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Treasury Sells $29 Billion In Bonds, Bringing Total Settled US Debt To 14.311 Trillion, More Than The Debt Ceiling
First, the irrelevant news:
Today's $29 billion 7 Year auction just closed at a yield of 2.895%, the highest since April 2010, just the time when QE1 was ending and everyone was certain there would be no follow through monetization. The Bid To Cover was 2.79, weaker compared to recent auctions, and 2 bps wider of the When Issued, implying the auction was not all that hot. Directs took down 8.76%, in line with the last year average, Indirects accounts for 49.41%, or the lowest foreign take down since November 2010, while PDs bought 41.83% of the auction. Altogether a weak auction but it's not like the PDs would let it fail especially not with QB9 becoming the next "flip back to the Fed" bond for the PD community.
Next, the relevant news:
Now bear with us for a second: the most recently disclosed total debt was 14,211,567,662,931.23 as of March 28. This excludes the settlement of all of this week's auctions which amount to $35 + $35 + $29 billion (including today) or $99 billion. Adding the two amounts to $14,310,567,662,931.23. As a reminder the debt ceiling is $14,294,000,000,000.00. In other words, the total US debt just passed the debt limit - break out the Champagne! Granted there is a buffer of $52.2 billion between the total debt and the debt actually subject to the ceiling, meaning that America is not in default, yet. Therefore, the total debt subject to the limit assuming full settlement right now is $14,258,341,662,931. Which means the US is now $35.7 billion away from a bona fide breach of the debt ceiling. Yes, there are some caveats, and it is possible that there will be an accelerated redemption of bills over the next few days, pushing the total debt slightly lower, but readers get the idea. Complicating things, the SFP unwind is complete with just $5 billion in 56 Day Cash Management Bills on the books, and no longer a buffer of debt ceiling extension.
Which brings up the question: with a government shut down looming any minute, shouldn't Congress be tackling the issue of what happens when the US enter technical default some time in the second week of April when the next battery of approximately $67 billion in new bonds are issued, which also happens to be just as tax rebate (and thus outflow) season peaks?
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Why am I so addicted to Zerohedge? I better get to work or I'll join the ranks of the unemployed. Damn.
Like anyone else will report the breaching of the debt ceiling..... it be ignored by the media AND the government.
Shouldn't they drop a giant glass ball full of newly issued paper to commemorate the occasion?
Whoop out the banner:
MISSION ACCOMPLISHED!
that's a credit card bust isn't it?
No, they sold it to UK, at the same time UK sold the same amount to US. In 2 year time they will notice that they don't owe anything to each other and cancel bonds. Meanwhile they have freshly printed $$$$$ on both sides and it won't be called QE-n.
Repo 105! Paging Dr. Repo 105
So here's a poll:
By what % would the goss public debt grow if you added in the shadow debt from all the classified national security budget?
a) 0%
b) < 25%
c) < 50%
d) < 100%
e) other
No credit card bust if your bank doesn't call you to tell you that you are over your limit, you can go on spending, the card...still works....seems like it will work forever!!!! and there are no fees for overdrawing the line!!!! I guess the whole Debt ceiling is just a mirage, the sky is the limit. To infinity and beyond. Oh and bullish signal for everything by the way.
Veni vidi printit. (Benius Bernaesar c, 2011)
Check kitting by the pros. Gotta love it.
and if that doesn't work you can always default.
marvelous...
Bullish... definately...
We are fast approaching 1932...Head and shoulders bitchez...look out below
my thoughts exactly....
To FifTTTTTTeen and beyond!
Hard1 you are looking at this with a glass half empty perspective. Just wait for Cramer and some "experts" to come on CNBC and tell us how this is "all good" for bank stocks, and therefore the overall markets. Surely there are over-limit penalties because all of us proletarians have overdraft fees so the big guys have to have them too (snark, snort...just busted myself a nut on that one!).
Just think of the overdraft fees on 16 + BILLION dollars! WHOA! Since bank stocks are supposed to lead us out of the recession (that officially doesn't exist), then we are in for happy, happy, HAPPY times! It's time to BUY BUY BUY bank stocks! Oh fuck, where is RoboTrader when you need him? I want a distorted chart showing us all how we should have bought bank stocks yesterday morning!
Nothing American ingenuity can’t overcome
Marvin Gay said that this morning! I mean Barak Hussien Obama.
It's time to pass a law that moves the decimal point on the debt 4 places to the left. Then in 2050, we can move it back to it's original spot.!
What does The Constitution and Obama's birth certificate have in common?
THEY DON'T EXSIST!
The Fed will be shooting Andrew Jackson's corpse out of a cannon on the 4th of July to commemorate the event.
Really? Last I heard they had it on display in the Mariner Eccles building. Rumor has it the display has him in a rather lewd position, with Wilson mounting him from behind...
So sad but true.
http://www.youtube.com/watch?v=BpiRDZY1IHI
This song wraps up what I feel about the current situation.
so, not using his ass as a dart board then....
yippeeeee cue guy lombardo ...
'should old debtlimits be forgot ... and never brought to mind ....
You work? I gave that up a long time ago. Tired of paying people to spend more of my money for me than I can reasonably earn in a lifetime.
now there's a big difference between working and paying taxes 'so that other people can spend more of my money for me than I can reasonably earn in a lifetime'...
good point though.
I don't mind the work but the last bit, hmmm, save that for the sheeple...
Did you know that sheeple was in spellchecker?
marvelous...
Ray,
Not so much ignored as...replaced...replaced with stories about burritos and cute yoga outfits. You must keep in mind that the MSM is much less of a news dissemination group and much more of a...shepherd.
Now move along you little sheep you. If you are really good and take your crazy pills, while selling your silver and gold and buying Netflix, you might be able to join us all at the unicorn ranch this afternoon.
I understand that Bob zerocred Pisani is very EXCITED about the trip.
Its not a debt ceiling, but a debt event horizon. And just like any other black hole, if you stand outside the event horizon and throw something in, it will appear to fall forever, seriously. The object, however is quickly "spaghettified" and loses all previous form and characteristics.
Yes, I know you can't actually stand outside a black hole, but this result is acknowledged by your nearest physics professor.
As for what it means for the FED that the debt event horizon has been breached- hopefully it will now fall forever.
Well, Fukushima me!
It's ignored because it's an artificial barrier. For a government that ignores laws when it suits its purpose, the debt ceiling is no ceiling at all.
Debt Ceiling Breach = Broke through resistance.
It doesn't get much more bullish than that.
Rally on now BIG TIME!
Exactly, just goes to show how irrelevant and how casually they treat the debt target
No rally in Apple today. Down over $2 today alone, getting the ever-living-shit kicked out of it. I actually feel bad for anyone that is going to ride this thing down to my personal price target of $6.37. Silver and gold doing well though, as usual.
If you ask Robot Gaylord nice enough, he'll probably copy and paste a chart from yahoo finance showing the destruction in AAPL today.
HE!
Debt Ceiling breached means =
GO TO JAIL, DON'T PASS START, YOU DO NOT RECEIVE A BONUS!
Obama's got some explaining to do to congress :)
Obama... first black president and first president to breach the debt ceiling TWICE! in 1 office turn!
Careful - they will bring out the R card on your ass.
Responsible governance & fiscal policy needed?
Rape of future generations?
Reprehensible gooberment behavior?
OH! Racist! As in someone who enjoys NASCAR. Got it.
NIGGA RICH, NIGGA!!!!!!!!!!! Obama bought ever black family a carton of Newports and paid thier mortgages with this latest bout of "Treasury" Bond sales. Next, reparations! Then, Cash for Rusty Impala Lowriders 2!!!!! Wacky Waving Inflatible Arm Flailing Tube Man!!!!
Ceilings? We don't need no stink'n ceilings!
Maybe we need to announce another six billion off budget the deficit.
Now watch what happens. -= NOTHING =-
A big fat nothing. This will be admission that the money out there is meaningless, so keep the printing presses going and spend spend spend, while the people like the look and touch of ink on linen.
That is, unless they want to break fedgov and blame it on the Tea Party reps, clearing the way for QE3...
Otherwise, I expect a massive change in what debt is subject to the statutory limit. Basically they will cherry-pick certain debts as being TBTF.
IMO, the teaparty is nothing but opportunist, looking to ride the band wagon, of pretended outrage over our fiscal irresponsibility. It will be with the teaparty, business as usual, beyond the "reelect me" pandering.
When driving in your car, what is the speed limit? It's 55 only if the police decide to do something. Not until you start getting around 100+ MPH does the REAL speedlimit start to be reached (where there are real consequences). Today the police let it slide. But we are continuing to gain speed.
...so if our economy were a car. We'd be going 745mph...in reverse.
... off a cliff
They ignore the constitution so I don't see the debt ceiling as a big deal.
RE: the Constitution .
"it's just a goddamned piece of paper"
George W. Bush
any questions?
bill of rights?
anybody?
5$ and it's yours!
Are there any left that have retained their value?
You still have the right to remain silent.
actually, now if you remain silent that just ups the ante since it implies you are hiding something bigger thus placing you under the dictates of the patriot act and branded a "terrorist suspect" and therefore you have no rights...are shipped to gitmo...tortured...and worst of all...you get to miss the market rally your arrest created by taking another dangerous terrorist off the streets and making Amerika safer again.
cynic, they'd never do that...
I hear some TSA-speak going on.
They bill us for those now? Bastiches.
Sudden Debt -- I want you to know that I exercise every morning by watching you and trying to wave my arms just like you do. I stop when it makes my fingers hurt.
Sorry Alien-IQ, he probably never said that:
http://factcheck.org/2007/12/bush-the-constitution-a-goddamned-piece-of-...
judging by his actions...it sure looks like that quote sums up his views pretty damn well.
The past is for losers and sissies.
Mike Ditka
I cannot point to one of them over the past 30 years you couldn't attribute that quote to...
"It is a document of negative liberty"
Barack Obama
Yup, he's from the Isaiah Berlin school...yuk
No, no, no. They aren't ignoring the Constitution at all. What Tyler has missed is that the dollar is only worth about a dime these days, so there's still quite a ways to go before they actually hit the debt ceiling.
Rally on, dudes.
Breaking through a self imposed limit, it's what bars and casinos thrive on.
So the country's food and lodging is comp'd?
Only the whales in congress, administrative and judicial branches.
Don't take that whale term personally Hillary.
I recently stayed at a Federal Reserve Inn... and I feel stupid.
Hold on everybody!!! Here is comes!
http://www.youtube.com/watch?v=PznDlHI8VEg&feature=related
"You did it Mr. Obama, you broke through the glass ceiling...aw, and the view from up here is spectacular."
Que the music - and happily ever we live in Keynsianville...
Articles like this make me wish I could afford more gold.
i'm telling the chinese!
Don't! Fine, we'll cut you into our little ponz. Say 5 trillion?
ROTFLMAO!!!
Squeeky Fromm, Girl Reporter
Good. Rally on. Im glad i bought more Apple.
Russell 2000 new high....not since the summer of 2007 has it been this high...wealth effect working..except in my account...lol computers rejoice!!!!
Team USA citizens broke their debt ceiling in 2006
what year is it now?
debt ceiling ..
is for people that
can't handle
a little printing ....
Tyler, another reverse repo going through as I type...
The Banana Republik of Amerika...
is NOW more than EVER the time to SHORT bonds? Methinks so.
Fundamentally...yes.
Technically...prepare to get run over when, one day, the market realizes that the wind has shifted towards Tokyo.
Like every aspect of the market, any trade you can think up will become unmanageable shortly after you take a position in it...as computers [in the room next to where Duncan Neiderhauer takes his afternoon constitutional] arbitrage to death [meaning to pull forward in time, destroy, and reverse...in minutes] all things on the surface of the planet...funded by your debased greenbacks courtesy of Ben Bernanke.
But go ahead...short 'em. I'm short Apple...and it is working...probably until 90 seconds from about....now!
Ponzi Scheme. There is no market...not for stocks...not for bonds.
So even fiat money has become a barbarous relic.
Tyler, you should know by know that Timmy can't count, or pay taxes, or gif mit der big rat's patootie.
Yeeeeaaaah!! Higher than debt ceiling?
FED & TD: Who gives a f..? Anybody thinks that .gov should stop tommorow because of some stupid debt ceiling
Time to pull a Kuwait/Canada in the USA and ... dissolve the government...
As good as that sounds, it will only ensure a global government that much sooner.
So this means we can strategically default now?
Brother Truth,
I think so...yep.
I think this is the green light for all of us to just go ahead and throw away our MasterCard statements. Debt ceiling reached...no trading income available...sorry. Raise my limit and I'll cut you one of those funky checks that come attached to the statements...to cover the minimum amount due.
Isn't that the plan we are on?
No problem. Just get GS on the line and figure out a way to get this rolled off the books in a special accounting vehicle. Pull a Greece, worked for them.
A debt-for-slave swap. I like it.
American citizens won't, however.
Are you kidding? I'm not 95% of Americans would even notice the difference. Would mean lifting their eyes away from the idiot box or putting down their junk food for a moment.
There is nothing Americans won't put up with so long as we have the illusion of wealth/prosperity. They could be filling war ships full of conscripts for forgien wars and slave ships full of young girls for sex trafficking, and Americans would cheer so long as they are left with their illusions.
So, you're saying they aren't already doing that now?
Maybe the Chinese will arrest Timmah for breaking USA's laws. Certainly no one here will, especially not CONgress.
Timmah, "I'm just digging a debt hole down to China, so we can communicate more easily."
Zhou, "We'll make room for you on one of our ditch digging gangs, we'll make you Foreman. Show these lazy peasants how to dig."
Some how I get the feeling Tim and Ben are not running around DC giving a shit about this at all.
NEW accounting rules, Benron-style, will fix any problem. Over the debt ceiling you say? PRESTO - CHANGO...new accounting = no problemo!
Hey!-Nice to get a Mexican slant on this thing! Stand back the doors are closing. Next stop Jupiter. Visit the club car for refreshments. Enjoy the ride. Milestones
Some how I get the feeling Tim and Ben are not running around DC giving a shit about this at all.
I have a beer ceiling of 12......and I promise not to break it.
No really.......I promise.
Skip the twelfth beer, go straight to thirteen, thus bypassing the ceiling and gaining the next level.
Debt ceilings are like speed limits....they are only suggestions.
The time compression of events is really upon us now, but who cares! That is why the market is flying and looking like a train out of control. Nothing to stop it now but it wont end well.
SPX
Seat belt?
http://www.zerohedge.com/forum/99er-charts-0
Is there a levered etf that tracks quality of life for the US middle class?
I'd like to short it now.
Ah c'mon, this won't stop Tim from his next Treasury auction... planned for 5 minutes from now.
Surely Geithner will be jailed for this
No
We can only hope contempt of CONgress hearings are held.
HUNDO on the DOW!!!
Look! Seriously...everyone LOOK! Don't pay any attention to the bad shit! This si good for your 401(k)...which you can't cash out.
just charter a "bad government" and load IT up with all the debts. Oh wait, we already have the bad gov't? Shit. well wtf then, I am all out of ideas
debt is wealth
+1
war is peace
Joe Biden found some pocket change in the Oval office couch. The debt ceiling hasn't be breached.
/s/
Perhaps it's to be counted as kilobytes, so 14,294 billion in fact is
14,294 x 1,024 x 1,024 x 1,024 = 15,348,065,632,256
Problem solved.
Rake of huge bids went through in euro recently...anyone short, be wary.
What did I tell you guys yesterday?
- Debt ceilings simply don't matter.
- Infinite Fiat rules.
you also told us the silver rally was over at $26. you also told us that oil was crashing at $90.
that's why you're known in these parts as the catfish mouth, because you have more mouth than brains.
lol
still no taste for robot's humor.
do you take all the posts here as literally?
i certainly hope not...
There is humor, and there is being a know-it-all troll/Monday morning QB. Based on the number of junks he gets, you can probably figure out where he is classified..
I've never known him as catfish mouth but as the "Monday morning QB".. or he is the equivalent of a Dallas Cowboys fan. He talks big when he wins, but when he loses he ain't nowhere to be seen..
Problem: Imminent breach of debt ceiling of $14+ trillion
Solution: New debt ceiling of $140+ trillion
...and everyone relax.
Over? Did you say "over"? Was it over when the Germans bombed Pearl Harbor? Hell, no. And it ain't over now...
What fucking history book have you got? Mine says the Japs bombed Pearl Harbor.
It's a new era- there are no absolutes!
Must have borrowed John's, from Delta house:
http://www.youtube.com/watch?v=V8lT1o0sDwI
Not familiar with 'Animal House', then?
Better double check those history books, Einstein.
This should help you.
http://www.youtube.com/watch?v=PGIPCGyihxw
Go watch Animal House on VOD.
WooHoo!! BTFD!!! We are fucking rich!! We can do better!!! More stimulus! More bank bailouts! We need more new entitlement programs!!! Fuck housing! Free shit for everybody!! It's ALL good!! We don't need no stinking jobs!! Deficits don't matter!! Zimbabe Ben just proved it!
>sarc<
Anyone else feel like they have been cast for a really bad rendition of a JJ Abrams flick? "Survivor" - Escape from the pork eating zombies of the banana republic.
Expatriation/Renunciation is the name of the game!
So the government is officially irrelevant. Sweet.
So much for the Rule of Law...
I guess it means Rally On; that is Banana Republic style
Gosh, I guess this means the Gov't shutdown by the GOP, is a Wet Dream for them, as they (Congress) is useless.
What do we pay them for, when we have a Fascism Inc running it all?.
Perhaps the reverse repos are funding the treasury. They're running the same Repo 105 scheme that Lehman did
SHCTF. Shit has clogged the fan. Is this why Geithner has gone to China?
Breaking the debt ceiling you say? TEPCO recommends superglue. (and not to hoard the bottled water.)
If I tried to spend over my limit my card would be declined!
And if you try to print/mint your own "legal tender" you go to Club Fed.
The rules apply only to us serfs.
Hey dont worry...the results for the 7yr notes sucked too !!! bid to cover- DOWN, dollar demand- DOWN, indirect bidder amount - DOWN !!
1:30 pm : Treasuries haven't made much of a reaction to the outcome of the 7-year Note auction, which drew a bid-to-cover of 2.79, dollar demand of $80.9 billion, and an indirect bidder participation rate of 49.4%. For comparison, the prior auction had a bid-to-cover of 2.86, dollar demand of $82.9 billion and an indirect bidder participation rate of 49.7%. An average of the past six sessions makes for a bid-to-cover of 2.88, dollar demand of $83.6 billion, and an indirect bidder participation rate of 51.4%.DJ30 +95.14 NASDAQ +20.51 SP500 +10.92 NASDAQ Adv/Vol/Dec 1725/1.03 bln/833 NYSE Adv/Vol/Dec 2243/435 mln/692
No problem, the Ben Bernank can fix in 15 min just as he said.
Just lift the debt celing to 15,000000000000000000000000000000000000000000000000000000000000000000000
and print.
Everything is fine, go back to the mall people and buy an ipad 2 you can use or eat.
Champagne?
hate the stuff. A default calls for a martini.
Hasn't this happened before already?
Okay, I have two good questions:
1. If Timmy just sold debt beyond the debt limit, has he not just violated the Constitution, which amounts to Treason?
2. Does Congress even have a clue what is going on? It seems these clowns are more lost than ever.
Just wondering.........
They already committed treason when they extorted bailouts at the threat of total economic destruction. Nothing was done then.
Nobody.
Goes.
To.
Jail.
1. Yes.
2. No.
and STILL no one goes to jail.
No one in this country will stand up and do the right thing until they can no longer buy food or iphones with their food stamps.
While I do think Tiny Tim is a crook, remember you are expecting performance from a guy that supposedly screwed up his income tax with Turbo Tax. His latest copy, called Turbo Ponzi (Gov. edition) just isn't working right, that's all. He bought the lawyer insurance that goes with it. He'll get it all straightened out. No need to bother congress with this, they supported him before on the Turbo Tax issue. They all understand how hard it is out there for a pimp.
No such thing as treason in a post 9/11 world.
Never Forget.
The system breaks down when people no longer see anything in it for them. The officials in charge are exactly the same as the soviet officials before the collapse. They are trying to prop things up long enough to loot the state. The question is when do people realize there is no longer anything in participating in the USA as a concept?
I am so happy I am going to buy
132 iPad 2s
500 violet Lululemon yoga tights
400 NFLX subscriptions
15,000 Chipotle tacos
15,000 Chipotle tacos? I'd recommend some toilet paper as well. Or is that what the yoga tights are for?
Good diversification across American economy! Consider 1 mln Trojan desperados and bottled water with iodine additive (I mean to prevent thyroid problems) .