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Treasury Math: #Winning
We have a quick question for the Treasury Secretary: according to today's DTS, as of close yesterday, the Treasury had $14.274 trillion in debt subject to the ceiling of $14.294 trillion, or a $20 billion "buffer." To the best of our knowledge there were no redemptions today, and certainly none in the non-Bill pipeline this week. So, uh, how exactly did Tim Geithner auction off $32 billion today? (and plans to auction off another $40 billion tomorrow and Thursday)
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Folks:
Last week, Geithner sent a Debt Limit Letter to Congress.
In it he stated, "If Congress does not increase the debt limit by May 16, the Treasury Department will be forced to employ further extraordinary measures on that date to provide headroom under the limit. Therefore, on May 16 I will declare 'a debt issuance suspension period' under the statute governing the Civil Service Retirement and Disability Fund, permitting us to redeem existing Treasury securities held by that fund as investments, and to suspend issuance of new Treasury securities to that fund as investments."
Hold on a second, Tomothy. Those Treasury securities are not investments. If they were, they could be liquidated without any new cash needing to be raised. But because the federal employees' trust funds have been treated like SS's trust fund, the principle and 'interest" loaned to the Treasury to lower the deficits, there are no investments to redeem, only numbers that represemt a draw on the Treasury. If drawn from the Treasury, you will increase the debt held by the public, thus committing a double no-no.
Your goal is to provide headroom, when you are already over your head!
To see the letter, go to: http://www.moneyandmarkets.com/doomsday-scenario-2-44533?FIELD9=1 for the link.
Don Levit
Tim "the tool" Geithner was on Charlie Rose last night and he sounded so cheery and sanguine, basically said China will do the right thing and help a brother out.
In the Charlie Rose interview with Geithner, China's Vice Premier Wang Qishan responded to a question about the currency, saying, "Forget about the exchange rate."
Just fogeda bout it!
"It is dangerous to politicize economic issues. Take the exchange rate, a very simple issue, as an example. It seems to me that somehow the Americans have a view, believing that China's trade surplus was all caused by the manipulation of its exchange rate. And China became a big trading country in the world simply by manipulating its currencies. Actually, this is a very politicized argument," Wang said.
And we don't manipulate our currencies?
In case anyone from the US (or any other) government is reading, let me take this chance to give a giant FUCK YOU for ruining our country, our lives, and the entire world outside of their own little circle jerk of insiders, lobbyists, bankers, and other douche bags. Again, FUCK YOU!
For some reason this post really pisses me off. I already knew they did whatever they want but now it's just getting in-your-face blatant. Fuck off, fuck off, fuck off government. Why does anyone continue to pay taxes? They just print so much money it's all meaningless anyway. Buy silver, buy gold, take delivery, and keep your money out of their grubby little fucking hands. Eventually it will all implode and hopefully they all starve or are hung/shot and killed by then.
Nicely done. Excellent rant, especially the part about paying taxes. My question is, when it does all blow up, when exactly will they start shooting citizens? And when will they start limiting food stamps, and cutting SS payments, renegging on everything because, "America is broke, dammit, and it's all the fault of you little people."?
When will the dollar be completely worthless, and where's that Bronson character - Paul Kersey - when we need him?
That's like saying that American slaves should have quit working and bought their own plantations...
There is no escape!
This is more for the "old and restless". If you have SS, a pension, annuity any income or liquid assets then get out now. Come south and enjoy billionaire health care for pennies, full time household help for pennies, affordable everything even gasoline. Jump the Fear Wall and discover what almost one million other citizens have learned. Good luck.
Did you not know? Inflation via monetization IS TAXING. Those creating the money gain wealth, while for everyone else holding the currency, their money is worth less. Give and take. The only differences to taxes are:
1. They are not called taxes
2. Every holder of the currency is taxed - all across the globe. And may i remind you? The USSR-dollar is still the world reserve currency.
3. The currency gets destroyed in the longterm
4. Some things like wages, will not be adjusted instantly and at the same speed - thus, in addition to being taxed, your wage also gets reduced
Great, isn't it? If fairness and justice would exist, the white house would be a giant bloodbath.
So we have a coordinated take-down of Silver just before debt-limit breach along with Osama supposedly being killeed just before hand to "rally the American spirits" that we can conquer all problems?
It is too eerily quiet. Which means, of course, the Russell 2000 should end the week with at least a 15% gain and a 30x next year multiple.
Debts don't matter; neither do valuations.
And not one, NOT FUCKING ONE member of Congress shouting about this on MSM? You mean to tell me that FOX wouldn't have a 24 hour continuous feed? That NOBODY would grant Ron Paul the airtime?
[crickets]
....anything to keep the Russell 2000 rolling. I mean, really, the insiders need to sell into something for christ sakes.
Why would they care about a debt ceiling? When did they ever show any sense of restraint? This is a group above all laws. Unless there was a real audit, how the hell would we know were the true debt is already?
I don't think anyone could actually audit something this corrupt.
When are people going to realize we have an anarchy of the elete, including elected and appointed politicians and corporations. Laws, restrictions, restraints, are blithly ignored....and life goes on. This country is in long term free fall.
I am amazed at all these bloggers (you too, Tyler) wringing their hands and lamenting the fact that morals and ethics are being "abused:" eg the Wall Street Journal.
I am sure that this hand wringing puts you all in the moral cat bird seat, but, come on, we are not all fool and dupes to this pathetic lamenting.
And what exactly would you have bloggers do other than lament. I find lamenting the disgorgement of our once great Union to be cathartic. Like a good cry, as my lady friends do. But, hey, guys gotta write about something, I mean, other than sports. So, it's business, which used to be like sports, but now is so wickedly unfair in every regard that nobody wants to play anymore.
So, lamenting it is, for now and evermore, or maybe, nevermore.
http://www.heise.de/ix/raven/Literature/Lore/TheRaven.html
EDIT: wrong thread... sorry!
TG found the way to raise the ceiling....just blow through it, and don't wait for Congress to finish their debate and vote. Tough to put the genie back in the bottle...and he'll not be pursued for his actions.
Astonishing?
Looks like the "New American Century", lined out by Mr. Wolfowitz, won't materialize.
Not to worry. Timmy has surrounded himself with plenty of old Arthur Anderson folks and they will have no problem making the numbers work.
your all forgetting the american nobility has adonis DNA. Our mortal quandries like rule of law and math, have no place in their fantasy land of infinite wealth accumalation.
...and tiger blood.
"The illegal we do immediately. The unconstitutional takes a little longer. "
Henry A. Kissinger
+ 1776
" Sarcasm is anger's ugly cousin".
Jack Nicholson, Anger Management
Points out the lack of leadership on this from the Republicans. If anyone had the cajones to call out the administration on this they would win huge public support. Alas, we go down with the ship of fools. America's days are numbered when this kind of stuff can just be passed on as a non-event.
The republicans and democrats are beholden to WS for their reelection $$$$$.
There will be lots of posturing, Boehner may cry, Geithner will invoke MAD. Neither is different than the other. Both serving the same puppet master.
Nobody's said it lately, so I thought I'd trot out the old...
This will end badly...
bitchez!
Oh.... you want me to use the actual debt limit numbers???????
George Bush... "Nope ain't gonna do it, ain't gonna happen"
I wonder what your thoughts are on the current president who has spent more than all the previous presidents combined.
This is so ridiculous. We need some grown ups in govt. There have to be one or two around. True??
I have discovered the solution to everyone's problems and it's as simple as watching CNBC and for only one hour a day, that hour being when the Ponzi award-winning Kudlow Report airs!
Since the Kudlow report generally interferes with my drinking time, I thought maybe I could make a game out of my incessant need to be tranquilized and the utterly banal droning of Kudlow and his guests.
So, here's the game: Any time anyone says "bullish" you drink. If anyone says "corporate profits" you drink and if Kudlow himself asks rhetorically, "Isn't that Bullish?" you must do a shot of a liquor not lower than 80 proof.
I've found that this game results in rapid vaporization of brain cells and accelerated inebriation, two very good things. The kicker is that one can now enjoy and actually look forward to the Kudlow Report.
Never mind that your kids will have to be removed during daddy or mommy's "Happy Hour." The rapid pace of drinking lessens the pain of the obvious shillery. An hour of the Kudlow Report and you're all set for Dancing with the Stars or American Idol.
Gentlemen, man your mugs!
"King dollar" Kudlow is the worst of his kind because so many people believe he is simply looking out for you. When things go down eventually as predictably they will I want his ass in jail.
dupe, sorry.
Well, little troll boy, yes, lamenting is good. But, you miss the big picture.
We have all heard the saying that "if you are not part of the solution you are part of the problem."
Yves in Naked Capitalism makes note many times of how major blog owners meet with the Feds, talk over things, etc., etc., and either get intimidated or colude.
If we are all in here lamenting, then no one is in the streets protesting, capiche? It is in the government's interest to have little troll boys in here lamenting, because then government can go on with its business as usual.
If, from this, you can't figure out my point, which I am being oblique about, then, little troll boy....shish......
Timmy will just top things up with his Tax refund.....
Ooppps....Damn he forgot to file again....
Camon guys!
What laws, who are you kidding, when money is in stake!!!
Please, allow poor Tim to do his job as excellently as he has done it so far.
Besides, what are a dosen billions between friends, especially when non of them is paying the bill ...
Good luck to all allerted about the coming ...
Funny, I never heard a troll call anybody a troll.
OK, I get your point, but are you serious? Commenting on a blog post which you describe as "lamentable" renders your comment an adjunct to the lament.
Yes, out in the streets, then. Never mind this brainless blogging. Out in the streets with signs waving and mouths chanting, you, me, and uh, who else, brainiac?
The glass seems to be the same on your house as the ones at which you throw stones. Stooge. Get out in the street... and be the first to be shot. Moron.
Well, little troll boy, rest easy with your Kudlow Report, also designed to anatheise (sp) you, and .....god bless. You make my point over and over without me saying anything.
You wouldn't know sarcasm if it bit you on the ass.
Just go on believing that you're right, even when you have been proven wrong. Must be a bitch being you.
Special Purpose Veh for off book accounting. DONE.
They can just put new debt into the social security "lock box" there is no limit to the debt in there.
There must be 50 ways to leave your lover.
The debt numbers and debt ceiling is just a joke for stooges. I doubt anyone actually knows what the real debt is or what the real money supply is, even the "bankers". With all the official and unofficial money printing and borrowing, "petrodollar recycling" and money laundering there is no way anyone actually knows the real numbers. It is all just a confidence game whereby the elected stooges just throw out some numbers pretending to keep track and keep people preoccupied with phony debt ceiling debates to distract people from realizing the whole thing is a total sham.
Future auctions will be sourced from $ ETFs. They're not physical dollars so they don't have to exist.
Now let me if if I get this right. You and I can buy treasury bonds directly from the government. So, it means that the FED can too. Why do they have to pay Goldman a commission to purchase the bonds. Crooked bankers?
Where do you see yourself in the Pyramid of Capitalism?
http://lonerangersilver.wordpress.com/2011/05/09/pyramid-of-capital-syst...
looks like intragovernmental holdings went up 5 billion...so still 15 billion of room left