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Treasury Confirms Debt Ceiling To Be Breached Today; Will Tap Pension Funds
It's official: the US credit card has officially been maxed out, just as we predicted on Wednesday, and througout Q1 and Q2. The United States is expected to reach the legal limit on its debt later on Monday and will start dipping into federal retirement funds to give the country more room to borrow, a Treasury official said. As Reuters reports further, The U.S. Treasury will settle $72 billion in maturing bonds on Monday, which will push the country right up against its $14.294 trillion borrowing cap, the official said. To all those who thought only the insolvent government of Ireland will plunder pension funds, our condolences.
Full release (no pun intended):
As US Reaches Debt Limit, Geithner Implements Additional Extraordinary Measures to Allow Continued Funding of Government Obligations
Today, the United States has reached the statutory debt limit. Secretary Geithner sent the following letter
to Congress this morning alerting them to actions that have be taken to
create additional headroom under the debt limit so that Treasury can
continue funding obligations made by Congresses past and present. The
Secretary declared a "debt issuance suspension period" for the Civil
Service Retirement and Disability Fund, permitting Treasury to redeem a
portion of existing Treasury securities held by that fund as investments
and suspend issuance of new Treasury securities to that fund as
investments. He also suspended the daily reinvestment of Treasury
securities held as investments by the Government Securities Investment
Fund of the Federal Employees’ Retirement System Thrift Savings Plan.
For more information on these measures, please read this FAQ.
Last Friday, Secretary Geithner also responded to an inquiry from
Senator Bennet regarding the fiscal and economic consequences of failing
to increase the debt limit. That letter can be found here.
Secretary Geithner continues to urge Congress to raise the debt limit
in a timely manner in order to uphold the full faith and credit of the
United States.
The Honorable Harry Reid
Democratic Leader
United States Senate
Washington, DC 20510
Dear Mr. Leader:
I am writing to notify you, as required under 5 U.S.C. § 8348(l)(2),
of my determination that, by reason of the statutory debt limit, I will
be unable to invest fully the portion of the Civil Service Retirement
and Disability Fund (“CSRDF”) not immediately required to pay
beneficiaries. For purposes of this statute, I have determined that a
“debt issuance suspension period” will begin today, May 16, 2011, and
last until August 2, 2011, when the Department of the Treasury projects
that the borrowing authority of the United States will be exhausted.
During this “debt issuance suspension period,” the Treasury Department
will suspend additional investments of amounts credited to, and redeem a
portion of the investments held by, the CSRDF, as authorized by law.
In addition, I am notifying you, as required under 5 U.S.C. §
8438(h)(2), of my determination that, by reason of the statutory debt
limit, I will be unable to invest fully the Government Securities
Investment Fund (“G Fund”) of the Federal Employees’ Retirement System
in interest-bearing securities of the United States, beginning today,
May 16, 2011. The statute governing G Fund investments expressly
authorizes the Secretary of the Treasury to suspend investment of the G
Fund to avoid breaching the statutory debt limit.
Each of these actions has been taken in the past by my predecessors
during previous debt limit impasses. By law, the CSRDF and G Funds will
be made whole once the debt limit is increased. Federal retirees and
employees will be unaffected by these actions.
I have written to Congress on previous occasions regarding the
importance of timely action to increase the debt limit in order to
protect the full faith and credit of the United States and avoid
catastrophic economic consequences for citizens. I again urge Congress
to act to increase the statutory debt limit as soon as possible.
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
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 Max Baucus, Chairman, Senate Committee on Finance
The Honorable Orrin Hatch, Ranking Member, Senate Committee on Finance
All other Members of the 112th Congress
Colleen Murray is Spokesperson for Domestic Finance.
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Nice article. Need to check out the URL - economicnoise.com +10
How long will they be able to tollerate the taste of eating their own I wonder?
Can retirees withdraw (and accept pentalties or pay taxes) their money (401K or IRA) before the gov't touch them? Would that help?
everyone knows theyre not getting any SS pension so who cares? maybe the pllies care cuz they're 1st in line for pension payments, but no one else even belives the monies there.
D fault D fault
Was at a presentation on generational conflicts due to macro themes lived through as children.
The presenter put up a slide of a survey to show how Gen-X'ers are skeptical of the institutions of the previous 2 generations.
80+% of Gen-X responders said they would see a UFO before they ever see a SS check. All of the boomers in the room laughed. Then I and my collegue (2 of the only Gen-X ers in the room) asked why they all thought that shit was so funny? Result - silence.
This really will be an epic 4th turning.
Then I and my collegue (2 of the only Gen-X ers in the room) asked why they all thought that shit was so funny? Result - silence.
Good on you. The simple reason is that the Boomer generation are just ignorant, so they place their confidence in systems, institutions and even blind faith. Speaking to my Boomer Aunt yesterday, I understood that Boomers don't want to believe that the world has changed, even though they spent the first half of their lives demanding change!
Ha ha ha. They don't understand why things cannot keep on the way they were, and all of their Quantitative Easing, War On Terr(ible people with oil)or, stock market pumping etc etc, is just their desperate attempt to maintain a status quo that they understand.
The crisis will last at least another 8 years, after which Gen-X will spend 20 years cleaning up their gigantuan mess, just in time for the revolting Gen-Y shits to blame them for everything that went wrong, and take credit for the clean up.
Bitter? Me? ;)
The simple reason is that the Boomer generation are just ignorant, so they place their confidence in systems, institutions and even blind faith.
Agree.
"Boomers" have got to be the dumbest head-in-the-sand deliberately-blind sheep in America.
Yes, they deserve the financial wipe-out they're gonna get. Already getting actually.
I have no sympathy for them.
And I say this as one of that generation.
I have serious doubts about them outright taking 401k's. That is way too confrontational for politicians, it would not be popular. They are going to get money from us, the question is how. It will be something stealth, like inflation, or maybe a tax somewhere thats not directly levied on us, but that we pay. They will divide and conquer.
You mean like having a "debt crisis" and bailing out banks and insurance companies and hedge funds while individuals earn nothing for ten years of saving and investing?
All they have to do is run that game again; what will it be this time? A war? A collapse of Higher Education? ("Higher Affirmation"), an Infrastructure crisis? All three?
You are right, they will come up with something new, and be assured you and I will be held responsible for someone else's excess, greed, profit, ledgerdemain, skullduggery.
Exactly. I wouldnt be surprised if after the next "crisis" when people see their 401k's go down again, they will beg politicians for some sort of "retirement guarantee." Then the treasury can get their fat little piggy fingers into the 401k somehow by providing insurance, or a guarantee or some sort of nominal value.
I wouldnt be surprised if after the next "crisis" when people see their 401k's go down again, they will beg politicians for some sort of "retirement guarantee."
Precisely.
Sheeple will GLADLY hand over their (collapsing) 401K for a "government guarantee".
And they've already told us what it is:
GOVERNMENT GUARANTEED ANNUITY
... which will be paid out in DEBASED dollars worth virtually NOTHING.
A 9.0+ seismic event on the New Madrid faultline would serve TPTB's purposes rather well I suspect.
Yet, the Market turns green!
You cannot make this shit up!
You can, for a while, until you can't anymore.
Your 401K, IRA, 529, Savings Account, and Checking account next.
Just wait...withdrawal limits, higher taxes, then outright confiscation in exchange for "annuities" or "health credits" or some other bullshit that will amount to confiscaiton.
Why continue to be a state in this incorporated union of thieves?
+ seccession
Will the debt ceiling need to be raised before the chairsatan can kite any more bonds? Are this week's POMO's going to be postponed?
oh yeah, laws don't apply to the FED, nevermind.
Anyone else get the feeling that they use the word 'honorable' a bit too much?
No more than any other monarchy.
I'll tell you one mo'fo not on that CC'd list...
RON PAUL BITCHEZ
Since Barry can't use "Hope and Change" this time, maybe Ron can.
If retirement funds won’t cover the shortfall, Treasury may be expected to announce next the sale of park lands and, then, partial sale of some orphan children may have to be advanced if a ridiculous move such as holding to the debt ceiling is pursued.
This is blackmail; my word, how long can we survive without a representative government!
Um, this is bullish, right?
Apparently so, along with rape.
It's a green shoot!
/sarc
I am become debt
Ha ha :)
... the destroyer of nations.
They don't need a pension anyway, do they? I'm sure they have bookoos saved up after all these hard working years.
why is goober elite building underground operating and living facilities for themselves and fusion emergency management camps for the rest of us? goober knows what is coming from their plunder and they are making preparations accordingly.
This is coming. Everything else is irrelevant.
http://i29.photobucket.com/albums/c266/Terral03/nibirupic.jpg
lol, seriously? you need to understand google sky is NOT a fully updated and refreshed view of the sky. this image hasn't been there, because it is one of many, many holes in that cheesy layered map. want an actual view of what's coming this year? and i suggest you turn down the music, it's terrible.
http://www.youtube.com/watch?v=y8Gh-4cPJKM&NR=1
Thanks for that link. I hadn't seen that one before. I understand the WISE mapping mission hasn't been completed yet, so that would possibly explain the lack of detailed images.
Then again, I'm not certain as to the accuracy of any charts, diagrams, or models being produced by NASA and JPL. Being a government-funded entity, they would have significant cause to withhold accurate data with regard to these comets and meteors, especially if ELEnin is NOT a comet.
I'm simply trying to put the pieces together as to why TPTB are behaving in the destructive way that they are. It's beginning to appear as if these elites don't care or aren't concerned about the consequences of their actions. After all, if some of these extreme, apocalyptic conspiracy theories are true, these elites have someplace safe to go to ride out the destruction.
My argument does not exist because I have no position, merely raising the question. Thank you for your response; if the Social Security payments were to be withheld maybe then the legal position might be used as the canary in the coalmine to flush out the ignorance and arrogance of these new kids on the block. Sometimes, words are more than false promises and,even though this seems not to be true today, law is a powerful force among honest people.
oldman
the problem is we are not dealing with honest people..
the wall of worry gets more slippery with each passing day.
Now this is surreal!
I expected they will just BTFCeiling but no ....
Doesn't this all assume that the Federal Pension funds actually exist and haven't already been raided?
America's greatest minds. Guess what garbage in garbage out. useless Education and lack of critical thinking skills in the Govt. hang the bitchezzzz
Incredible that this news hasnt managed to make it to the news frontpage of Bloomberg let alone mentioned more than a few seconds on FT website.
Meanwhile let's all focus on DSK's wee-wee setup.
Repost, but still relevant
Some of my friends just graduated college last night and I was in attendence at the ceremony
One of the students thanked President Obama during one of the speeches for reversing Bush's "Disastrous Economic Policies" and saving our economy and the Middle Class from certain "Destruction". Then went on to explain how this graduating class and generation have the "greatest opportunities ever offered a generation of graduates in modern history".
I couldn't believe the BS that was being spewed!!! It was unbelievable!
Question is, when will they eat their words?
Just as soon as they learn the phrase, "lifetime of inescapable, unservicable debt."
let's hope for their sake it wasn't med school...
The only phrase they know when it comes to Macro Economics is manipulation.
In their little world, higher prices have nothing at all to do with supply & demand nor money printing by the FED.
When Hyper-Inflation comes, they will not know what hit them! As Marc Faber says, with whom I concur, "the entire system will be wiped out". Therefore no speculators will exist to blame.
Interesting times we live for sure. I just hope some 'end' will be clear so people like me can start their lives and families not having to worry about total Armageddon destroying what little we have to start with...
i've got a theory that fresh grads along with new and existing homeowners believe this shit because they have to. who wants to get up every morning thinking all their work and determination has been squandered and think about the alternative?
I have a much more fundamental explanation: Daddy Syndrome.
You see, people grow up with parents telling them how to think. Afterwards, they never "mature"... they for the rest of their life always let others do the thinking. They forever stay minions who think, act and feel in the framework that others define. Oh, and from early on they get a worldview of opposing poles - with there being no life beyond those dualities.
In the case of those grads, they're still young and are pursueing a career.... so, they just pick the pole that has the "change" and "progress" painting on it.
This isn't just a matter of a wrong choice, or failing to notice bullshit. They are drones. Doing anything else would require them totally overhauling their worldview, mindset and approach to their life.
you're probably right, and i can think of more than a few friends/colleagues that fit into that mold. i guess i give people too much credit assuming that they can actually imagine an alternative.
Yup, i thought that too a few years ago. Funny thing that even though people often view me as misanthropist, it is precisely humans that i defended the longest time, and where it took the most disappointments for me to accept reality.
As for them imaginating alternatives, that only happens if the following two conditions are met:
1. A drastic event that disrupts their worldview like an earthquake
2. A non-drone being available who acts as subtle advisor and new anchor for the perplexed drone. The main job of this non-drone in this scenario, is to provide that person with access to information which it previously didn't know, and to stop the other person from falling for another more esoteric ideology (they are still prone to grasp for quick simple generalizations at this point).
Wheeeeee!!!!11!!11!
That's about all that needs to be said on this subject.
Well, that and the obligatory, "Hang On!"
You guys are absolutely right about turning IOUs into IOUs.
There is no money in the federal employees' retirement trust funds.
The excess funds, not needed to pay current benefits, has been loaned to the Treasury, just like the Social Security trust fund.
From a paper entitled "Analytical Perspectives, Budget of the U.S. Government, Fiscal Year 2009," on page page 345:
"Pay-as-you-go financing was replaced in the 1980s by full or partial advance funding for some of the larger trust funds. In 1984, a new system was set up to finance military retirement benefits on a full accrual basis. In 1986, full accrual funding of retirement benefits was mandated for federal civilian employees hired after Dec. 31, 1983. The latter two changes require Federal agencies and their employees to make annual transfer payments to the Federal employees' retirement trust funds in an amount equal to the retirement benefits earned by employees. Since many years will pass between the time when benefits are earned and when they are paid, the trust funds will accumulate substantial balances over time. THESE BALANCES ARE AVAILABLE TO FINANCE FUTURE BENEFITS, BUT ONLY IN A BOOKKEEPING SENSE.
THESE FUNDS ARE NOT SET UP TO BE PENSION FUNDS, LIKE THE FUNDS OF PRIVATE PENSION PLANS. THE HOLDINGS OF THE TRUST FUNDS ARE NOT ASSETS OF THE GOVERNMENT AS A WHOLE THAT CAN BE DRAWN DOWN IN THE FUTURE TO FUND BENEFITS. INSTEAD, THEY ARE CLAIMS ON THE TREASURY. WHEN TRUST FUND HOLDINGS ARE REDEEMED TO AUTHORIZE THE PAYMENT OF BENEFITS, THE DEPARTMENT OF THE TREASURY WILL HAVE TO FINANCE THE EXPENDITURE IN THE SAME WAY AS ANY OTHER FEDERAL EXPENDITURE: BY USING THEN CURRENT RECEIPTS, BY BORROWING FROM THE PUBLIC, OR BY REDUCING BENEFITS.
Don Levit
http://www.gpoaccess.gov/USbudget/fy09/pdf/spec.pdf.
You guys are absolutely right about turning IOUs into IOUs.
There is no money in the federal employees' retirement trust funds.
The excess funds, not needed to pay current benefits, has been loaned to the Treasury, just like the Social Security trust fund.
From a paper entitled "Analytical Perspectives, Budget of the U.S. Government, Fiscal Year 2009," on page page 345:
"Pay-as-you-go financing was replaced in the 1980s by full or partial advance funding for some of the larger trust funds. In 1984, a new system was set up to finance military retirement benefits on a full accrual basis. In 1986, full accrual funding of retirement benefits was mandated for federal civilian employees hired after Dec. 31, 1983. The latter two changes require Federal agencies and their employees to make annual transfer payments to the Federal employees' retirement trust funds in an amount equal to the retirement benefits earned by employees. Since many years will pass between the time when benefits are earned and when they are paid, the trust funds will accumulate substantial balances over time. THESE BALANCES ARE AVAILABLE TO FINANCE FUTURE BENEFITS, BUT ONLY IN A BOOKKEEPING SENSE.
THESE FUNDS ARE NOT SET UP TO BE PENSION FUNDS, LIKE THE FUNDS OF PRIVATE PENSION PLANS. THE HOLDINGS OF THE TRUST FUNDS ARE NOT ASSETS OF THE GOVERNMENT AS A WHOLE THAT CAN BE DRAWN DOWN IN THE FUTURE TO FUND BENEFITS. INSTEAD, THEY ARE CLAIMS ON THE TREASURY. WHEN TRUST FUND HOLDINGS ARE REDEEMED TO AUTHORIZE THE PAYMENT OF BENEFITS, THE DEPARTMENT OF THE TREASURY WILL HAVE TO FINANCE THE EXPENDITURE IN THE SAME WAY AS ANY OTHER FEDERAL EXPENDITURE: BY USING THEN CURRENT RECEIPTS, BY BORROWING FROM THE PUBLIC, OR BY REDUCING BENEFITS.
Don Levit
http://www.gpoaccess.gov/USbudget/fy09/pdf/spec.pdf.
The Secretary declared a "debt issuance suspension period" for the Civil Service Retirement and Disability Fund, permitting Treasury to redeem a portion of existing Treasury securities held by that fund as investments and suspend issuance of new Treasury securities to that fund as investments.
So, the Civil Service Retirement and Disability Fund, which needs to make payments to retired and/or disabled civil servants, will draw down from whatever “cash” is in that Fund to make their payments. Assuming there is some “cash”, how many weeks of obligations to civil servants are left in the Fund? If there is no “cash” in the Fund, will the Fund simply write bad checks? If there is inadequate “cash” in the Fund, will the Fund sell it’s own existing “Treasury securities”? And, what precisely gives the Treasury the right to “Indian-giver” the Fund?
Does the CSRDF know that it has received I.O.U.’s from the Treasury that are defined to be “special-issue”? Who was in charge of the CSRDF in 1986 when Congress gave the Treasury the authority to suspend debt issuance?
If I am not already significantly confused on the real world of high finance and credit, let me try to sequence this more simply;
1. Civil Service worker attains a defined benefit as part of his/her compensation agreement.
2. In lieu of direct payment of benefit to the individual, it is deducted from his/her pay.
2.5 Is this benefit taxed?
3. The “money”, which is not real money, but electronic digits, is transferred into the SDRDF, where it becomes a “Fund”, complete with it’s own accouterments and management staff.
4. The Federal Government needs dough to operate, so they elect to raid the fund of it’s “money”, and leave an I.O.U. in place of the money.
5. The “Fund managers” are now basically cashing in I.O.U.’s as they become due rather than actually making astute investment decisions for their host workers (reminds me of some sort of parasitic insect).
6. Today, the host’s larder goes dry. The only money available is the workers’ hourly deductions that are being “earned”, electronically deposited and just as quickly being absconded by the Treasury... but oops, the Treasury is not going to give an I.O.U. now. Or, is it that the Fund can't sell their securities for what they are worth ??
And, I don’t understand “headroom”? How tall is Timothy Geithner anyway?
hasn't this breach happened before? why tap pensions now?
revel at ben shalom's marionetteer's ability to keep the game going as long as they have been!
what i really want to know is how long they can fund all the domestic entitlement programs and service the interest on our debt (don't forget the MIC)? ...or has all that money going those three directions already reached shortfall?
Just got a tweet from Obummer: he told me to take a loan against my 401K, fill up the tank on my SUV, then truck over to Wal-Mart and Best Buy to load up!
state employees always have thought that their pensions were sacrosanct and that they would always be there for them. the last few years i have tried to argue the point that this was not the case. when these state retirees start seeing their retirement benefits going up in smoke, i can't say i will be all that sorry for them. they danced with the devil and now they are going to get burned.
Have a Cuz in cali, started as a lifeguard, now Hwy. Patrol he still thinks he's set with the pension thing. 90% at age 52. shit even my 73 yo Mother told him to rethink that one hard.
some things should be illegal... its true ask the cops
How will reaching the debt ceiling affect POMO debt-monetization plans for the next six weeks?
I'd guess should be bullish - Fed will continue POMO operations buying back T's, banks will keep on selling held T's back to Fed, but banks will not be buying new T's...net-net, more cash in hand...and least for a little while this means lots of trading T's for cash and no new money getting tied up in cash...
Should be bullish in free money land.
They robbed social security. Why not federal pensions? Keep prepping.
will start dipping into federal retirement funds to give the country more room to borrow,
What could possibly go wrong?
Anyone who thinks the predators-that-be will only steal from present and past federal employees are delusional. Liquidate your retirement accounts and convert to real, physical gold and silver in your own paws. Otherwise, you will suffer the consequences.
dp
This may be right. I think gold is a good bet here.
*
There must be cloaked stealth tanks (Command and Conquer anyone?) on the streets because I didn't hear any heavy machinery besides a garbage truck this morning.
timmie is trying to
jump the loan shark ....
I hate the idea of someone's retirement funds being stolen by the gubbmint. Unless, of course, they are gubbmint employees whose pay was stolen to begin with.
There's a couple of federal employees trolling the site, junking posts for when someone suggests they're not worth it. They're in a panic because they know they might have to get real jobs and some of them may have to be on the Beltway after 4pm. Could you imagine? At Trader Joe's past 5pm to buy dinner with all the other morts! The horror. It's catastrophic.
Sucks to be any of you that had faith in the system.
I guess a little pavlovian reconditioning is in order, since we've discovered that hard work + being faithful little subordinates got us nowhere, but our sphincters are pretty sore now, eh?
As was suggested earlier: +1 cat food... so what's the good stuff? Y'know, just incase I need to feed any old stray boomers I find on the streets.
"On the streets" is the last place you would want to be!
Tuco Benedicto Pacifico Juan Maria Ramirez
"Science Diet" is the best looking stuff I've seen. I think if you swapped the labels, most folks would think it was "potted meat" or "deviled ham."
WOW this is disgusting, this is what a banana republic is. We are much further down the path than I thought, if they are doing this. Bob Chapman has been calling for this, for quite some time now. Look out 401k's next.
http://silverliberationarmy.blogspot.com/
"will be made whole once the debt limit is increased"
And that very wording presumes it will happen, not if.
Debt problem solved by more debt
two questions for ZH'ers......
Intuitively, i would have assumed this news would be positive for both silver and gold in that it would mean some sort printing or other corruption of the FRN. I don't believe the spending will stop let alone slow down. So why is silver dumping?
Is this news causing anying to bail on IRA's/ 401k's?
Bear raid to try to convince China that we have no inflation when we go a crawling on all fours to borrow and steal.
Hard assets getting absolutely brutalized today.
Gasoline down 5%
Silver down 4%
Coffee down 6%
The mad rush to U.S. Fiatscos and Treasuries continues.
but sugar is up....wtf?
you can eat sugar
What does it matter what assets are when compared to Jew confetti?
Every fiat currency has attained it's natural value of zero sense the Romans started reducing actual silver content in it's coins until they reached zero to match it's silver content.
I can't post this on GolemXiV's site (you need all sorts of accounts), but sentiments apply here just the same-----
Once one side abandons the rules of the game, they have to ensure that the other side either doesn't notice, or keeps the high moral ground (god knows why) and continues to abide by the rules. Otherwise they lose.
The people can drive the bankers and money-worshippers out at any time they choose. By refusing to pay their taxes, keeping their money in cash and indulging in the black economy, the financial markets and government lending (borrowing) can be strangled.
By ignoring those parts of the law that are intrusive and unfair, the people can even ignore the courts. There is no law written that says you cannot disobey. There are only laws that say 'if you choose to disobey, you will pay a price.' If you either don't mind the price, or believe you can avoid it, there is nothing that can stop you.
It doesn't need marches, rallies, suicide-bombing, sacrifices or relieance on any type of figurehead; the times we live in means we are too lazy to any such things.
Since the pliant media haven't yet figured they are cozying up to the losing side, this will take time. It may take a few iterations, but this is only going one way, a mass rejection of the current corrupt system.
Unfortunately for some of us, it might take a decade. We are dealing with a very slippery bunch of guys, who will lie and cheat and steal like they always have, and wear princeling robes.
History is going to be confused about why we ignored the bald facts for so long. I'm certainly dumbstruck.
Breech the debt ceiling? On your own heads be it, Washington pompadours.
It's just political postering by the red team amd blue team...they will raise the ceiling faster then you can say rumplestiltskin
By the way - among others, Gonzalo Lira predicted this to happen about a 6 weeks ago (and he predicted that it will get even more ugly):
Here's the relevant article: http://gonzalolira.blogspot.com/2011/03/how-likely-is-qe-three.html
"Funds will be made whole once debt limit is increased." Timmay
The all-in bluff in poker. "You bet it all on the presumtion the opponent will not call your bluff." And it is similar to our Treasury.
It works everytime. Except the last time.
Then the money is gone.
Treasuries must be rallying because of the "pent up demand" building up as a result of the temporary debt ceiling.
Once the ceiling is raised, buyers will swamp in and lap up these bonds like cotton candy.
Especially the Chinese.
AHAHAHA HAHAAHAHAHAHHAHAHAHAHHA... omg.... thank you RT.
Watch and listen:
http://abcnews.go.com/ThisWeek/video/roundtable-economic-outlook-13607093
Watch and listen:
http://abcnews.go.com/ThisWeek/video/roundtable-economic-outlook-13607093
Watch and listen:
http://abcnews.go.com/ThisWeek/video/roundtable-economic-outlook-13607093
Watch and listen:
http://abcnews.go.com/ThisWeek/video/roundtable-economic-outlook-13607093
"First they came…" is a famous statement attributed to Pastor Martin Niemöller (1892–1984) about the inactivity of German intellectuals following the Nazi rise to power and the purging of their chosen targets, group after group. The text of the quotation is usually presented roughly as follows:
YOUR NEXT as am I
Who cares, let's all burn. I'm no less guilty than anyone else.
Sooner or later, we've gotta atone.
Vote your pocket then.
"The debt limit is the amount of money the government can borrow to help finance its operations. The nation has reached its debt limit because the federal government has grown accustomed to borrowing massive amounts of money. The latest estimate is that it borrows 40 cents for every dollar it spends."
It is very sad if people confuse a technical solution like creating debt at pension schemes to a real solution. However it is very American to do so. Even if it is wrong it is right as long as the rules that are set by the abusers themselves are not breached. This is an insane period in financial history
Looks like we're gonna finally get the playbill for the NEW WORLD ORDER vs NEW WORLD REVOLUTION. The ultimate game of survival.
Absolutely true. I stood in line behind Kashkari today at lunch. It took everything within me not to slap that sucker on the back of his bald head. I also felt like yelling that we had a felon in our midst.
So in response to USTs quasi-defaulting, bond yields rally?
Who are the idiot pension fund managers hitting the ask on those worthless promises all day long? They must seriously hate their client's money.
Increase the limit on my credit card so I can protect my credit rating ? You live in a weird world mister Geithner.
Anybody else catch this: CBO says US will spend USD 3.2bln more in current fiscal year due to budget deal passed in April
Remember April. When we cut $38B from the budget.
Geithner belongs in jail alongside DSK.
Little Timmy is now grasping for straws; it's just a matter of time now.
'will start dipping into federal retirement funds".... Great idea-let's start with those of our soul less political leaders and their families.
Question: Is this legal? Not that it matters, just wonded.
You have to wonder why the media went quiet essentially for the few weeks leading up to today, and I think I know. Pelosi gave a hint today with Larry Kudrow at 11:30am on CNBC. During all the talk she said that entitlements where on the table in negotiations with cutting spending. So what both sides did probably was to agree to have this day come to pass and as the week and weeks go buy make a big stink about how things aren't being funded because of the debt ceiling not being raised and how we must make concessions etc. etc.. They are going to cut entitlements big time.
Let's see. If they sell the treasury bonds held in the pension funds they can raise cash and by doing so reduce their debt level which means THEY CAN SELL MORE TREASURIES! #WINNING!
The statute is unconstitutional. The constitution says the congress appropriates the money and if the President signs the bill the Treasury must disperse the funds.
As it stands we are on an extra constitutional situation where which bills get paid is up to the discression of the executive branch. It was only a few weeks ago the GOP house, which must originate appropriations, passed the bills which insured the so called debt limit would be exceeded. They are trying to have it both ways and strangly seem to be getting away with it.
If Obama cared to he could tell Timmy to sell all the bonds he needs to. The congress could get an injuction but it is likely any court would find that if congress appropriates the money then the deal is done. If the Treasury has to borrow it then so be it. The constitution doesn't say anything about a statutory limit.
MASSIVE Xenon-133 Radiation Cloud About to Slam Western US/ Canada!
http://silverdoctors.blogspot.com/2011/05/massive-xenon-133-radiation-cl...
treasury has learned from the best: if u can't borrow...u steal !! nothing to see here, just move along...quietly please..
Global and US peak debt is in progress as we speak and asset values will continue to decline. The majority of people exist in economic environments they neither understand fully nor benefit from. The facts here are that debt levels are sky-high and this has become so engrained in culture now that every sucker out there is convinced debt and asset values can't ever go back to where they were in the past. Just look at the dopey comments from spruikers on places like Somersoft ( http://australianpropertyforum.com/blog/main/3221465 ) to know how deeply engrained this "debt must always go up" myth has become. We have a dreadful track record in the asset markets and the moral is few people ever really win from these skyrocketing asset values.
You were right to post this twice -- it proves that what is being said in this thread is true: this "found money" is being taken directly from the pension funds.
But we are not supposed to feel bad because the funds own very little in the first place -- certainly nothing like their entire outstanding benefit liabilities. So why not just relieve them of what little they do own and take that sucker down to zero!
[In reply to Don Levit]
unununium:
Thanks for your reply.
For years, I have been accumulating excerpts and links, some from the SS administration itself, to refute what many people are saying.
My intent is to create an objectiove discussion, not a debate, in which I can provide reputable third parties to support my statements.
That way, it is not a debate between x and myself, but a disagreement between x and the Treasury, Social Security Administration, etc.
Not one person, even Bruce Webb, has been able to overcome this startling data, in my opinion.
Don Levit