• Sprott Money
    05/05/2016 - 06:02
    Why is a Deutsche Bank mouthpiece suggesting “negative retail deposit rates or perhaps wealth taxes”? The answer is to (supposedly) stimulate our economies.

June Deficit Fails To Account For $142 Billion In Excess June Borrowings; U.S. Has Issued $1.5 Trillion Excess Debt Over Budget In Past 4 Years

Tyler Durden's picture




 
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Tue, 07/13/2010 - 19:23 | 467472 rubearish10
rubearish10's picture

Funding entitlements at lowest rates???

Tue, 07/13/2010 - 22:42 | 467656 Inspector Asset
Inspector Asset's picture

Based on these findings presented by Tyler, I am switching my opinion to that of the US will politely default on its debt.

 

No hyper inflation , no deflation, maybe a little. Another 20% drop in home prices, along with the second crash, but maybe the crash will be in the bond market and not the stock market.

 

With Obama's lets cut checks to everybody mentality, and this post by Tyler, I am convinced, the default strategy, is what they will do.

 

Now they might pull a Donald Trump: In the 80's he was in bed with every bank in NY, so they had no choice but to restructure his loans on his real estate empire....

 

The same might happen with the dollar, that there will be so many floating around, internationally that, the world will have no choice but, to devalue, resructure , etc. 

 

Out of a diluted, over used dollar, and some nifty Special Drawing Rights, thanks to IMF and Soros, in with the NWO currency and out with the dollar.

 

You have to give  to the bankers, they all alot smarter than we give them credit.

Notice how America had the crisis first?

Paulson once claimed the crisis was a result of "imbalance between saving and debting nations." My question is, after seeing all these soverign nations on the brink of default, "Who the fuck was saving then?" Is China the only one saving?

If so, they will get bullies along to play the game, the military will see too it.

In the end America still comes out better than the rest. DOsen't make it right, make of it what you waNT,

This all of course just my opinion after a couple cocktails.

 

Long live Tyler,.

 

 

 

 

Tue, 07/13/2010 - 22:47 | 467659 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

the crisis was a result of "imbalance between saving and debting nations."

Saving bad, debting good.  Hank said so.

Wed, 07/14/2010 - 05:22 | 467758 Mentaliusanything
Mentaliusanything's picture

No no no no! debt means your wealthy - Debt is right. Debt works. Debt clarifies, cuts through, and captures, the essence of the evolutionary spirit. Debt in all of its forms; Debt for life, for show, for love, knowledge, has marked the upward surge of mankind and Debt, you mark my words, will not only fuck the banks, but that other malfunctioning corporation called the U.S.A.

Tue, 07/13/2010 - 22:47 | 467661 Inspector Asset
Inspector Asset's picture

You know what?

Based on the idea taht we live in the "united Corpaorations of America"

the stock market will not crash, Tyler, it will be the bond market.

Yes that is the way it will go down.

Unitl I knoe better..

 

Tue, 07/13/2010 - 23:00 | 467671 Inspector Asset
Inspector Asset's picture

On a separate topic:

How are we going to keep in touch,

when Obama shuts dowen the Internet for months at a time?

 

You that Bs isn't about cyber attacks from China, as it is about keeping a lid, on bloggers, that might cause a recuss. Tyler, InfoWars.com, maybe the Drudge?

 

But they are worried , domestic bloggers , and the influnce they have ,

Thats my opinion and I am sticking to it.

Once the pyscological warfare on its own citizens wears off, or comes to light, big sis we step in to kill the net.

Whats you gonna do? 

 

Wed, 07/14/2010 - 03:48 | 467746 Bringin It
Bringin It's picture

It looks to me like stocks can not drop without exposing the valuations of other FIRE components  to pressure.  In particular, the insurance companies.

So they won't drop.  Like the steel girders of 9-11 sticking out of the rubble, the Dow will be sustained.

Where are those girders now?

Tue, 07/13/2010 - 23:35 | 467683 Manbarepig
Manbarepig's picture

Simplest possible answer. We're maxing out our Credit Cards while rates are low and new offers keep flooding into the mailbox.

Tue, 07/13/2010 - 19:26 | 467481 Fritz
Fritz's picture

Pay no attention to that man behind the curtain!

The great and powerful Oz has spoken.

Tue, 07/13/2010 - 19:27 | 467483 VK
VK's picture

This is really, really weird. More damned lies and fudged statistics. Hey, honey, I just lost $1.5 Trillion, just a 3 year long fat-finger.

Tue, 07/13/2010 - 22:44 | 467657 tgatliff
tgatliff's picture

Well, they could explain the reason for the difference, but none of use would would be capable of understand the explanation because it is SOOOO complex.  I mean, you would need at least 3 PHD's at a good quality university just to understand a basic summary, and I am sure none of us have those basic qualifications in this forum.  Thank goodness that there are people with "similar" qualifications like this at the Treasury, the Federal Reserve(s), and Goldman Sach, though. 

Tue, 07/13/2010 - 22:53 | 467665 Inspector Asset
Inspector Asset's picture

Enough , enough.

Its time to talk solutions. No more bitching.

 

Maybe we can create a million dollar lotto: I mean a million dollars for the ticket,.

 

So only the ultra rich could buy it, yet all the proceeds go to to the , Treasary, or the war on terror, whatever,

 

Then offer a a TV show, to offer up the excitment to the peaseantsw. Maybe even a pay per view.

'

remember kids: they call it PROGRAMMING for a reason.

Got TV Guide?

 

 

Wed, 07/14/2010 - 00:56 | 467716 The Eradicator
The Eradicator's picture

Correction

"I mean, you would need at least 3 PHD's at a good ivy league university just to understand a basic summary"

Wed, 07/14/2010 - 01:31 | 467724 agrotera
agrotera's picture

... and you just must have a pipe hanging out of the side of your mouth and you have to sound like Thurston Howell, III from Gilligan's Island.

Tue, 07/13/2010 - 19:29 | 467486 TooBearish
TooBearish's picture

Aint it the wars? - they still off budget, another one of Bam Bam's campaign promises that bit the dust on Jan 11, 2009.

Tue, 07/13/2010 - 23:13 | 467675 traderjoe
traderjoe's picture

That's my vote too. 

You know what, I don't think anyone cares. Nor do they want to. 98% of the people want the market to go up, and the entire financial services industrial complex does everything it can to hide the truth. Did not hear ONCE that AA's earnings estimates were $.20 a couple weeks ago. Mentions of the BDI have disappeared. NFIB surveys - passing mention. Defaults? 40 million on food stamps. I could go on and on. No one cares. It will go on until it cannot any longer. Who knows when that will be. The PTB will do whatever it takes. And the sheeple want to believe. They are easy marks. Makes me wonder if the Blue Pill is really the better one...

Wed, 07/14/2010 - 03:52 | 467747 Bringin It
Bringin It's picture

I don't grok the pills, but other than that

 

your post is the unfortunate truth.

Wed, 07/14/2010 - 05:53 | 467766 Mentaliusanything
Mentaliusanything's picture

So in summary, your saying - Just lie to me - please just lie because the pills just don't cut the mustard and if I hear the truth it will irreparably harm my passive nature.

 Like 40 million on food stamps

rail traffic falling

Baldry falling over a cliff

unemployment stuck at +450,000 weekly

People starving or being bankrupted by needed pills

Balance of trade un- fucking expectedly growing the wrong way

China with the infection imported from the Banks of the World

Metal prices on a precocious wobble

US dollar interest at Slut pricing

Foreclosures needing high powered glasses to see the rise through the clouds

Pointless war with nations who will bleed your brave Sons and break a mother heart

Corporations calling the shots in a sovereign Gulf while the testicles of confusion are shrinking daily

Markets that are so corrupt that even children can see the maleficence.

Watch dogs glued to tranny porn while the greatest thief in history is allowed

Obscene bonuses paid to people who strip cash from those who sweat, save and hope in trust

Bank reforms that keep the dogs of debt free until most who suffered have died.

Constitutions and declarations that are debased to less than toilet paper

Police 'tasering' 85 year old invalids in their beds.

Minimum wages that parrots could not live on

Yet I know for a fact it is the people who make you great. slow to anger but the most inventive and friendly people on the face of the Earth. who say  I pledge allegiance to my Flag,and to the Republic for which it stands: one Nation indivisible,With Liberty and Justice for all.

Just fix the last 5 words before you are interned 

 

 

 

Wed, 07/14/2010 - 06:43 | 467773 Dental Floss Tycoon
Dental Floss Tycoon's picture

 I pledge allegiance to my Flag,and to the Republic for which it stands: one Nation, UNDER GOD, indivisible,With Liberty and Justice for all.

Wed, 07/14/2010 - 07:13 | 467776 Mentaliusanything
Mentaliusanything's picture

Shows you how old I am and the original, correctly allowed the separation of state and religion which I fully support. 

Wed, 07/14/2010 - 07:14 | 467777 Mentaliusanything
Mentaliusanything's picture

double post

Wed, 07/14/2010 - 20:10 | 469746 Dental Floss Tycoon
Dental Floss Tycoon's picture

I too learned it the old way, but it does add to the irony.

Tue, 07/13/2010 - 19:30 | 467488 SnarkAttack
SnarkAttack's picture

I'd assume this is from reducing the average duration of debt outstanding.

Tue, 07/13/2010 - 19:36 | 467497 cswjr
cswjr's picture

I suspect that you're right.  It'd be a p.i.t.a. to verify, though.

Tue, 07/13/2010 - 19:31 | 467490 MiguelitoRaton
MiguelitoRaton's picture

Probably building up reserves for the final collapse...or not

Tue, 07/13/2010 - 19:32 | 467492 bkrolik
bkrolik's picture

Tyler,

Did you try to account for debt repayment/maturity and intra-government transfers (like social security)? I am not sure how they balance deficit, just guessing....

 

 

Tue, 07/13/2010 - 19:36 | 467495 nonclaim
nonclaim's picture

 

I don't know if this article was posted before but the author gives a short and sober assessment of the current situation:

Any and all government “stimulus” retards growth because it removes current and future wealth from its producers and gives it to central planners who are not subject to the market but to voters, a significant part of which do not pay for the bread and circuses they demand, sadly trading their liberty for a false economic security that ends in the collapse of the welfare state while stripping real job creators of their property and the incentive to create.  In case the moral argument and this brief economic one do not suit you, I suggest reading and sending to as many people you can Henry Hazlitt’s simple classic “Economics in One Lesson,” and specifically this chapter on public works, which explains the myriad economic fallacies pervading the nation with regard to public works.

http://biggovernment.com/amellon/2010/07/07/barack-obama-cannot-will-not...

Tue, 07/13/2010 - 19:52 | 467514 Reese Bobby
Reese Bobby's picture

Great comment. Thanks for the link.

Tue, 07/13/2010 - 20:19 | 467540 linrom
linrom's picture

The quote that you cite is 'literary bullshit'; it has nothing to do with economic reality where all wealth flows from the bottom to the top. The welfare state cannot exist in the real world.

How does this relate to the disparity between borrowings and outlays?

 

 

Wed, 07/14/2010 - 08:46 | 467822 dcb
dcb's picture

@linron

didn't your mother ever teach you how to behave. i.e thre are other ways to say hat you want. All you have managed to do is get others to think you are full of BS. *as per the number of Junk hits

Tue, 07/13/2010 - 20:28 | 467549 spinone
spinone's picture

the chapter on public works assumes a closed economy.  Now when we build public works, we take jobs from China.

Tue, 07/13/2010 - 21:41 | 467611 Anonymiss
Anonymiss's picture

thanks for the link.

Tue, 07/13/2010 - 22:57 | 467667 tgatliff
tgatliff's picture

It kills me when people confuse "creating jobs" with unemployment.  The two are not the same.  

Unemployment is nothing more than a person feeling their skills are worth something, but the market cannot support this amount.  Meaning, could we have 100% employment if everyone went to work for 25 cents per hour?  Absolutely, but could this still be achieved if everyone was paid $40K?  Most likely not...

In short, economic fundamentals is rather simple and all goes back to productivity.  If you can build something (or provide a service) that saves me more than I pay you, then your wage is justified.  If not, then your nation must have an ever increasing debt consumption (public,private,diluationary) to balance the economic equation.

Wed, 07/14/2010 - 04:03 | 467748 Bringin It
Bringin It's picture

Regarding your short fundamentals, While not entirely untrue, it is the story after you've collected all the marbles and trampled the commons.  How much of someone else's inalienable rights can be acquired via stealth? 

A lot apparently.

There are entitlements for both ends of the spectrum and all in between.

Tue, 07/13/2010 - 22:59 | 467670 tgatliff
tgatliff's picture

It kills me when people confuse "creating jobs" with unemployment.  The two are not the same.  

Unemployment is nothing more than a person feeling their skills are worth something, but the market cannot support this amount.  Meaning, could we have 100% employment if everyone went to work for 25 cents per hour?  Absolutely, but could this still be achieved if everyone was paid $40K?  Most likely not...

In short, economic fundamentals is rather simple and all goes back to productivity.  If you can build something (or provide a service) that saves me more than I pay you, then your wage is justified.  If not, then your nation must have an ever increasing debt consumption (public,private,diluationary) to balance the economic equation.

Tue, 07/13/2010 - 19:35 | 467496 Max Hunter
Max Hunter's picture

What's a trillion here or there between friends?

Tue, 07/13/2010 - 19:44 | 467504 Ragnar D
Ragnar D's picture

"Friends"?  There are no friends here, pal.  I'm just here to collect half your paycheck because the poverty pimp I vote for told me I'm Entitled to it.

While I'm buying stuff with your check, I still want you to die because I was told you're the enemy and the reason I don't have your stuff.

No friendship here.  But keep working 10 hour days because apparently the reason we're broke is you aren't paying for your "fair share" of stuff I want...

Tue, 07/13/2010 - 20:58 | 467575 AVP
AVP's picture

Priceless!

Tue, 07/13/2010 - 22:27 | 467649 ShankyS
ShankyS's picture

Brilliant! Over the top on the $$$

 

+1000

Wed, 07/14/2010 - 08:33 | 467808 Max Hunter
Max Hunter's picture

I thought my sarcasm was apparent..

Tue, 07/13/2010 - 19:46 | 467507 demsco
demsco's picture

don't confuse annual deficits with long-term deficits. What was reported today was part of the annual deficit, not the total deficit which is why we borrow so much every month. If we failed to raise that money every month it is lights out.

Tue, 07/13/2010 - 20:13 | 467532 Slash
Slash's picture

this makes sense, sort of like getting while the getting is good........or while the perpetual "create new money, loan to gov/banks, get banks to buy gov debt, let sheeple pay the interest" circle jerk still works?

Tue, 07/13/2010 - 22:45 | 467658 jkruffin
jkruffin's picture

Must be why the total debt is over 54 Trillion then, makes perfect sense when you add SS, Meds, other entitlements.  So they have been working us over for more than 4 yrs you think?  Like 30 yrs is more like it.

Wed, 07/14/2010 - 01:43 | 467726 Lux Fiat
Lux Fiat's picture

I'm guessing/hoping that is it as well.  Gov't still has to roll debt issued 30, 10, 7 yrs ago that matures in the current period (because we certainly are retiring it...).  In addition to new debt issued to fund the current year deficit.

Tue, 07/13/2010 - 19:49 | 467511 Bear
Bear's picture

Obama Stash

Tue, 07/13/2010 - 23:59 | 467697 Mark Beck
Mark Beck's picture

Did they really say stimulus money came from Obama stash?

Being from Detroit, I would like to distance myself from those remarks. I would also like to say that there are people in Detroit who understand the mismanagement of our money system by the FED, and are familiar with the Treasury accounts. And I can safely attest that there is no such Obama Stash line item.

Good night, and thank you for your support.

Mark Beck

Tue, 07/13/2010 - 19:54 | 467516 Orly
Orly's picture

Remember me if I am mistaken, but...

Didn't the Fed just actualise the debt of Fannie and Freddie, as seen last week here on ZeroHedge?  This sounds remarkbly close to the amount needed to "transfer" (Bruce has it as an account gimmick...) a trillion from one balance sheet to two others, plus interest and assorted fuck you fees included for good measure.

Maybe this is the bill the Fed sent itself for "facilitating" Fannie and Freddie?

 

P. S. It is good to see Grand Supercycle out and about.  I have a feeling we're about to get it on...

Tue, 07/13/2010 - 20:03 | 467522 Zina
Zina's picture

Assuming that short term securities with maturities of 3 month, 6 month, 1 year, etc, are included in this "Cumulative Federal Debt Issuance", then we may understand the gap.

Rolling over the debt is not accounted into the Budget Deficit, is it?

Tue, 07/13/2010 - 20:26 | 467546 linrom
linrom's picture

Simple answer to the question of timing? Tks.

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