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Treasury Continues To Dip Into Retirement Accounts, Prepares To "Take Out" $66 Billion Chunk To Make Room For New Bond Issuance

Tyler Durden's picture





 

Today, very quietly, the Treasury released its latest refunding announcement,
in which it disclosed it would issue another $66 billion in 3, 10 and
30 Year notes next week. The irony of course is that the US is and
continues to be at its debt ceiling limit (or just $25 million short of
it), at a total of $14,293,975 million. Furthermore, as was also
disclosed by the Treasury, this gross issuance will also be the net
amount added in marketable debt, as upon settlement on June 15, there will be no redemptions of maturing bonds. Which simply means that the continued "disinvesting" (which is merely a polite word for plundering) from intragovernmental debt, also known as retirement accounts, is about to kick into high gear. As a reminder, the only solution that Geithner
currently has to run the government, at least until August 2 when even
this runs out, is to slowly drain the debt in non-marketable accounts,
in the form of Suspension of G-Fund and ESF reinvestments,
as well as the Redemption and suspension of of CSRDF Investments,
measure which when combined will provide a short-term buffer of $232
billion. Yet for all practical purposes, what is happening is that
retirement accounts are now being seriously plundered, and if the
unthinkable were to happen, and the debt ceiling would not rise, not
only would the US be in technical default, but various retirement funds,
which already are underfunded, would find themselves even more severely
in the Red. As the chart below shows, the total amount of intragovernmental
debt currently outstanding, has dropped to levels last seen in early
April, even as total debt has continued its steadfast move higher. The
scary thing is that by the time August 2 rolls around, the current total
of $4.608 trillion in various Trust Funds, will drop to well about $4.4
trillion, or an implicit 6% underfunding in 2 months merely to keep the
bloated government operating for a few more months.

Of course if everything turns out fine, these disinvestments will be promptly reversed as the Treasury doubles down on its borrowing spree to fund the retirement accounts that currently are being pillaged. For the sake of all government worker retirees, we hope this is the final outcome.

In the meantime, for an explanation of the "disinvestment" process, here a brief primer from Stone McCarthy:

On May 16, Treasury effectively hit the current $14.294 trillion debt ceiling and began employing the tools available to avoid breaching the debt ceiling. Since May 16, the debt subject to the debt limit has been $14.293975 trillion each day, showing that Treasury has $25 million in breathing room under the debt ceiling.

Unfortunately (for geeks like us), it's not completely transparent how Treasury is managing the debt versus the debt limit on a daily basis. In a nutshell, Treasury appears to be disinvesting non-marketable securities on an as-needed basis to maintain that $25 million of breathing room under the ceiling. We do know that Treasury has used three of the tools available: Suspending G-Fund reinvestments, redeeming investments of the Civil Service Retirement and Disability Fund (CSRDF), and suspending new CSRDF investments. In sum, those options use about $147 billion of roughly $264 billion available to Treasury to create room to issue new marketable debt.


Before mid May, we thought Treasury would exhaust available measures to create room under the debt limit on August 1; Treasury expects to run out of room to borrow on August 2. The difference of one day is significant, because Treasury's projection assumes the ability to settle 2-, 5- and 7-year note auctions on August 1.

At this point, we are going to assume that the Treasury has more information than we do, and that those auctions will settle on August 2. We think it's becoming increasingly more important to focus on Treasury cash flows than on debt under the debt limit. The ultimate day of reckoning comes when Treasury runs out of cash, not when it runs out of room to issue new debt. Many in Congress and the press appear to confuse the two, and Treasury hasn't worked that hard to draw a distinction (although Secretary Geithner's last letter to Congressional leaders said that August 2 was the date on which "Treasury projects the borrowing authority of the United States will be exhausted.")

As we noted in a recent Chart of the Day comment, we think Treasury will run out of cash in mid August, assuming that it doesn't put off paying any obligations. Those projections still hold; based on our forecast, Treasury would be able to pay its August 15 coupon interest payment, but might not have enough cash to pay about $9.1 billion in Social Security benefits payments on August 17. Those projections can change a lot in either direction, however, over the next two months, depending mostly on the strength of tax receipts. Also, it's possible that Treasury could raise cash from other sources, including accelerated sales of MBS, although Treasury has made it clear it doesn't want to rely on asset sales to raise cash.

At this point, we do think some sort of deficit reduction deal will emerge from the talks Vice President Biden is holding with members of Congress. It's not likely to be a "grand bargain" along the lines of the proposal from the President's deficit reduction commission, but it will probably be enough to create a vehicle for a debt ceiling increase before Treasury runs out of cash.

That outcome isn't certain -- the two sides remain far apart. Comments from House Majority Leader Eric Cantor over the weekend were telling. On CBC's Face the Nation, Cantor reportedly said the talks have been positive. "Everything is on the table...we've said, as Republicans, we're not going to go for tax increases." Democrats certainly have a different definition of everything being on the table.

 


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Thu, 06/02/2011 - 18:34 | Link to Comment docmac324
docmac324's picture

And no one goes to jail...

 

Thu, 06/02/2011 - 18:39 | Link to Comment Michael Victory
Michael Victory's picture

Off topic (what else is new)..

For Silversurfers:

Remembering the Nickel Default of 2006

 

Thu, 06/02/2011 - 18:57 | Link to Comment I think I need ...
I think I need to buy a gun's picture

hey cramer said this afternoon on Cnbc to just buy home depot because people are fixing up their homes and not paying their mortgage......WTF logic is that.....the end must be nigh....gold revaluation next.....

Thu, 06/02/2011 - 20:44 | Link to Comment financeguru500
financeguru500's picture

Lol that is truly insane thinking.

As far as government spending is concerned, at this point in time you would have to be crazy not to think that the gov is screwed. If the government were an individual applying for credit, they would have been denied long ago. At the point the government currently is at is like they are applying for new credit cards to pay off old credit cards. They are switching very fast each time to try and pay off the old credit card but each time they switch the pay out period shortens.

I've often wondered as a kid how the world could be at such peace with each other when their used to be such horrendous acts like world wars, genocide and slaver. Then later I realized all these things exist but are just subvert. Slavory exists just as much today but it is in the form of debt and financial slavery. Pay a person substandard wages and let them become indebted to you and you guarantee they will work for substandard wages for the rest of their life. Let them go spend 4 days a year at a tropical paradise and then go back to working their sad existence of a life. Meanwhile you can enjoy the fruits of their labor while making exponentially more money than them. The system is screwed and its finally coming down. The only bad thing is that the system that comes to replace this system will most likely be even worse.

Thu, 06/02/2011 - 21:34 | Link to Comment cxl9
cxl9's picture

The debt problem is easily solved. I can think of a variety of ways. How about this? Total personal wealth in the United States is around $50 trillion. The government simply chooses a number - say 8 - and then one day seizes the entire wealth of everyone whose social security number ends in that digit. Instant $5T, minus the costs of collection. Sure, there will need to be murder, beatings, and imprisonment of a few people so that everyone else falls in line, but that's no problem for government. That's what they do. Obviously, 90% of the American population would happily support this, since it doesn't harm them and they think they'll get something for nothing. Rinse and repeat. Choose a different number next time, which 90% will once again support. This is simply a frank application of the common government tactic of subdividing people into groups that are too small to defend themselves and then stealing their wealth. Let's just call democracy what it is and get on with it already.

The entire sham of democracy rests on people's belief that they can live at the expense of their neighbor. Voting is simply the process of electing someone who promises he will steal the most for us, at the expense of someone else of course. Our neighbors, the "rich", the unborn, whoever. Government happily mediates this theft, and promotes and abets it, because they take a cut of each transaction. The more theft, the better (from the government's point of view). Spread the wealth.

Thu, 06/02/2011 - 23:25 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

Yes we can!*

 

*As long as  SSNs ending in the number 1 are exempt.

Fri, 06/03/2011 - 05:01 | Link to Comment cornedmutton
cornedmutton's picture

Good for me.

Fri, 06/03/2011 - 08:58 | Link to Comment buzzard
buzzard's picture

...or four, of course.

Fri, 06/03/2011 - 00:22 | Link to Comment Abitdodgie
Abitdodgie's picture

What is even better about your idea is that if you put it to the vote of the people they would probably vote it in, and as America is a republic not a democracy we could opt out of the vote so we would not be included thus keeping our wealth and having a good laugh at people getting the beatings

Fri, 06/03/2011 - 12:38 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

The debt problem is easily solved.

I stopped reading there. It's not going to be solved.

Thu, 06/02/2011 - 22:52 | Link to Comment Alexandre Stavisky
Alexandre Stavisky's picture

The crook and the flail.  Symbols of power.

For shepherds and farmers.  Better still for enslavers.

Power of law, power of purse, power of enforcing.

gov't, bank, army.

Everything else subservient.  Extract from those who do.

Take from the farmer, miners, assemblers.

Crush dissention.  Spread the system, spread the word.

Suck it up, coppertop, you're just a single dot in a larger energy assembly.

Pay tribute, or pay Charon.

Fri, 06/03/2011 - 01:00 | Link to Comment Oh regional Indian
Oh regional Indian's picture

The crook and the flail.

I hope everyone can get a sense of the irony of that, it just struck me.

Crooked crooks and flailing proles.

ORI

http://aadivaahan.wordpress.com/2011/05/26/the-video-trailer/

 

Fri, 06/03/2011 - 02:20 | Link to Comment Michael
Michael's picture

Thanks ZH for the forum to show not so unrelated videos of what our country has become. Almost 1000 views on my new upload in less than a day.

TSA Stuck Their Fingers Up Miss America's Vagina at a Dallas Airport, Last Straw!


This is crossing the line. I don't care what the perceived threat is. Government thugs don't get to stick their fingers up Miss America's Vagina ever, PERIOD!

The Department of Homeland Security TSA stuck their fingers up Miss America's Vagina at a Dallas Airport recently and? they? knew who she was. I don't get it. Are we in North Korea now?

If you personally enjoy being treated that way, then please move to China or Cuba. I will personally buy you a free one way ticket? there.

TSA agents must feel like the most humiliated employees on the? planet. Too bad. This is how we must show it to make them quit their jobs and make them? realize, IT'S NOT WORTH IT.

I just want to hear one TSA employee standing up for themselves, SCREAMING AT THE? TOP OF THEIR LUNGS? ON FILM saying; I DON'T WANT TO FEEL UP INNOCENT PEOPLE AS A PREREQUISITE FOR MY PAYCHECK!

http://www.youtube.com/watch?v=oe6mqI-x1CI

Fri, 06/03/2011 - 06:34 | Link to Comment GetZeeGold
GetZeeGold's picture

 

gold revaluation next

Wow....I don't think you can actually say that.

 

 

Thu, 06/02/2011 - 19:06 | Link to Comment ReallySparky
ReallySparky's picture

Thanks for the link, I was wondering if there was any type of history regarding a default on the exchanges.  Most of the articles that I have been reading, mention the imminent default of crimex (maybe July more likely later in 2011), but most have no clue how it will go down.  This article makes sense from the stand point that they will change the "rules" due to a MAD crisis.   As Olivia would say, "Let's get physical, Physical".

Thu, 06/02/2011 - 19:38 | Link to Comment Quinvarius
Quinvarius's picture

The COMEX is on permanent defense because they always think someone is trying to corner the market on the long side to screw them and their banker buddies.  They see the Hunt brothers everywhere they look.  But the global book has made their ability to just announce they won't be a source of supply, like they did with silver in the 80's, a difficult task.  Is Asia going to let them drop silver to $5 just because they go to liquidation only and let their supply get drained too?  Is the nightly price move in silver going to go from $70 every night for Asia to $5 every day in the US and then back to $70 every night because US exchanges are defaulting while Asians are delivering?

COMEX and LBMA have a serious problem and they have not thought it through.  They either get with reality and the free markets or they will be cut out of the global market book.

Thu, 06/02/2011 - 18:39 | Link to Comment Manthong
Manthong's picture

Those federal workers don't mind because they are patriotic and they know that a note from the US Treasury is as good as gold.

Thu, 06/02/2011 - 19:11 | Link to Comment ReallySparky
ReallySparky's picture

Quick thought, so If Timmy is raiding the government retirement accounts: Would this mean that our illustrious elected representatives (congress critters, senators, past presidents) are being looted as we speak?  Or do they have an untouchable retirement? 

Thu, 06/02/2011 - 19:20 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Looks like Timmay and the Treasury has it's own great vampire squid wrapped around the face of it's own worker's retirement account, relentlessly jamming its blood funnel into it and anything else that smells like money.

http://www.rollingstone.com/politics/news/the-great-american-bubble-machine-20100405

Thu, 06/02/2011 - 19:22 | Link to Comment ReallySparky
ReallySparky's picture

I can see the headlines a few years from now..."Destitute former Congress Person/Senator/President sells memorabilia from when they were in office to make ends meet."  Quoted as saying, "I had no idea that my vote would make me broke". Kinda like a former professional athlete.

Thu, 06/02/2011 - 19:26 | Link to Comment ReallySparky
ReallySparky's picture

dup post

Thu, 06/02/2011 - 20:11 | Link to Comment Henry Chinaski
Henry Chinaski's picture

smells like... wealth confiscation

dry run

Thu, 06/02/2011 - 21:53 | Link to Comment Esso
Esso's picture

Yep.

Thu, 06/02/2011 - 23:22 | Link to Comment Rusty Shorts
Rusty Shorts's picture

The Andromeda Strain.

Thu, 06/02/2011 - 22:33 | Link to Comment QuantumCat
QuantumCat's picture

I just want peope to understand that this is a defacto nationalization of CONTRIBUTED FUNDS to the TSP G FUND, not a future promised government entitlement or defined benefit pension plan. This is straight up thuggery.

 

Thu, 06/02/2011 - 23:31 | Link to Comment Amish Hacker
Amish Hacker's picture

Oh, you mean kind of like the Social Security Trust Fund?

Thu, 06/02/2011 - 21:28 | Link to Comment XPolemic
XPolemic's picture

Would this mean that our illustrious elected representatives (congress critters, senators, past presidents) are being looted as we speak? 

No. Elected representatives can keep 'soft' election funds. Most of them get rich that way. Some of them were very rich before they ran for office, and despite the stupidity of that decision, still manage to keep some money for retirement.


Thu, 06/02/2011 - 22:42 | Link to Comment Cathartes Aura
Cathartes Aura's picture

perhaps they realise there won't be retirement benefits paid, and that helps the excuses they make every day when they're fed monies from various "lobbyists" and other assorted parasites.

virtually all are multi-millionaires, and many have dual-citizenship - I'm sure they'll be fine.

Thu, 06/02/2011 - 19:19 | Link to Comment cossack55
cossack55's picture

Is this the basis for a new and improved Bonus Army. Quick, call out Dugout Doug to start shooting dancers.

Thu, 06/02/2011 - 18:40 | Link to Comment SilverRhino
SilverRhino's picture

And to make it all better the fedgov will crank taxes up to bleeding from your asshole to pay for these IOUS they are creating.

This is like paying off the Visa by maxing the Vinne-the-loan-shark credit line.

Fri, 06/03/2011 - 00:01 | Link to Comment FEDbuster
FEDbuster's picture

Thats as good as money, those are IOUs!

http://www.youtube.com/watch?v=7GSXbgfKFWg

Thu, 06/02/2011 - 18:38 | Link to Comment slaughterer
slaughterer's picture

Turbo caught with his finger in the retirement cookie jar... again... and again... until those big bad Repubs open up another cookie factory for him to run into the ground.

Thu, 06/02/2011 - 18:48 | Link to Comment Shell Game
Shell Game's picture

And the Demshits don't have melted morsels on their hands as well?  FYI, neither party is really any different from the other, unless you believe what you see on the MSM..

Thu, 06/02/2011 - 20:57 | Link to Comment MisterMousePotato
MisterMousePotato's picture

It may be true that there is no meaningful difference between George Bush or O'Bummer (or Nancy Pelousi and John Boner, for that matter), but that doesn't mean that there isn't a difference between the parties. First of all, their rank and file constituencies might as well be from different planets (not that either party does a particularly good job at representing them, but the politicians are beholden to them [Mike Castle or Charlie Crist, anyone?]).  Too, the parties do claim to stand for different things, albeit in the kind of language that means that no one is ever really accountable. "Hope and Change," of course, is one of the better examples of this, although such as "smaller government" is pretty good, too.  (Smaller than what?  How big, exactly?)

But no, I have to disagree with anyone who says that there is no difference between 'the parties'. There is. The problem is that the electorate keeps returning the same shitbags (Orrin Hatch and Arlen Spector, for example) for decades even though they do not do what they want them to do. I do see signs that they may be changing on the Republican side due to the 'Tea Party' influence. Let's see how Hatch vs Chaffetz (sp?) turns out in Utah.

I keep hoping that at some point, some in Washington might decide that they'd rather be a Congressman than a Democrat or a Republican, and do what their constituency really wants instead of what their party bosses demand. Unfortunately, that requires that their constituencies pay attention, so my hope is probably just embarrassing naivete.

Thu, 06/02/2011 - 21:50 | Link to Comment Rynak
Rynak's picture

I don't care about promises.

I don't care about marketing.

I care about results.

What have the results been?

What are parties doing about that?

Bonus question: If you have a bunch of egoists, and a bunch of altruists, does it matter whom people vote for, when there cannot be one without the other? If you have a bunch of individualists, and a bunch of collectivists, does it matter whom people vote for, when there cannot be one without the other? If you have a bunch of people who want to change some stuff, and a bunch of people who want to keep some stuff, does it matter whom of both retards people vote for, when you cannot have the former retards without the other retards?

When all you can vote for, is two things which mutually depend on each other, you're not making any practically relevant decision at all - you're just voting for one aspect of a system, while telling yourself that it will not automatically guarantee what you voted against. Do you advocate parasites or hosts? Do you advocate changing some things, or do you advocate keeping other things? Do you advocate yaysayers or naysayers? Do collectives consist of individuals, or do individuals form collectives? The pointless, useless and fucking braindead decision and mental disorder is yours!

You "hope"? Well, continue doing that..... you'll need it in the absence of confidence, satisfaction and understanding...... and consequently a lot of pain.

Sat, 06/11/2011 - 03:43 | Link to Comment MisterMousePotato
MisterMousePotato's picture

A couple of question, please, if you don't mind.

First of all, did you junk me? I'm not upset (in fact, I'm actually kinda proud ... my first junk at fight club, I think, and I've tried really hard to offend everybody), but I am kinda curious: Why? Because I suggested that the Democrat party might represent broad swaths of Americans, and their dreams, hopes, and desires who might not find perfect representation in the likes of Harry Reid or Nancy Pelosi? Or that the Republican party might be more than just Newt Gingrich or George Bush? That seems a reasonable statement, and, if I might be so bold, exactly what gets people to saying stuff like "there's no difference between the parties;" viz., if you're comparing George Bush to Barry O, or Newt Gingrich to Nancy Pelosi, then, yeah, you're right. There's not a spit's worth of difference.  Remember Newt and Nancy's little love fest on the couch about globull warming? I sure do.

What I am suggesting is that there are other metrics to measure the parties, first and foremost among them the constituencies that tend to gravitate to one party or the other.  And the fact is, in order to be called "The Honorable so-and-so from so-and-where," politicians have to pander to one of those groups or the other, which, in theory, makes them accountable when they do not do as that constituency wishes.

The problem, of course, is that neither Republican or Democrat constituencies have been paying any attention to what their representatives are actually doing, or holding them accountable. Vote for TARP? Sure, we'll reelect you. Refuse to do anything about immigration? Well, I think it's destroying my country, but I'll vote for you anyway because you're an R. Or a D. (What's the difference?) Obamacare? No problem, even though I think it's an abomination. I'm against the war in Afghanistan and Irag (war for oil, war for oil), but I'll vote for Barry again despite his sneering at the war powers act, even if Georgie the Chimp never dreamed of doing so.

Like you, I am tired of promises. And I am immune to marketing. And I have been waiting, waiting, for almost a quarter century (23 years, to be exact), for people to wake the fuck up, and boot the likes of Charlie Crist and Harry Reid (evil, unprincipalled, theiving, hypocritical, two-faced, lying liars) out of public office.

I do observe that Charlie Crist is, in fact, gone. But Harry Reid, I see, is not. Hence, if I offended you because I suggested that there was perhaps more 'hope' for the Republicans than the Democrats ... well, I do not think that I am entirely without reason. Yes, I am perfectly aware that Juan McCain was returned to the Senate. With the possible exception of Rodney Glassman and/or J. D. Hayworth, I am as disappointed about that as any human being on the planet. And I can compile a list of other Republican shitbags at least 40 or 60 names long off the top of my head. (I am French. For the French, politics is sport.)

But, the fact is that Charlie Crist is gone. And, too, Mike Castle. So is Arlen Spector. All gone. But, Nancy Pelosi? Harry Reid? Dianne Feinstein? Barbara Boxer? Maxine Waters? Alcee Hastings? (I mean, for God's sake, a federal district court judge caught taking bribes?!? And that doesn't disqualify him from public office in the eyes of a Democrat? W......T.......F......?) Have you ever seen these people?!? Disgusting! Vile. Foul. When some of them are gone from public office, then I might agree that there's no difference between the parties. But until then, sorry, but the Republicans have an edge, even if their efforts to date are pathetic.

When I said that I was hoping that a day would come when our elected representatives would choose to do what is best for their constituencies and this nation, rather than themselves and their bankster overlords, I was expressing a wish that was more about the electorate than the elected. Pray, Sir, if you take that hope away from me, what then do I tell my precious baby daughter?

Thu, 06/02/2011 - 22:05 | Link to Comment geoffb
geoffb's picture

The only difference between the parties is who gets the handouts. And sometimes thats not even different.  I don't consider that enough of a difference to split hairs over.  It won't change no matter who is elected. You will just replace one corporate whipping boy for another.

Thu, 06/02/2011 - 21:57 | Link to Comment gametracker
gametracker's picture

neither party is really any different from the other

 

hey captain obvious, please tell us something that we HAVEN'T known for 20 years

Thu, 06/02/2011 - 22:53 | Link to Comment Cathartes Aura
Cathartes Aura's picture

you'd think that, but there are many here who still choose "sides" and post about it - and still think getting the vote out for, say, Ron Paul is an option.

there are many, many layers of "truth" for people to take in, and not everyone is on the same page. . . obviously.

Thu, 06/02/2011 - 18:43 | Link to Comment oogs66
oogs66's picture

The day they raise the debt ceiling our debt subject to the limit will jump a quarter trillion to honor the iou's. Nice country :)

Thu, 06/02/2011 - 18:54 | Link to Comment NotApplicable
NotApplicable's picture

At a minimum. Who knows what other tricks they've got to "pay" for?

Thu, 06/02/2011 - 18:51 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The Treasury has taken out $108 billion of public pensions to pay for debt issuance and they will never pay the debt back.  Maybe they will not pay the pension reserves back either.  Timmah says, "Win, win!"

Thu, 06/02/2011 - 21:23 | Link to Comment Manthong
Manthong's picture

The federal workers can rest easy knowing that their fund IOU's are stored in the same solid Steelcase brand filing cabinets as the SSTF.

Thu, 06/02/2011 - 18:48 | Link to Comment Texas Ginslinger
Texas Ginslinger's picture

Like Daddy raiding the cookie jar.

I can understand the logic there.

Thu, 06/02/2011 - 19:23 | Link to Comment Terminus C
Terminus C's picture

Hello Hamy.

Thu, 06/02/2011 - 20:33 | Link to Comment firefighter302
firefighter302's picture

+1

Thu, 06/02/2011 - 18:52 | Link to Comment High Plains Drifter
High Plains Drifter's picture

blue skies smilin at me..........its blue skies from now on.......

this song goes out to leo..........

Thu, 06/02/2011 - 18:53 | Link to Comment Hansel
Hansel's picture

I tried following how Treasury is funding everything now but it is impossible.  The DTS debt hasn't changed since May 16 and I'm not aware of the CSRDF posting its assets daily anywhere.  At this point I think Tim Geithner is just keeping a second set of books.  There is no accounting going on anymore.

OM

Thu, 06/02/2011 - 19:20 | Link to Comment cossack55
cossack55's picture

GAAP and FASB are oh so 90's. (1890s)

Thu, 06/02/2011 - 23:29 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

Arthur Anderson's government division.

Fri, 06/03/2011 - 00:06 | Link to Comment FEDbuster
FEDbuster's picture

More like Madoff & Co.

Thu, 06/02/2011 - 22:06 | Link to Comment tom a taxpayer
tom a taxpayer's picture

Step right up, friend...place a bet ...just follow this Geithner retirement account pea.  You see these three shells on the table. I take the retirement pea and place it under the shell on my left (your right). 

I place my left hand on the left shell (your right), and my right hand on the right shell (your left). 

I switch the left shell with the right shell. Keep track of where the pea is (it's worth $66 billion). 

Now, I switch the left shell with the middle shell (your middle). Then I switch the middle shell with the right shell (your left). 

Now I switch the left and right shell, then move the right shell between the left and middle shell, then move the middle to the left, and the right between the left and middle, then move the middle to the far left, and then switch the right and left shells. 

Now which shell is the $66 billion retirement pea under (oops, I forgot you can't end a sentence in a preposition)? 

I turn over the left shell. No $66 billion retirement pea. 

I turn over the right shell. No $66 billion retirement pea. 

I turn over the middle shell. No $66 billion retirement pea. 

Sorry you lost, pal. Double your bet. Win big. Don't go away mad. The Fed will loan you money to gamble, er, invest.

Thu, 06/02/2011 - 18:50 | Link to Comment High Plains Drifter
High Plains Drifter's picture

government workers have always thought , that whatever happens, their retirements were written in stone.  in these days, that certainly is not the case.  of course when they take the money, they will always put it back, just like they did in SS,  correct?

 

Thu, 06/02/2011 - 18:55 | Link to Comment NotApplicable
NotApplicable's picture

One IOU is just as good as another, no?

Thu, 06/02/2011 - 18:56 | Link to Comment Seasmoke
Seasmoke's picture

both are worthless

Thu, 06/02/2011 - 19:03 | Link to Comment High Plains Drifter
High Plains Drifter's picture

I am moving to Alto.

 

 

http://www.newser.com/story/120049/texas-town-furloughs-entire-police-fo...

no cops. i love it.........

Thu, 06/02/2011 - 20:42 | Link to Comment nmewn
nmewn's picture

See, that's always been the thing with me...

"Treasury appears to be disinvesting non-marketable securities..."

They are non-marketable. Disinvesting to whom?

Anything that cannot be sold in the open market has no real value. Its like saying I have two million dollars in cash but I won't let anyone see it and taking out a million dollar loan against it.

Yes...yes I know, its just an accounting gimmick they're doing here, claiming something has a value...but without the debt issuance to create anymore nominal value they are in fact worthless anyways IMO.

The old timers say...a pig in a poke ;-)

Thu, 06/02/2011 - 21:09 | Link to Comment High Plains Drifter
High Plains Drifter's picture

alto is in east texas. it is kind of like being in the middle of nowhere. because it is......ha ha .......hmmm, not far from republic of texas headquarters too........hmmmm.

i smell liberty breaking out in east texas..........already...........and imagine that. all it took was a budget crunch.........ha ha ha

to me, when you have no cops, then you are more free. the crybabies there are whining......oh we will not be safe.........but this too shall pass as they learn they don't need them anymore and then they will realize the big secret.......it was all one big lie. we should have known that we had to take care of ourselves all along and that the government told us they would be our daddy, but they lied to us and in reality, they never were. as this budget crunch in texas continues , it will have deleterious effects on the state and it will have positive effects on liberty, as the sheep learn to take care of themselves.....so in reality, it is a win win situation.......for liberty, at least for a while......until the day comes when they send in the blue helments.......with the 12 stars........

 

Thu, 06/02/2011 - 21:25 | Link to Comment nmewn
nmewn's picture

Their debt is a mirage I don't concern myself too much about, outside of the temporary dislocation of good honest peoples paychecks when it happens. I feel bad for them for not paying attention, I'll help where I can and I believe you will too.

The blue hats...now there's a force to be reckoned with...LOL...pop four them and it depletes an entire rainforest of the paper required to give the proper explanation of why their boarding ships and getting the hell out of the way of a fifth ;-)

Thu, 06/02/2011 - 20:53 | Link to Comment JW n FL
JW n FL's picture

http://www.zerohedge.com/article/treasury-continues-dip-retirement-accounts-prepares-take-out-66-billion-chunk-make-space-new

 

I will help protect the old people and kids! sign me up for duty! for fucking free too! I dont need or want the money! I wanna kill some zombies! I mean protect and serve!

Thu, 06/02/2011 - 21:45 | Link to Comment oogs66
oogs66's picture

yes, but some iou's count against the debt ceiling and some don't - bizarre world

Thu, 06/02/2011 - 20:43 | Link to Comment Yes_Questions
Yes_Questions's picture

Full faith and credit of your buggering uncle sam at work.

Fri, 06/03/2011 - 02:57 | Link to Comment ebworthen
ebworthen's picture

401K's and IRA's are next - especially the "employer" contributions, even though it was a part of your contract.

I had a TIAA-Cref punk try to guilt me about my 401a becasue I was talking about "my money" and he says "but the state put it in there for you" Grrrr "Yes, kind of like my paycheck and cheap ass insurance that is part of my employment CONTRACT."  I would have smacked him through the phone if I could.

They will take it or limit any withdrawals to where you can't really get it - and it will make the 10% IRS penalty seem downright friendly in comparison.

Thu, 06/02/2011 - 18:52 | Link to Comment Seasmoke
Seasmoke's picture

oh what i would do, to see the debt ceiling not raised.....

Thu, 06/02/2011 - 19:04 | Link to Comment Shell Game
Shell Game's picture

Ever Get This Angry?  This retirement fund dipping makes me want to swing a cactus, damn it!

 

Thu, 06/02/2011 - 20:16 | Link to Comment Henry Chinaski
Henry Chinaski's picture

I heard that the only govt retirement funds they are raiding (for now) are the funds invested in treasuries... now that's a shell game!

Thu, 06/02/2011 - 20:42 | Link to Comment Yes_Questions
Yes_Questions's picture

Cactus Swinging! brought to you by the IMF!

Thu, 06/02/2011 - 21:33 | Link to Comment Manthong
Manthong's picture

Was that South Beach, Miami or North Beach, Chicago?

Thu, 06/02/2011 - 18:58 | Link to Comment Atomizer
Atomizer's picture

Timmah will continue to rob the cookie jar until his demands are met. Just ignore this bullshit and continue to watch.

US Treason has a very poisonous bite, let Timmah continue his present course of action.

Thu, 06/02/2011 - 19:00 | Link to Comment israhole
israhole's picture

You got that right!

Thu, 06/02/2011 - 18:58 | Link to Comment I am a Man I am...
I am a Man I am Forty's picture

sweet, the government is eating itself

Thu, 06/02/2011 - 18:58 | Link to Comment leonard1234
leonard1234's picture

+1

Thu, 06/02/2011 - 18:55 | Link to Comment Seasmoke
Seasmoke's picture

Once again , NOT a word from the public employess or their union leaders

Thu, 06/02/2011 - 19:03 | Link to Comment Miles Kendig
Miles Kendig's picture

No doubt.  Just wait until Timmay borrows against private pension plans as well.

Thu, 06/02/2011 - 21:14 | Link to Comment High Plains Drifter
High Plains Drifter's picture

i keep telling them but they won't listen to me........oh that will never happen, get the hell out of here HPD. you are crazy man........no way..........

Thu, 06/02/2011 - 21:31 | Link to Comment Justaman
Justaman's picture

Did Miles say "borrow"?  Funny, man, funny..

Fri, 06/03/2011 - 00:21 | Link to Comment Miles Kendig
Miles Kendig's picture

Thanks.  Just ask the republicans and the champion, Bill Clinton, public sector pillaging is called making "investments".  Might as well work centrally planned investing magic with a real bankroll.  Especially since members of congress investments continually outperform so the administration and especially the fed must really know what they're doing....

#classic

Thu, 06/02/2011 - 19:39 | Link to Comment I am a Man I am...
I am a Man I am Forty's picture

just cuz it's supposedly coming out of their checks somewhere down the road, deduct a penny from their current checks and they would be climbing the fence to the whitehouse

the unions have been assured this is temporary i'm sure, no other expl.

Thu, 06/02/2011 - 20:36 | Link to Comment Yes_Questions
Yes_Questions's picture

They don't know its happening.

Mrs. Palin sure isn't fucking telling any of em their retirement is being subject to a "death panel".  Romney didn't say anything about it today when he announced his candidacy.

And Barry?  Crickets

Carlin said it best: "They don't care about you"

http://www.youtube.com/watch?v=Yi6XV8yBFoU

 

Thu, 06/02/2011 - 21:12 | Link to Comment High Plains Drifter
High Plains Drifter's picture

a woman that looks good in leather on a harley is.........hmmm..........

Thu, 06/02/2011 - 21:32 | Link to Comment Yes_Questions
Yes_Questions's picture

+Mesmerizing.

Thu, 06/02/2011 - 22:39 | Link to Comment High Plains Drifter
High Plains Drifter's picture

http://news.yahoo.com/nphotos/slideshow/photo//110602/480/urn_publicid_a...

double your pleasure? its sure is getting chesty out there.........

Thu, 06/02/2011 - 22:48 | Link to Comment rufusbird
rufusbird's picture

It is an investment...probably will be deductable...

Thu, 06/02/2011 - 22:37 | Link to Comment hound dog vigilante
hound dog vigilante's picture

"NOT a word from the public employess or their union leaders"

 

martyrs.

 

 

Thu, 06/02/2011 - 18:58 | Link to Comment leonard1234
leonard1234's picture

Is Tyler really worried about government worker retirees ?  These people are making good money on the backs of Taxpayers.

Thu, 06/02/2011 - 19:00 | Link to Comment Tracerfan
Tracerfan's picture

Treason is the reason.

Thu, 06/02/2011 - 19:07 | Link to Comment Miles Kendig
Miles Kendig's picture

Suspend G-Fund reinvestment - 130 billion

Borrowing from the account that is dedicated to purchasing government debt.  Brilliant. 

https://www.tsp.gov/investmentfunds/fundsoverview/fundManagement.shtml#G...

The G Fund assets are managed internally by the Federal Retirement Thrift Investment Board. The G Fund buys a nonmarketable U.S. Treasury security that is guaranteed by the U.S. Government. This means that the G Fund will not lose money.

It sure looks like it's losing lots of money.

Thu, 06/02/2011 - 19:27 | Link to Comment Hedgetard55
Hedgetard55's picture

 "This means that the G Fund will not lose money."

 

     Hahahahaha.. Maybe not in nominal terms. Then again, maybe it will. Maybe they should call it the G Spot Fund. 

Thu, 06/02/2011 - 19:50 | Link to Comment Miles Kendig
Miles Kendig's picture

... nominally

Welcome to the joys of .. devaluation.  These sorry fucks even think artificial insimination is the same thing as genuine activity.  I haveta suppose that for those on the recieveing end of Wall Street bonuses they are

Thu, 06/02/2011 - 19:02 | Link to Comment israhole
israhole's picture

Looks like Geithner, Bernanke and the gang will choke off the same agencies they rely on to keep the scam going. Fine by me.

Thu, 06/02/2011 - 18:59 | Link to Comment TaxSlave
TaxSlave's picture

It's not my debt.  And I'm not paying it.

The Fed owns you.  It prints the money, loans it to government, then the government points a gun at your head to force you to produce real goods to generate every dime they will give back to the Fed to 'repay' for the printed paper.

At the end of the game, the bank ends up with title to all the property, and your offspring are slaves to the state which is owned by the bank.

The debt cannot be paid back, that is never even part of the question.  It is out of the question.  The PURPOSE of the debt is not the spending, the proceeds of which end up as sludge at the bottom of the separation tank at the sewage plant after the recipients consume it.  The purpose of the debt is your bondage.  And your childrens' bondage.

Repudiate the debt.  It was spent to rule over you, and it will be used to suck the life blood out of your standard of living until you die.

The U.S. government might not be willing to repudiate the debt.  But WE can.

A boot stomping on a face, forever.

Thu, 06/02/2011 - 19:58 | Link to Comment MissCellany
MissCellany's picture

"It's not my debt.  And I'm not paying it."

Right on, friend. Why do I almost never see anyone making this connection?

Question though -- just how do you figure "WE can" repudiate the debt? It's not like our votes count, or anything like that...

Thu, 06/02/2011 - 20:29 | Link to Comment Yes_Questions
Yes_Questions's picture

Unfortunately, WE may have to go arborist on these tyrants.

Thu, 06/02/2011 - 20:23 | Link to Comment Yes_Questions
Yes_Questions's picture

This is the point of the Federal Income Tax in particular missed by all-too-many.

You'd think the owners would be more prudent to ensure a stronger middle class in order to more easily skim off their earnings, find a way to write down the balances, and therefore maintain their strangle hold on control.

Call it balance or equilibrium.

But no, the financial system appears to be set for abandonment like one of those huge drills used to dig the Chunnel. 

It really seams that a paradigm shift of some ugly, major sort is underway.

 

 

Thu, 06/02/2011 - 20:43 | Link to Comment traderjoe
traderjoe's picture

Nice post.

Thu, 06/02/2011 - 19:25 | Link to Comment Buck Johnson
Buck Johnson's picture

That rant was spot on, he was right.  When the creature start feeding on itself to survive (especially it's children), it can't survive. 

Thu, 06/02/2011 - 19:28 | Link to Comment DavidPierre
DavidPierre's picture

"Soft patch"... my ass!

For the last month or more, as each economic number has come out weaker than the last we hear Washington, Wall Street and their bought and paid for media describe the current situation as a "soft patch".

In reality what we are experiencing is THE END of a credit based system that can no longer create credit fast enough to keep the balloon in the air.

Why did the Fed and Treasury need to put their balance sheets on the line in 2008? Why the need for QE1...2... and soon to be 3? Because the system has reached "debt saturation" and cannot grow on its own. There are now no entities left with the ability to borrow more debt (create money) so that past debt can be serviced and paid back.

Without more debt there can be no growth, in fact we have reached the point where debt needs to grow exponentially just to "run in place" and keep the system from deflating.

 The problem is that there are no "good credits" left with both the ability and desire to borrow more.

This so called soft patch will turn out to be the same bullcrap as "green shoots".

The official story was and is hogwash but "we" had to wait for the green shoots to be proven wrong, this time it won't take as long and THE PANIC may very well be initiated by TPTB who want to front run the sheeple and get the hell out of town.

The end game has clearly arrived and "hyper stagflation" appears to be the result.

 Financed assets imploding in value at the same time the currency self destructs.

The worst of all worlds. It sounds that way because IT IS!

Never in history were governments included in the debt trap we are in today on such a grand scale. There is no "savior" who is/will be able to ride in and save the day. that is what governments did in 2008 only to bury themselves under a mountain of debt. Now we just sit and wait to pay the price and endure the pain of 100 years of unsound monetary and fiscal policy.

We are in a position today that was a 100% sure thing years and years ago. The amount of debt that a system can carry and endure is finite. We have already passed that point and unfortunately it is downhill from here.

 This is not a "soft patch", it is a financial death trap!

www.lemetropolecafe.com

Thu, 06/02/2011 - 20:36 | Link to Comment monopoly
monopoly's picture

Good one David, totally agree. +1

Thu, 06/02/2011 - 20:50 | Link to Comment Yes_Questions
Yes_Questions's picture

We are in a position today that was a 100% sure thing years and years ago.

Yup,

+Couple of centuries at least.

 

Thu, 06/02/2011 - 19:03 | Link to Comment Tic tock
Tic tock's picture

What I would do, is simply call the FED 'the bad bank', suborn its powers into the Treasury and dissolve the institution. By anulling the FED balance sheet, there are a lot of rather interesting instruments which simply cease to exist, including a fair amount of Treasury debt....the logic is, without the Bernanke Put and with a number of banks somewhat short of dollars, there's a reason to hold dollars. Okay, maybe the financiers ahve to work a bit on what to do...eventually one of their friends will lend them money to play with.

 ..and housing, just put the whole mortgage market under FNM, FDM at 2% for 30 years.

Thu, 06/02/2011 - 19:06 | Link to Comment flaunt
flaunt's picture

"Treasury" seems like a bit of a misnomer considering there is absolutely no treasure there.

Thu, 06/02/2011 - 19:31 | Link to Comment legal eagle
legal eagle's picture

Yes, the US should follow UK's lead and call it exchequer - which means responsible for collection and management of taxation, more accurate.  We had a small treasure (surplus) at one time, but that is long gone.

Thu, 06/02/2011 - 19:08 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

It is just dirty paper, guys.

Chill.

People still give us oil for it. It's all good.

Thu, 06/02/2011 - 19:09 | Link to Comment PulauHantu29
PulauHantu29's picture

Tip toe, throught the window, through the tulips....

http://www.youtube.com/watch?v=skU-jBFzXl0

Thu, 06/02/2011 - 19:21 | Link to Comment fiddler_on_the_roof
fiddler_on_the_roof's picture

when is obama going to sign an emergency executive order raising debt ceiling ?

Thu, 06/02/2011 - 21:49 | Link to Comment Josh Randall
Josh Randall's picture

American's pensions = burried at sea

Thu, 06/02/2011 - 19:21 | Link to Comment steelhead23
steelhead23's picture

I happen to be a federal employee with the majority of his retirement funds in the G fund.  This makes me furious.  Look, first of all, I am in the G fund for principal preservation, not growth.  I think I make around 3%.  Mr. Geithner, what is it about principal preservation you do not understand?  What you have done is to place some of that principal - MY PRINCIPAL - at risk without offering me a risk premium.  This is commonly termed theft.  I will not hire a lawyer and sue you if you indemnify me with secure capital - or - perhaps your home.  Do you understand me?

Thu, 06/02/2011 - 20:54 | Link to Comment traderjoe
traderjoe's picture

Principle protection in US Treasuries? An oxymoron. We'll see what the full faith and credit of the gov is worth.

Oh, and my standard question: why does a sovereign government borrow its own money from private corporations - at interest?

Hint: it doesn't need to. We should repudiate the debt.

Thu, 06/02/2011 - 23:11 | Link to Comment Cathartes Aura
Cathartes Aura's picture

why does a sovereign government borrow its own money from private corporations - at interest?

 

"sovereign government" - *clue*

Thu, 06/02/2011 - 22:33 | Link to Comment GOSPLAN HERO
GOSPLAN HERO's picture

Comrade,

I believe most of your federal comrades are Democrats. They helped in electing a true Neo-Marxist POTUS.  Comrade President Obama and the Dems will loot your retirement until there is nothing left.

 

Thu, 06/02/2011 - 22:50 | Link to Comment nmewn
nmewn's picture

"I happen to be a federal employee..."

We are all in the same boat my brother, welcome aboard the good ship Reality.

Fri, 06/03/2011 - 01:12 | Link to Comment DeltaDawn
DeltaDawn's picture

What are your coworkers saying? Have you gotten any memos to inform you this is occurring? Hope you still get the 3% on the missing principal even though it won't cover inflation.

The federal government puts management of private sector businesses in jail if they do this to their pensions.

Thu, 06/02/2011 - 19:24 | Link to Comment legal eagle
legal eagle's picture

Good point.

Thu, 06/02/2011 - 19:28 | Link to Comment Cdad
Cdad's picture

What better way to create parties interested in raising the debt ceiling...then to hold over their heads the destruction of their retirement accounts.  Sounds like constituency building to me.

Thu, 06/02/2011 - 22:49 | Link to Comment hound dog vigilante
hound dog vigilante's picture

"Sounds like constituency building to me."

 

They already have public unions over a barrel, which makes this a risky move, imo.  The longer this drags out, the more this move backfires.

 

Thu, 06/02/2011 - 19:30 | Link to Comment silvertrain
Thu, 06/02/2011 - 20:34 | Link to Comment blunderdog
blunderdog's picture

That's not what the bill you linked is about.  Borrowing on your 401K is, from one perspective, a tax dodge, and that's what the bill you linked to is supposed to address.

Personally, I've come to see the whole 401K thing as just another fascist scam, anyway.  The Feds give you a tax break so you can give your money to financial companies.  Fuck that.  The most likely result is the money's not there when you need it, anyway, so you're really better served to pay the taxes and buy something of value in the first place, rather than create a tax-deferred portfolio of paper.

Hard to get the point across to most folks, though.  All they ever say is, "It's tax-free, and the stock market is the best long-term investment out there."

Uy.

Thu, 06/02/2011 - 20:44 | Link to Comment silvertrain
silvertrain's picture

opps, sorry..Let me see if I can find the one I want..

Thu, 06/02/2011 - 19:35 | Link to Comment The Merchant of...
The Merchant of Venice's picture

Meh.  Raiding retirement accounts and replacing them with IOUs?  What else is new.  The US government has done this for years with the Social Security "Trust Fund".

Just note, the public pensioners are getting IOUs before the seized Libyan assets get the same treatment.

Thu, 06/02/2011 - 19:38 | Link to Comment Tic tock
Tic tock's picture

It does raise the issue though, y'know, we all play the markets - yes, it's beyond insane that a large part of global asset-pricing is such a crapshoot, but that's the way things are.  But look, its always between two sides, most of the time the giants win, very occasionaly the sprats win. And that's what's happened; several recessions later, whatever, what are the ginats doing - they've become cannibals, they're changing the rules on a daily basis, they're contradicting themselves, they fear the market. They stand in its way, super-cell tornadoes, nuclear disasters rain down. ...really, if you can't stand the heat, 

Thu, 06/02/2011 - 19:55 | Link to Comment putbuyer
putbuyer's picture

This is treason. God help us.

On a side note, bet the Belmont as Best jockey Jonny V and best Horse

Animal Kingdom will win. Do a wheel bet to max profit.

Watch this cool Animal Kingdom video.

http://www.belmontstakes.com/multimedia/2011-features/2011/05/22/animal-...

Thu, 06/02/2011 - 19:52 | Link to Comment IQ 101
IQ 101's picture

The snake eating itelf,

Ouroboros,

 http://en.wikipedia.org/wiki/Ouroboros

Peculiar ain't it.

Thu, 06/02/2011 - 20:01 | Link to Comment buzzsaw99
buzzsaw99's picture

If you want a real good laugh check out the projected fedgub revenues for 2012-2016.

http://missywpp.wordpress.com/2011/06/03/projected-revenue/

Thu, 06/02/2011 - 21:42 | Link to Comment nmewn
nmewn's picture

I'm thinking created instead of saved ;-)

Thu, 06/02/2011 - 19:56 | Link to Comment rockraider3
rockraider3's picture

It would be a lot more fun to dip into the retirement accounts to bailout more European banks.  

Thu, 06/02/2011 - 23:18 | Link to Comment cosmictrainwreck
cosmictrainwreck's picture

sshhhhhh..... don't give Timmy any ideas

Thu, 06/02/2011 - 20:03 | Link to Comment f16hoser
f16hoser's picture

Fuck you geithner. I'm cleaning-out my 401K this month. As a Federal employee, you can suck on that timmy.

Thu, 06/02/2011 - 20:02 | Link to Comment live free
live free's picture

What is this? "Those are IOU's my friend.... there as good as money... $250,000... that's for the lamborghini... Might want to hold onto that one."

What movie?  Starts with a D and one of my fav's.

B

Thu, 06/02/2011 - 22:31 | Link to Comment I Got Worms
I Got Worms's picture

Had to reply, just based on my handle.

Thu, 06/02/2011 - 20:12 | Link to Comment bob_dabolina
bob_dabolina's picture

I don't feel bad AT ALL if government workers don't get paid their retirement. In fact, I don't care if anyone gets paid anything. Somehow, borrowing/printing another 2 trillion, or 3 trillion, or 5 trillion is really going to lead to an alternate outcome right? Yea....if you believe that, I have a bridge to sell you.

This is what America gets. You've borrowed, and printed yourself to a level gluttony and sloth. The fruits of the public treasury has been raided to fund unrealistic pipe dreams by people obsessed with the largess delusion of perpetual wealth on the back of no work

America has become an entitlement country which has grown accustomed to cashing checks it's productivity can't back.

Thu, 06/02/2011 - 20:13 | Link to Comment Herman Strandsc...
Herman Strandschnecke's picture

That's a bit tactless. You could've said it more gentle like.

Thu, 06/02/2011 - 20:24 | Link to Comment bob_dabolina
bob_dabolina's picture

America is a herpes laden hooker turning tricks at the Taco Bell on Amsterdamn Ave. for the 2-for1 bean and cheese burrito special.

Thu, 06/02/2011 - 20:23 | Link to Comment Quinvarius
Quinvarius's picture

Holy shit!  She has herpes!?

Thu, 06/02/2011 - 20:26 | Link to Comment bob_dabolina
bob_dabolina's picture

In and around the mouth area.

Thu, 06/02/2011 - 20:25 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

pork (?) salad annie:  YouTube - ?Elvis Presley - Polk Salad Annie ( Live in Las Vegas 1970)

the goobermint will figure it out, maybe, about, 3+ weeks after they finish the 4th of july recess.  so much pork---maybe we could get "The Butcher" from Gangs of New York...

Thu, 06/02/2011 - 20:26 | Link to Comment zebra
zebra's picture

too many technical terms. can someone make a cartoon about it?

Fri, 06/03/2011 - 03:11 | Link to Comment ebworthen
ebworthen's picture

Timmy reaching into Grandma's purse stealing the rent and grocery money while she is watching the MSM nightly glossing over of the collapse of the empire (and the cost of a can of dog food).

Meanwhile, back in the beltway dome of bipolar reality, Ben is diving into his vault of binary 1's and 0's that he created with a few keystrokes that spew into the secret Eccles repository - at once buoying his delusions and dulling his thought process.

Thu, 06/02/2011 - 20:38 | Link to Comment monopoly
monopoly's picture

Cramer is an idiot. How that man gets a paycheck is beyond words.

Thu, 06/02/2011 - 20:56 | Link to Comment Yes_Questions
Yes_Questions's picture

 

Cramer is an USEFUL idiot.

Thats how.

Thu, 06/02/2011 - 20:50 | Link to Comment FOREX loop.
FOREX loop.'s picture

This blog post sums it up... they are stealing from our retirement, while spending it on "food plates"

http://collegemessiah.blogspot.com/2011/06/blog-post.html

Seriously, fck but im sick of this gov.

 

Thu, 06/02/2011 - 20:56 | Link to Comment FlyPaper
FlyPaper's picture

"Oh bother!" said Pooh.

While interesting, I'm not understanding why this is relevant in the grand scheme..  Treasury is doing what it has to do to create cash flow.  Moving money around between accounts is simply: moving money around between accounts.

How is this different than the daily raiding of Social Security?

 

Thu, 06/02/2011 - 21:02 | Link to Comment FreeNewEnergy
FreeNewEnergy's picture

Well, the govt. borrowing from their own employees' retirement accounts is about as close to desperate as I can imagine. They've almost completely lost touch with the public, though they keep on trying.

If anybody watched NBC Nightly News tonight, they pretty much sold out on the fact that tomorrow's NFP report will be a stinker. The broadcast led off with a doomy and gloomy outlook on the economy, something they seldom do. Carried right over to the Kudlow Report on CNBC. It was conditioning on a massive scale. They've got us all set up for a crash and a recession, plus they're trying to tell people not toeat vegetables due to the new strain of E. Coli headed our way.

The scare tactics never end and the control fraud continues until everyone is numb or dead.

Debt ceiling? Who cares.

Mortgage? Fuck it.

Elections? Get real.

I've said it before and I'll say it again. This isn't a country anymore. It's every man, woman and child for his/her self.

Good luck with that.

Thu, 06/02/2011 - 23:14 | Link to Comment Larry Darrell
Larry Darrell's picture

"plus they're trying to tell people not toeat vegetables due to the new strain of E. Coli headed our way."

 

Would this be the new and improved (read: Fukushima irradiated) strain of E.Coli??

Or is the E.Coli part what we will be told is causing the illnesses when it turns out to be acute radiation poisoning from any west coast grown produce?

 

 

Thu, 06/02/2011 - 23:19 | Link to Comment gametracker
gametracker's picture

bingo

Fri, 06/03/2011 - 02:22 | Link to Comment Dr Zaius
Dr Zaius's picture

I strongly suspect we haven't even begun to see "desperate" yet.

Thu, 06/02/2011 - 21:03 | Link to Comment FriedEggs
FriedEggs's picture

Maybe 'they' are dipping their f*ckin grimy crungy dirty little fingers into these retirement accounts...because these people(some?most?) WONT reach retirement...(err, 'make it' to that day because bad things are going to happen way before 'retirement')

Ya dig what im sayin?

 

Fried(e)

Thu, 06/02/2011 - 21:22 | Link to Comment Arnolds Love Child
Arnolds Love Child's picture

Jerkoff's TSA goons will never see a nickel in retirement money.

Thu, 06/02/2011 - 22:18 | Link to Comment cosmictrainwreck
cosmictrainwreck's picture

Excellent analysis Fried(e)....Timmah & O'Bummer are still arguing about who's gonna break the news: "ya know all that smoke they sold ya? that 'retirement' concept? hahahah... just kidding....it's a myth... hahaha. So, since you won't be needing the money anyway..........."

Thu, 06/02/2011 - 21:13 | Link to Comment bugs_
bugs_'s picture

what you thought was "your retirement" isn't.

what you thought was "your house" isn't.

the government can "dip in"

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