Total US Debt Hits $14.195 Trillion, $99 Billion Away From Debt Ceiling; Treasury Revises Breach Date To As Soon As April 15

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Tue, 03/01/2011 - 19:03 | 1009279 Bastiat
Bastiat's picture

Maybe we can make it by April 1?

Tue, 03/01/2011 - 19:33 | 1009379 bankrupt JPM bu...
bankrupt JPM buy silver's picture

everything is A-okay here...Ben told us that if they cant raise the debt ceiling, a catastrophic financial catastrophe is headed or way.  If that didnt spell out QE3, I dont know what did.  Gold up to the moon shortly after that, whats up?

 

www.silvergoldsilver.blogspot.com

Tue, 03/01/2011 - 19:39 | 1009403 Nobody special
Nobody special's picture

Yes Ben did say that.  If you recall, last time the ceiling was raised, they also created extra room just so they wouldn't have to raise it so often.

This debt is like the actions of a small child.  First they start walking and you have to put the low hanging valuables higher for fear of breakage.  Pretty soon we're going to have to put anything of worth on the top shelf, lest the small child (gov't) break it.

Wed, 03/02/2011 - 02:40 | 1010409 Nikao7
Nikao7's picture

Like a top shelf wealth preservation....possibly gold?  If only I had some wealth to preserve;)

Wed, 03/02/2011 - 08:26 | 1010642 bigelkhorn
bigelkhorn's picture

Bully fulltard ben wouldnt know inflation if it came up and bit him on undercarrage of the scrotum. Sheeesh. Have a look at the CRB index. 

I cannot beleive what is happening at the moment, but I think the libya crisis will get worse, and send crude up skyhigh. The FFT guys, who called this have a big launch for an ebook they are releasing next week called "THE U.S. SECRET HIDDEN TREASURE MAP!" 

Looks VERY intresting. Their prelaunch page is over at :-

http://www.forecastfortomorrow.com/news/products

Tue, 03/01/2011 - 19:38 | 1009401 ElvisDog
ElvisDog's picture

So why will this be a problem again? Haven't we seen enough proof already that TPTB simply ignore laws when they find them inconvenient. What is to stop them from simply continuing to issue debt after the debt limit is breached?

Tue, 03/01/2011 - 20:10 | 1009498 cougar_w
cougar_w's picture

I googled that exact question and without looking hard found the following explanation:

"Treasury is not authorized to issue new debt and could be forced to delay payments for government services or operations until funding is available and could eventually be forced to default on legal debt obligations...Analysts and observers -- including former congressional staff -- expressed concern that a miscalculation in when the debt limit needs to be increased by could trigger a financial crisis in the Treasury market."

Referenced from the following GAO report dated Feb'11:

http://www.gao.gov/new.items/d11203.pdf

... discussed/summarized at HuffPo:

http://www.huffingtonpost.com/2011/02/22/blocking-debt-limit-increase-backfire_n_826716.html

 

 

Tue, 03/01/2011 - 20:44 | 1009598 ElvisDog
ElvisDog's picture

Right, that's what the law says, and if they followed the laws it would be a problem. But nothing is really stopping them from continuing to issue debt. When the government is in charge of enforcing or abiding by the laws, it's really up to them whether they do it or not.

Tue, 03/01/2011 - 21:16 | 1009709 NotApplicable
NotApplicable's picture

Since all of the listed 'solutions' are tiny as compared to the size of the problem, I'd expect that at some point, they will get the idea to start removing the 'subject to the debt limit' classification from some large chunk(s) of debt.

Problem solved.

Tue, 03/01/2011 - 20:10 | 1009497 ISEEIT
ISEEIT's picture

Well, what if all Americans pitched in and sent in their 2010 tax returns early? If all patriotic citizens were to provide their 'fair' share early, could 'catastraphe' be avoided for at least a few weeks?

We must band together to save our government.

This is a time to sacrifice, a time to fight the good fight.

Watch the King's speech if you are an unpatriotic skeptic.

Then think again.

Only a friggin' racist would allow our own very first African American president to go down holding the bag!

We must unite!

Wed, 03/02/2011 - 04:19 | 1010511 StychoKiller
StychoKiller's picture

OTOH, They COULD cut spending (yeah, a total non-starter!) :>(

Tue, 03/01/2011 - 19:03 | 1009281 dick cheneys ghost
dick cheneys ghost's picture

lets get these corporations to pay their fair share of taxes. report says you have more money in your pocket than bank of america pays in taxes.

 

.http://nakedempire.wordpress.com/

 

 

Tue, 03/01/2011 - 20:08 | 1009492 pslater
pslater's picture

Corporations don't pay taxes, they collect them for the govt.  Lower corp taxes = lower product prices, greater corp spending, and......wait for it.......more jobs!  Shrink the size of the effin' govt!  We have a spending problem not a revenue problem.

Wed, 03/02/2011 - 09:36 | 1010791 RKDS
RKDS's picture

More jobs?  You're either on drugs or in China.  Take your pick.

Tue, 03/01/2011 - 19:04 | 1009283 f16hoser
f16hoser's picture

Actually, 20 Trillion if you add in Fannie/Freddie. Even higher with unfunded liabilities.

Too Many Secrets! (Sneakers)

Tue, 03/01/2011 - 19:06 | 1009284 Cash_is_Trash
Cash_is_Trash's picture

Let's punt the can down the road.

Tue, 03/01/2011 - 19:07 | 1009289 trollin4sukrz
trollin4sukrz's picture

trade you 2 of these here deer hides for that pan of chicken gizzards..

Tue, 03/01/2011 - 19:09 | 1009295 AZSovreign
AZSovreign's picture

Really wish there was a way to implode the system right this minute....

Tue, 03/01/2011 - 19:13 | 1009311 trollin4sukrz
trollin4sukrz's picture

have patience knockerz, cant be too long now.

Tue, 03/01/2011 - 19:24 | 1009338 AZSovreign
AZSovreign's picture

Well I am getting bored stacking my PM's on each mammary gland.

Tue, 03/01/2011 - 19:33 | 1009381 trollin4sukrz
trollin4sukrz's picture

maybe go back down to the docks, I hear the Navy is in town.. maybe make nuff for a couple more eagles.

Tue, 03/01/2011 - 19:07 | 1009288 buzzsaw99
buzzsaw99's picture

This is an outrage! I demand an investigation!

Tue, 03/01/2011 - 19:19 | 1009325 cowdiddly
cowdiddly's picture

You mean we will set up a nonpartisan commision to study the problem.......................................................

Tue, 03/01/2011 - 19:44 | 1009423 Harmonious_Diss...
Harmonious_Dissonance's picture

We have our best man on it right now!

http://www.youtube.com/watch?v=JNj9UJmAnC4&feature=related

Tue, 03/01/2011 - 19:11 | 1009303 Dexter Morgan
Dexter Morgan's picture

I think their main plan is the last one....HOPE.

Tue, 03/01/2011 - 23:45 | 1010134 Village Idiot
Village Idiot's picture

"Hail Mary"

 

 

Tue, 03/01/2011 - 19:12 | 1009306 cossack55
cossack55's picture

Well, since we are currently living in a "house" with no walls, why the hell do we need a ceiling?  Just raise it to $500 trillion and spend away.

Tue, 03/01/2011 - 19:25 | 1009343 Sarah Conner
Sarah Conner's picture

No balanced budget amendment... No committment to a debt ceiling... Fiat currency... enough said.

Tue, 03/01/2011 - 19:27 | 1009353 Judge Judy Scheinlok
Judge Judy Scheinlok's picture

Seriously my cossack nigga. GS gives Chinese special interests first dibs on a FacebookFag IPO so they don't sell(just yet), and the "free markets" are funneling billions to oil producers via a speculation tax on crude so they can buy US debt.

The Mystery Theater Show is over.

Tue, 03/01/2011 - 19:36 | 1009385 trollin4sukrz
trollin4sukrz's picture

good.. i hate fagbook n e way. looser central dudes..sheet

Tue, 03/01/2011 - 19:14 | 1009313 BobPaulson
BobPaulson's picture

How will it differ from previous breaches?

Tue, 03/01/2011 - 20:14 | 1009506 cougar_w
cougar_w's picture

It will differ in being higher. That's all. They can do this until Hell freezes over.

Tue, 03/01/2011 - 19:17 | 1009321 fragrantdingleberry
fragrantdingleberry's picture

Reagan proved that deficits don't matter and Bernanke will prove that the dollar doesn't matter

Tue, 03/01/2011 - 20:33 | 1009564 ISEEIT
ISEEIT's picture

I (respectfully of course) find that statement fucking ignorant. Debt to GNP is the important figure. I grew up practicing the correct response to a global nuclear war.

Get under the desk and put your hands behind your fucking head.

Now that might have been a problem, I'll concede. But as modern reality makes clear the fight between good and evil is as real as someone you love dying:

And just as likely to be ignored until it is to late.

If we still had the debt to GNP ratio that we endured under Reagan?

Everything would be fine.

I'll give you that the trend/trajectory has been a disaster. Hell, I'll even give you that the political left has been successful in blaming Reagan for the mess we are in today.

From that point though it is difficult to follow to where we stand (fall) today without implicating the political left.

Clinton what?

That should shut your ass up.

It's bankers asshole.

And they have bought the fucking machine.

You want some 'progressivism'?

Pretty fucking confident that game has already been bought.

Grow the fuck up and get constitutional.

Tue, 03/01/2011 - 19:19 | 1009329 Racer
Racer's picture

And this staggering amount of debt is backed by what?

Tue, 03/01/2011 - 19:25 | 1009347 trollin4sukrz
trollin4sukrz's picture

federal Parks, federal forests, taxes on u n me, your house, all the PMs and water, toll roads n bridges, farmland, your car if you own one, the kid's toys, your toys, all the revenue from the Nevada hookers, power plants and dams..You know.. stuff?

Tue, 03/01/2011 - 19:45 | 1009420 Racer
Racer's picture

 a promise to pay from IOUs that are diminishing every second?

Tue, 03/01/2011 - 20:04 | 1009373 Big Ben
Big Ben's picture

And this staggering amount of debt is backed by what?

Benny and the InkJets.

Since the $0.6T QE2 program has been so successful, why not just extend it into a $1.5T/year QE3 program which would completely cover the deficit and save us from all this bother?

Tue, 03/01/2011 - 20:16 | 1009509 cougar_w
cougar_w's picture

Backed by a promise to pay ... wait for it ... in dollars.

Sweet racket they have going, isn't it?

Tue, 03/01/2011 - 19:22 | 1009337 the rookie cynic
the rookie cynic's picture

The debt ceiling is a mirage. Look at the unfunded liabilities in SS, Medicare, and Medicaid, Fannie Mae and Freddie Mac, not to mention everyone's off balance sheet shit. Debt ceiling is like the CPI, just a smoke screen behind which all sorts of nastiness is perpetrated on the people.

Tue, 03/01/2011 - 20:19 | 1009516 cougar_w
cougar_w's picture

The more I think about it the more all this starts to look like an end-game strategy.

Nobody is going to pay. Not a dime. So it doesn't matter. We're stinging the marks along hoping they'll stay at the table, but when they leave we fold up the tent anyway.

I mean what are they going to do about it ... declare war or something futile like that?

Tue, 03/01/2011 - 23:47 | 1010144 XPolemic
XPolemic's picture

I mean what are they going to do about it ... declare war or something futile like that?

 

Good question, but in theory, nobody has to declare war on the US, on the contrary, the US will need to wage endless war for access to resources.

If the Ponzi scheme were to collapse, the dollar would be dumped or written off, oil and other commodities would then be re-priced in some other convertible, and the exchange rate of US dollars to that new convertible would be prohibitively expensive for the US to buy foreign oil, so then the US would have the choice to either survive on domestic production, or invade Mexico, Canada, All Middle Eastern/North African countries in that order, and hold them against all defenders/attackers.

War is expensive, either in dollars or casualties, and if the US could not afford expensive weapons technology, they would need to put more bodies on the ground in their Empire, which would be very bloody, and meet with strong domestic opposition, which would need to be suppressed with a repressive, authoritarian and violent police state, which would cause intellectual capital to flee, leaving the US with no manufacturing, no high-tech industry, no financial industry and no future.

You know when the Roman Empire collapsed it was still the pre-eminent military power in the world right? It was just spread so thin, in so many regions, containing so many problems that it could not bring full force to bear on any given enemy (they also had financial problems that came from debasing the coinage and inflation).

 

Wed, 03/02/2011 - 00:07 | 1010206 DaveyJones
DaveyJones's picture

good post. An army is not an economy, its a drag on one 

Wed, 03/02/2011 - 00:38 | 1010268 snowball777
snowball777's picture

a) When Rome collapsed, it's pre-eminent military power was in the form of hired (hence the debasement) foreign mercenaries, not Romans.

b) If what you say is true, then why is there still a country called Germany?

 

Wed, 03/02/2011 - 06:35 | 1010555 XPolemic
XPolemic's picture

a) When Rome collapsed, it's pre-eminent military power was in the form of hired (hence the debasement) foreign mercenaries, not Romans.

Like how the US Army is made up of latinos and other second generation Americans (and poor people, who join for a job).

b) If what you say is true, then why is there still a country called Germany?

The modern German state was formed in 1871, nearly 100 years after the Declaration of Independence in the US, so it is relatively a young country, and it too may adopt an idiotic economic/political philosophy like Randism in the future and go through a(nother) period of economic turmoil.

But nowhere in my original post did I say that the United States would cease to exist as a country, just that it would go through an economic collapse. What I do contend though is that an economic collapse would bring an end to the American Empire

Tue, 03/01/2011 - 19:25 | 1009342 Tric
Tric's picture

It's amusing to watch all of these games that have to be played just to make interest payments on the existing debt. 

Tue, 03/01/2011 - 19:32 | 1009357 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Who in their crazy mind would lend $14.195 trillion dollars to a dead in the water nation like the 'Was good at one point, but is now bad" old-US-of-A"?

Oh that's right, someone who prints money out of fresh air (the privately owned central banks of the world), knows that they will never get their principal back, but is happy to take real assets (houses, land, gold, tax on peoples labors, etc) in return until that country is totally pillaged.

You are slaves and you have owners, and still you do nothing. Those brave peasants in the middle-east are the ones with the balls...

 

 

Tue, 03/01/2011 - 19:38 | 1009395 trollin4sukrz
trollin4sukrz's picture

too bad these slaves in good ole slavery central have mach 4 projectiles. might be a bad headache in the making

Tue, 03/01/2011 - 19:30 | 1009365 Rainman
Rainman's picture

Haha....the Critters are celebrating a $4 billion "cut" embedded in a two week budget extension. I do believe that the Critters believe that we all believe $4B is a lot of money anymore. Otherwise, their behavior cannot be explained.

Tue, 03/01/2011 - 19:31 | 1009372 Waterfallsparkles
Waterfallsparkles's picture

Tax receipts will kill them.  Even with the jobs numbers there are more and more people working part time instead of full time.  The people who have found employment are working for a lot less that before they got layed off.

They totally ignore their full employment mandate, yet that hurts their income and the payment of the debt and interest on the debt.  You also have many that are taking early retirement which cost the Government money and deprives them of taxes on earned income.

I watched Bernanke today and he was so proud of the Market going up but he has failed to see that the average American does not have a job.  How will the debt he is creating and the interest on that debt be paid without jobs.  Obviously the Wall Street people are not going to make up the difference.

In my opinion his focus is in the wrong place.

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