Treasury Expects To Hit Debt Ceiling By End Of May, Discloses Plans For "Century" Bonds

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Wed, 02/02/2011 - 16:51 | 928593 Gubbmint Cheese
Gubbmint Cheese's picture

so buy a bond and a parrot and see which one gets called in first..

 

 

Wed, 02/02/2011 - 17:13 | 928652 centerline
centerline's picture

At least you could eat the parrot.

Wed, 02/02/2011 - 17:17 | 928667 Misean
Misean's picture

You could teach the parrot to say "Buy the f**king dip!" "Green Shoots!" "It's all contained!" "You can't eat gold!".

Bonds can't do that.

Wed, 02/02/2011 - 18:07 | 928880 asdasmos
asdasmos's picture

+1

Wed, 02/02/2011 - 17:19 | 928675 Confused
Confused's picture

Excellent! Thanks for the laugh. 

Wed, 02/02/2011 - 18:19 | 928924 jus_lite_reading
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I've managed to keep my vulgar language contained and off the internet for the most part, but after reading TD's ZH, I have to say to the idea of perpetual bonds- FUCK THIS!

 

Wed, 02/02/2011 - 16:51 | 928595 slow_roast
slow_roast's picture

Early Christmas gifts bitchez.

Wed, 02/02/2011 - 16:52 | 928596 TheGreatPonzi
TheGreatPonzi's picture

"The Treasury also disclosed that it had discussed with big bond dealers the possibility of an "ultra-long" bond with a maturity of 40, 50, or 100 years"

RobotTrader was right. Don't fight the PigMen. But who will be dumb enough to lend money at 100 years, still?

Wed, 02/02/2011 - 16:58 | 928617 lemonobrien
lemonobrien's picture

the FED

Wed, 02/02/2011 - 17:04 | 928623 redpill
redpill's picture

The term doesn't matter much when the Fed buys them back the next week

Wed, 02/02/2011 - 17:17 | 928666 Dr. Gonzo
Dr. Gonzo's picture

If I bought one I could cash it when I'm a 139 years old. Something to look forward too for my old age fund.

Sun, 06/26/2011 - 10:29 | 1402790 malikai
malikai's picture

So lets see here. $1000 bill at 2.5% for 100 years.. That's a whole $137.60 in interest for the duration. I don't see what the problem here is. That sounds like a fantastic deal. Who wouldn't want that?!

Wed, 02/02/2011 - 18:54 | 929055 jkruffin
jkruffin's picture

Easy answer, the taxpayer....and also they will force every single 401k/IRA plan into this scam like they planned all along.  Remember the open comment period they had last year regarding this Geithner swindle?

Wed, 02/02/2011 - 16:52 | 928597 DaveyJones
DaveyJones's picture

century bonds, by the time you count to a hundred...

Wed, 02/02/2011 - 16:54 | 928606 lunaticfringe
lunaticfringe's picture

My math sucks. I had us hitting the debt ceiling at the end of the month. Deferring here and trying to sort out the pieces from this read.

Wed, 02/02/2011 - 22:40 | 929721 tekhneek
tekhneek's picture

How were you calculating it? I was off too.

The numbers perhaps, or a link?

Wed, 02/02/2011 - 16:56 | 928611 Comrade de Chaos
Comrade de Chaos's picture

Century bonds?!?

All right !!!, why enslave only one future generation, when you can enslave a few or more. 

And one would think given the spread of riots "someone" would take a notice. 

Uncertainty, must be "good" for the business.. coming to the theater near you. 

Wed, 02/02/2011 - 16:59 | 928620 Tense INDIAN
Tense INDIAN's picture

India has also HIT a CEILING ....the BIG COUNT::

 

http://markettechnicals-jonak.blogspot.com/2011/02/big-count.html

Wed, 02/02/2011 - 17:04 | 928625 SilverIsKing
SilverIsKing's picture

Why stop at Century?  How about Millenium Bonds for those of us who eat right and exercise daily?

Wed, 02/02/2011 - 17:07 | 928635 Wynn
Wynn's picture

Which sacrificial lambs will be offered to the bond gods to get this deal done?

Wed, 02/02/2011 - 17:07 | 928638 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

Step 1: Force, bribe, and-or trick the politicians into not raising the debt ceiling.

Step 2: The Ultimate Dollar Crisis and Ultimate Banking Crisis in world history occur.

Step 3: The media and experts start talking about how only a bank of the world that everyone in the world has to pay interest and debt to can possibly bailout the world economy and fight the Greatest Depression. BIS and IMF are considered to be the new "Fed" that are capable to save the world economy by being the ones to issue its debt.

Step 4: Meet the new boss... Your plan for the old New World Order is back on the fast track, having been stalled a bit over the past two years.

Step 5: Answer CAPTCHA question: "38 plus ___ equals 38".

Wed, 02/02/2011 - 17:19 | 928676 Max Hunter
Max Hunter's picture

I wonder who will own this only world bank.. I'll bet not one owner will be Jewish..

Wed, 02/02/2011 - 17:15 | 928658 Misean
Misean's picture

Century bonds?!?!?! They need big biger biggerest thinking. A thousand year Reich...erm...Dumbocracy of pr0n freedom and football needs millenial bonds!

Wed, 02/02/2011 - 17:19 | 928674 WestVillageIdiot
WestVillageIdiot's picture

This reminds me a lot of all of the stories of octegenarians taking out 30-year mortgages to buy houses.  Good luck collecting from a dead man.

 

Embalm this, bitchez.

Wed, 02/02/2011 - 17:17 | 928665 jus_lite_reading
jus_lite_reading's picture

Century Bonds are Perpetual Bonds. When a nation resorts to that, it's unofficially declaring insolvency.

Wed, 02/02/2011 - 18:08 | 928887 A Man without Q...
A Man without Qualities's picture

The UK government issued perpetual bonds in 1917, paying a 3.5% coupon.  The amount borrowed was £1.9 billion, which was a hell of a lot back them, but they are still going strong.  In some ways, you are right, the UK was on the brink of insolvency back in 1917....

Wed, 02/02/2011 - 18:24 | 928942 jus_lite_reading
jus_lite_reading's picture

It's a running joke that a century bond is one that is the bond of last resort. It means an empire has run out of options to sustain the house of cards. There is a reason for that.

I'm sure that the Fed's bean counters have concluded that there is a very high probability the end of the world will occur within the next few decades. Either way, those bond holders will never be paid back.

 

Wed, 02/02/2011 - 17:17 | 928668 Dr. Porkchop
Dr. Porkchop's picture

If they never fail to raise the debt ceiling, it means there effectively is no ceiling. What a fucking joke.

Wed, 02/02/2011 - 17:21 | 928682 WestVillageIdiot
WestVillageIdiot's picture

They don't even offer up a budget.  Why the freak do they need to pretend that there is a debt ceiling?  I expect this little dog and pony show to be put to rest in the next few years.  It will be for our own good. 

At the moment the bullet entered Winston's brain he learned to love Big Brother. 

Wed, 02/02/2011 - 17:18 | 928670 tmosley
tmosley's picture

I'm surprised people trust these guys with even an attosecond bond, much less a femptosecond bond.

 

Wed, 02/02/2011 - 17:23 | 928695 WestVillageIdiot
WestVillageIdiot's picture

You are right tmosley.  These same people I wouldn't trust minding my goldfish for a weekend but here they are responsible for a country with a $14 trillion GDP (supposedly) and the largest nuclear weapons arsenal on the planet.

I'm glad I didn't pick today to quit sniffing glue.

Wed, 02/02/2011 - 19:31 | 929166 Sudden Debt
Sudden Debt's picture

what's your goldfish name?

Wed, 02/02/2011 - 17:19 | 928672 6 String
6 String's picture

If, as Goldman believes, congress waffles, how do the PM's respond? This is a pivotal time that will go down in American history books....if anyone is left to write about it.

 

 

Wed, 02/02/2011 - 17:22 | 928681 Zedge Hero
Zedge Hero's picture

   How far can they kick this can down the damn road?  Instead of kicking it they want to pick it up and throw it.  "Give me a 250 year bond please sir, I want to invest in my great great great great great great granchildren's future, for they will surely be FUCKED!!"

Wed, 02/02/2011 - 17:26 | 928704 countryboy42
countryboy42's picture

"That will be $45mil. Please drive to the first window."

Wed, 02/02/2011 - 17:32 | 928731 Zedge Hero
Zedge Hero's picture

" Can I have some Unfunded Liabilities on the side with that too please?"

Wed, 02/02/2011 - 22:50 | 929742 tekhneek
tekhneek's picture

"No, but if you purchase five-500 year bonds you get a 1,000 year bond ABSOLUTELY FREE!"

(with nominal inheritance taxes, of course.)

Wed, 02/02/2011 - 17:33 | 928737 Misean
Misean's picture

By that time the scrap value of the bond certificate itself will be worth more than the redemtion amount.

Wed, 02/02/2011 - 22:51 | 929747 tekhneek
tekhneek's picture

At the rate cotton's going it almost makes sense to accumulate, compress and store the raw materials then exchange them for PM's later.

Wed, 02/02/2011 - 17:23 | 928685 Bob
Bob's picture

Century bonds are crazy genius.  Soak up liquidity with further fraudulant balance sheet support to allow continuing bonuses.  Them white shoe boyz is good.  As criminals at least.

Extend and pretend like donkey kong.

Wed, 02/02/2011 - 17:27 | 928708 Dr. Porkchop
Dr. Porkchop's picture

I know.

I'm telling ya, the supposed real crooks, the mafia, can only sit in awe and wonder at what the banksters get away with.

Wed, 02/02/2011 - 17:54 | 928722 Bob
Bob's picture

That's what Lucky Luciano grieved after spending time at the NYSE: "I picked the wrong mob." 

Wed, 02/02/2011 - 17:22 | 928686 koaj
koaj's picture

why dont we just go Iceland on these fuckers and start over? 2 years of pain vs 100 years of debt slavery. i'll take the 2

Wed, 02/02/2011 - 17:23 | 928691 Trader Joe
Trader Joe's picture

 

Just issue prepetual callable bonds in both floating and fixed rate flavors

In fact, if I remember some of my ENRON accounting studies, because it would not have a maturity date, it would then qualify as equity, and thus would be a nice way to get around the debt ceiling

 

 

Tue, 02/08/2011 - 20:07 | 944697 jonytk
jonytk's picture

loophole!!

Wed, 02/02/2011 - 17:23 | 928692 Dr. Gonzo
Dr. Gonzo's picture

Who would buy this shit?  

Wed, 02/02/2011 - 18:27 | 928956 jus_lite_reading
jus_lite_reading's picture

Perhaps the purple octopus looking aliens NASA is searching for so desparately... "Bring cash, and lots of it," is the signal they have been sending to outer space. Thus the reason we've had no response. Muthafuckers.

 

Wed, 02/02/2011 - 18:29 | 928964 A_MacLaren
A_MacLaren's picture

Primary Dealers.

Question is who are they gonna flip 'em off to.

PD: Hello Ben? ...  Yeah, Timmah foisted some shit on us.  Send over your garbage truck.

Ben: You have to hold it a week so we can repeat the lie to the Chinese that we're not monetizing the debt.

PD:  &$#!*@  I gotta hold 'em a week?  These things are even stinkier than those 2007 Neg-Am ARMs and NINJA mortgages!

Wed, 02/02/2011 - 17:23 | 928694 JasperNewtonDaniel
JasperNewtonDaniel's picture

The desperation is setting in.  What would your price a 100 year bond at for a country that has the largest debt and deficit in the history of humanity and a Central Bank that can inject figures into the money supply larger than the number of atoms in the universe?  Anything above ZERO would clearly be overpriced.

 

Wed, 02/02/2011 - 18:28 | 928960 jus_lite_reading
jus_lite_reading's picture

One can only imagine the yield on that

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