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It's Official: DTS Discloses Total Debt Hit Ceiling Yesterday; Government Draws On $14.3 Billion From Retirement Funds
While it won't be a surprise to anyone at this point, seeing it in black on white is about as startling as hearing that one's credit card has been denied. Yesterday, following the settlement of all of last week's auctions, total debt held by the public increased by$51.4 billion, just as we had predicted, bringing the total to $9.717694 trillion. And with the total debt subject to the ceiling maxed out legally by $14.294, Tim Geithner reported a total of $14,293,975 MM, $25 million away from the ceiling. What was the plug? Why "Intragovernment Holdings" of course, which declined by $14.3 billion. As Tim Geithner warned yesterday this is now money held in retirement trust funds, which is now being directly sacrificed in order to keep the ceiling from breach: "I will
be unable to invest fully the portion of the Civil Service Retirement
and Disability Fund (“CSRDF”) not immediately required to pay
beneficiaries. In addition, I am notifying you, as required under 5 U.S.C. §
8438(h)(2), of my determination that, by reason of the statutory debt
limit, I will be unable to invest fully the Government Securities
Investment Fund (“G Fund”) of the Federal Employees’ Retirement System
in interest-bearing securities of the United States." And as expected, once the debt ceiling is raised, the accrued shortfall will be filled, meaning upon a debt ceiling hike, which will come some time in July, total debt will explode higher, surging by about $300 billion in a few days.
From today's DTS:
Most importantly, as of close Monday, the Treasury had $127.5 billion in cash which will not be replenished through any more net debt offerings. It better last a long time.
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Let's see, Robo says:
And Jesse says:
Can they both be correct?
See now we're supposed to believe that there are responsible adults in Congress when for 40 years we've been told that there's too much spending but....but....but...I want you to share your piece of the pie but I don't want to share back.
I closed out my TSP (Thrift Savings Plan) which was invested in the G-fund several years ago. Back then I saw this coming. I can guess that soon, very soon, everyone with a 401(k) or IRA account will be forced into Government Treasury investments if not an outright confiscation such as happened in Argentina. Do what you will if you own a 401(k) or IRA account and I'm not telling you what to do. It's your choice as to what you do. All I know is if they will raid Government Employee retirement funds what makes you think your (private) retirement fund is safe, especially when it's been tax free until you start cashing it in? That alone will easily convince your typical politician that your "tax free" money is actually their money you haven't been paying taxes on.
Where's the Apocalypse? Where's the cats and dogs, fighting in the street?
Where the hell is my silver going to $80/oz???
Debt Ceiling is like everything else in gov - Pure .9999 Bull Shit - ponzi, con, Lies, rigged markets, pure bull shit.
Push the God Damn Button.
Dr. Peter Venkman: This city is headed for a disaster of biblical proportions.
Mayor: What do you mean, "biblical"?
Dr Ray Stantz: What he means is Old Testament, Mr. Mayor, real wrath of God type stuff.
Dr. Peter Venkman: Exactly.
Dr Ray Stantz: Fire and brimstone coming down from the skies! Rivers and seas boiling!
Dr. Egon Spengler: Forty years of darkness! Earthquakes, volcanoes...
Winston Zeddemore: The dead rising from the grave!
Dr. Peter Venkman: Human sacrifice, dogs and cats living together... mass hysteria!
Thanks Misean, that's what I meant to say "Dogs and Cats Living together" but it's been (can it be?) 27 years since I last saw the movie.
Ghostbusters, 1984 http://www.imdb.com/title/tt0087332/
We could fix it tomorrow by defaulting, retracting our military from all of these foriegn wars, seal up American borders from Deadbeats and drug dealers, and create public works programs that actually may put some people back to work until we could get ourselves out of GAAT, NAFTA and any other WTO fleecing....but it's easier to bomb brown people whose language and customs you don't understand, and blame another political party.
Say that reminds me, isnt that FAT LADY's last TV show episode soon ? Now that's worth paying attention to
So you are against being able to buy cheap goods?
TARP $900 Billion, QE2 $600 Billion, Pension and Other Debt Limit Asset Confiscation (QE3) $300 Billion. A room without a view in NY, ... Priceless.
It's the end of the world as we know it and I feel fine?!?!
until the radiation makes me puke. happy to be in europe right now....
You're not exactly safe in europe either. However, my intuition say that the mess in europe will play out "less horrible" than in the US. Still, don't bet on your retirement being safe in the hands of the state.
i'm here only as long as i need to load my barge up with soil, then back to the ussa to start farming with my crew (close to canada) and, as George Carlin said, stamp my front row seat ticket to the freakshow/feed my ma in her retirement/buy up half of NE with my gold and silver and tomatoes and squash and lamb and chickens....mmmmmm
edit: barge with soil....hmmmmmmm cant get me (unless you are a pirate with a bigger gun)....hmmm again
edit #2: retirement in state hands....my retirement account is shiny, says .999 pure AG, and is buried....
Waiting for Obama to declare it a national emergency and say they have to spend more money in the interests of national security. They know no self-imposed limits on themselves. Why even pass a budget? Only really to make sure there's enough political infighting to make sure every department doesn't run a tab to $1 trillion. They would if they could. Each one of them thinks their job is critical to all life on the planet.
Fortunately, even Obama won't be able to override Congress and do that.
We are not yet at the door of the dictator.
HAHAHAHAHAHAAAAAAAAA TAKE THAT COPERS ! ! ! !
They are going to have to cut goverment size by 75%. Allot of layoffs. Hey its for the greater good. Five generations of goverment workers will actually have to work in the private sector. It sucks but,, USA>>>USA!!!!!
Work in the private sector? For whom, exactly? There aren't enough private sector jobs to go around for the private sector that's trying to get back to work. These government employees will end up collecting 99weeks then falling off the counts just like everyone else.
Perhaps Mickey D's will hire again. Oh wait -- they're only hiring robots. Never mind.
They can push an ice cream cart or do my yardwork. There are plenty of fucking jobs for the right price.
Typical closed system, inside the box, institutional thought. Freeing resources from the massive consumption and inefficiency of the state to private hands will bring about changes.
Thank you. I heard on the radio yesterday in my car regarding government budget: "...imposed austerity on government spending will cut economic growth...." When a thief steals your money and spends it on drugs, is that good for the economy??
"You've never worked in the private sector; they expect results".
- Dr. Ray Stantz
Work in the private sector? For whom, exactly? There aren't enough private sector jobs to go around for the private sector that's trying to get back to work. These government employees will end up collecting 99weeks then falling off the counts just like everyone else.
50 years ago there were plenty of private sector jobs and when this Government is downsized there will again be many new opportunities. All the Government thug hiring and regulations of the past 40 years have resulted in the destruction of free enterprise, reduced competition and higher prices to drown out companies and jobs. One needs to look no further than the vaccine industry to see what an overwhelming government demands do.
Capitalism will be happily unleased with a smaller government.
Which is exactly why they will increase goverment size by 75%.
Just as soon as they kill of that pesky "private sector."
Like a cannibal eating himself.
I see your point, but I think now we will only see smaller and smaller government because of shrinking revenue. People have had enough. The thugs are on the run.
Business as usual. The US gov is borrowing just as before. It is just not issuing Treasuries.
What about all that talk from Tiny Tim about not being able to make interest payments on the debt?
"Obama's gona' pay for my mortgage, he's gona' pay for my gas..."
Not for long bitch.
I don't understand how this is not being reported as a bid deal (Other than Zero Hedge).
No ask?
The truth hurts too much.
It's on Drudge Report.
Thank you Government proles for keeping our country intact.
bwahahahahaha
OT: http://www.telegraph.co.uk/finance/newsbysector/industry/mining/8519050/African-Barrick-mine-raid-leaves-seven-intruders-dead.html
African Barrick mine raid leaves seven intruders dead.
Seven "criminal intruders" have been killed by police at one of African Barrick Gold's mines in Tanzania after 800 people raided the operation in an attempt to steal gold.
Hmmmm, buy some ABX again tomorrow?
This is all noise, noise NOISE! I do not believe we are heading into the abyss or that a looming US debt crisis is upon us
Leo Kolivakis
Yep.
If you loaded up on TSL, you'd have no worries.
Leo (paraphrased)
Possible QE3 mechanism 'independent' of the Fed?
http://blogs.forbes.com/michaelpollaro/2011/05/16/monetary-watch-april-2...
Interesting. And The Bernank doesn't even have to lift a finger.
I'm going to have to reread it later though, and get my head around private banks issuing uncovered money substitutes to purchase equities. I was under the impression that they could only issue them in the form of loans. Or do they loan it to their trading desk in order to purchase, creating an uncovered loan to themselves?
Interesting, indeed...
Yes, very interesting.
Pardon the ignorance....does this mean dow 16,000 by september?
should i buy me some netflix?
Coffee is cheaper. The kind in cans that store.
We need to remember that the reason private bankers want control of the politicians is to have access to all the financial resources that exist, not just the monies in the U.S. Treasury. And, remember, U.S. Treasurer Timothy Geithner is an agent of the bankers.
Once the international bankers have control of the public officials, they then are essentially executor of all the value in the system.
Fernando “FerFAL” Aguirre experienced the hyperinflationary destruction of Argentina’s economy when that economy collapsed in 2001 after a decade of apparent prosperity. Says FerFAL, “The currency devaluated, and Argentina defaulted on its USD$132billion debt, the largest default ever.” In the destructive aftermath, those financially destroyed handled it differently, he said, the most common response being denial; others complained but soon understood it didn’t change anything; “others just ended their misery.”
He writes :
“[M]y American friends, they tell me that banks would never steal people’s money because there are laws against that in the USA. Their money is insured. We had those same laws in Argentina, but still it happened. We had a constitutional right to private property. Yet the constitution mattered little during the collapse. Go right ahead -- sue the government of the United States if something like that ever happens. Maybe you’ll get some of your savings back in a few years. If they feel like returning it.
“What people don’t understand is that laws are written by men, not some greater power. As soon as those running the show feel an emergency decree or law is in order, existing laws are simply rewritten. They may even be ignored all together! What do you do if something like that happens? You may complain, you may sue, but you’re not changing the cold hard fact that as of right now that bank door is closed, that ATM has no money in it, and you still have to survive. This is something Argentines have experienced and know very well. Hundreds of thousands of us have banged the doors of our banks, for years, without a penny being returned. You still sued, and waited, and spent the little money you had by hiring a lawyer. You lose, they win…unless you have some of that money at hand before they decide to steal it.
“Every single Argentine wishes he could go back in time, close his bank account, and put that money into gold. We would all do that if we had a time machine. Since you can't guess the future, all you can do is estimate what can happen and play the odds in your favor. In the event of a full economic collapse, if you have 20% of your savings in physical gold and silver, that’s a percentage of your savings that is spared. It's not an investment; don’t go crazy over gold and silver going up or down a few dollars, just be content that it's not getting any lighter as it sits in your safe. If the economy collapses or even if there’s simply inflation (as there clearly will be), that percentage of your savings in precious metals is safe and will likely go up in price beyond its standard purchasing power as things get worse.
“During the first stages of a severe economic crisis, you will see ATMs running out of money fast, and many stores won't be accepting credit cards. As the saying goes, 'Cash is king' during those times. Your precious metal can be sold to a dealer, but you better keep that stored for now. When everyone is running around looking for an ATM with a few bucks in it, having a month's worth of expenses in cash means you won't be one of them. Why not more than a month´s worth of expenses? Because if the economy fully collapses, that paper money will lose its value within hours. It may drop 50%, 60%, or 75%, as happened in Argentina. Who knows? All you know is that as the currency loses value, the value of the precious metals you have stored goes up in proportion. Still, during those first days, a wad of cash gets you what you need.
“So, step one is acquiring precious metals (I generally recommend 20% of your savings but each person is a separate case) and a month’s worth of expenses in cash, kept safe at home.” – Preparing for Economic Collapse
This should be posted in damn near every thread here.
again, 2nd that motion.
just remember to vote in oBLAHma in 2012! for the only change you'll be getting is about 20 cents!
Actually it doesn't matter whom you elect.
The president is just a placeholder, an empty suit.
They, the Rockefellers and the other members of the Establishment, own both sides, both parties.
That campaigning is just a WWF style fake fight, a carnival, a clown show for the masses.
Always has been.
Not just since yesterday.
Since 1913.
They firmly control both presidential candidates, because it's they who pick them in the first place.
Didn't you know that ?
Actually, in the US it's been that way since right before the "Civil" War, when the issue of slavery split the party of the common man, weakening, then killing the republic of Jefferson's dreams. Of course, when something is that flawed from the start, it isn't hard for wedge politics to finish it off in a divide and conquer fashion.
As for Obummer, I knew everything I needed to know the day this photo came out. You'll notice only one person is sitting as the "Annointed One" enters the room. Of course, that would be his annoiter, Mr. Soros.
http://skipmaclure.files.wordpress.com/2011/01/obama-soros.jpg
On another note, it's funny to see how many puppet pictures come up when doing a google image search with their names.
"There is more to life than money. Didn't you know that?" - Fargo
30% of all IRAs must be invested in Treasuries in order to qualify for any future tax advantages... - old IRS flyer Circa 2012
Obama, Romney, does it even matter? They all lie to get elected and do something else anyway. The issues they purport to stand for are just to let us sheep think they are on our side, then they fuck us when we try to clean their rooms.
Go with Herman Cain. Imagine the attempts to play the race card.
http://www.youtube.com/watch?v=uiAkeFJXwUk
Well, explains all the not-so-secret meeting about 401k confiscation that have been happening.
The banks took 40% of everyone's 401(k) just a few years back, it is called market manipulation. Now, the gubermint wants the rest, lol. What a fucking country!!! Land of the free, and all of that....
member 3 weeks 6 days....
welcome to the party!!! please withdraw your IRA today and take it to APMEX, FM or Tulving (if you have that much).
Land of the Fleeced, home of the sheeple
Do the banks charge the Government "OverLimit Fees" like everyone else?
Given that the market appears to be headed south, and given that the magnitude of the move is likely more than the penalty in taking a distribution from your 401(k) plan, you might consider taking the cash and buying physical assets. Yes, gold, silver, an operating business. If you are going to lose money, do it on your terms. If nothing else, buy a basket of currencies. Does anyone here think their 401(k) investments will be up 20% this time next year??? LMFAO
In a rigged casino, anything is possible. In the 2008 'meltdown', my JP Morgue IRA barely moved down - my other IRA sunk like a rock, 45% down.
Actually it doesn't matter whom you elect.
The president is just a placeholder, an empty suit.
They, the Rockefellers and the other members of the Establishment, own both sides, both parties.
That campaigning every 4 years is just a WWF style fake fight,
a carnival, a circus, a clown show for the masses.
Always has been.
Not just since yesterday.
Since 1913.
They bought Woodrow Wilson.
Why should they then stop after that one election ?
Of course they went on with it.
They firmly control both presidential candidates, because it's they who pick them in the first place.
Didn't you know that ?
QE III = Raid social security?
Social Security was raided long ago. Tapped that well dry my friend.
Pension funds, then 401k's then IRA's...this is a long downward spiral. Hope you already stocked up on gold and silver!
http://www.silverdoctors.com/
Those people who have worked all their lives for retirement will now be screwed. Yet they are doing nothing. No one is standing up against it that is having their retirement raided. That is the American people. Lazy and don't give a shit, except for who will win American Idol.
Why didn't they raid the Elected officials retirement first?
Kinda stange comment "sunnydays" - "worked all their lives for retirement" and "lazy and dont give a shit"
What I think you mean is that too many people are law abiding when the law is permitting outright theft, and that more folks should exercise their god given right to holler from rooftops.
I'm sure it will get lost in the shuffle, but even baby boomers should now realize that social security and any government sponsored pension is pay as you go. You did NOT contribute money that was invested to pay for your future benefit. You gave money to a government who gave it to pensionsers and to the extent any was left over they gave it to treasury, except when treasury couldn't give them securities, then they only let treasury use it until they could give them new securities. Boomers can no longer use the argument that 'they paid in' as a reason they deserve anything from the government. Private pensions different, but not public ones.
So wait, they are raiding the pensions of Government Employees? Well I for one think about 80% of them are overpaid and underworked and living off the actual working public so I don't feel bad for them...well maybe that 20%. Looks like despite what they teach in schools, Crime Does Pay.
The case of the mystery gold
http://lonerangersilver.wordpress.com/2011/05/16/the-case-of-the-mystery...
http://www.youtube.com/watch?v=kCRPbTlfaB8&feature=related
...ain't Homeland Security great ...when you can't afford to be secure because you are too corrupt to be secure? http://www.youtube.com/watch?v=TEYGyfkULB0
And this failure to pay is not a "default" because....?
''Mad Cow''
...Denny Crane
Such an obvious answer to our financial woes. Bring our troops home, all of them. Extend social security a month for every year you have until you retire. So, if you are 45 and would qualify in 17 years, you wait an additional 17 months. Adopt a medical system like Switzerland's, where everyone is required to buy insurance (no, the constitution doesnt mention it) and let companies compete for the business. Then, get rid of tax deductions, a progressive flat tax.
There, crisis solved, go back to what you were doing
And pray tell, what will all those suddenly "unemployed" troops do when they get back home? Surely, they would not be accounted for in the unemployed statistics.
Health insurance? Insurers will not really compete...they will only perfect the cherry picking process so that only healthy people can afford it.
Oh, and by the way, the hospitals really love the "justification" provided by the legal system for ordering all the extra tests by their employed hospitalists-the hospitals need the revenue from all these unnecessary tests. It is a silent conspiracy.
I must junk you Legal (just imagine I did) for aborting your own life, liberty, freedom and independence.
...all yer dusty ass needs is your labor, but, you have aborted it, ....so, into the black hole you go. http://www.youtube.com/watch?v=MU0NRxLwe2g
Look at the bright side: the goobermint whores are finally sharing our pain.
CONgresscritters in that plan?
So wait. How much money can i pull out of the bank before the pigs catch on? Time to buy some more silver... Serious question though, how much can I pull without raising red flags.
My personal opinion is the last two days have not looked good for silver.
You go ahead and buy silver. I am probably going to buy zsl. The action looks like we may have a significant break to the downside in the next few days.
Why not wait a few days? Silver is testing support right now at the 100 dma.
Am waiting. Money takes time to come out of the bank though.
I believe they lowered the minimum reporting to 5000 dollars or a "suspicious pattern" regardless of amount. Just take a few thousand out each month. I woyldnt worry about reporting. You have only broken the law if you fail to report any subsequent capital gains on your silver.
Capital gains don't play in for non monetary exchange. :)
Unless of course the government decides that the person trading silver for groceries and shoes is now a 'terrorist'.
It is dangerous to be right when the government is wrong. — Voltaire (1694 - 1778)
Sounds like pilfering the Federal Pension Funds is a "test run" to see if it is safe for Geithner to procede to IRAs and 401Ks. However, this first test run can not be occur unless there is a "crisis"...and the funds need to be raided for a "worthy" cause,". Really, how could the Govt justify such an act through a more explicit reason, like "we need the money because there is a new war we would like to engage in."
You can be sure that Geithner is watching the response of the sheeple to this -probably more than the runaway deficit itself.
That is why he has the job he has... he has a track record in lying and cheating .. he was caught before but this time he wants perfection so doing a trial run
This is literally exactly like me robbing my very elderly parents (or robbing my childs piggy bank) to pay the minimum payment on my credit card bill
If it is wrong for me to do it then why is it not wrong for them to do it?
Has anyone realised yet why Zombie movies have been so popular for the last 10 years or so?
I'd suggest googling "Learned Helplessness" and "Desensitization". You'll need those concepts very, very soon.
Oh, and ZeroHedge is missing all the Glencore drama - tsk, tsk, tsk. Real players coming out to play & you're not commenting on it.
p.s.
Anyone else remember when using planes to bomb civilian targets was enough to cause moral / social outrage? I suppose nowadays we're too unsophisticated to appreciate cubism though.
The beast is eating itself.
The govt worker drones are now subject to the same mistreatment as I/we the productive taxpayers social security is.
This is glorious, as it marks the begining of the end of the leviathon.
We should mark this day on the calender. Its a fucking holiday!
The beast is eating itself.
The govt worker drones are now subject to the same mistreatment as I/we the productive taxpayers social security is.
This is glorious, as it marks the begining of the end of the leviathon.
We should mark this day on the calender. Its a fucking holiday!
The beast is eating itself.
The govt worker drones are now subject to the same mistreatment as I/we the productive taxpayers social security is.
This is glorious as it marks the begining of the end of the leviathon.
We should mark this day on the calender. Its a fucking holiday!
... begining of the end of the leviathon.
Maybe...
The beast is eating itself.
The govt worker drones are now subject to the same mistreatment as I/we the productive taxpayers social security is.
This is glorious as it marks the begining of the end of the leviathon.
We should mark this day on the calender. Its a fucking holiday!
Ding Ding Ding!!! We have a winner. I think it is delusional to believe that the American masses will rise up. See the problem isn't that people aren't fed up. They are. The problem is that they don't agree on who the enemy is. Until there is a backlash toward all gov't and mainstream media I agree that those taking precautions (no debt, own PM's, own firearms, garden/farm etc.) will not only be marginalized but also be labeled un-American if deemed appropriate by TPTB. That said, I wish all my "red pill peeps" all the best:-)
When people realize that their life savings is gone and that the bank has no money for them to take out, and that banks that do have money will only let them take out $150 per week, then you will see uprisings all right.
Too often we think of Americans rising up as a unit against a common evil. That isn't the case. For example, If what you say happens (150/week withdrawals) Americans WILL rise up. The problem is that some will rise up against banksters. Other against politicians, others against mexicans, others against public unions. There are endless straw men. Gov't as a whole is the real culprit, IMHO.
c4ss.org
They are having their cake and eating it too; the fiat ponzi continues, and they get to steal wealth away from we the people.
Can someone please explain to me why Ron Paul is suggesting we (USA) sell our gold reserves? He says the price has peaked.....I am at a loss...I thought he was a big supporter of PM's....and now this? It is a big story on Drudgereport.com....
he's sly like a Fox (there hasn't been gold at FK since 1979)
On the topic of 401k and IRA holdings:
It is high fucking time that people start making some tough decisions on whether they want to risk keeping their entire life savings locked in a fiat digital account that could be subject to extreme government internvention and/or dollar destruction.
Let's face it, if it ever gets bad enough where the Treasury needs to sell your 401k assets and put the funds into UST's, or, fold your assets intothe SS trust fund, or whatever fucked up financial engineering they cook up, then at that point your dollar denominated assets are going to be worth dog fucking shit on a stick anyway since the dollar will be mere detritus.
Personally, I'm going to say fuck it, and cash out my 401k, pay the taxes and pay the early penalty fee, and move that nestegg the fuck out of USD denominated assets and into gold, silver, sound currencies, land, etc.
Why even fucking bother at this point trying to save for retirement?
What a fucking joke.
The standard of living is going to be so shitty here in the US, retiring will be just a relic of the past.
The number of people that will be wiped out when this shit storm hits is going to be mega-fucking epic.
As an aside, I went to my bank today and asked about taking out $20k in cash and if they needed any advance notice.
The reply was: "yes, we need at least a week for that amount, since we have to order it."
Agreed.
I plan on getting mine out ASAP.
It's no different than what many in America are doing, using their 401Ks to keep the AC going. Once the factory that moved to Guangdong returns to Flyoverton they'll put the money back and resume the American Dream.
as they say:
I've noticed banks doing funny things with my credit limits lately. For some reason the "available credit" is kind of "sticky," that is, the limit goes down, but then even when it's paid off instantaneously, it rises very slowly.
It has nothing to do with the money not clearing. I have called a couple of places and they gave me some bogus run around answer.
This has never happened in many years of having these same, fairly high-limit, cards.
This is *excellent news* for the Government pension funds. The Treasury department won't be able to "invest" (euphemism) their funds in US paper. Praise the Lord. Maybe they'd do better investing it in something else, like a Treasury short fund?