreign policy they have written and the world central banks they own.
You want the Pravda MSM to cover ClimateGate? Write something like I just did for incitement purposes and you will get wall to wall coverage. I am fed up by the lack of MSM news coverage on Climategate and am about to take out a can of woopass on them. It's just about no holds bared time.
on Tue, 12/01/2009 - 18:02
#148528
Way to stay on topic there, jackass.
on Tue, 12/01/2009 - 18:22
#148546
+1
http://1mauvaislangue.files.wordpress.com/2009/06/jackass-award2.jpg
+2 for not being "Anonymous"
http://www.faithandfamilylive.com/images/dailyBlog/blog/cache/good_job-3...
on Tue, 12/01/2009 - 18:06
#148539
Way to stay on topic there, jackass.
Hey Mike,
Are you going to put up with that??
on Tue, 12/01/2009 - 18:44
#148595
Absolutely. That is the exact kind of reaction I am hoping for. First you got to get mad. In no way do I mean to Jew bash, but the way they react to it works for me.
on Wed, 12/02/2009 - 00:58
#148978
Michael, Michael, Michael...can I interest you in a circumcision?
on Wed, 12/02/2009 - 07:13
#149076
Just out of curiosity, are you referring to the 99.9999999% of jews (the majority of whom are poor) who have nothing to do with finance or banking? Or for the convenience of a little bigotry, are you just lumping them in with the .0000001% who do?
Please don't answer Michael. It's probably better that you slink back to Yahoo! Finance. You're a tad too stupid to be here.
on Tue, 12/01/2009 - 17:50
#148513
I'm sending them a 1.5 percent overdraft fee. That just cost you 181 billion 560million dollars. Divided among my fellow 360million debtors. You owe me 504 bucks.
on Tue, 12/01/2009 - 19:07
#148626
Clever. I like it.
on Tue, 12/01/2009 - 17:54
#148520
Debt limit??
Lets get fucking real here!!! Who gives a shit about the debt limit? This is like tipping a rapist.
So the next compelling issue is?
on Tue, 12/01/2009 - 18:12
#148553
Do you always need to use such foul language? The folks here are not amused.
on Tue, 12/01/2009 - 20:56
#148748
I am. It's like saying the secret word.
on Tue, 12/01/2009 - 18:03
#148529
12 trillion? Isn't that nothing if you compare with government obligation plus the medcare and social security obligation? I thought we are in around like 50 or 60 trillion, no?
on Tue, 12/01/2009 - 18:18
#148560
We are a country of loopholes and disguise gimmicks.
Badges ?? We don need no stinking badges !!
on Tue, 12/01/2009 - 18:20
#148562
Why don't we have a hearing to raise the debt ceiling BEFORE the Bernanke confirmation hearings.
on Tue, 12/01/2009 - 18:35
#148579
Marla,
put the whole number, or say it's in millions.
as you write it, it down plays the magnitude.
see if I can do it on 2 finger thingy
12,000,000,000,000?
on Tue, 12/01/2009 - 21:23
#148775
Let's all convert to scientific notation for the really big numbers. It's a lot easier than going metric.
on Tue, 12/01/2009 - 18:59
#148610
I had thought the FFB may have been limited to issuing $15 billion in inter-agency (inside government) debt. However check this out from their site:
The Bank is authorized to issue obligations to the public in amounts not to exceed $15,000,000 [thousand] with the approval of the Secretary. Additionally, the Bank is authorized to issue obligations in unlimited amounts to the Secretary and, at the discretion of the Secretary, may agree to purchase any such obligations.
The key word here is "unlimited". Apparently the Treasury Secretary can issue debt at his discretion, which is another way of saying that the Sec can issue what was called in the Civil War era " greenbacks" - that is currency that is effectively the debt of the US. With laws like this, who needs the Fed to print up fiat money?
on Tue, 12/01/2009 - 19:12
#148633
Look to the People's Republik of Kalifornia for Timmy's solution. IOU's are just no-interest payments of tax refunds and other vendor disbursements ........delayed 5 or 6 months.
That should fix it.
on Tue, 12/01/2009 - 20:58
#148750
Warrants. Some banks even let you deposit them. By the way, it's Kal-ee-forneeyuh.
on Tue, 12/01/2009 - 18:58
#148613
Would they PLEASE extend that limit already? It is holding down the value of my gold position.
Imagine gold when the national debt hits $15T by the end of next year. Whooo, baby.
on Tue, 12/01/2009 - 19:15
#148637
Honey, lets sell our wedding bands next anniversary and get copper rings instead.
on Tue, 12/01/2009 - 19:23
#148644
WTF!!!!
on Tue, 12/01/2009 - 22:02
#148825
Bankers: I love the smell of debt in the morning... Smelled like [sniffing, pondering] victory.
on Wed, 12/02/2009 - 02:38
#149017
Guess there won't be any bank resolutions this Friday either...
on Thu, 12/03/2009 - 03:20
#150412
Have a structured settlement?
Are you a major tax collector? Get cash now.
Call the IMF annuity payment center and recieve a check within 1 week.
We offer wide range of services. Have a huge opium crop coming due but having a hard time protecting it?
Buy the guns and prisons and toture devices you need today with our commercial paper facitlities.
on Thu, 12/03/2009 - 23:25
#151941
Jooz are at the heart of most of the evil in the world! If the criminal state of Israel attacks Iran, every kike on the planet becomes a legitimate target. Number one way to start solving problems, exterminate jooz once and for all!
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