• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

Treasury Math: #Winning

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Tue, 05/10/2011 - 16:36 | 1260439 tmosley
tmosley's picture

They created a new "bad nation", and moved all the excess debt over to it.

Edit: Just found out the name--Bernankylvania.

Tue, 05/10/2011 - 16:40 | 1260465 nkktwotwozero
nkktwotwozero's picture

Bad Nation! Bad Nation! Look what you did to this Balance Sheet!

--

Brawndo! They've got electrolytes!

Tue, 05/10/2011 - 16:40 | 1260486 kushmere
kushmere's picture

Bad Nation makes Lord Inglip angry!

Tue, 05/10/2011 - 20:44 | 1261134 dlmaniac
dlmaniac's picture

Perhaps we should stop marking to market when it comes to national debt.

Tue, 05/10/2011 - 21:04 | 1261164 Mactheknife
Mactheknife's picture

Its that damn accounting software..probably made by those Turbo Tax people.

Tue, 05/10/2011 - 21:08 | 1261171 Fish Gone Bad
Fish Gone Bad's picture

What is truly surprising is how this is actually not making the news.  To make comparisons to nazi sympathizers is a bit much, but what the heck, I might as well do it.  When bad shit is happening, and people in the media do not speak out, then they too are part of the problem.  Wow, just like the people who turned a blind eye to all the peoples carted off to camps in WWII.

Tue, 05/10/2011 - 22:35 | 1261483 nkktwotwozero
nkktwotwozero's picture

Shit dawg. Westboro Baptist aint got sh'eet on Lord Inglip's ability to troll.

Let's Troll!

--

man, things sure have changed in a year

Tue, 05/10/2011 - 16:44 | 1260513 Mad Max
Mad Max's picture

It's what plants crave!

Tue, 05/10/2011 - 17:04 | 1260588 dexter_morgan
dexter_morgan's picture

...lots of tards out there livin kick-ass lives.......

Tue, 05/10/2011 - 18:39 | 1260860 John Wilmot
John Wilmot's picture

My wife used to be a tard, now she's an airline pilot

Tue, 05/10/2011 - 21:02 | 1261162 nkktwotwozero
nkktwotwozero's picture

Haulin'Ass Gettin'paid!

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THAT'S WHAT I'M TALKIN' ABOUT!

http://www.catherineomega.com/wp-content/uploads/2009/07/idiocracy_money.jpg

Tue, 05/10/2011 - 17:16 | 1260569 SheepDog-One
SheepDog-One's picture

Now I know everyones feelins are all upset about this starvation and shit, but I got a PLAN I got this 'Not Me' guy to fix everything, in 2 weeks!

Tue, 05/10/2011 - 19:15 | 1260953 Cui Bono
Cui Bono's picture

'Baitin'

Tue, 05/10/2011 - 20:55 | 1261160 nkktwotwozero
nkktwotwozero's picture

Sit'yo' monkey ass down!

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Brought to you by Carl's Junior. Fuck you! I'm eating!

Wed, 05/11/2011 - 01:33 | 1261910 bobafett164
bobafett164's picture

I always figured Idiocracy type stupid people would be at least 2 generations away. I look at things now and when I finish laughing/crying I realize that all you people on here talk funny...

Comin' up next on The Violence Channel: An all-new "Ow, My Balls!"
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If anyone needs me I'll be in the corner buying metals and stabbing myself in the face

Tue, 05/10/2011 - 16:42 | 1260477 oogs66
oogs66's picture

The new math is all about rounding and estimating.  So in the new math the debt ceiling is 14.5 trillion because its close to the actual number, but easier to remember, and honestly, if we rounded to nearest trillion, that would only be 14.5 trillion, and 15 trillion seemed a bit far fetched.  At least until July.  So with our approximate debt limit of 14.5 trillion, and current borrowing of approximately 14 trillion (rounding to nearest trillion works best for actual debt) we have plenty of room. 

Tue, 05/10/2011 - 16:50 | 1260542 nope-1004
Tue, 05/10/2011 - 17:19 | 1260629 Paul Bogdanich
Paul Bogdanich's picture

They are simply chosing to ignore the law as in their thought process it does not apply to them anyway.  They make the laws they need and do as they please.  The sad part is that neither of the other two branches of government will do a damn thing about it.  It's sad to see our whole constitutional structure totally subverted by campaign finance.  At least the Germans had a Fuhrerprinzip so everyone knew the rule of law was a farce.  "His word is above all written law."  That's the way these guys behave and what they believe. 

Tue, 05/10/2011 - 18:38 | 1260867 John Wilmot
John Wilmot's picture

Birds of a feather..

Tue, 05/10/2011 - 19:15 | 1260946 magpie
magpie's picture

Oh if this was approaching the "Führerprinzip" or the ancient Roman principate, TPTB could easily find a way to ignore the debt ceiling and loan the President money directly.

Tue, 05/10/2011 - 17:37 | 1260667 Weisbrot
Weisbrot's picture

he will never get charged with any wrong doing

if ever questioned by the lame stream media, he will come up with some b.s. juggling act

dont forget the opposite of progress is congress

lets all have some audacity to hope that the change in congressional leadership is change we can rely on and believe in...... time will tell

Tue, 05/10/2011 - 18:29 | 1260830 whstlblwr
whstlblwr's picture

Congressman Cooper's, Fixing Congress, available now Boston Review:

http://www.bostonreview.net/BR36.3/ndf_jim_cooper_fixing_congress.php

"I see a Congress that is willfully blind to our nation’s worst problems. For example, the true national debt is many times higher than most published figures suggest, much closer to $50 trillion than $15 trillion."

Tue, 05/10/2011 - 18:28 | 1260837 DriveByLurker
DriveByLurker's picture

Taking your idea to its logical end...

14.294 rounds up to 14.5

14.5 rounds up to 15

15 rounds up to 2 x 10^13, which gives enough limit for another 3-4 years of print-and-borrow.

Brilliant work!  There will be a little something extra in your check this week, probably a Presidential Medal of Freedom. 

 

Tue, 05/10/2011 - 19:44 | 1261007 chemystical
chemystical's picture

Not to give Timmy any help, but technically speaking, 14.5 rounds down to 14.  A 5 doesn't always round up or down; it rounds to the even number. 

Otherwise your figures will be artificially biased to the high side.  It's a math geek thing.  Also IUPAC rounding rules.

Pedantic mode <OFF>  

Yes, a feckless Congress will either ignore the transgression (if factual) or will take the opportunity to give us more distracting politcal theatre.

Tue, 05/10/2011 - 19:24 | 1260967 onealpha
onealpha's picture

“Contrary to common misperception, the debt limit has never served as a constraint on future spending, nor would refusing to increase the debt limit reduce the obligations the country has incurred,” he wrote in his letter.
..... The measures include a suspension of a Treasury program that helps state and local governments manage their debts, and borrowing money from a pension fund from federal workers. The Treasury also could tap an emergency program used to deal with foreign financial crises.

http://www.aarp.org/politics-society/government-elections/news-05-2011/debt_ceiling_deadline_now_aug_2.html

 

Wed, 05/11/2011 - 07:12 | 1262169 rufusbird
rufusbird's picture

There may be a little hidden gem in the balance sheet. A "not shown" figure.  All the income made from writing endless put options....

Tue, 05/10/2011 - 16:43 | 1260503 Mae Kadoodie
Mae Kadoodie's picture

Bernankistan--is nice, no?

Tue, 05/10/2011 - 16:51 | 1260538 tmosley
tmosley's picture

No, Bernankylvania is populated with zombies of various descriptions, ghouls, and vampire squid.

Bernankistan already exists, it's where the Fed is chartered, and they carry out terrorist operations against the US and the peoples of the world.

Tue, 05/10/2011 - 17:04 | 1260575 magpie
magpie's picture

Central Committee of Bernankylvania announces production quota of Debt Target achieved by 150 %. Inflation Rationing to be suspended, Comrades.

Tue, 05/10/2011 - 19:18 | 1260959 Cui Bono
Cui Bono's picture

I'm holding out for

BerNanking

Tue, 05/10/2011 - 17:08 | 1260594 willien1derland
willien1derland's picture

Outstanding! Bad Nation...tmosley, thought experiment if everyone in the Good Nation maxed out their credit cards right now & passed it to the 'Bad Nation' would it make a sound? - great post!

Tue, 05/10/2011 - 17:13 | 1260612 BlackholeDivestment
BlackholeDivestment's picture

...that was funny, ''bad nation''

+QE infinity

Tue, 05/10/2011 - 17:24 | 1260626 Weisbrot
Weisbrot's picture

Tue, 05/10/2011 - 17:27 | 1260641 centerline
centerline's picture

Now who would junk that?  Post of the day in my opinion.

Tue, 05/10/2011 - 17:28 | 1260653 zeroman
zeroman's picture

A NEW BAD NATION. HAHAHA. THAT IS HILARIOUS!! IF THEY CAN GET GENERAL MOTORS OUT OF BANKRUPTCY, THEY CAN PLAY WITH THEIR OWN SINCE THEY RIGHT THE RULES.

Tue, 05/10/2011 - 17:31 | 1260663 Greater Fool
Greater Fool's picture

Actually, they're just following the new and **improved** method of accounting for debt: Debt Value Adjustment. Like Credit Value Adjustment, which discounts the values of assets based on the likelihood of the counterparty defaulting, Debt Value Adjustment allows you to discount your own debts using the same likelihood. So, since the Treasury has a non-zero probability of default, the actual present value of the debt is still below the limit.

Okay, I'm making that up. Treasury doesn't do this. But some companies do; pension plans in continental Europe are in effect required to do this by valuing liabilities using AA financial curves. (Makes those sovereign bonds look great...for a while....)

I love the idea that the value of my liabilities shrink, on a per-dollar basis, the worse my credit is. I think this has serious potential for sovereign and personal finance.

Tue, 05/10/2011 - 17:54 | 1260723 donis
donis's picture

california?

Tue, 05/10/2011 - 18:58 | 1260780 Calculated_Risk
Calculated_Risk's picture

I believe that would be "Legacy Nation".

Tue, 05/10/2011 - 16:37 | 1260445 FOC 1183
FOC 1183's picture

he's using Turbo Tax

Tue, 05/10/2011 - 17:10 | 1260598 Alex Kintner
Alex Kintner's picture

+2 Turbo Timmah. He'll just claim he didn't know how the software works.

Tue, 05/10/2011 - 16:38 | 1260446 SheepDog-One
SheepDog-One's picture

Im sorry, your answer was '3' characters long and a maximum of '2' are allowed....please feel free to try Captcha at a later time.

Tue, 05/10/2011 - 16:40 | 1260480 dick cheneys ghost
dick cheneys ghost's picture

i was told there would be no math............

Tue, 05/10/2011 - 16:35 | 1260448 JimBobOMG
JimBobOMG's picture

Shenanigans!

Tue, 05/10/2011 - 17:19 | 1260621 augie
augie's picture

i swear to God, I'll pistol whip the next guy who says shenanigans. Imagine how much our country could acomplish if we didn't watch all these stupid movies and memorize qoutes from them. I must have seen idiocracy 200 times.

 

This math works the same way the CPI and consumer price index ex food/energy can be the same number (3.1) in (4th quarter i believe) 2012.

 

HOw Ith Tat Pothible?

Tue, 05/10/2011 - 17:19 | 1260630 SheepDog-One
SheepDog-One's picture

Hey dont be so mad, lotsa 'tards out there livin kick-ass lives!

Tue, 05/10/2011 - 17:42 | 1260685 augie
augie's picture

you mean, from the toliet?

Tue, 05/10/2011 - 19:23 | 1260972 Cui Bono
Cui Bono's picture

Hey Math Man, what's the name of that restaurant you like with all the goofy shit on the walls and the mozzarella sticks?

Tue, 05/10/2011 - 16:35 | 1260449 tecno242
tecno242's picture

They started Treasury Account II, that has zero debt and a new 14 trillion limit.

We're good to go.

Tue, 05/10/2011 - 17:28 | 1260654 Rainman
Rainman's picture

......and the TA II can lease out gold & silver to the ETFs......the National Parks can be leased to a private toll operator....there are endless panic cash generating schemes. It's the Chicago way.

Tue, 05/10/2011 - 16:35 | 1260450 oogs66
oogs66's picture

Jeethner would now like to honor all the reporters who don't question him about this little detail with a participation award.  Its not about winning or losing, just about participating and feeling good and having fun.  Its what made America great....  Really....Seriously

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