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Tim Geithner Releases Latest Mutual Assured Destruction Threat: Says "Debt Ceiling To Be Breached No Later Than May 16"
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
refunds. 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.
Sincerely,
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 Nancy Pelosi, House Democratic Leader
The Honorable Mitch McConnell, Senate Republican Leader
cc:
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
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
Enclosure
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"Selling the Nation’s gold, for example, would undercut confidence in the United States both here and abroad."
What gold? Oh, the gold-plated tungsten? What assets? You mean the every man, woman, and child and all property already pledged as collateral to the debt of the United States Federal Corporation?
It is past time for We the People to delouse ourselves of these parasitic corporate entities which are draining us of our lives.
http://republicfortheunitedstates.org
Go ahead Timmy-Make my day: DEFAULT
"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."
Now THAT gave me a deep belly laugh
Wow!!! ...and what fool stands in contempt of himself, the buyer? the seller? or the trader of this strong delusion?
The mark of the beast, his name is Turbo Timmay and his seal is upon a debt note. http://www.youtube.com/watch?v=J6_1Pw1xm9U The buyer, the seller and the trader receive and accept the mark in their right hand. The mark is adorned with a pyramid, the ''Great Seal''. Mr. Ponzi's signature, the man in the shadow whom tempted all to account their name and number with debt, has sealed contempt upon the forehead of the Congressional Whore and her name is no mystery in Babylon.
Ah... the name and number of the beast, that all consuming, all time high mark, that shadow of death, layin it down in spring time. This read like Larry Summers rolling over to have some Brooksley Born, after she was raped by Legislators that found their thrill on Derivative Hill. This has to be the new number one on the chairsatan chart topping hits. It's a love letter written to death on two legs. Mr. ZERO the hero money printer needs a Nobel Prize for this bullshit, wars and zero interest just ain't enough of a bonus for the beastie boys. Awe, that's right, Rose Mary's Baby (AKA Hussein of Babylon) already received a preemtive nuclear nonproliferation medal of honor.
http://www.youtube.com/watch?v=vwoT9_StEfY
Maybe the mark of the Beast is our Social Security Number.
Tiny Tim meant to say: "our commitment and obligation to PRINT"
Maybe, now, bare with me on this, perhaps everyone in the world is FUCKING TIRED OF THE FED PRINTING MONEY! Did I say that loud enough?
Another opportunity for Mishkin to revise his textbook, as treasury bonds would no longer be a good example for the risk-free rate....
These guys are shitty poker players. I'll take the bet that they get this done all day. Please don't pretend you're going to do X, when we all know you're going to do Y. Please, it's kind of pathetic.
If I were sitting across the aisle from a tea partier intent on getting something before the debt ceiling increase deadline, "or else," I'd smile and occasionally look at my watch, saying (and giving) nothing.
L is for loser pal.
those 87 freshmen republican tea partiers may surprise you. They weren't professional politicians and most have no intention of staying too long. Many of them have real businesses and few are lawyers.
those tea partiers mean business. You are underestimating their desire to strangle the government.
Lets not be delusional.
They are not a Majority.
The Far left will extend the debt ceiling as will any moderate Dem, and RINO. This = a majority.
The catch is spending Cuts-
The far left will vote no, so will the tea party caucus. The middle will have some difficulty pulling in each side.
This is called status QUO- Continued deficit spending of 1 trillion.
The market as always will be the arbiter but this can only happen when the QE ends.
You poor Americans...
The "Ritchest counrty in the world"
The land where "Dreams can come true"
Let me give yous a little tip...
SHUT THE FUCKING T.V. off and take your Country back from the "Fat Fucking Bankster"...
ppsssttt....and Pull up your fucking pants.
Default, I dare you. Crash the system and compensation will rapidly return to those that are actually worth a shit. The central bankers certainly don't want that to happen. Crash the system, crash it now.
Biff...Zaaappp POWWWW...
And a good kick in the nuts(ooops he's got none) and Timmy is toast.....
That felt good,c'mon Robin time to go home.
I think Timmay will just get Goldmans to get Greece to do a debt for ummm debt swap..its easy..anyone can do it it if you are part of the cabal that is part of the marie antoinette brigade. of course, pledging government owned buildings in a sale and lease back with the US government with funds provided by the Fed would do the trick too..or swapping assets with the chinese for fifty years...or exchanging the collateral on the feds balance sheet for treasuries ..but then thats transaprent accounting..i know..get fraudie and funny ..woops there i go again...freddie and fanny to issue debt would also work since their debt is not part of the debt ceiling. I mean seriously, its not like the Treasury will repay the first 5 trillion it has borrowed in lieu of the banking sectors collapse..or the secong 5 trillion or the third 5 trillion. still having hacked the patient to pieces with a machete, there is no doubt the patient is bleeding.. and needs to be stitched up. ..hands up anyone who thinks that there is any kind of plan, even at full employment and a participation rate of 72% to repay one red cent of the cumualtive pork belly deficits of the last 40 years?
I see the Fucktard Timmy plays the "National Security" card" in his letter....
Fuck You Timmy,you piece of useless shit.
I think Timmay will just get Goldmans to get Greece to do a debt for ummm debt swap..its easy..anyone can do it it if you are part of the cabal that is part of the marie antoinette brigade. of course, pledging government owned buildings in a sale and lease back with the US government with funds provided by the Fed would do the trick too..or swapping assets with the chinese for fifty years...or exchanging the collateral on the feds balance sheet for treasuries ..but then thats transaprent accounting..i know..get fraudie and funny ..woops there i go again...freddie and fanny to issue debt would also work since their debt is not part of the debt ceiling. I mean seriously, its not like the Treasury will repay the first 5 trillion it has borrowed in lieu of the banking sectors collapse..or the secong 5 trillion or the third 5 trillion. still having hacked the patient to pieces with a machete, there is no doubt the patient is bleeding.. and needs to be stitched up. ..hands up anyone who thinks that there is any kind of plan, even at full employment and a participation rate of 72% to repay one red cent of the cumualtive pork belly deficits of the last 40 years?
Default happens everyday- when we roll new bonds. And in the 70's Nixon defaulted on the debt by going off the gold standard and pissing everyone off including oil producers
I hope they print another TARPillion. I own so much USO (oil), GLD (gold) and SLV (silver) I am ready for TurboTimmy and the massive Bank Ceo Bailuts....and the trickle down inflation for us hoi poloi.
shut it down. If the government defaults on a few bonds no one will loan us money again. We can't put our children and grandchildren further in debt if no one will loan us money. The answer is clear....
DEFAULT, BITCHES!
Shut her down boys.
+$14 Trillion, going on $200 Trillion (inc. unfunded liabilities)
Any news on Obummas Committee for Fiscal Responsibility? ....anyone?? ....Hello, anybody home in DC ????
Dedicated to Timmay and Ben:
http://www.youtube.com/watch?v=17eSUnQ-_ek
This tactik to scare people is understood,people need to weigh between know "ceiling" up lift(they really never will understand what is it) and some unknown failure(unknown usually scares people,specially women),but what White House hiding is that their Pirymid will collapse and no one will need their promises,while due collapse most people will be benefited from it-Deflation,government stay without revenies,but people may cash in instead worthless to loose all they have with current Ceiling floor,which has no limits.Deflation will be coming,settling oil back to the demend price of 35$ and Total Future Traders control of the futures will stoped too,thoose who have money will have power to purchase,who don't-not loosing much of their free lunch coupons,they also may injoy more food as futures will collapse delivering real prices to the floor,not to the floor of US controlled futures markets where all prices artificially kept for last 2years,reason why Bear Shterns and Lehman was killed and confiscated-to let FED pupits to control whole world.But just think once if some futures market would be out side USA??Then you'll see that commodities which would be traded their will be trading at much lower prices ,because there would be no monopoly of FED into thoose markets,FED will need to buy ruppii or yuans,rubbles and this will stop the process of endless printing because currency of the specific country will be unavalable,thats it.Te only power on which USA based now is world reserve dollar,power which they diminishing right now by FED and Timofei Garthner.Let them default and all their fear will realised,they will have no income and they will have no power,but we holders of dollars will have power(which still left in it) and we will be able to get 500k$ houses at 50k$,gold for 200$ ounce and silver for 4$
EVERY time I see TG's annoying suck-hole this is the image I cannot get out of my head for days. HATE that guy.... You'll all see, it's Timmay's curse - BoF images bouncing through your head.
http://3.bp.blogspot.com/_f0bvyZMrZ9k/SsVqzz9I3EI/AAAAAAAAClc/8sE_C3K0eX...
Geithner for the Gallows
So, if there is a default then do the bond holders get to put the US in Involuntary bankruptcy and sell the assets?
The Fed, China and Japan would have a field day divvying up the US.
Drop dead Timmy.
Fiat currency is destructive.
Central banks are destructive.
The federal reserve is destructive.
Fractional reserve practices are destructive.
Establishing an elitist oligarchy is destructive.
Accumulating ever-increasing debt is destructive.
Paying interest on fiat money is insane and destructive.
But Timmy, for the USSA to default on its debt is prudent and wise.
Hopefully nobody would ever lend to the USSA after that.
And that would be great!
"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."
Simple...pay the legal obligations and don't pay the rest.
The debt ceiling cannot be raised any more, else we're looking at a total collapse, despite whatever temporary joy last night's news has brought. The end is near...
www.forecastfortomorrow.com