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As Treasury Cash Drops To Just $14.2 Billion, And No Bond Auctions Until Next Week, Is America About To Run Out Of Cash?
And so the US Treasury has hit the proverbial paycheck to paycheck sustenance level. After burning $12.8 billion (without a change in gross debt) in cash today alone, and $75 billion in the month of March so far, primarily driven by a back end-loaded tax refund calendar, according to the Daily Treasury Statement, today's cash balance dropped to the scary level of just $14.2 billion. Without the benefit of incremental funding, this is the same amount that the Treasury burns on a good day! In other words, we take back what we said about the US Treasury existing paycheck to paycheck - Geithner now has to scramble to find funding on a day to day basis. If tomorrow operating outflows surpass $14.2 billion (and, again, the amount was $12.8 billion today) the world's "greatest" country (i.e. banana republic) runs out of cash, period. And as the following schedule indicates, there are no Long-Term bond issuances until next week (and the Bill issues are merely funding of rolling issues), we have some trouble seeing how the US Treasury will fund itself for the balance of the week...
And the forward issuance calendar: remember, this is where the bulk of money for deficit funding comes from there days.
On the other side of the ledger, total debt was $14.164 trillion, with $50 billion left in the liquidating SFP account. That means there are just two more 56-Day CMB maturities left before the credit ceiling gimmick expires. Once that happens, and in the absence of any clarity on the debt ceiling debacle, America may soon grind to a halt as the incremental debt capacity is hit in just over a month.
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Ah yes, cars and appliances. They're always prepared to commit suicide just to teach you a lesson.
You too?! Glad I'm not the only one! =/
Happened to me one day last year. Boss threatened to fire me and broke up with gf. Then this.. http://i55.tinypic.com/w6tx5c.jpg[/IMG]
Nothing to fret about... Ben and Tim are showing the azz hat pols what it will be like if the debt ceiling is not raised.
Pols will panic and demand faster printing.
Rinse, repeat...
What is the effect of this? Do government paychecks/welfare payments bounce? Or does the government just "shut down", as in the 90's? Or does it shut down as in Rome circa 455AD?
I beleive its called DEFAULT, the last time that happened was 1933 and soon
after gold was confiscated.
The last default was in 1971. Ironically, the gold was "returned" soon after. That is, we were "allowed" to own it again.
In 1971 the US defaulted on its gold obligations.
http://www.kitco.com/ind/Schoon/mar032008.html
"the only thing scarier than gold being worthless is gold being worth something." in other words "if you thought '33 was bad, '71 was worse." i agree with that. ABSOLUTELY. now, "back to my soufle'."
The FDIC has been in negative reserve territory for ages, they keep going.
It's all magic and unicorns from now on.
A good point. Nobody seems to question that any more....
You've got to be kidding? The world is falling apart at the seams and our dow barely moves down. The fight of the ppt. This market is a joke. If one believes there is little to no money being created to buy this farse of a market this week or beyond, they're smoking crack. Pay attention.
Until one of these "black swans" hits on this mainland, the rest of the world could break off into space and the market would barely notice. Remember, greed is good and there's plenty on display.
Yes, it is absurd. Japan's economy is reportedly the 3rd largest national economy in the world at around $5 Trillion per annum. This disaster will lower global GDP, and the US markets hardly flinched today. That is absurd.
Yep, and the Aussie Dollar falls against the Yen after the quake and trillions of yen printing (oops,......injections).
After the Kobe EQ the yen went up from 100 to a buck to 80 and that weren't even nucular
btfd, btfd. its like a sick carnival midway game.
This is really amazing.
Theoretically, can the Treasury just order money printing to "rectify" this situation?
The Treasury is going to be using the same line I used to give my creditors: "Look man, I'm not the Federal Reserve, I can't just print money. What do you want me to do? There is no money in the bank, therefore you can't have any... Get in line.".
The difference between them and myself is I settled my debt obligations.
Love it! I say the same thing (especially if my kids are begging for money).
Where have you been for the last three years, watching Idol?
Does this mean they are going to stop answering the phone due to bill collectors? Caller ID for the Treasury.. "Look man, we just dont got it, we can give you a little something on the 1st.."
Geinthers' in a pile of shit and he doesn't have the boot's for it. I bet he cries himself to sleep everynight hugging his teddy bear while sucking his thumb.
Please. Turbo Timmy was the Head FRBNY during the financial crisis. Translation he was Chief Regulator (along with the bernank and SEC) of the banking industry during the greatest financial melt down in the history of the world. And for FAILING to do his job, he got a PROMOTION to Treasury Secretary,
Based on Past Performance, and his ability to fail up, i expect him to be named King of The World anyday.
And his promotion to FRBNY was after he destroyed Asia.
Is it the wood or the ink that's in short supply?
Asset sales...I've got dibs on Glacier National Park.
They should just buy $14.2B worth of silver contracts and stand for delivery. That should buy them a few extra billion to play with when they get cashed out. Except no delivery month until May. Options expiration this week, they could try their luck there.
+1 lol
+395M oz.
Turbo Timmy can earn the dif. by servicing hank paulson and his buddies at three fiddy a pop.
Ben Sucks, Timmy blows.
Shut Down the Government — It’s Broken Anyway!
http://blogs.forbes.com/prospernow/2011/03/13/shut-down-the-government-its-broken-anyway/
Except for DoD, Homeland Security, the Armed Forces, the Pentagon, corporate welfare and handouts to various puppet states. Can't shut them down. Gotta keep printing enough money to keep all them afloat, cos god knows they all do a fantastic job of protecting freedom.
Funny that Forbes never mentioned that. Oh, wait... those don't count as "government spending".
it's kind of like a nuclear reactor tho, isn't it? "You can't turn it off" no matter what the Wall Street Journal claims. "The energy just keeps producing" and "all we get is the fallout."
Imagine the shitstorm if the welfare checks stopped coming for 43 million people. That's about 12% of the population that would be rioting and retail sales would collapse.
Broke Bitchez!
My nomination for "Best of the Bitchez".
Broke Back Beaches
Is there a way to just continue spending, overdrawing their 'account'?
If things go negative, who will call them on it?
It's not like there is anything to repo, is there?
NSF fees DollarMenu, NSF fees. By the by, you might want to change your name to millionDollarMenu.
Lets ask the very bankers the government bailed-out for a short term loan!!!!!!!!!!!!!!
Christ, my wife can balance a check book better then the Treasury Secretary!
Well, there IS all that cash on the sidelines.
Or you could just ask Hosni Mubarak for a loan. He's got $75 billion to lend and would probably be happy to live off a 4% return.
politicians on foodstamps... are there stamps for lobsters and champagne ?
Nope. Only for lobster. They have to pay cash for champagne.
"Time to go golfing" - Barry
Who is playing the White House tomorrow night? What me worry? Naw! I am cool as a cucumber. My name is President Obama and I don't give a hoot. Me and my body man are going to party hardy tomorrow night and while the guys and gals are drinking, we shall slip off to a convenient closet in the white house and do some blow and bump peters......
Fuck it Dude. Let's go bowling.
turn out the lights the party is over
"we have some trouble seeing how the US Treasury will fund itself for the balance of the week."
Take out a Payday Loan?
so what's 'backing' bank deposits, mortgages, guarantees to bankrupt WS banks?
Oh yes the totally insolvent US Govt ...that's alright then!
http://www.treasury.gov/initiatives/wsr/Pages/going-forward.aspx
Number 3 is now out of service. No chair satan, we don't want any of your junk paper. We have to get rid of some of the junk we already bought to help fund the rebuilding of our nation. so says the emperor of japan.
When an individual hits zero cash, the checks bounce. How on earth will the US government get around this?
It's the US government. You don't wanna accept their cheque? Off to Gitmo for you!
You're either with us or you're with the terrorists! Remember?
Jesus Christ, didn't you get your unicorn in the mail?
Print it!
Don't you remember seeing all those geezers walking through your local North Pointe Towne Temple of Consumption wearing "I'm Spending My Grandchildren's Inheritance" t-shirt?
After all, who the heck do you think has been voting for these ass clowns since Nixon closed the Gold Window, anyway? Ludwig van Mises?
Naaaah. Every day is a Bankster's Holiday.
I wonder how confident the Fed is now, that they can control inflation, deflation, stagflation or whatever 'flation' they claim to have complete dominion over. If they can't print money their toolbox is largely empty. Oh wait, they can raise interest rates, like that'll happen.
And yet the Congress critters are fighting over whether to "CUT" $6B or $50B.
WE ARE SCREWED.
BTW, I'm sure everyone saw the WSJ article this morning prediction unemployment to hit 7.7% in time for Obama's reelect.
Methinks the Ruling Class is in for a bit of a surprise.
Nah, they'll just keep making up the numbers and making them smaller.
No unemployment = full employment
"prediction unemployment to hit 7.7% in time for Obama's reelect."
That number reflects the power of conscription! The draft will set things right.
Now, if we could just find a Theater Of Operations with a large enough scale to justify it. Anything going on in the Middle East? No? Well, isn't it about time that changed?
How much is that "no-fly zone" thingy going to cost? I am sure the Europeans are going to pay for their share, right?
Yeah, Spain, Portugal, and Italy are "all in". Greece wasn't asked.
No fly zone, scmyzone. Our government needs to send aid to Japan. It's for the children you know.
It's a little late for a no fly zone. Team Obama dithered long enough in making a decision (likely on purpose to see which way the wind was blowing) that Qaddafi's forces have gained the upper hand on the rebels. Even without air support, the pro-Qaddafi forces should be able to mop up the rebels. The incompetence of Obama and his foreign policy team is astonishing (well, perhaps not). Two weeks ago, a little air support, some supplies, and timely intelligence data and Qaddafi would already be at the end of a noose.
Just numbers on a spread sheet really. All just flim flam to pressure congang into hoisting the ceiling. With the Japanese situation taking pole position and the NFL contract situation running a close second, should be easy to push through a Mo' Money bill.
Does Japan allow foreign owned tourism companies? I'm thinking Fukushima Wildlife Tours would be a good start-up. We could import some of those Chernobyl chest-high beavers that glow in the dark.
Are you talking about the wildlife or the women?
TPOG
Don't worry, Timmeh will have the suicide vest on ready to storm congress.
Suicide bankers bitchez!
Start looking for loose change between the Oval Office couch cushions.
Nope nothing there. I just found a wet cigar.
Bag it and tag it. Call the FBI, we may have a crime scene.
Timmeh: Hey, Ben.. what if we just write a bunch of checks to ourselves and put them in the bank?!
Ben: ...er..
Timmeh: Wah?
Ben: Perhaps I didn't explain QE before...
It's about time Benocide pulled his finger out and started reprinting seriously. He has not only the US economy to float in QE-3 levitation but also the Japanese left-over from tsunami after the mushroom cloud.
Are yall retarded or something? How can we run out of cash when we are the monoply supplier of our own currency? It is impossible.
They have to maintain the illusion. It doesn't look good when the Treasury has to have an emergency unscheduled auction to get itself through the end of the week.
On the plus side, once the Fed buys directly from the Treasury, it won't seem as bad going forward. The first time is always the hardest.
Couldn't they just sell some Gold to cash4gold.com?
Yeah! Here's another option:
I keep hearing about this "Transforming debt into wealth" system on the radio, I think they should call right now!
From A Few Good Men | The Burning Platform } by Administrator
Everyone remembers the courtroom scene from A Few Good Men.
I have fantasized about a future scene that will happen in the House chamber in the near future :
Ron Paul: Chairman Bernanke, did you order the printing of $4 trillion to be given to Wall Street bankers?
John Boehner: You don’t have to answer that question!
Ben Bernanke: I’ll answer the question!
[to Paul]
Ben Bernanke: You want answers?
Ron Paul: I think I’m entitled.
Ben Bernanke: You want answers?
Ron Paul: I want the truth!
Ben Bernanke: You can’t handle the truth!
[pauses]
Ben Bernanke: Son, we live in a world that has Wall Street bankers, and those bankers have to be enriched by men with printing presses. Who’s gonna do it? You? You, Representative Ryan? I have a greater responsibility than you could possibly fathom. You weep for the Middle Class, and you curse the Federal Reserve. You have that luxury. You have the luxury of not knowing what I know. That the US Dollar’s death, while tragic, probably enriched Wall Street bankers. And my existence, while grotesque and incomprehensible to you, benefits Wall Street bankers. You don’t want the truth because deep down in places you don’t talk about at Tea Parties, you want me on that printing press, you need me on that printing press. We use words like debasement, inflation, systematic risk. We use these words as the backbone of a life spent defending banking interests. You use them as a punchline. I have neither the time nor the inclination to explain myself to a man who rises and sleeps under the blanket of the very excess liquidity that I provide, and then questions the manner in which I provide it. I would rather you just said thank you, and went on your way, Otherwise, I suggest you pick up a computer terminal, and create a few trillion dollars. Either way, I don’t give a damn what you think you are entitled to.
Ron Paul: Did you order the printing of $4 trillion?
Ben Bernanke: I did the job I…
Ron Paul: Did you order the printing of $4 trillion?
Ben Bernanke: You’re $%#@&$$ right I did!
http://www.theburningplatform.com/?tag=ben-bernanke
ROTFLMAO...Nice.
::yawn::
http://www.xtranormal.com/watch/7933323 was better
script here: http://uleak.it/?mx
first seen here, that I know of:
http://www.zerohedge.com/article/adolf-jamie-artists-impression-jpms-ceo-hearing-silver-trading-over-500#comment-782227
"America may soon grind to a halt..."
Let's be specific, the US Govt could grind to a halt
Anyone has a problem with that? Nope. In fact that's fuking great news and no skin off anyones nose.
In fact "Let the US Govt Eat Cake"
Yellowcake
+92
What is Japan's current U.S. treasury position? Will they dump to get cash to rebuild?
it is "big" and CNBC has ordered them to "buy or die." To quote Larry Kudlow "thank God all those people are dead but the economy survived." Ah, yes "the creed."
will an emergency SWAP on the future earnings from TARP and related programs or FED holdings solve the problem?
(a SWAP with BOJ or G&Poor'S ~ "we slide you ride" perhaps? )
Well I'm pretty sure there is some contingency plan - what would prevent the FED form "creating" a few hundred billions out of thin air ?
This is frightening, but nothing logical seems to matter anymore. Fear not: the US machine will continue grinding along, although it may no longer be the sleek animal the world once admired.
I had no idea that the federal goverment used cash.
Well, when I checked last stocks AND bonds where up....nothing to worry about
No problema. Timmah is on the phone with J.G. Wentworth as we speak. And he has already signed a reverse mortgage on the White House property -- Robert Wagner personally oversaw the deal so its a good one.
LOL
LOL!
+
<applause>
From Ron Paul’s Freedom Report : A publication of the Foundation for Rational Economics and Education (FREE) - January 24, 2011
“We only recently learned that the bankers at the Fed were able to use the latest financial crisis to bail out Wall Street cronies and foreign central banks with billions of dollars that were created and wasted, instead of appropriated and voted on by representatives of the people. The Fed and its supporters in Congress vehemently fought even this small bit of transparency…
“If ‘political independence’ erodes the purchasing power of the currency by 98%, destabilizes the economy with radical booms and busts, all the while increasing unemployment and tipping us ever closer to hyperinflation, perhaps it is time to try a little transparency and accountability instead. Better still – we should try giving the people true economic freedom…
“It is nothing short of cruel and criminal for Congress to stand idly by while the life savings of Americans are inflated away to nothing.”
Yeah, good luck with your next presidential campaign, wiener.
Anyone who's delivered over 4000 babies, won the CPAC two years in a row and supports our Constitution is not a Weiner, 9th District NY, but a winner
The only CONgressman talking about doing something radically different than the status-how's that working for us?-quo and he's a weiner...
Got it.
I can hear a tic.....tic.... tic sound. No wait, its a vibrating dildo!
Did someone tell Obama...he is on hole # 7 right now I think...wait until he hits the ball though..you have to be quiet on his backswing...
How long can this go on until WE blow up. I cannot believe this country.
as long as Ben can type on his keyboard and ink left in his printer cartridge, why would anyone worry about that?
small business tax credit for employee health insurance, "what a complete, absolute joke". you only receive it if you show a tax liability. so if you have any carryover losses, or if you don't show a profit, you don't get a credit.
i've operated at a loss for the last 2 years while cutting everything but health insurance. i know, i'll cut that and not provide it anymore, that will help. then i can roll losses forward from the last 2 years and take a long-assed vacation.
insane
Tyler, can you put this in perspective by providing a graph of the cash balance over time? That will help us better understand the normal level and the trend. Thanks again!
(d)
Corporate quarterly estimated tax payments are due 3/15/11. Probably in the neighborhood of $20B.
not from me, i'm sending zilch
If they'd impose the Spank the Clown tax on porno we'd have a surplus in 9 months. Bolivia could back us till then.
GOLD IS OVER SELL>>>>JIMMY IS A BULL
http://secure2.thestreet.com/cap/login/rm_mbp_yho_nflow.jsp?flowid=4960177db5&url=http%3A%2F%2Fwww.thestreet.com%2Fp%2F_jcblog%2Frmoney%2Fjimcramerblog%
your link works but there's an error on Jim 'cunt' Cramers website
In the second chart, what does the R represent?
R --denotes reopening
Things is getting - Sur fucking real
Has anyone noticed that the Jeetner (Timmah) has been real subdued in public lately...not his usual feisty self? He knows he will go down in history as the executive officer on deck along with the Bernank who sunk the ship because the commander (Obummer) could not make a decision, even when the huge iceberg was visible right in front of them.
I bet those misprinted 100's make thier way into the stream.
People get together,anyone who cares about basic problem of our existance FED invited to vote in our poll and read out latest comments on yahoo FED article about QE3:
http://trendybull777.blog.com/2011/02/21/hello-world/
Voting poll is waiting for you click,take 5sec to make your choice,we must to reach critical level to be recognised by others to tove too!Thank you and keep all us together regardless government effords,we appreciate if you link us to other polls,blogs,sites to let people or your friiends to vote FED existence
sell the gold in fort knox...again. or all those bonds you have on the balance sheet. plenty of ways to raise cash.
The Feds are good for it. They can charge anything they want in my store. They're good at begging.
$14.2 billion!!! Brian NutSack is gonna need more than that tonite and tomorrow just to keep the dow from crashing and make his margin calls!!
Thomas P.M. Barnett - Explanation of War & Terrorism (1/3) 2006
http://www.youtube.com/watch?v=P7El18wbBd4
Now that the guard has changed hands two years past. We can see many things are quite visible. Nothing has changed. The plan forges on..
Project for the New American Century
http://www.youtube.com/watch?v=9sg_NRC8ozk
What are your thoughs?
Timmy is going to have to get out the Abacus.
Just hand the Fed over to Old Country Buffet. All you can spend FRN's + delicious chicken fried steak and lumpy chocolate pudding till your bubble bursts!
Witholding taxes would be the Honourable thing to do.
I saw a black Escalade pull up to the local superfresh, bunch of government looking guys brought in 5 galllon buckets full of coins that they promptly fed into the change machine. They headed to the customer service booth and took off with handfuls of cash.
Coincidence?
Those Hon-yocks... Don't they realize those chocolate coins WILL NOT process through the machines...
BOJ just put in another 5 trillion yen..
http://english.kyodonews.jp/news/2011/03/78019.html
The Polish Zloty is the next world reserve currency.
What time of year would be the best to just admit BK and let the chips fall? We won't freeze to death now and we can get those gardens planted. We have all summer to get ready for winter.
This is utter nonsense. Of course they can loan themselves money in a ponzi like fashion. No worries. A couple of computer entries and we have a sale of Maiden lane II to AIG HAHAHAHAHAHAHAH
IS this the news that's killing stock futures tonight? Or is it more morose mood in Asia?
Those gummit guys must be stoopid. Who'd want to sit on $14 billion in cash when you can invest it in equities and earn real returns?
Not so soft landing here... Ben Bernanke is hopelessly in WAY OVER his head... For a guy who prides himself as an expert historian on our Great Depression of 1929. He, himself will get his chance to write all about his epic failures in our current economic crisis and the coming disaster, will be known as "The Greater Depression of 2011" ...
So here is how they will get cash:
Hawaii first state to breach $4US per gallon gasoline.
And it can only go up.
I wonder what would happen if they 'stole' from the 56 day to fund their needs? If they DID, could the market handle no pomo and everything else? My guess is no.
Baby, you'd look good in a dumpster.
The world has stopped turning.
The other shoe has dropped.
The SHI* HAS HIT THE F*CKING FAN!
I am most hated of the world.
You aren't my brother.
You aren't my family.
I'd rather die alone than live here with you.
No one has control of me now.
If I ruled the world I'd destroy mankind.
If I were king for a day I'd make sure there was no f*cking tomorrow.
And now the world is my f***ing toilet.
AND NOW THE WORLD IS MINE!
http://www.youtube.com/watch?v=NmRJrylMTsA
Best Precious Metals Site on the interwebz: http://tfmetalsreport.blogspot.com/
This just in! After the recent attack on Japan, the U.S. government has delcared Earth a terrorist organization. President Obama addressed the nation and declared "No planet, should ever, be able to fuck up my golf game! Oh yeah, and the economy too!"
Somehow I think they will 'avert disaster' again. Just sayin.
Funny, it's Tuesday morning 11:25 a.m. and they haven't posted a new Daily Treasury Statement yet.
There it is. The balance went up over $24 billion.
https://www.fms.treas.gov/fmsweb/viewDTSFiles?dir=w&fname=11031400.pdf