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Timmah's MAD - Redux: "US Could Hit Debt Ceiling By March 31", Sends Very Scary Letter To "Dear Mr. Leader" Harry Reid
As we predicted in September, the US, which is issuing debt at a clip of about $125-150 billion per month (in line with the Fed's monetization of every single newly printed dollar of debt), will likely hit its debt ceiling as soon as March. We finally get confirmation from none other than tax expert Tim Geithner, who in continuing his tirade of scaring the bejesus out of anyone dumb enough to listen to him , has just confirmed our concerns. Not only that, but he has also written a letter to Dear Mr. Leader Harry Reid in which he uses big and scary words to make it clear just how fucked this country is if it can not issue about $2 trillion in debt each and every year. Because the only way to avoid bankruptcy is, as Joe Biden once said, to issue way more debt.
From Reuters:
The United States could hit the legal limit on its ability to borrow as soon as March 31 and faces serious consequences unless Congress acts by then to raise it, Treasury Secretary Timothy Geithner said on Thursday.
"Even a short-term or limited default would have catastrophic economic consequences that would last for decades," Geithner said in a letter to U.S. Senate Majority leader Harry Reid that was issued by Treasury.
Geithner said it was hard to pin down exactly when the current $14.3 trillion ceiling on the debt limit would be pierced but urged Congress to act before the end of the first quarter.
"The Treasury department now estimates that the debt limit will be reached as early as March 31, 2011, and most likely between that date and May 16, 2011," he wrote.
He said Treasury could engage in extraordinary measures, such as suspending sales of state and local government securities, but preferred not to because it is disruptive.
He warned that failure by Congress to raise the debt limit, which would effectively put the United States into default on its obligations for the first time in its history, would have consequences "potentially much more harmful than the effects of the financial crisis of 2008 and 2009."
Timmah's full letter (pdf):
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It time to take our medicine.
Yeah right. US politicians doing the right thing and holding to a debt limit?
Keep dreaming
(says the American with eyes wide open)
...and hands shielding his behind...
Remember this is ALL just a puppet show, and an end game IS pre planned at whatever point, simply has to be...so theyll likely get an 11th hour 'passage' of raised debt ceiling after a bunch of WWE style show fighting but could very well come with some nasty strings attached.
>with some nasty strings attached
What, like "This is the LAST time we raise the ceiling. And we really mean it this time - unlike last time. <wink, wink - nod, nod>"
The medicine won't be administered until the patient is dead...
Creating Ponzi liquidity through .GOV borrowing is the only silver bullet the Banksters and their enforcers, the (D) & (R) Kleptocrats, have left in their arsenal, short of World War, and the Sheeple haven't been primed to jump into that fire, yet.
In a world full of twits, addicts and the effeminate masses swimming in political correctness, is anyone surprised that the "smartest guys in the room" will keep lying to keep the music going, long after the Banksters and their political pond scum have taken ALL the chairs away?
Everyone ready for the next CIA-duh manufactured crisis?
well, i have a pilates class at 1:30 but i should be ready after that, Butch
Spot on, spot on. The making of govt. liquidity is the only thing left and thats the catch 22. They are doing what all govt. in financial distress do and while they do it they say this time will be different or I will know when to stop/quit. Thats the poison, once you start it blinds you to the point that you can't tell when to stop. When this mess implodes, look out. Because many people who thought they where safe will see that they where just shills for rich people.
Memories
Light the corners of my mind
Misty watercolor memories
2009
Senate must raise debt ceiling above $12T
"It is critically important that Congress act before the limit is reached so that citizens and investors here and around the world can remain confident that the United States will always meet its obligations," Geithner said in a letter to Senate Majority Leader Harry Reid that was obtained by Reuters. --- yes, this is from 2009
2008
Debt ceiling to be raised for 3rd time in 12 months. Now $11,315,000,000,000.
2007
Paulson warns U.S. govt to reach debt limit Oct 1
U.S. Treasury Secretary Henry Paulson warned on Wednesday the federal government would hit its $8.965 trillion debt limit on Oct. 1 if Congress fails to increase borrowing authority, adding to financial market worries."The full faith and credit of the United States, to which we all remain committed, is a national asset and a cornerstone of the global financial system," Paulson wrote.
2006
Congress Sets New Federal Debt Limit: $9 Trillion
Faced with a potential government shutdown, the Senate votes to raise the nation's debt limit for the fourth time in five years. The bill passed by a 52-48 vote, increasing the ceiling to $9 trillion. The bill now goes to the president.
Treasury Secretary John Snow wrote congressional leaders last week, imploring them to immediately raise the $8.2 trillion debt limit. The House has put the new limit at $9 trillion.
2005
Snow: Raise Debt Limit
John Snow warned lawmakers on Thursday that a legally set limit on the government's ability to borrow will be hit in mid-February and urged Congress to raise it quickly.
2004
Debt Limit to Rise to $8.18 Trillion
Treasury Secretary John W. Snow implored Congress to raise the debt limit to ensure that the Treasury could continue to borrow the money it needed to finance government operations and pay benefits such as Social Security
Memories
May be beautiful and yet
What's too painful to remember
We simply choose to forget
So it's the laughter
We will remember
Whenever we remember
The way we were
Should explain the Dollar surge right now, eh?
flag as excellent (1)
.
My thoughts, exactly.
Up is down.
A=B.
Is it not 1984, Atlas Shrugged, and The Long Emergency all wrapped into one giant shit sandwich?
...topped with mayo...
We're not quite through Huxley's "Brave new World" just yet.
+1
Just unplug from the Matrix completely..
http://www.republicoftheunitedstates.org/
Like a drunken sailor with a wallet full of stolen credit cards...
After all, it's not their money their stealing, and the suckers that are paying don't seem to mind being swindled (too stupid to get it or not yet born).
Same shit, different century...
HEY!!!!!!!! Drunken sailors are tired of being downgraded by calling them politicians. These drunks deserve far better than the true blood-sucking lying scum of political Kabuki bullshit theatre in US government. So respect your drunken sailor, they actually work for their paycheck!
Yes, and the PM's apparent "weakness".
LMAO.
Everything always works out okay. The Admin will find a magic way to spend more. The Fed will wave its wand. The consumer will bounce back. China will keep buying our paper...
It always works out...
Everything will be fine...
It always works out...
Those that matter won't let a default ever happen - this whole drama we see is just for show. And a poor show, i might add.
True that. The increase is a lock, the only question is by how much, and how much pork has to promised in exchange for votes.
Let's guess the number. I'll take 2.5 trillion.
I can see it now....
Congressman: "I'm tough on deficits. But in order to get tough I will vote for the increase and the extra 5 bujillion dollars in pork spending to buy the votes to get it to pass on the promise we will make those hard choices in 6 months."
+1
Dear Congresscritter. Calm down. Don't panic. Remember what happened the last time a gun was put to your head.
The debt ceilng MUST stand!
We don't need no water......
let the mother fucker BURN!
+
yep,, shit hit the fan... eventually :)))))))))
poor Benny & Timmmy... problem is not even debt limit per se,,
but how much.. cause if its 1 year 1.5-1.7 trln $,, then
next year same shit..
if Benny propose to cover 2011+2012 about 3.3-3.5 trn $
then I guess we will see by summwer 10yy 5% , gold 1600, silver 35 $, oil 120 $...
no way out... welcome to reality
alx
- reply
- flag as junk (14)
Today Sprd 1%,ARMH 4%,MIPS 6%,NVDA 8% ..... Got Gold Miners last 3 months ..... ? ... Lol'by Spalding_Smailes
on Wed, 01/05/2011 - 18:26
#850845
Can you understand ?
Sell 5% of your gold and buy SPRD,ARMH,MIPS,NVDA( nice charts ). You will be happy mon'
http://www.youtube.com/watch?v=UIEeEmm3bSA
Gold. Gold will be CRUSHED. B Square bsqr
by Spalding_Smailes
on Wed, 01/05/2011 - 18:26
#850845
Can you understand ?
Sell 5% of your gold and buy SPRD,ARMH,MIPS,NVDA( nice charts ). You will be happy mon'
http://www.youtube.com/watch?v=UIEeEmm3bSA
Today Sprd 1%,ARMH 4%,MIPS 6%,NVDA 8% ..... Got Gold Miners last 3 months ..... ? ... Lol'
Hey Spalding,
You remind me of the avatar that keeps reminding people that Jews aren't the "bad guy." I'm not knocking your efforts, mind you. Good luck.
http://www.youtube.com/watch?v=FUdUmLmNQis
Dear Mr. Fucking Leader?????????????????
Poor debt ceiling. It's like a computer that can't run crysis.
Hey Mr Treasury Secretary, show me the treasure!
The debt ceiling must be made into a mirage says Tax Cheat Timmah
how about getting rid of debt ceiling althogether?
who needs a ceeling anyway?
we can then enjoy some wine under the clear sky and play on ipad without worrying if the ceiling is high enough
Raise the debt ceiling bitchez!
http://therookiecynic.wordpress.com/
Simple Translation: "Raise the debt ceiling or the charade is over and we will all be out of power in a matter of minutes."
Last time I checked, possession was still nine tenths of the Law (this may be the only Law left actually standing in the world right now).
Let the debt ceiling stand bitches!
All laws are made to be broken, ignored, or revised by Congress.
Unless you're a peep, in which case they will lock your ass up.
This is all the economic theory we got left? We must increase our credit limit too survive, High-5's for everyone!
This is getting boringly predictable.
just Preparation H - getting the public ready
USA = Complete chickenshit
At least some nations in Europe have the guts to take their medicine and usher in austerity. The biggest concern many Americans want to vocalize is whether or not the NFL will have a work stoppage next season.
a year without football will make this depression somewhat more tangible as they say.
For real - what over the hill rocker will have to go without a big payday from GM for the rights to a somewhat patriotic song to play while showing us the products of our "investment" 15 times an hour.
It's more the average American is totally asleep at the wheel and the thieves in charge are looting via the reserve currency status of the dollar. Things don't change until the world forces the theft to stop which may or may not wake up Americans. They will stir in their slumber when gas marches firmly above $5 and stays there.
Shameful to world: Save yourselves! It's the only way to save us, thieves are at the helm and the masses are watching Jersey Shore! You're our only hope, refuse the dollar!
US will eventually do what the Euros are doing.
http://www.moneynews.com/StreetTalk/CSMonitorEuropeanNationsSeizingPrivatePensions/2011/01/05/id/381913
Don't think they will have much of a choice, eventually.
Well, how else are they going to seize Sheepster assets, since they have already used up every other public fraud?
Good ol' FDR started this ball rolling when he seized ALL the LEGALLY held private money in 'MeRiKa back in 1933:
http://wearechangecoloradosprings.org/doc/gold_seizure.jpg
http://www.legacypreciousmetals.com/admin/fckfiles/admin_1/image/gc_imag...
CGA continues to get clobbered since the ZH post yesterday AM it's down hard
http://bit.ly/eoIlQl
http://www.streetinsider.com/Downgrades/Muddy+Waters+Shorting+China+Gree...
Says Muddy Waters is also shorting CGA.
If I was a business and my budget was over extended, I would be forced to cut appropriations I had projected. Luckily, as a government, fully capable of creating currency out of thin air, I can ignore this type of fiscal discipline. Further enhanced by our position as "Reserve Currency", we can continue to make friends around the world as we dump our huge piles of crap in every emerging market and destroy their currencies. Cause if we're going down- everybody else is too.
Makes me proud to be an American.
What you outline is the difference between micro and macro economics. In macro economics, keeping a balanced budget does not matter.
You see, they invented a new field of science and taught it to millions of students in order to justify a limitless debt ceiling. That's what I call thinking ahead!
Good morning class. Today in world history we will study the most unnecessary letter ever written.
Yes its ARMAGEDDON if the taxpayer robbery does not continue full bore, but the ECONOMY on the other hand is just fine! Gee USA, nice to see youre not too manic depressive schizo or anything!
dude, where's my defined benefit?
Lol' ....
A mariner, by God -- inked fore and aft !
Queequeg of the Treasury.
Isn't that the 33 degree freemason trilateral bilderberg tatoo of submission on his chest?
Oh, my bad, that is Satan on his chest. Does that make him 'the' Anti-Christ?
Someone call homeland security and report Timothy Geithner as a terrorist!
Nevermind that request, The Federal Reserve division of Homeland has informed me they found this request online and they'll be with me shortly.
It seems congress and Geitner must do this dance to show China, which holds our debt, that we're at least aware the debt is too big.
"legal limit"? Who cares? Why should that law be different from any other one that is routinely ignored? They can just use the words "national security" or "state of emergency" or any other convenient escape clause to ignore the law and do what they want.
The debt ceiling will be raised or ignored. This is all theatre, and not particularly entertaining.
okay tanks in the streets again, end of the world, again, the stock market gains 60% Wall Street bonuses are back, but the world is ending again, somebody has to get out the bazooka again, a few Republicans will fight the thing again, but fear mongering works again, and preemptive fear mongering at that, just listen up america, there is always a crisis somewhere, so just give us everything we want, and right now, not when we need it, because god help us we don't take action early, why right now Bernanke and Geitner are arranging the sale of BOA to Goldman, shareholders SHUT UP, you will take this deal and like it. blah blah blah again
"a long lasting tax on all Americans" You mean like the taxes we'll have to pay to cover the national debt?
"the loss of millions of jobs" like the millions that have already been lost in spite of TARP, QE1, and QE2?
Oil has tanked from $91 to $87.
And retail stocks are getting hammered.
Worth watching for a potential topping process unfolding.
RT technically that is what should happen, a roll over but I believe these a**holes will not let it happen ever. Keep printing and raise the debt ceiling to oblivion...
These are the exact same tactics that Paulson used in 2008.
"Give us a 100%, limitless blank check or the whole world will crumble before your very eyes!!"
+1
The bucket holding the shit and the quantity of shit keep getting larger. The problem is that when the shit meets the fan, the fan will be overwhelmed. I fear my supply of bullets will not endure to the end of this meeting.
I guess Timmah doesnt understand. We tea partiers want a crises so that no one will ever lend money to us again. No money equals no socialism.
I don't want to be mean here, but is there any economic reason for keeping Timmah!! on the taxpayer's payroll?
Timmah's real job is to assume blame for the economy so Obama doesn't have to actually lead
Are we sure he is on the taxpayer's payroll?
Clueless and madness come to mind when I think of these idiots we have runnning this country into the ground.
Debt ceiling? What a joke. I bet a C note right now that the debt ceiling will be over $15T before 2012.
Only $15 Trillion?!!!!
Only $15 Trillion?!!!!
IMO, it is all part of the inevitable decline and crash of America, which will result in our corrupt and desperate "SO F'N CALLED" leaders throwing us into WWIII. One can see the world aligning against us and I have no doubt that in the end even our so called "friends", such as the Israelis will turn against the US and undercut this country more than they already have when they can find a better deal. They care nothing about us, only what this country can do for themselves.
The government, both elected and secret, have made commitments that should never have been made and mismanaged this country to all of our ultimate detriment. (so what exactly happened to that $2.3 TRILLION dollars that the Pentagon cannot account for and has NEVER been investigated? It would be nice and appropriate for the Pentagon to give that back right about now.)
China is investing in the US. The US on the other hand is out manufactuing ever increasing wars to ever-increase the profits and pocket books of our military-industrial complex PONZI-style (can't cut that now because what would happen to the military companies, the military, the spy agencies and all of their employees?). Our government is also bloating itself and giving ever-increasing amounts of money away to bribe and buy friends. US's finest citizens are raping the rest of us and calling it our fault. So, maybe the US needs new management. I am not talking about anything un-American. What I am talking about is having America run by people who have the interests of the people of THIS country at heart and not some other country in the middle east, their own greedy pockets or some fanatical global elitist agenda.
Until the management of this country actually put in place a plan to balance payments leaving this country with money coming in, they deserve no more money to waste and default and a re-set 10, 20, 30 years from now is the best option. The biggest problem is that the corrupt SOBs let it get this far in the first place and now they threaten us with death because they have driven us to the edge of the cliff and are poking us in the back.
Debt is not the issue in this case (although the debt/money system, is ultimately is the biggest plague facing the world). Debt creates money in our current system and preferentially benefits the banking overlords. If it was only debt, then we could survive. However, it is the constant waste of money leaving the country and the waste of resources inside this country. (What productive purpose does creating ever-increasing spying capability on the America people do? What productive purpose does putting ever-increasing numbers of poor people in jail serve? What productive purpose does bloating the central government payrolls serve? Nothing.)
IMO, the so called leaders are just incapable of effective management. They, with their perma-smiles exobident living styles and masses of underlings, suck at their jobs and all they do is keep papering over their own eneptness (and corruptness) with more and more borrowed money... while paying themselves more and more, both publicly and secretly (why are government officials immune from insider trading laws? Why do so many get multimillion dollar private "show" jobs as payment for their services while in government?).
Timmy just confirmed that this country is bankrupt. He ran down the list of all the services that would be impacted if the debt ceiling wasn't raised. He said that congress has continously raised the debt ceiling in the past, so it must be the best course of action to raise it once again. Even funnier, he said that if all the spending cuts proposed by Obama were implemented to freeze spending at 2008 levels, it would only buy the country two additional weeks before passing the ceiling. Amazing how nobody stops to question how we got here and how unsustainable our current economic system really is.
Translation: the parasite is going to kill its host if the host does not start pumping more blood.
http://www.youtube.com/watch?v=ABAi5jWvxbU
Hold firm Congressional Tea Party,... it is expected that every man (and woman) do their duty.
Oh yeah, the TPers are gonna be able to roll back 70+ years of tyrannical centralized .GOV in time to save the Sheeple from themselves! ROFL
Hell, nary 1 in 10 TPers could even tell you the LEGAL system the USofA was established under, no less what LEGAL system the Fraud .GOV has been operating under since 1933...
This is NOT a mute point, as it is the ONLY way to stop the lying, cheating and stealing Banksters DEAD in their tracks.
Oh wait, you have no idea what I'm talking about either...?
ROFL
Common law and Statutory law. Statutes were made uniform under UCC codes 1933.
Have you filed for your sovereignty papers under common law? Did it work?
Au contraire mon petit mouton, it is Natural Law v. Statutory Law, as established under Emergency Powers:
http://en.wikipedia.org/wiki/National_Emergencies_Act
Does it not strike you strange, this concept that the USofA has been in an unending state of "Emergency" since 1933 (Starting with the seizure of REAL money)?
Oh, and seeking to restore my "sovereignty", that my forefathers established for me from 1776 until 1781, would be an insane act when faced with the thuggish empire that has risen up from the huddled masses, much akin to a Jew walking into a Nazi meeting and yelling out "Fuck Hitler"...
mute point huh? LOL.
It might as well be a "mute" point since no one, not the CON-gress, not the MSM and certainly not any political talking heads have discussed it since the mid 70s:
http://en.wikipedia.org/wiki/Senate_Report_93-549
With the realization of dumbing-down-to-succumb in 'MeRiCa now complete, even so-called "informed" bloggers are IGNORANT to the specific relevancy of EMERGENCY POWERS to the status quo.
Moot point indeed...
+1 Amen
More reading for those trying to unplug,
http://www.usavsus.info/
Timmy is bluffing.
Treasury just unveiled the new blue and orange $100 bills and they will be rolled out next month.
Anyone have any good ticker symbols for riot gear manufacturing companies?
Is the end of the world in 2011?
BAESY. 2012.
Don't shoot or I'll jump.
Change = spatter pattern.
Can someone please define for me the legal definitions of "Extortion" and "Coercion"?
SLGS Footnote (P.1) "...are special purpose Treasury securities issued to state and local government entities... there is no statutory or other requirement that Treasury issue SLGS, so Treasury may suspend SLGS sales during a debt limit impasse."
It's obvious the plan is to take hostage (once again) the upper middle-class (who still must pay taxes) and who remain the only suckers left at the end of the night to pay the Oligarch's bar bills anyway, especially as we hear of Corporatism getting (once again) the immediate benefits today of the other side of the balance sheet with new announcements of a special "GM Style Tax-Free Corporate Holiday" grace periods.
Coercion (pronounced /ko???r??n/) is the practice of forcing another party to behave in an involuntary manner (whether through action or inaction) by use of threats, intimidation or some other form of pressure or force. Such actions are used as leverage, to force the victim to act in the desired way. Coercion may involve the actual infliction of physical pain/injury or psychological harm in order to enhance the credibility of a threat. The threat of further harm may lead to the cooperation or obedience of the person being coerced. Torture is one of the most extreme examples of coercion i.e. severe pain is inflicted until the victim provides the desired information.
www.contramanfund.com
Incorrect. It would be the third time. It all came out fine then, too. Embrace the jubilee, Sec. Geithner.
So, in order to keep our financial system from collapsing, we must spend every penny of tax, raise debt limit so we can go even deeper in debt, and also create money out of thin air. Yup, looks like everythings A-OK
What can he do? It´s congress that must decide to switch to a sustainable system. And for that every major nation must be in agreement.
This cocksucker commits treason by extorting the taxpayer, he should be in guantanimo bay, then they might be able to claim they have a real live terrorist.
Treasury has taken exceptional actions to delay the date by which the Debt limit was reached in order to give Congress more time to raise that Debt limit...
is that what the mob calls creative accounting ?
a bit like Google using Ireland as a Tax-Dodge and paying 2.4% Tax on 5 Coconuts ?
I am learning big time here,very big time...
Lil' Wanker Timmay
Is hardly as intimidating as bald raving idiot, spit foaming at the corner of his mouth Hank "Colonel Klink" Paulson...
If You Want to Intimidate Congress, Timmay...
Shave your head and get some elevator shoes...
LOL - "Colonel Klink" Paulson.
Brings a whole new meaning to "I know nothing"....
every time they raise the debt ceiling , I have to raise my "stupid ceiling" on this idiot and the moron that hired him ......
What?!
Another terrorist asking for ransom money to save his owners (the banks) or he will destroy the country.
Outrageous!
Timbo, a chance to grow a pair and you blew it.
The correct answer was -you cannot breach the limit, that is why it is called a limit. So what are you gonna do Mista 112th Congress (.. as you turn to address the issue..)
Still he at least said he cared about home values and pensions -shows he's gotta heart.
The answer is actually quite simple. Selective default. Default on the debt that the Fed owns.... no one gets hurt and the over lords (China) still gets paid. No one gets hurt....oh except us tax payers and middle class debt slaves. But who cares about us minions?
Any default by the U.S. or its states sends the ediface crashing down. Rates will sky and, what is worse, fewer American citizens one will be able to go further into debt by purchasing a house or car on credit. This cannot be allowed.
There will be no defaults. Euroland may see defaults, in which case we get to have our cake and eat it too; remaining the pre-eminent currency even while debasing it.
The prescription is for a controlled morphine drip of bailouts and inflation. That's what I'm betting on, anyways. The other direction and we see administrators swinging from lamp posts.
WHAT DEBT CEILING ARE ALL OF YOU REFERRING TO?
How many times has the debt ceiling been raised?
79 times since 1940:
http://en.wikipedia.org/wiki/United_States_public_debt#Debt_ceiling
So 80 it is. Do I hear 81?
Here's Geithner presenting his plan to the Joint Cheifs of Staff
http://www.youtube.com/watch?v=iesXUFOlWC0
'The Honorable'? The gall these punks have in being referred to as Honorable. Fuck you Tim, Fuck you Pelosi, Fuck you Goolsbee and Fuck you Ben.
May America default as a message to the rest of the world: Don't feed our needless consumption.
May the Municipalities, the States and the Federal Government go Bankrupt.
If you owned a casino and you only had one 'whale' that lived at your tables and this person was the sole reason for your success...if he keeps pulling out his credit card or asking for massive lines of credit in order to keep gambling, when do you cut him off?
The rest of the world in the foreseeable future is never going to ask the US to leave the table so the US can keep pulling out the credit card. Even if we say 'Fuck it...I'm broke'...the house would keep saying..."No, no sir...here's some more money. Keep playing, I'm sure your luck will turn". The world casino has already built their success on the US, they have to keep the game going 'cause the negative consequences are too great if it stops. This is why the cap will be lifted and the rest of the world will rejoice.
+2012
'Increase the debt ceiling, or the elf eared lackey gets it'
Here's Timmah:
http://www.youtube.com/watch?v=I-BYzaDwNoE
OMG tanks in the street! But who will they be shooting at? The Congress critters who refused the vote?
http://en.wikipedia.org/wiki/List_of_sovereign_states_by_public_debt
Interestingly USA ranked 47. Good? Bad? Ugly?