Treasury Places $35 Billion in 5 Year Notes; US Now $64 Billion Away ($35 Billion Tomorrow) From Debt Ceiling Breach

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Tue, 03/29/2011 - 13:48 | 1113439 chopper read
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Tue, 03/29/2011 - 13:57 | 1113484 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I don't know.

He did NOT say that, did he?????  BAHAHAHAHAHA!

I thought he said,

I'm not telling...and you are no longer invited to my birthday party.  PPPtthhbbttt!!!

Maybe he said both.  What a loser.  He has the maturity of a five year old....or is that five year bond?  Luckily, he is a Doctor, so he totally knows what he is doing.  Totally.

Tue, 03/29/2011 - 13:19 | 1113337 RunningMan
RunningMan's picture

Debt, schmebt. Fire up the auxiliary power at Indian Point and get the presses rolling at full throttle.

Tue, 03/29/2011 - 13:39 | 1113401 Harlequin001
Harlequin001's picture

onward and upward as they say...

Tue, 03/29/2011 - 14:32 | 1113631 goldfish1
goldfish1's picture

Rules and debt ceilings do not apply.

Tue, 03/29/2011 - 16:15 | 1114098 divide_by_zero
divide_by_zero's picture

Like I said about the Fed FOIA ruling, exactly who will enforce it? Or for that matter Obamacare being ruled unconstitutional, rule of law no longer in effect.

Tue, 03/29/2011 - 13:20 | 1113341 Racer
Racer's picture

Well done evil ones, the latest debt target has nearly been achieved

Tue, 03/29/2011 - 13:23 | 1113346 dbTX
dbTX's picture

they must be blowing through cash like crap through a goose

Tue, 03/29/2011 - 14:14 | 1113559 Larry Darrell
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Spending for FY 2011

~$3.3 trillion (or $3,300,000,000,000)

= $3.3 E+12 / 365 --> $9,041,195,890 per day

= $9,041,195,890 / 24 --> $376,712,329 per hour

= $376,712,329 / 60 --> $6,278,539 per minute

= $6,278,539 / 60 --> $104,642 per second


That's right.  Your government spends way more than the average citizens' YEARLY income EVERY SECOND OF EVERY DAY

But, the US economy is NOT, I repeat NOT a ponzi scheme (/s)

Tue, 03/29/2011 - 13:23 | 1113349 the not so migh...
the not so mighty maximiza's picture

they will raise the debt ceiling in the middle of the night when no one is looking.

Tue, 03/29/2011 - 14:07 | 1113535 Harlequin001
Harlequin001's picture

all the newsworthiness of a credit card limit increase...

when you think about it.

Tue, 03/29/2011 - 14:14 | 1113567 Zina
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The problem is: tens of Tea Party-backed Republican representatives elected in last November are afraid of voting in favor of the debt ceiling raising, and have to explain that vote to their voters...

So, there is a real danger the debt celing raising don't pass the vote. And Obama will not put that into vote until he is sure that will pass. In the meantime, there is a real risk the debt is reached, and all hell breaks loose... "Black swan", some will say...

Tue, 03/29/2011 - 14:37 | 1113658 the not so migh...
the not so mighty maximiza's picture

It will be interesting if the tea partiers actually do what they say.

Wed, 03/30/2011 - 03:27 | 1116112 StychoKiller
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Time to count the number of spines in Congress...

Tue, 03/29/2011 - 13:21 | 1113350 RobotTrader
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Since when has the debt ceiling mattered?

They will just raise it.

Or print more paper anyway, monetize something else off-balance sheet, or whatever.

Really, it is a non-event.

Tue, 03/29/2011 - 13:29 | 1113373 Spastica Rex
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Tue, 03/29/2011 - 13:33 | 1113378 Long-John-Silver
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As long as the Bernak can swap counterfeit paper between the FED and Treasury and people continue to take FRN's as real money, the debt means nothing.

Tue, 03/29/2011 - 14:03 | 1113515 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Since when does anything matter in finance?


Tue, 03/29/2011 - 17:33 | 1114517 andybev01
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Tue, 03/29/2011 - 16:48 | 1114306 Ethics Gradient
Ethics Gradient's picture


They're not going to stop paying coupons.

Tue, 03/29/2011 - 13:22 | 1113352 jkruffin
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Must be why they are pumping stocks so hard today, because when the ceiling is breached, its gonna crash and yields are going way up.

Tue, 03/29/2011 - 14:56 | 1113706 Dr. No
Dr. No's picture

and yields are going way up


Not sure.  Supply and demand right?  IF the treasury actually stopped issuing debt, supply would dry up.  With the FED continuing POMO, demand is still heavy.  Prices would go up.  Yields down.  Am I wrong on this? There may be some posturing like issue more short term rather than long term in order to stay under the limit.  None the less, will be interesting. 

EDIT:  But then the treasury would have to default (since it is a ponzi), resulting in HUGE deflationary forces.   Yields?  not sure since a default is a default.  my head just exploded.

Tue, 03/29/2011 - 13:28 | 1113355 Cdad
Cdad's picture

the total debt, not just that subject to the ceiling, could pass the legal threshold as early as tomorrow (pro forma for settlement).

Now that would surprise people...right?  People would not be expecting that, would they?  With Bob Pisani screaming "teflon" and "the nothing matters rally", and even the supreme idiot over at the Ministry of Truth, Tyler Mathisen, figuring out that no one is selling....but one can see a sell off coming, right?  No one is bothered that the very last buyer of everything in the market is about to hit zero on his balance...and no one can see it coming.

And Apple languishing in the rear, and casual diners levitating on PixieDust lots changing hands [check the one day chart on EAT...literally...I don't think any lots are actually moving...but the price is oddly] one is really thinking to sell, right?

And you got your Iphone ready...right?

Tue, 03/29/2011 - 13:32 | 1113374 Greater Fool
Greater Fool's picture

Yes, including a special e*Trade app featuring a cute little talking baby that projectile barfs every time I hit "sell."

Unfortunately, the only other setting for that app has Ken Griffin saying "Buy the Fucking Dip, You Fucking Idiot." And Ken Griffin is way creepier than that talking baby.

Tue, 03/29/2011 - 13:38 | 1113393 Cdad
Cdad's picture

Understood Greater Fool,

You are putting yourself down for "complete surprise" then, and being straight up honest about it, which I appreciate.  Do I have that right?


Tue, 03/29/2011 - 13:40 | 1113400 SheepDog-One
SheepDog-One's picture

Everyone sees clearly the game is over, but for today, stocks love it and climb higher. Like a crackhead on the Golden Gate bridge.

Tue, 03/29/2011 - 13:44 | 1113420 Cdad
Cdad's picture

And so Dog is also in camp "surprise."  Got it.

Tue, 03/29/2011 - 13:51 | 1113465 camaro68ss
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I LOL so loud everyone is looking at me in the office. Thats good stuff!

Tue, 03/29/2011 - 13:28 | 1113364 TruthInSunshine
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I'd love to see the government shut down.

The best thing that could happen to this country is for her citizens to realize that they'd be better off without the Faustian Pact many of them have bartered with the government, and that getting back to some semblance of limited government would ensure that there could once again be hope that their childrens' lives would be better than theirs.

Tue, 03/29/2011 - 13:40 | 1113403 traderjoe
traderjoe's picture

So true. But, I think the PTB have masterfully relied on the people's desire for short-term gain, over long-term prosperity.  

Tue, 03/29/2011 - 17:37 | 1114534 andybev01
andybev01's picture

America: where instant gratification isn't fast enough.

Tue, 03/29/2011 - 13:40 | 1113407 sdmjake
sdmjake's picture

That is my great wish as well {but much to idealogical to work in reality}...but we can dream!

Tue, 03/29/2011 - 13:41 | 1113410 SheepDog-One
SheepDog-One's picture

Only going to see that after about 100 million or more americans are dead.

Tue, 03/29/2011 - 13:56 | 1113455 depression
depression's picture

The budget deadline is April 8, word is the negotiations are not going well at all. A shutdown does look possible. The debt ceiling is gonna get hit right about that same time, first week or April. and then QE-2 ends in June... gas at $4 per gallon, could make for some interesting times this summer.

So I guess the market is pricing in that Congress will raise the debt ceiling by another $1Trillion or so before the end of next week, the new budget will pass before April 8, and QE-3 will come online in the late May time frame.

Tue, 03/29/2011 - 13:31 | 1113372 Fenlander
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forgive me, I'm a Brit so don't follow the US Congress closely.  Is it a legal requirement in the US for Congress to formally authorise a raise in the debt ceiling,  or is it something that can happen with the simple signature of some official?

Tue, 03/29/2011 - 13:38 | 1113398 Bastiat
Bastiat's picture

We really don't have any legal requirements for the executive branch anymore.

Tue, 03/29/2011 - 13:42 | 1113412 Long-John-Silver
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It's become an Oligarchy with a powerless and irrelevant congress.

Tue, 03/29/2011 - 13:41 | 1113404 Long-John-Silver
Long-John-Silver's picture

Technically congress must authorise a new debt limit or the government shuts down. At this point the Republicans fear a shutdown as Democrats want a shut down so they can blame the Republicans for a Government shutdown. The Republicans will be forced to increase the debt limit so nothing changes. The US Dollar WILL crash at some point in this ignorant political game. I gave up long ago and convert all US Dollars to physical Gold and Silver. At some point Gold and Silver will be worth an infinite number of US Dollars because no one will trade any amount of them for anything including food, energy, Gold, and Silver.

Tue, 03/29/2011 - 13:45 | 1113426 Fenlander
Fenlander's picture

Thanks LJS.  Follow up:  is Congress actually doing anything about this?  Is there some emergency vote or even debate scheduled?  Per TD's forecast, what happens on Thursday when the limit is breached?

Tue, 03/29/2011 - 13:54 | 1113470 Long-John-Silver
Long-John-Silver's picture

congress is irrelevant. They will be forced by Obama and his pawns to increase the debt limit. Obama will continue to spend the unlimited number of FRN's the Bernak can print on paper and digital ones and zeros. As long as food and energy is exempted from inflation calculations everything will remain the same.

Tue, 03/29/2011 - 13:58 | 1113486 TruthInSunshine
TruthInSunshine's picture

It's called Kabuki Theater.

See, our political parties aren't really different, as they work for the same masters (not voters, either).

They'll raise the debt ceiling because there's no way for their masters to rape and pillage further if taxpayers can't be squeezed further.

Theoretically, if they didn't raise the debt ceiling, the government would have to start scaling back all non-essential government functions (in reality, this would be about 92.387% of them, but in real life, it's about 5% to 10%), so that they could match the existing debt ceiling.

But again, that's a theoretical exercise in Amerika.

Tue, 03/29/2011 - 13:49 | 1113446 TruthInSunshine
TruthInSunshine's picture

Fenlander, Congress has 'the purse,' as they say, under our Constitution.

Yes, the House of Representative and Senate have to both vote to raise the debt ceiling in order to allow further spending to occur.

Tue, 03/29/2011 - 13:57 | 1113482 metastar
metastar's picture

Hmmmm. It seems to me that the unelected FED has the purse and thus must be ended.

Tue, 03/29/2011 - 14:02 | 1113509 TruthInSunshine
TruthInSunshine's picture

Congress delegated its coinage authority, de facto, to The Federal Reserve, in 1913.


Tue, 03/29/2011 - 13:56 | 1113479 metastar
metastar's picture

Let me explain it real simple.

There is no constitution, no supreme law of the land.

In fact, there is no law period! There is simply force wielded by a brutal regime upon its citizens and the world to keep power for itself and big corporate interests.

America is dead.

Tue, 03/29/2011 - 13:58 | 1113487 Long-John-Silver
Long-John-Silver's picture


Tue, 03/29/2011 - 13:33 | 1113376 plocequ1
plocequ1's picture

Who cares. Just buy stocks and let Dr. Bernanke perform his majestic work. There is no debt ceiling. Its all good.

Tue, 03/29/2011 - 13:32 | 1113380 ShankyS
ShankyS's picture

Bernanke says, "Just pull it. Just pull it."

Tue, 03/29/2011 - 13:41 | 1113409 traderjoe
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