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Tim Geithner Releases Latest Mutual Assured Destruction Threat: Says "Debt Ceiling To Be Breached No Later Than May 16"

Tyler Durden's picture


Anyone remember the scaremongering tactics used by the kleptocracy when TARP was passed and when the Fed tried to hide its discount window borrowings (oh yes, the market really plunged on Thursday)? If not, here is a reminder, courtesy of a letter just released by the boy who not only cried wolf on so many different occasions, but continues to do so today: "The longer Congress fails to act, the more we risk that investors here and around the world will lose confidence in our ability to meet our commitments and our obligations. If Congress does not act by May 16, I will take all measures available to me to give Congress additional time to act and to protect the creditworthiness of the country....Defaulting on legal obligations of the United States would lead to sharply higher interest rates and borrowing costs, declining home values and reduced retirement savings for Americans. Default would cause a financial crisis potentially more severe than the crisis from which we are only now starting to recover....defaulting on legal obligations of the United States would lead to sharply higher interest rates and borrowing costs, declining home values and reduced retirement savings for Americans. Default would cause a financial crisis potentially more severe than the crisis from which we are only now starting to recover. Nor is it possible to avoid raising the debt limit by cutting spending or raising taxes. Because of the magnitude of past commitments by Congress, immediate cuts in spending or tax increases cannot make the necessary cash available. In order to avoid an increase in the debt limit, Congress would need to eliminate annual deficits immediately. " We are now, thusly, screwed.

From a letter just released by Tim Geithner to Congress  (pdf)

Secretary Geithner Sends Debt Limit Letter to Congress

April 4, 2011


The Honorable Harry Reid
Democratic Leader

United States Senate

Washington, DC 20510

Dear Mr. Leader:

I am writing to update you on the Treasury Department’s projections
regarding when the statutory debt limit will be reached and to inform
you about the limits of the available measures at our disposal to delay
that date temporarily.

In our previous communications to Congress, we provided regular
estimates of the likely time period in which the debt limit could be
reached. We can now make that projection with more precision. The
Treasury Department now projects that the debt limit will be reached no
later than May 16, 2011. This is a projection based on the expected
level of tax receipts, the timing of our commitments and obligations
over the next several weeks, and our judgment concerning the level of
cash balances we need to operate. Although these projections could
change, we do not believe they are likely to change in a way that would
give Congress more time in which to act. Treasury will provide an
update of this projection in early May.

If the debt limit is not increased by May 16, the Treasury Department
has authority to take certain extraordinary measures, described in
detail in the appendix, to temporarily postpone the date that the United
States would otherwise default on its obligations. These actions,
which have been employed during previous debt limit impasses, would be
exhausted after approximately eight weeks, meaning no headroom to borrow
within the limit would be available after about July 8, 2011
. At that
point the Treasury would have no remaining borrowing authority, and the
available cash balances would be inadequate for us to operate with a
sufficient margin to meet our commitments securely.

As Secretary of the Treasury, I would prefer to avoid resorting to these
extraordinary measures. The longer Congress fails to act, the more we
risk that investors here and around the world will lose confidence in
our ability to meet our commitments and our obligations.

If Congress does not act by May 16, I will take all measures available
to me to give Congress additional time to act and to protect the
creditworthiness of the country
. These measures, however, only provide a
limited degree of flexibility—much less flexibility than when our
deficits were smaller.

As the leaders of both parties in both houses of Congress have
recognized, increasing the limit is necessary to allow the United States
to meet obligations that have been previously authorized and
appropriated by Congress. Increasing the limit does not increase the
obligations we have as a Nation; it simply permits the Treasury to fund
those obligations that Congress has already established.

If Congress failed to increase the debt limit, a broad range of
government payments would have to be stopped, limited or delayed,
including military salaries and retirement benefits, Social Security and
Medicare payments, interest on the debt, unemployment benefits and tax
. This would cause severe hardship to American families and
raise questions about our ability to defend our national security
interests. In addition, defaulting on legal obligations of the United
States would lead to sharply higher interest rates and borrowing costs,
declining home values and reduced retirement savings for Americans.
Default would cause a financial crisis potentially more severe than the
crisis from which we are only now starting to recover

For these reasons, default by the United States is unthinkable. This is
not a new or partisan judgment; it is a conclusion that has been shared
by every Secretary of the Treasury, regardless of political party, in
the modern era.

Treasury has been asked whether it would be possible for the Treasury to
sell financial assets as a way to avoid or delay congressional action
to raise the debt limit
. This is not a viable option. To attempt a
“fire sale” of financial assets in an effort to buy time for Congress to
act would be damaging to financial markets and the economy and would
undermine confidence in the United States.

Selling the Nation’s gold, for example, would undercut confidence in the
United States both here and abroad. A rush to sell other financial
assets, such as the remaining financial investments from the Emergency
Economic Stabilization Act programs, would impose losses on American
taxpayers and risk damaging the value of similar assets held by private
investors without generating sufficient revenue to make an appreciable
difference in when the debt limit must be raised. Likewise, for both
legal and practical reasons, it is not feasible to sell the government’s
portfolio of student loans.

Nor is it possible to avoid raising the debt limit by cutting spending
or raising taxes. Because of the magnitude of past commitments by
Congress, immediate cuts in spending or tax increases cannot make the
necessary cash available
. And, reductions in future spending
commitments cannot supply the short-term cash needed. In order to avoid
an increase in the debt limit, Congress would need to eliminate annual
deficits immediately.

As the Congressional Research Service stated in its February 11, 2011 report:

“If the debt limit is reached and Treasury is no longer able to issue
federal debt, federal spending would have to be decreased or federal
revenues would have to be increased by a corresponding amount to cover
the gap in what cannot be borrowed. To put this into context, the
federal government would have to eliminate all spending on discretionary
programs, cut nearly 70% of outlays for mandatory programs, increase
revenue collection by nearly two-thirds, or take some combination of
those actions in the second half of FY2011 (April through September 30,
2011) in order to avoid increasing the debt limit. Additional spending
cuts and/or revenue increases would be required, under current policy,
in FY2012 and beyond to avoid increasing the debt limit.” [1]

None of those budget policy choices is feasible or responsible. As a
consequence, given that Congress has imposed on itself the requirement
for periodic increases, there is no alternative to enactment of an
increase in the debt limit.

I am encouraged that the leaders of both parties in both houses of
Congress have clearly stated in public over the last few weeks and
months that we cannot default on our obligations as a nation and
therefore have to increase the debt limit. Because the date by which we
need to increase the limit is growing nearer, I hope that the
leadership in both houses will help us impress upon all Members the
gravity of this issue and the imperative of timely action.

President Obama is strongly committed to working with both parties to
restore fiscal responsibility, and he looks forward to working with
Congress to achieve that critically important objective. In the
meantime, it is critical that Congress act to increase the debt limit so
that the full faith and credit of the United States is protected.

I hope this information is helpful as you plan the legislative schedule for the coming weeks.


Timothy F. Geithner

Identical letter sent to:

The Honorable John A. Boehner, Speaker of the House

The Honorable Nancy Pelosi, House Democratic Leader

The Honorable Mitch McConnell, Senate Republican Leader


The Honorable Dave Camp, Chairman, House Committee on Ways and Means

The Honorable Sander M. Levin, Ranking Member, House Committee on Ways and Means

The Honorable Max Baucus, Chairman, Senate Committee on Finance
The Honorable Orrin Hatch, Ranking Member, Senate Committee on Finance
All other Members of the 112th Congress



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Mon, 04/04/2011 - 15:16 | 1133756 Hard1
Hard1's picture

Debt Ceiling…What debt ceiling? asks Timmey?  Ben answers, those idiots at the hill think that there is a limit to the amount of those pieces of paper that you like to print and I happen to buy with other pieces of paper that I like to print…..ahh answers Timmey   there seemed nothing wrong with our pissing contest of who has the fastest printer in the world.  (So far there was a tie between elves and men at around $60 billion per second).  Oh and by the way,  asks the dumb elf.  How can they enforce trying to stop a train running at 250 mph that is 10 inches from crashing against an imaginary wall?  I don’t think they can do that answers Benny.  OK, I'll send them a letter. By the way seems like we tie again this week, I bought everything that you printed with my weekly output. Wanna wager another $20 for next week?

Ego can procer ocius quam vos can repute. I can print faster than you can think.   (Ben S. Bernanke  circa 2011)  

Mon, 04/04/2011 - 15:22 | 1133807 slaughterer
slaughterer's picture

It's like the only game Timmy knows is taken directly from page 1 of the Hank Paulson playbook.  

Mon, 04/04/2011 - 16:05 | 1134038 Highrev
Highrev's picture

President Obama is strongly committed to working with both parties to restore fiscal responsibility, and he looks forward to working with Congress to . . .

. . . keep kicking the can in "the meantime".

Mon, 04/04/2011 - 16:52 | 1134305 zaphod
zaphod's picture

"unless the deficit is eliminated"


That's really the only thing that matters and you just said it Timmy.

If we don't raise the debt ceiling the US will not default, it just means that the government will only spend what it takes in. Considering that tax receipts are still well north of $2Tillion, they have real balls to complain.

Tue, 04/05/2011 - 03:50 | 1135890 Popo
Popo's picture

Is there even a difference to America's image between defaulting and "taking on new debt to pay old debts"?    Both actions signify an inability to pay back debt.

One action accepts responsibility for our insolvency now, the other forces our insolvency onto our children.


Faced with the option of accepting financial responsibility today, or forcing debt onto our children -- Geithner is choosing to screw over our kids.  How on earth is that a defensible position? 



Mon, 04/04/2011 - 17:17 | 1134439 whatsinaname
whatsinaname's picture

Will Tim refuse to pay Ben "interest" on his treasury "holdings" ?

Will Tim give Ben an IOU instead ?

Mon, 04/04/2011 - 15:35 | 1133838 Hard1
Hard1's picture

Oh, I almost forgot. This is definitively bullish news for every asset.  BTFD bitchezzz!!

Mon, 04/04/2011 - 16:17 | 1134121 malikai
malikai's picture

What dip? Default is obviously the most bullish thing ever.

Mon, 04/04/2011 - 16:53 | 1134319 myTPisUSD
myTPisUSD's picture

S&P to rally was what I came away with

Mon, 04/04/2011 - 15:37 | 1133887 TradingJoe
TradingJoe's picture

yeah, good old turbo timmah!

Mon, 04/04/2011 - 15:17 | 1133760 tek77blu
tek77blu's picture

Timmy will do nothing more than raise the price ceiling for gold and silver going forward:

Mon, 04/04/2011 - 15:27 | 1133803 Hephasteus
Hephasteus's picture

April is going to gang rape the dollar. If it comes out of april over 72 it will be a frikkin miracle.

Yahoo is putting up plenty of Things that won't fly with the IRS stories and crap like that.

Everything that can be learned about horrilbe behavior is learned while slaves are attempting to run away from masters. When people attempt to fire thier government.

"This is a projection based on the expected level of tax receipts, the timing of our commitments and obligations over the next several weeks,"

There's no tax receipts. LOL

Mon, 04/04/2011 - 15:31 | 1133840 CPL
CPL's picture

You got it.

Mon, 04/04/2011 - 16:53 | 1134304 naughtius maximus
naughtius maximus's picture

Wouldn't the government defaulting on debt be massively deflationary? And all those seniors not getting paid.. All that money gone. Prices have to go down until people can afford them. Broke people cannot afford much.

I'm keeping my dollars until CONgress gets the brilliant idea that they can print all the money it needs to fund the monster government we have.

Then all this zimbabwae talk will become relevant and serious actual real life stuff.

Mon, 04/04/2011 - 17:10 | 1134408 fuu
fuu's picture

"I'm keeping my dollars until CONgress gets the brilliant idea that they can print all the money it needs to fund the monster government we have."


let's just skip over the part where you are coming late to the party and just embrace the fact you showed up.

Mon, 04/04/2011 - 19:17 | 1134840 Snidley Whipsnae
Snidley Whipsnae's picture

"And all those seniors not getting paid.. All that money gone. Prices have to go down until people can afford them."

Hello, Americans are not the only people on earth. In fact, Americans are a very small per centage of the people on earth. Commodities go to the highest bidder... regardless of their address.

"Actual real life stuff" is whats going to happen to you while you using faulty logic.

Mon, 04/04/2011 - 15:18 | 1133765 Rahm
Rahm's picture

Timmah is the definition of a piece of $h!t

Mon, 04/04/2011 - 16:56 | 1134325 myTPisUSD
myTPisUSD's picture

+1...some people are just shitty people, others are pieces of shit

Mon, 04/04/2011 - 15:20 | 1133771 GOSPLAN HERO
GOSPLAN HERO's picture

Print like four mofos.

Mon, 04/04/2011 - 15:26 | 1133819 Cash_is_Trash
Cash_is_Trash's picture

Well their intention to destroy the currency can't be clearer than that.

This man is real sack of shit, him and the cronies on the Hill which will raise the limit.

Mon, 04/04/2011 - 15:50 | 1133969 The German Chairman
The German Chairman's picture

Projections of Doom serve the Oligarchy! No doubt, a sudden collapse of the global financial system is POSSIBLE. All fiat may be worthless within days/weeks, shops empty, communications and energy off, unprecedented chaos globally. But I think the probability of such a thing to happen is way, WAY lower than most ZH-readers think. Why? Because today's worldwide oligarchy (the FED is its center) is in public crosshairs. Too many people know structures, names and faces of the oligarchy. If 'they' let the system collapse abruptly = erase all monetary assets/savings = leave millions/billions of people starving within months, 'they' would be just dead. DEAD. And their death will be an unpleasant one.


But - We are talking about the greatest concentration of power the planet has ever seen. 'They' own decisive pieces of all finance, agriculture, defense, energy, communications, media and last not least, 'they' control most governments and dictatorships. I doubt 'they' are careless enough to let it happen and expose themselves to such a tremendous risk. The most probable outlook for the future is that everything will steadily get worse. Up to which point? There is no such point. For instance food-stamps. Imagine a time when there were 'only' one million US-citizens depending on food stamps. Everybody would have said: If the figure - gasp - doubles, we have a revolution, society will collapse. How many people depend on food-stamps today? Aren't it some tens of millions? If 30 million is possible, then 60million is possible, too. And if 60million is possible, then 1/2 of US population is possible, too. It just depends on the timeframe in which this unfolds and its steadiness.


And why shall the population accept such a development and live their lives in such an obvious nightmare? Because from a day-to-day view, almost everything is better than sudden collapse. And the more we project this sudden collapse in our minds, the easier it is for the oligarchy to impose their will on us. Hm, what about us, the small, critical, intellectual crowd; we accumulated considerable quantities of physical PMs because we think this is an über-weapon/shield against 'them'? I think 'they' will have some candy for us which we cannot resist and which makes us accept whatever 'they' intend. They will know how to pull their most serious critics on their side - and the looting of the world can go on.

Mon, 04/04/2011 - 17:05 | 1134389 sschu
sschu's picture

You may be correct, boil the frogs slowly as they say.

When I speak to people about the crisis we face, the invariable response is about the stock market.  How can all this be true and how can the market be up so much given the doomsday scenario you paint?  If you start down the path of market manipulation, then these people tune out, they just do not want to hear it.

As long as the market does not go down, the people will watch their 401Ks and decide that all cannot be that bad.  Bennie etal know this and they will spend a bundle to keep it that way.


Mon, 04/04/2011 - 17:38 | 1134526 Crack-up Boom
Crack-up Boom's picture

Even worse - I've tried to explain the potential for inflation, only to be told that, if prices rise, our slaries will have to rise, too, so there won't be any real difference!  It can be really hard to break through the normalcy bias. 

Mon, 04/04/2011 - 18:10 | 1134641 James
James's picture

For the record, 44.5 + MILLION are on food stamps today.

Tue, 04/05/2011 - 03:09 | 1135870 MisterAmbassador
MisterAmbassador's picture

I agree with your premise and logic, but wasn't the system completely collapsing in September 2008?  Wouldn't they have wanted it to be less apparent?  These people have great arrogance.  They believe they can perfectly predict and control everything.  They cannot fathom that computers can quickly collapse the system as things cascade faster than they can possibly think, let alone react.  That arrogance is all it takes for an uncontrolled collapse.  The government was able to guarantee the banks and stop $5.5 trillion from being withdrawn from the system.  Who guarantees the government, though?  Rev up the presses? Sure.  But, sovereign holders of our debt will see through that and SELL!  SELL!  SELL!, if not declare war.

Mon, 04/04/2011 - 15:18 | 1133774 SwingForce
SwingForce's picture

What a liar, worse than I thought.

Mon, 04/04/2011 - 15:18 | 1133778 Homey Da Clown
Homey Da Clown's picture

"President Obama is strongly committed to working with both parties to restore fiscal responsibility"


HO  HO HO HA HA HA. Thanks Timmy. I needed that one.  Didn't he send Joe "Stand Up Chuck" Biden to deal with the budget for one day, while he left town for Rio?Hubris indeed.

Mon, 04/04/2011 - 16:11 | 1134071 DosZap
DosZap's picture

I haven't seen him work,or be committed  on anything except his Golf game.

He allows Satans minions to do the dirty work, whilst he's vacationing with the Fam.

Ah...........................the Good Life.

The Chi Town Way.

Mon, 04/04/2011 - 16:22 | 1134141 Anonymouse
Anonymouse's picture

A few statements to this effect placed throughout the media, and voila, all economic problems are the fault of the GOP.  "The recovery was moving along nicely, unemployment coming down, business confidence on the rise.  But then, the extremists in the GOP shutdown the government and the economy went back off the rails."  This is all positioning for 2012.  Problem is, it probably will work.

Mon, 04/04/2011 - 20:35 | 1135101 Founders Keeper
Founders Keeper's picture

[A few statements to this effect placed throughout the media, and voila...]---Anonymouse

Good observations, Anonymouse.

Dems kick the 2011 Budget can down the road for the Reps to wrestle with at about the same time the Debt Ceiling comes due. Then, in the interim, announce ginned up GDP numbers and sub 9% NFP numbers.

Both parties spend countless hours, day and night, plotting and wringing their dirty hands over this kind of non-sense, while the work of the nation waits.

Maniacal brilliance of political monsters.

Dems & Reps alike, shameful. SSDD. We all lose.  


Mon, 04/04/2011 - 15:19 | 1133786 Midwest Prepper
Midwest Prepper's picture

Isn't Timothy Geithner the guy who is incapable of doing his own taxes with Turbotax?  Why should we listen to him on this?  There is only one way to find out what would happen.... Let's default and see who gives in first...

Mon, 04/04/2011 - 15:20 | 1133788 Your Mama
Your Mama's picture

Bring it on...need to shake up the markets, to frickin boring these days

Mon, 04/04/2011 - 15:20 | 1133789 bob_dabolina
bob_dabolina's picture

We should all listen to a guy who couldn't properly pay his taxes because turbo tax was too complicated.

Mon, 04/04/2011 - 16:21 | 1134142 malikai
malikai's picture

Hiding all the crooked cash he's got probably is too complicated. He should have banked at Wachovia. They've obviously got experience in these matters.

Mon, 04/04/2011 - 19:09 | 1134810 Natasha Fatale
Natasha Fatale's picture


+13 trillion

Mon, 04/04/2011 - 15:20 | 1133793 Lord Welligton
Lord Welligton's picture

"Defaulting on legal obligations of the United States would lead to sharply higher interest rates and borrowing costs, declining home values and reduced retirement savings for Americans."

Same argument the world over.

Borrow more or we will destroy your country.

I say. Bring it on.

Mon, 04/04/2011 - 16:20 | 1134129 youngman
youngman's picture

"lose confidence in our ability to meet our commitments and our obligations" me that would be paying your bills with the money you make....NOT MONEY YOU BORROW OR PRINT...what an idiot.......this joke is not longer funny...

How come I have this funny feeling those foreign banks that got all the bailout money...have a lot of Politicians and Timmy´s accounts...well stocked with cash right now...probably changed it over to gold

Mon, 04/04/2011 - 17:43 | 1134545 disabledvet
disabledvet's picture

even better:  "we won't pay the soldiers."  right up with "the white preacher in Florida did it."

Mon, 04/04/2011 - 15:21 | 1133797 hedgeless_horseman
hedgeless_horseman's picture

Defaulting on legal obligations of the United States would lead to ... declining home values and reduced retirement savings for Americans.

I think Turbo Tax Tim has this backwards. 

Here is the truth: 

Incurring excessive obligations of the United States has lead to declining home values and reduced retirement savings for Americans.


Mon, 04/04/2011 - 16:14 | 1134084 DosZap
DosZap's picture

Flashbacks have a way of reversing the truth.

Mon, 04/04/2011 - 15:21 | 1133799 Astute Investor
Astute Investor's picture

"The longer Congress fails to act, the more we risk that investors here and around the world will lose confidence in our ability to meet our commitments and our obligations...."


Someone should tell TG that the only "investor" that matters these days is BB & Co.

Mon, 04/04/2011 - 15:24 | 1133805 Homey Da Clown
Homey Da Clown's picture

Right out of the Rahm Emanual playbook

Mon, 04/04/2011 - 15:29 | 1133810 TruthInSunshine
TruthInSunshine's picture

When Americans divorce themselves from ego & narcissism, embrace true freedom, embrace life as more than just a hobby of collecting shit they don't even really need, and start to love their children more than they hate confronting the desperation of what a famous author & thinker termed " lives of quiet desperation," they'll be prepared to say "I am not afraid of default because I want to be free, and no longer desire to be a shackled debt slave."

Only then, realizing that they can't be controlled and forced to do things they detest for the rest of their lives in exchange for material things, most of which have a token happiness expiration date of 2 days to 2 months from purchase, can Americans be free again.

So, default. Move to Walden. Go Galt.

"I am not Jack's FICO score, Bank Account or Bottom Line. I am Jack's newly born freedom."



Mon, 04/04/2011 - 15:28 | 1133835 SilverFiend
SilverFiend's picture

Well said.  I'm ready.

Mon, 04/04/2011 - 15:32 | 1133869 Overpowered By Funk
Overpowered By Funk's picture


Mon, 04/04/2011 - 15:37 | 1133896 Bryan
Bryan's picture

I really wonder what would happen if, maybe, 50% of all Americans decided to default on their own personal debt.  Maybe even 20% would do it.  Would it bring down the system and things would settle?  Or would we all just be miserable and get us nowhere?

Mon, 04/04/2011 - 15:50 | 1133959 MachoMan
MachoMan's picture

I'm not sure we're too far from your latter figure.

Mon, 04/04/2011 - 18:16 | 1134656 James
James's picture

Bryon asks - Or would we all just be miserable and get us nowhere?



We already are miserable and getting nowhere.

Mon, 04/04/2011 - 15:51 | 1133965 LawsofPhysics
LawsofPhysics's picture

Yes,  I am in and prepared.  Let us see the treasury stop payment on the military paychecks first.  I have food and water for patriots, bring it.

Mon, 04/04/2011 - 15:57 | 1133986 tahoebumsmith
tahoebumsmith's picture
Tyler’s Fifth Rule of Innovation:

“You’re not your job. You’re not how much money you have in the bank. You’re not the car you drive. You’re not the contents of your wallet. You’re not your fucking khakis.”

When we talk about fear, risk, mistakes, and losing it all, what are we really afraid of? Are we defined by the stuff we own, or would we prefer to be defined by what we accomplish and create for the world?

I’m not saying give all your stuff away or take foolish risks that harm your family or yourself. I’m saying don’t let the stuff you own start to own you to the point that you can’t live the life you want to live and do the things you want to do.

Mon, 04/04/2011 - 16:10 | 1134053 TruthInSunshine
TruthInSunshine's picture


It's just my opinion, but healthy food, clean drinking water and air, proper medical care, rigorous education, some level of self-sufficiency and a fruitful passion in life (or two or three - if it's in service of one's fellow human, all the better) are what's critical.

Brainwashing the masses into believing they've failed in life if they don't get that Veyron & 12,000 sq ft home in Malibu or the Hamptons, or that they can look like [insert uber model du jour here] if they shop at X and wear Y....that's just mean.

Mon, 04/04/2011 - 16:27 | 1134184 MrSteed
MrSteed's picture


I used to fly RC Helicopters and bought a ton of stuff.   Then , I lost interest.  That stuff *weighed* on me just sitting there.   Finally, we were about to move.   I gave it all away.   Every last scrap.   I felt *great*!  What a load off!

Then, I realized it's like that with everything.   It's *just* stuff!   Most of it gives you a few moments gratification, then its restlessly moving on to the next "stuff".   From then on, I tell people: no more stuff.   Don't get me "gifts".   In fact, take stuff away!   If you see something you like, have at it!   It'll lighten my load.  (except my PMs :)  which server strategic needs).

So tip #1: ALL stuff owns you eventually if you attempt to own it.   Want little, Be happy with what you got.

Tip #2: Turn off the fucking TV.   It's melting your brain.   (I haven't turned on a TV in 3 years)

Mon, 04/04/2011 - 18:34 | 1134709 James
James's picture

Years ago a Detroit newspaper columnist made fun of, mocked as stupid one Henry Ford continually to the point Ford sued him for slander. It was suggested that the running of Ford motors should not be in the hands of a stupid man such as Henry.

In court the mocking continued by columnists lawyer 'til Henry had enough and said to the court (paraphrased) that he was in fact quite capable of running Ford motors as he himself started it and should their be a question he could'nt answer he had 13 buttons under his desk to summon anybody he knew who could answer that question.

The jury stood up and applauded Henry Ford and awarded him the amount he sued for. Obviously, Not a stupid man.

My point is that we may crash but those of us with brains to have done it before WILL do it again.

Those that can't, politicians and such, will wither and die, as it should be. 

Mon, 04/04/2011 - 22:36 | 1135456 Zero Govt
Zero Govt's picture

Yes James we've reached 'Selection Time' where come the 2nd crunch the men shall be sorted from the boys.... so long as you're prepared the only concern should be about what happens after

you can bet many of the parasites will know what's coming and be prepared too ..the key is making sure there is no Govt thereafter, their favourite tool for living off the backs of others (society)

if we kill Govt once and for all then eventually all these parasites will return to the gutter because if there's one thing consistent about them it is they cannot make an honest living. Bury Govt and you bury the parasites with it

Mon, 04/04/2011 - 15:26 | 1133816 JohnG
JohnG's picture

" If Congress failed to increase the debt limit, a broad range of government payments would have to be stopped, limited or delayed, including military salaries and retirement benefits, Social Security and Medicare payments, interest on the debt, unemployment benefits and tax refunds."

Sounds good to me.  Solves many problems.

Mon, 04/04/2011 - 15:39 | 1133901 earnulf
earnulf's picture

except for that part about "interest on the debt", which should mean a default if we aren't paying it

Mon, 04/04/2011 - 15:44 | 1133932 JohnG
JohnG's picture

Yup.  Problem solved.

Mon, 04/04/2011 - 16:23 | 1134149 DosZap
DosZap's picture

There is no reason under the sun we are paying interest on fiat currency, to a private corporation, for as long as it is not paid back.

JFK had the right idea, he knew we were getting screwed,and when he started producing US Notes, it got him murdered.(imho

If your the Soverign, why pay someone to tell the Treasury to print X# of dollars,charge us face value, and interest, and then YOU get to put us into indentured servitude, and bankruptcy?.

When all we have to do is print/coin our own monies.

This biatch has been rotten to the core since Dec of 1913.

Mon, 04/04/2011 - 15:27 | 1133821 Agent P
Agent P's picture

Treasury funded the first $14.3 trillion...for everything else there's MasterCard.

Mon, 04/04/2011 - 15:30 | 1133833 Seasmoke
Seasmoke's picture


Mon, 04/04/2011 - 16:15 | 1134091 carbonmutant
carbonmutant's picture


Mon, 04/04/2011 - 15:27 | 1133827 Misean
Misean's picture

Does that worthless little twat expect anyone to buy this horseshit?

Mon, 04/04/2011 - 15:29 | 1133828 equity_momo
equity_momo's picture

Fuck off Timmy.  No one cares what you have to say. Now fuck off.

Mon, 04/04/2011 - 15:36 | 1133831 sodbuster
sodbuster's picture

Hey Turbo Timmay! How is this worse than letting you and the Fed continually gang rape the US taxpayer and saver on a daily basis??

All the way you, Timmay, you mother all the wayer!!


Mon, 04/04/2011 - 15:28 | 1133834 SumSUN
SumSUN's picture

Why not raise the debt ceiling to nine hundred trillion dollars to the power of nine hundred trillion? Times 99999999999 squared.

Mon, 04/04/2011 - 15:49 | 1133952 ZackAttack
ZackAttack's picture

That might signal that we were being fiscally irresponsible.

Mon, 04/04/2011 - 15:30 | 1133837 AldoHux_IV
AldoHux_IV's picture

End the fed, fire Geithner, reform the treasury = debt ceiling problem solved.

Nice try Timma, but you really have become quite useless.

Mon, 04/04/2011 - 16:17 | 1134107 carbonmutant
carbonmutant's picture

Actually they keep Timmay around to kiss Hu Jintao's ass...

Mon, 04/04/2011 - 18:46 | 1134749 James
James's picture

Here's a You Tube video of China students laughing at 'lil Timmy.

Mon, 04/04/2011 - 15:30 | 1133848 Waterfallsparkles
Waterfallsparkles's picture

Sounds a little desperate.  Just think about all of the stocks they are holding as collateral on their books for loans to the TBTF's.  Maybe they will start to call in the loans so as not to suffer a downward turn in the Market on their Balance Sheet.

Mon, 04/04/2011 - 15:30 | 1133849 firstdivision
firstdivision's picture

Geez, and we thought running out of Apple shit would be bad.

Mon, 04/04/2011 - 15:32 | 1133855 cossack55
cossack55's picture

"selling America's gold"  What gold. Is he talking about the von Nothaus bonanza?

Mon, 04/04/2011 - 15:59 | 1134004 Bubbles...bubbl...
Bubbles...bubbles everywhere's picture

This was probably their little inside joke, as in "selling America's gold...wink, wink".

Or "trickle down economics".


Mon, 04/04/2011 - 15:30 | 1133857 Alea Iacta Est
Alea Iacta Est's picture

So they raise the debt ceiling again.  The only wild card here is the tea-party members may be hellbent on forcing the apocalypse.


The real play here?  Congress just raises the ceiling again.

Mon, 04/04/2011 - 15:33 | 1133859 tomfool
tomfool's picture

Dear TBTF bank,


Raise my credit limit or by golly I will quit paying all my bills.   Then my

employer will fire me because of garnishments.   


Joe Taxpayer


cc: The Ben Bernank

     King Obama

Mon, 04/04/2011 - 15:41 | 1133899 TruthInSunshine
TruthInSunshine's picture

+ 1 ounce

Dear Creditors:


I hereby declare myself Too Big To Fail and will henceforth quit paying any bills.


Please direct any responses or questions to The Bernank or The Timmay Jeetner.


Send Lloyd Blankfein, Blythe Masters & Jamie Dimon my regards.




 Joe & Joyce 'No More Double Standards' Taxpayer

Mon, 04/04/2011 - 15:32 | 1133866 Bryan
Bryan's picture

Whee, I love riding this debt spiral.  It's just like The Corkscrew at Knotts, only vertical.


Mon, 04/04/2011 - 15:35 | 1133879 gunsmoke011
gunsmoke011's picture

Timmah getting an early start this time around. I wonder if we will ever again see the day when someone with a nut stands up and says - SHOW ME! Rather than listening to the blather about how scary it is going to be if the Treasury and FED do not get their way - or if we don't go to war immediately - and how we don't want to see what will happen in that event --- I wish JUST ONCE someone would stand up and say - BULLSHIT -- I'll Take My Chances.

Mon, 04/04/2011 - 16:38 | 1134232 Dadburnitpa
Dadburnitpa's picture

Thank you.

Mon, 04/04/2011 - 15:36 | 1133892 Ying-Yang
Ying-Yang's picture

Timmmmmmay says "increasing the limit is necessary to allow the United States to meet obligations that have been previously authorized and appropriated by Congress."

Oh really? How about the current expenditures for the Libyan no fly zone... Congress authorized this?

Tim the Pud (aka tax evader)


Mon, 04/04/2011 - 15:36 | 1133893 rockraider3
rockraider3's picture

Fine, eliminate the annual deficeit immediately.  That's what we should have done two years ago. No biggie.

Mon, 04/04/2011 - 15:37 | 1133898 jkruffin
jkruffin's picture

In addition to my FOREX account closing earlier today, I just dumped every savings bond, bill, and note from my Treasury Direct account. Closing it today also.  I will take my money and buy me some more silver. Physical that is, not the paper kind on Wall Street.

Mon, 04/04/2011 - 15:41 | 1133908 rockraider3
rockraider3's picture

Sell the nation's gold?  Oh good god these guys are clueless.  Yes, sell one of the few things that will have any benefit to the people of this country after you fail at your job, only compounding the problems you lay at the feet of US citizens post-failure. Sweet. 

I hope they realize we'd be better off defaulting than selling gold, but I'm sure they don't.

Mon, 04/04/2011 - 15:50 | 1133958 cossack55
cossack55's picture

I think he meant to sell the nation's tungsten.

Mon, 04/04/2011 - 16:02 | 1134010 jkruffin
jkruffin's picture

Yea, we all know all they have is tungsten plated crap that China pawned on them for some T-Bills.

Mon, 04/04/2011 - 15:41 | 1133909 Homey Da Clown
Homey Da Clown's picture

Sure Timmy. Congress should listen to you. As soon as you submit yourself to deposition for the following:

ssa letter to the NY Fed Mr. William C. Dudley
Federal Reserve Bank of New York
33 Liberty Street
New York, NY 10045

Dear Mr. Dudley:

As Ranking Member of the Committee on Oversight and Government Reform, I
am deeply concerned by news reports that the Federal Reserve Bank of New York (“FRBNY”) may have unnecessarily cost the American taxpayers billions of dollars.1

As you know, in late 2008 American International Group (“AIG”) was attempting to negotiate a haircut for banks that held $62 billion in credit default swaps (“CDS”) from AIG. AIG was reportedly seeking to persuade the banks to accept haircuts of as much as 40 cents on the dollar in order to retire these CDS contracts.

On September 16, 2008, the FRBNY extended AIG an $85 billion line of credit,
effectively nationalizing it. According to news reports, late in the week of November 3, then-FRBNY President Timothy Geithner, along with the U.S. Department of the Treasury and the Federal Reserve Board in Washington, took over negotiations with AIG’s counterparties.

News reports indicate that Mr. Geithner’s team circulated a draft term sheet to set the terms under which AIG would settle its CDS obligations, including a blank space in which the haircut for creditors was to have been inserted. However, the haircut provision was reportedly crossed out and, after less than a week of secret negotiations between the FRBNY and the banks, FRBNY ordered AIG to pay its creditors at par – 100 cents on the dollar – not 60 cents as AIG had been attempting to negotiate.

Thus, behind closed doors and with no approval from Congress, the FRBNY may have added an additional $13 billion of debt on the backs of taxpayers.

These allegations, if true, amount to nothing less than a backdoor bailout of AIG’s creditors, including Goldman Sachs, Merrill Lynch, Société Générale and Deutsche Bank.

The lack of transparency and accountability in this transaction is disturbing enough. However, there is evidence that this $13 billion expenditure was entirely unnecessary. According to Janet Tavakoli of Tavakoli Structured Finance, “There’s no way they should have paid at par. AIG was basically bankrupt.”

Another expert has said that the typical outcome in cases like this involves counterparties being forced to accept haircuts of anywhere from 30 to 50 cents on the dollar.

This suggests that the FRBNY may have paid AIG’s counterparties at par to surreptitiously provide another bailout for large financial institutions. According to Donn Vickrey of Gradient Analytics, “Some of those banks needed 100 cents on the dollar or they risked failure.”

However, another source close to the transaction suggested the FRBNY may have paid AIG’s counterparties at par out of pure expediency: “[S]ome counterparties insisted on being paid in full and the [FRBNY] did not want to negotiate separate deals.”

Furthermore, many of AIG’s counterparties reportedly hedged their exposure to the troubled insurance giant, obviating any need for a taxpayer bailout of these large financial institutions. According to Goldman Sachs’ Chief Financial Officer, “There would have been no credit losses [at Goldman Sachs] if AIG had failed.”

All of this begs the question why the FRBNY would not drive a better bargain for the American taxpayer. If the FRBNY thought it was necessary to provide another taxpayer bailout of AIG’s counterparties, it should have come to Congress and made its case that this action was necessary. However, if the FRBNY simply paid AIG’s counterparties at par out of expediency, it raises serious questions about its judgment and motives.

It is also disturbing that, at the time this secret deal was made, FRBNY Chairman Stephen Friedman, a member of the board of Goldman Sachs, purchased more than 50,000 shares of Goldman Sachs before knowledge of the FRBNY’s bailout of Goldman Sachs and other AIG counterparties became public knowledge.

According to news reports, this transaction has earned Mr. Friedman over $5 million in profit.

Finally, according to one AIG executive quoted in news reports, the FRBNY may have attempted to manage public disclosure of its decision to pay AIG’s counterparties at par by pressuring the company not to file pertinent documents with the U.S. Securities and Exchange Commission (“SEC”):

They’d tell us that they don’t think that this or that should be disclosed. They’d say, “Don’t you think your counterparties will be concerned?” It was much more about protecting the Fed.

These allegations raise serious questions about the transparency, accountability and wisdom of the FRBNY’s actions. The American people have a right to know the full details behind the FRBNY’s decision to stop negotiations with AIG’s counterparties and pay them billions of dollars of taxpayer money.

To assist the Committee with its investigation of this matter, please provide the following information no later than close of business on Friday, November 13, 2009:

All records and communications referring or relating to the FRBNY’s negotiations with AIG’s CDS counterparties, including but not limited to:

a) Emails, phone logs and meeting notes of the following people: Timothy Geithner, Stephen Friedman, Tom Baxter, and Sarah Dahlgren;

b) Term sheets, including drafts, relating to AIG’s payments to its CDS counterparties;

c) Emails, phone logs and meeting notes referring or relating to public disclosure of AIG’s payments to its CDS counterparties including disclosure to the SEC.

Please note that, for purposes of responding to this request, the terms “records,” “communications,” and “referring or relating” should be interpreted consistently with the attached Definitions of Terms.

Thank you for your cooperation in this matter. If you have any questions regarding this request, please contact Christopher Hixon or Brien Beattie with the Committee staff at (202) 225-5074.

Darrell E. Issa
Ranking Member

Mon, 04/04/2011 - 15:41 | 1133910 Hondo
Hondo's picture

Tiny Turbo Timmy is a fool.......they have already destroyed my savings so f*** the debt holders.....including the value of my didn't happen on its own it happen due to incompetent public policy driven not only by this administration but the many preceding it too.

Mon, 04/04/2011 - 22:24 | 1135432 Zero Govt
Zero Govt's picture

that's Govt for you ...anytime, anywhere, any angle it's assured outcome is total crap

Mon, 04/04/2011 - 15:39 | 1133914 nobusiness
nobusiness's picture

Shocker, give the primary brokers $8 billion in POMO money and the stock market doesn't go down.

Mon, 04/04/2011 - 15:41 | 1133915 Waterfallsparkles
Waterfallsparkles's picture

Just maybe it would be better to default now.  Instead of when we are in debt by another Trillion or two, or three, or four.  Well, maybe 10 or 20 Trillion.  Well, maybe make it 100 Trillion.  Because the higher the Trillions the more it will cost the American Tax Payer for austerity down the road.

Mon, 04/04/2011 - 15:42 | 1133917 Zymurguy
Zymurguy's picture

Poor Timmah!!!


Still having trouble with math - no wonder his taxes were a mess.


News flash bonehead... we've already passed the debt limit.  Does that mean our govt. officials have broken the law and can be prosecuted?  Not if your like TeflonTim.


Mon, 04/04/2011 - 15:40 | 1133918 Fix It Again Timmy
Fix It Again Timmy's picture

BULLSHIT -- I'll Take My Chances. - yes sir,  me to!

Mon, 04/04/2011 - 15:44 | 1133929 earnulf
earnulf's picture

If I remember correctly, this train is going to leave the station by the end of the week (per tylers earlier posts on ZH last week).    Heck by May we will be 100 mil over the limit.   Of course Timmy's arithmatic may be different than the average joe.   Funny how the Treasury managed to cut 19 billion dollars off the "National Debt" last friday, 17 of which came from "Intragovernmental Holdings" rather than Public Debt which only went down 2 billion.   Darn those Public Debt people anyway.

Mon, 04/04/2011 - 15:43 | 1133933 Abby Normal
Abby Normal's picture

Even if you've paid your taxes, they'll come after you - this is getting desperate...


Mon, 04/04/2011 - 15:45 | 1133934 sbenard
sbenard's picture

Why would anyone give any credibility whatsoever to the Keebler Elf at the Treasury? His tree must have grown a little too tight for his big ears!

Hey Geithner, you could just start spending ONLY what your take in! That does NOT require a default. It requires only a dose of fiscal sanity!

Mon, 04/04/2011 - 19:53 | 1134957 Gold 36000
Gold 36000's picture

Default now.  That solves our big government problem.

Mon, 04/04/2011 - 15:47 | 1133942 nah
nah's picture

cant.... run out.... of money.... must.... drink.... water



Mon, 04/04/2011 - 15:47 | 1133943 falak pema
falak pema's picture

The debt ceiling is a bit like the amount of radio active water they can pour into the sea at Fukushima. It's a question of what the sheeple will accept, tolerate, to allow corrupt bureaucracies to pollute the world, without cutting off heads. It will be time to string up the oligarchies and their surrogate multinationals selling polluted solutions to the brotherhood of world wide slaves. If you don't buy into it you die of starvation and lack of's catch 22 time!

Mon, 04/04/2011 - 15:45 | 1133944 Waterfallsparkles
Waterfallsparkles's picture

Love this one:

If Congress does not act by May 16, I will take all measures available to me to give Congress additional time to act and to protect the creditworthiness of the country.

I will hold my breath and turn blue until you do what I want.  If you continue not do do what I want I will scream and then hold my breath again until I turn blue. Sounds like a little kid.

Mon, 04/04/2011 - 15:51 | 1133966 sbenard
sbenard's picture

Should have been "creditworthLESSness"!


Good comment. You made be laugh. But unfortunately, our debt crisis isn't really funny, or it won't be when it all hits the fan!

Thanks for the chuckle anyhow!

Mon, 04/04/2011 - 16:15 | 1134106 Waterfallsparkles
Waterfallsparkles's picture

He says he will take all measures to give Congress more time.  Now that is a real threat.

If you do not do as I want by my deadline I will give you more time.

Boy, that is really scarry.

Mon, 04/04/2011 - 15:46 | 1133945 John McCloy
John McCloy's picture

I think we wake up to 110 oil tomorrow or the next. Take in the buns middle class you come second to elites reflation racket.

Mon, 04/04/2011 - 15:47 | 1133949 the not so migh...
the not so mighty maximiza's picture

Geithners true masters demand an increase in the debt ceiling damm it

Mon, 04/04/2011 - 15:49 | 1133955 sabra1
sabra1's picture

didn't they just inherit some liberty dollars?

Mon, 04/04/2011 - 15:48 | 1133957 sbenard
sbenard's picture

The solution is very simple. We annex China, Brazil, and Saudi Arabia. Problem solved! No more debt!

Mon, 04/04/2011 - 15:51 | 1133961 Professor Hindsight
Professor Hindsight's picture

Just buy BTFD. You know they will extend the debt limit no matter what. IT WILL GET EXTENDED and THERE WILL BE QE3.

Mon, 04/04/2011 - 15:51 | 1133964 Urban Redneck
Urban Redneck's picture

Just because I am in a recylcing mood (3/16)-

On Finance -

The Treasury is out of greenbacks.  Tim G needs permission from Congress to print more bonds to trade with Ben for his green printing press paper.  Last month Treasury had 3 buyers (Ben, Japan and China).  Japan can't play anymore and is going home, Tim needs a congressional permission slip to trade with Ben (who has been buying more than 50% of his volume anyway), and since China is fully hedged, and still running a bilateral trade surplus, they can dictate Fuku-like terms.

If the Treasury's empty pockets hit the press it is entirely a PR thing to force Republican capitulation on the debt ceiling.  Tim can always grab a handful of the trillion plus in non-negotiable "special" IOUs that he is custodian of from the lockbox he got from Al Gore and take them to Ben's drive-by loan window (which has accepted synthetic CDO's built on liar loans and other such crap in the past, so what's a liar loan from the US congress).  There are so many holes in the fraud that is government accounting that the GS transplants at Treasury could probably keep the US open for several years without raising the debt ceiling if they really wanted to (or we paid them enough).

Mon, 04/04/2011 - 19:51 | 1134947 Gold 36000
Gold 36000's picture

There is no way to fully hedge 1.5 trillion in treasuries.  maybe if one doesn't look to closely at counterparty risk, but I don't think inflationary default is covered.  That is how we do it.  Creeping 4 percent inflation per year only partially hedonically adjusted without owner equivalent rent.  Bend over China, here it comes again.

Mon, 04/04/2011 - 20:12 | 1135015 Urban Redneck
Urban Redneck's picture

The simplest way is to purchase 1.5 trillion in USD denominated call options/futures for shit you might want with expirations to match your treasury maturities.

I actually wrote a rather lengthy critique of their banking reg changes and offtake agreements, equity stakes in commodity producers, and spot market and barter transaction flow but it was back in 2008 I think.

Mon, 04/04/2011 - 15:55 | 1133984 alien-IQ
alien-IQ's picture

and if that debt ceiling is not will rain for 40 days and 40 nights...and the dead shall rise from the shall walk the land and all the flowers in your garden will die.

Mon, 04/04/2011 - 15:57 | 1133997 Waterfallsparkles
Waterfallsparkles's picture

Maybe they should keep the rest of the QE2 money.  They may need it.

Mon, 04/04/2011 - 15:57 | 1133999 jkruffin
jkruffin's picture

Okay, so why does Turbo Timmy wait until a month before, and in my opinion we already passed the debt ceiling, but why does he wait until the last minute to send a scare letter like this?  It's like TARP all over again. These scumbags run the system into the ground, then come crying at the last minute before the collapse begins to ask for more.  WTF?


I really gotta move out of this f**ked up country. It's not a dream anymore, it's living hell.

Mon, 04/04/2011 - 16:31 | 1134202 DosZap
DosZap's picture

At this point I find his antics humorous.

He's like the Lil Boy who cried wolf, once too many times.

Timmah, we don't care what you say, nor do we give a rats if you default.

At this point it seems that  this is what it will take to wake up the sheeple.

Mon, 04/04/2011 - 16:01 | 1134006 sbenard
sbenard's picture

Default! I triple dog dare you, Mr. Timmay Keebler!

In the long run, it would be the best thing we could do! It's inevitable, so we may as well get started!

Mon, 04/04/2011 - 16:07 | 1134037 Sudden Debt
Sudden Debt's picture

let's do it quick and get it over with.


Mon, 04/04/2011 - 16:05 | 1134013 Sudden Debt
Sudden Debt's picture

And now you'll see US banks buying Euro's into oblivion!

Go long Euro! NOW!


They fuck up the dollar now, collect from the European banks, trash those in the process and downpay the deficit :)

It could actually work to downpay the total of the US debt if they implode the dollar down to 30%.

Bummer if you hold the dollar, but remember: YOU ARE A PATRIOT!

a broke patriot... BUT A PATRIOT WHATSOEVER!!

europe will also be down the shitters, and even when the plan goes bust: we'll both but broke so we can wheep and give grouphughs to comfort each other...

Mon, 04/04/2011 - 16:06 | 1134031 sbenard
sbenard's picture

"We are now, thusly, screwed."

Precisely. Plan and prepare accordingly!

Mon, 04/04/2011 - 16:17 | 1134041 Dr. Porkchop
Dr. Porkchop's picture

If the debt limit is not increased by May 16, the Treasury Department has authority to take certain extraordinary measures, described in detail in the appendix, to temporarily postpone the date that the United States would otherwise default on its obligations.

This includes getting Ben and my other pals to blow up the economy again. We can do it! Don't mess with me Harry! My friends are tough!

I want my allowance!!



The suicide bankers are going to attack again very soon.

Mon, 04/04/2011 - 16:16 | 1134044 ebworthen
ebworthen's picture


P.S. - Ben and I think you need to raise taxes on everyone; death tax, poll tax, health insurance benefits added to income - everything, just engage stealth know...wrapped in some save the prarie dogs on widowed orphan's corn farm bill or some bullshit you guys have the knack of dreaming up.

P.S. II - See if you can't confiscate privately held precious metals too, some of those damn plebeians are trying to escape our computerized digital dollar fiat nets.

P.S. III - Please have some more partisan bickering on the floor of the house - some good angry 15-30 second sound bytes - so you can distract both sides of your constituency into thinking you care (and take the heat off of poor POTUS).

P.S. IV - In the name of Ra and the golden ratio keep the food stamp and welfare money humming; we can pull the plug on the seniors via SS and Medicare but if the idiot youth don't have beer, chips and distraction we'll have riots that will cost too much profit and endanger the next draft.


Mon, 04/04/2011 - 16:09 | 1134049 cxl9
cxl9's picture

Obviously, the solution to the problem of too much debt is more debt.


Mon, 04/04/2011 - 16:54 | 1134312 jkruffin
jkruffin's picture

Funny you mention that, because this is the first thing Bankruptcy counselors try to tell those who file. You cant use debt to pay debt, it is impossible. So this is an approved classroom instruction by the US Government, telling citizens the obvious, yet they never practice it themselves.  As they say, you can't make this stuff up.

Mon, 04/04/2011 - 22:19 | 1135425 Zero Govt
Zero Govt's picture

well said both of you ...."the loonatics have taken over the asylum" is not just a saying, it's an historical (and current) reality of human experience ...and don't we now know exactly what the author meant and how he felt?

Mon, 04/04/2011 - 16:11 | 1134062 Commander Cody
Commander Cody's picture

I feel a prophecy coming on: We'll be here one year from now discussing raising the debt ceiling another 1.5 -2.0T.

Mon, 04/04/2011 - 16:11 | 1134065 Alea Iacta Est
Alea Iacta Est's picture


When you have a moment, could you comment on this:

Short of it is: "Treasuries are signaling that the $9 trillion market will weather the end of the Federal Reserve’s quantitative easing program in June without suffering a selloff that drives long-term borrowing cost higher.

The class of investors that includes foreign central banks purchased 60 percent of the $66 billion in benchmark 10-year U.S. notes sold this year, up from 42 percent in 2010. Fed data show banks have increased their holdings of Treasuries to the most since December, as a panel of bond dealers and investors that advises the government says lenders may double their stake to $3.2 trillion in 2016."


I am interested in your view of the data and whether or not it means that QE can taper off without significant issue?

Mon, 04/04/2011 - 19:45 | 1134922 Gold 36000
Gold 36000's picture

Since it is so unfair to the foreigners, the virtuous, and the poor I don't think Tyler can envision a smooth transition off of qe2 where the hegemon is in effect subsidized forever. 

It is possible that we will always get a free lunch because hidden tribute to the USA is better than non-hidden plant closings and unemployment in the third world.  

I believe the transition will be smoother than expected and that the rest of the world will protect their currencies from rising by stepping up to the plate and buying those treasuries. Our punk China will do whatever we say.  Buy more treasuries bitch...then come over here and bend over.


Just watch!

Mon, 04/04/2011 - 16:13 | 1134074 fuu
fuu's picture

Didn't ZH report last week that the ceiling had been breached? Now it will not be breached till 5/19? WTF?!? I am so confused now.


Guess I will go buy more silver, FTFD.

Mon, 04/04/2011 - 16:11 | 1134075 Highrev
Highrev's picture

Isn't it rather unnecessarily alarmist to state the obvious in an alarmist manner?

Mon, 04/04/2011 - 16:12 | 1134079 pitz
pitz's picture

Default motherfuckers!

Mon, 04/04/2011 - 16:13 | 1134087 magpie
magpie's picture


"Someone else will blow up until July 8th and that will make further discussions, austerity, government budgets & ceilings irrelevant."

Mon, 04/04/2011 - 16:14 | 1134098 Zina
Zina's picture

If the debt ceiling is raised above 14.6 trillion dollars, it will be more than 100% of the GDP.

Will a Republican-majority Congress be responsible for raising the debt ceiling above 100% of GDP?

If Republicans vote to raise the debt ceiling above 100% of GDP, how they think they will pose as the "fiscal responsibles"  in 2012 elections?

If Republicans vote to raise the debt ceiling above 100% of GDP, they won't win 2012 elections.

Mon, 04/04/2011 - 16:35 | 1134227 DosZap
DosZap's picture

The GOP has a plan to cut the debt by 4 Trillion dollars, waiting for the Dems to get serious, right now.

Mon, 04/04/2011 - 19:51 | 1134948 Mr Anderson
Mr Anderson's picture

I thought the plan was to cut the DEFICIT by 4 trillion. 

Meaning in 10 years Barry wants 10 Trillion more.  The republicans want to cut it back to 6 trillion further in debt.

I may be wrong as they haven't released their plan yet.

To cut the DEBT by 4 trillion would require balancing the budget first then having 400 Billion surpluses each year for 10 yr.


  No republican or democrat would even propose such a plan.

Mon, 04/04/2011 - 17:24 | 1134476 Ned Zeppelin
Ned Zeppelin's picture

Zina: here's the answer to your second and third questions: yes, and they'll think of something. 

Mon, 04/04/2011 - 16:16 | 1134100 TruthInSunshine
TruthInSunshine's picture

-This is a Breaking News Alert-


Treasury Secretary Timothy Geithner threatens Congress to go against the express or implicit wishes and interests of their constituents, saying that he'll punch himself in the nuts if it does not.


-This has been a Breaking News Alert-

Mon, 04/04/2011 - 16:27 | 1134172 Dr. Porkchop
Dr. Porkchop's picture

I'll pay 14.5 trillion to kick him in the nuts.

Mon, 04/04/2011 - 22:12 | 1135409 Zero Govt
Zero Govt's picture

the only nuts Gitner has is a peanut for a brain

Mon, 04/04/2011 - 16:40 | 1134250 bothsidesnow
bothsidesnow's picture

Who needs Colbert when you have ZH. LMFAO.

Mon, 04/04/2011 - 17:13 | 1134419 Calculated_Risk
Calculated_Risk's picture

That propaganda won't work. We all know Timmay doesn't have nuts.

Mon, 04/04/2011 - 17:19 | 1134445 TruthInSunshine
TruthInSunshine's picture

Edited - "...he'll punch himself in his vagina..."



Mon, 04/04/2011 - 16:32 | 1134209 plocequ1
plocequ1's picture

Shit, What now? I like life. I dont wanna die.

Mon, 04/04/2011 - 16:33 | 1134220 TheBaker
TheBaker's picture

I find it interesting that the only cuts Timmy is threatening are to social programs, wages, pentions,  etc. No mention of stopping payments to the military, closing bases, to the arms manufacturers; no more welfare to the major banks...

Mon, 04/04/2011 - 16:37 | 1134235 mdwagner
mdwagner's picture

Here's an idea.  The government prints their own legal currency and pays off treasury bonds with them.  Hahaha, banks!

Mon, 04/04/2011 - 16:43 | 1134253 glenlloyd
glenlloyd's picture

he's an assclown, who starts a 'professional' letter with "I am writing..."

Mon, 04/04/2011 - 16:47 | 1134269 jkruffin
jkruffin's picture

So, is Obama going to run for 2012 and claim he is stepping away from Ben Bubbles and Timmy Treserve?  That is about the only way he has a remote chance of getting elected. Unless, he gets enough welfare and food stamp recipient votes. Then he is a shoe in.

Mon, 04/04/2011 - 19:54 | 1134961 Mr Anderson
Mr Anderson's picture

Remember the video of the African American woman saying that Obama would ensure she dind't have to pay for food or housing and everything would work out great.

Lets see,

Millions more on food stamps.

Thousand upon thousand of govt. backed mortgages.

Millions of people living in their houses wo paying the mortgage.


Sounds like he kept his promise.

What the hell ever happend to writing off the student loans though.

Mon, 04/04/2011 - 16:48 | 1134277 naughtius maximus
naughtius maximus's picture

They kept kicking the can farther down the road... Farther and farther until they got careless and tired and accidently kicked it off a cliff, slipped down a hundred feet and landed on their head spilling their brains all over the beach.

Mon, 04/04/2011 - 16:49 | 1134281 Crook County
Crook County's picture

Watch out for Sen. Mike Lee, who has hinted he will filibuster any increase to the debt ceiling, putting Harry Reid and Mitch McConnell on the same team politically.


Mon, 04/04/2011 - 17:30 | 1134502 Ned Zeppelin
Ned Zeppelin's picture

Thing is, it's all phony posturing.  He'll fold like they all will.


Mon, 04/04/2011 - 16:50 | 1134296 ebworthen
ebworthen's picture


Hal 9000 can print up another $14 Trillion in the blink-of-an-eye.

The problem is these recalcitrant human beings who don't yet understand that "money" is simply a representation for "labor" and that the majority of the populace are already enslaved for life.


Mon, 04/04/2011 - 16:54 | 1134323 Bagbalm
Bagbalm's picture

No threat of tanks in the streets?

Wait, we just seized a few ton of Liberty Dollars. That will carry us a couple hours...

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