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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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New to ZH.
First, thanks for all the real news.
Second, when will you get real airtime, ie. on TV?
Third, how the fuck can the US ever expect to pay the interest on 14 Trillion of bonds, let alone repay the capital?
Fourth, how come we`ve managed to create such a monster for our children (and their children...., and their children) to inherit? Shit, we are lousy custodians of this planet.
Answers: 1. You're Welcome 2. Never 3. It can't 4. Because we're Americans and we do everything big.
1.
2.
3.
4. Yep. This is the biggest pile of shit I´ve ever seen.
In high school in 1966 I had a very smart teacher. He had graduated college during the depression and was a devoted Keynesian and social democrat. He explained to me that governments never die and can't go bankrupt. Therefore governments can borrow money and never have to pay it back, and use the money to provide all kinds of benefits for its citizens. He thought this was a very clever system, and foolproof.
This represented the state of the art in political science at the time.
Hope this answers question #3 and #4.
2. The revolution will not be televised.
I just ran into teh bernank..... he said he was winning, and all you zhers are just hatin on him
You can expect the sheeple to continue easing the pain by contributing more to the interest payments via 401k...
debt ceiling?
a very funny concept actually but does it matter if the ceiling is $14T or $20T when it can never be paid back? it's funny money without the humor.
If the Republicans were smart they would not bother raising the debt ceiling because it simply does not matter as today's example reminds all. What will matter is not shutting down the enormous spending Obama is on and in order to do that they may be forced to shut down the government. He like all leftists will only agree when they are backed into a corner.
Then what is to stop Obama from declaring a state of emergency and suspending congress and the courts. He could call a moratorium on all foreclosures and dictate that since we are in a state of emergency no one can be evicted from their homes. He could have all you conspiracy wackos tossed into fema camps, and then he could start his dictatorship. All hail chancellor Obama. Dissension will not be tolerated. You are either with us or you are a terrorist. Report to your nearest re-patriation hub for your new ID and work detail.
No I think the repubs will give in.
^^^
This is why i think we're overdue for a false flag terror attack on home soil.
Easy solution for the national debt problem:
http://www.theonion.com/video/us-government-stages-fake-coup-to-wipe-out-nationa,14356/
brilliant.
I still think the "money hole" skit is one of the funniest they ever did...
http://www.youtube.com/watch?v=JnX-D4kkPOQ
Where does these uber bullish news flashes keep coming from? S&P 500 shud be limit up every day. Wars, civil unrest, revolutions, nuclear disaster, insolvent Europe sinking more and more, huge deficits, enormous debt on both public and private sector, high unemployment, high inflation, shrinking incomes and lots of other bullish indicators.
Time to prioritize debt service over all other federal spending. Can't spook the markets you know. So grandma, military veteran, etc: so sorry but the money needed to go to the Federal Reserve, China, large financial interests, top 1%, etc. There was really no choice as they threatened financial armageddon otherwise.
+1 to ZH for calling this days (weeks?) in advance.
Time to impound the Hope-Mobile.
This is one of the funniest comments I've read in awhile
http://thomas.loc.gov/cgi-bin/bdquery/z?d112:samdt112:
S.AMDT.112
Amends: S.23
Sponsor: Sen Toomey, Pat [PA] (submitted 2/28/2011) (proposed 2/28/2011)
TEXT OF AMENDMENT AS SUBMITTED: CR S979
STATUS:
COSPONSORS(3):
Sen Vitter, David [LA] - 2/28/2011
Sen Ensign, John [NV] - 3/1/2011
Sen Paul, Rand [KY] - 3/1/2011
Got it. There is no QE3 coming ...we go straight to QE4, the biggest POMO MOFO debasement the globe will ever know. Enjoy.
Looks like dry-humping the market, trying to front-run Q2 mutual fund allocations into the market. Sure would be nice to see the circle jerk that ensues if those fund flows don't arrive on Friday...
Who cares. It is just a paper.
time to change billion to bullion
Nice one. They just demonstrated that the debt ceiling is meaningless, so they don't have that to worry about anymore.
Maybe the debt ceiling got a hedonic adjustment?
My God, it's full of stars.
My Dog! It's full of rats! -- 1020, a dyslexic odyssey
bernank update #2...he said you assholes on zh better get your head out of your asses, for a little more than an oz of gold you could be the owners of 3 shares of PCLN, which comes with a 1 free night at a hotel of his choosing just keep the door unlocked because he is winning bitchez
The debt ceiling has been raised 5 times in the past 3 years. Most congressional hawks are raising hell as a formality to appease the masses, before they once again cave to their overlords and raise it. What's frightening is the frequency that our gov't must now raise the ceiling. Something's gotta budge.
Where you find any hawks, they all mutated pigeons.
Time for another PAYDAY LOAN I guess
It more like a "Deep Horizon" Debt Event. Who's the 1st one in the rescue chopper?
Hmm let me make a recap, what is pretty clear.
1. Numerous breaches of legal issues including the debt ceiling, or the newly reinstated loss compensaiton on GM for pre bancruptcy losses that care over in the new GM etc etc
2. Postponing mark to market accounting for banks that represent almost 50% of any index so nobody has a clue on the value.
3. Money printing beyond any limits.
4. Manipulation on data regarding unemployment, inflation and radiation by governments
5. Consomer confidence hitting new lows versus corporate optimism
6. New pre crash high in stockmarkets versus new highs in food stamps
I gues we call it a resilient recovery :)
God Damn Tea Party Extremists. Bust that debt out of the big top. Who in their right mind would ever want to stop the printing press. Par-tay on dude! Don't forget to BTFD!
Welcome to the New World Order!
The CEILING is there to be BREACHED. Nothing to worry about.
i think someone mistyped the word ceiling for sealing. obviously we are "getting out of debt, free" because we reached our debt sealing.
make sense?
Dont worry, FED will just print a new debt ceiling. You see, problem solved, now just go and BTFD.
Where is ZH Memeber: Judge Judy ?
http://www.radaronline.com/exclusives/2011/03/judge-judy-rushed-hospital
gonna take a wild stab in the dark and say the ZH judge judy moniker is not the 'real' judge judy.
they will have to raise it now since we allready went over it.
Of course the government is delaying the issuances of this week, the change in the debt from Monday to Tuesday is "only" 4-5 billion, not the 35 billion that was sold. As long as they delay "booking" the sales, they can claim they are still under the limit
http://www.treasurydirect.gov/govt/charts/charts_debt.htm
Silly Retail Investor Rabbit: Tricks are for Feds! Here I am once again getting burned with my investments thinking that there is such a thing as LAW in this counrty and that we would not be legally allowed to exceed the debt ceiling! I bet on that and once again I lose just like I lost bigtime when The Bernankster said he would not monetize the debt! Oh fuck me, fuck me, fuck me. I am such a fool for "truth" and "law." Gets me every time.
Lie to me Bernankster, spank me, smack me, yeah baby that's it...make me write bad checks!
What kind of a sick fucking cUntry do we live in?
I should pull all my money out of my Treasury Direct account before they claim they can't pay me.
Can we impeach now?
Someone back in 2006 already realised this problem and held a wonderful speech about it:
Someone can help me out with the name of the guy!? Please?
ummmm, let me think....
I'll take the O from Illinois for $200 Alex
I'll give you an "O", a big one, from "Offending people's intelligence".
Do you wish to play this funny game called Democracy to the very end?
First hint :
Probably oSHAMa
Im wearing my Banana Republic linen pants and Banana Republic slim fit blue button up today. Its a great day to catch a breeze from the printing press whizzing by me at breakneck speeds! Rejoice! The TARP program, "which is not an investment" according to the Acting Assitant Treasurer ( how fucking incompetent do you have to be? ) Massad, will gain the taxpayers a profit! Ill just clear my desk off for all the profit sharing Im going to get as a tax payer....oh wait, what do you mean we still owe 14.3 trillion dollars? But but but...?!?!? I need to find an avatar of Paulsons face at Congress describing the dire situation headed our way. Priceless, what a Grammy Emmy MVP Cy Young 6th Man Nobel SAG Audie Murphy Award of Lifetime Achievement that guy deserves. If I ever see him, I will maim him with the 6 ft sword Ive been carrying everywhere since 2009.
The actors of both parties have been screaming about the national debt since it first reached $1 trillion. Now we're over $14 trillion. There is NEVER enough money for public services but when it comes to bailing out the elite or going to war, money is no object. The entire system is a charade and will continue as long as it suits TPTB. Only when individual states decide "enough is enough" and establish their own fiscally responsible and democratic system of government completely independent of Washington will things change.
As reads: "democratic system of government"
Should read: "republican form of government"
what does a government shutdown mean for the debt cieling? does it make a vote on raising it more likely or less likley? does it put more pressure on the treasury to issue debt or less pressure?
how would the markets react to a shutdown?
What happens next?
I imagine something like those "national security emergencies" we see on "24 Hours" and other TV series and movies.
The President announces the Congress will be dissolved because it's refusing to vote the raising of the debt ceiling, and imposes martial law. And someone tries to kill the President, or something like that...
Maybe I'm watching too much TV...
I'm all in with TRIPOLI HOLDINGS,LLC. It's gonna blow up!
As somebody mentioned, low overhead, no mining costs,
and the trucks can gas up on the way out.
Glad the good guys are starting their confiscation effort w/ the big dogs.
Wonder what they've done with Mubarak's
Long time til they get to me. Peace
The only reason the debt ceiling exists is so that Congress can enjoy the illusion of control.
5,4,3,2,1,0, and there it goes the debt ceiling has been totally f*****g obliterated by the Saturn V printing press just launched from Cape Fed,as the Congress boldly does bugger all as more green confetti is produced by the bucketful to stop reality from appearing in the bankrupt superpower.Oh what joy .... more free cash for the Bankster Mafia slithering around Wall Street between the office and the coin shops.
Print! Print! Print!
BOOYAAHH!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
"Anyone who does not own gold (or GLD or USO or SLV) is crazy," said the Wise man living Thailand.
War is Uber Inflationary. It does not matter whether or not Ben announces QE3. Speding a few hundred billion $$$$ a month of money we don't have puts the "Uber" in UberInflationary.
BOOYAAAH!
Hi, this is my first post here and I'd appreciate your help.
On January 6, Geitner said that breaching the debt ceiling could force shutdowns of federal offices, as happened in 1995, threaten payments for Social Security and other federal benefits, or even cause a default on federal debt payments.
Considering that the debt ceiling has already been breached, what else could cause the default of the US economy. Is the breach not an adequate reason for a AAA credit rating downgrade since it would raise borowing costs?
Also -and please bear with me- lets say that the Fed wont introduce QE2 in the economy, since it was said that the option of the disposal of the $200 billion Supplementary Financing Program provide an alternative form of liquidity injection in the markets. Is an alternative to QE2 going to be sufficient to maintain the artificial inflation of certain asset classes; mainly equities and would eliminate the threat of deflation?. I'm -as my amateur if not clueless question shows- new in investing/trading and I'd like to know if there really is a chance of the abrupt end of QE1 without further financial stimulous.
Would that send the market in freefall like it did at the end of April last year? Would it be prudent to diverse my holdings into cash until perhaps any indication of market's fear of a non existant QE2 and hope for the next dip to buy or is it simply insane to even assume that there will not be further continuation of the Fed's quantitave easing?
Again, I'm aware that I'm more confused and lack a lot of fundamental economic knowledge but I would really like to get some information from the people here beside the "buy gold/and or silver/and or the "fu**ing" dip".
Thank you in advance.
Come on, there must be half a trillion worth of accounting tricks they can usee to stay below the debt limit. I hear Andy Fastow is available as a consultant.
Who needs Bernanke?
I'll just print more money with my mind.
I'm winning like Charlie Sheen!
Can't we just print all the debt and use it to cover the Fuku (pronounced Fuk - U) reactors? Paper insulates radioctivity very well. Only clerks in insurance company records vaults, surrounded by tons of paper, will survive nuclear war. This proves the debt is not only good, but necessary for our survival.
While were at it... Take over everyone's mine shaft space.
If they truly passed the debt limit ceiling, the person authoizing that action just broke the law. If anyone out there is willing to prosecute, they will absolutely win in a court of law and potentially send someone to jail.
Please cut off all food stamps tonight
Im ready for the niggerpocalypse
Debt $14,270,114,530,800.38 on 03/31/11