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Treasury Prepares To Plunder Another $45 Billion From Retirement Funds As It Issues $110 Billion More Debt Next Week
Now that it has finally been made clear that in order to accommodate the debt ceiling by adding marketable debt, the Treasury has no choice but to literally plunder retirement accounts, we now know that in order to fit in the just announced $110 billion in new bond issuance over the next week, Tim Geithner will have to reduce US retirement funding (the bulk of which, the Social Security Trust Fund already lost $1.1 trillion in the past year) by at least $45 billion. That is the net result of $60 billion in net new cash and $15 billion in bill paydowns which will settle between May 19 and May 31. What remains to be seen is just how much cash the Treasury will bleed as it seeks a parallel track of under-rolling maturing Bills, in order to keep its previously disclosed intentions of issuing just $142 billion between April and June. Keep in mind almost two thirds of this period has passed, which means that somehow the Treasury has to not only stop but in fact reverse its net issuance. We are not sure how this will actually happen.
Net cash in/out flow over the next two weeks:
Next week's upcoming auctions:
- $35 billion in 2 Years: Link
- $35 billion in 5 Year: Link
- $29 billion in 7 Year: Link
- $11 billion in TIPS: Link
And as a reminder this is what the Treasury's latest Sources and Uses table looks like:
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so much for the "lock box"
will they pay this back, with interest at 4% plus prime (like they force you if you take a loan from your 401K)?
If it's in Jew confetti, yes.
If you bought gold and silver it may still be well worth it!
Silver, britches.
Exactly! pulled out some Roth IRA (with taxes and 10% penalty) in '08. With the rise of POG & POS, i'm way ahead, thanks to BerYank's QE1 & 2.
January, borrowed out another big hunk out of the G-Fund retirement and doing the same with POG at $1500/oz. Bring on QE3, BITCHEZ!!
Me too. Want to bet they plug that hole in the G Fund soon? No loans, period.
Two US senators proposed legislation recently to halt loans out of 401ks too. The nets are being set out.
401(k) may get plundered next
you justy cant tell with these folks
Any chance that *this* is what replaces QE for while? How much is there to loot from retirees?
Could they do $500 billion like this? Trillions? The media hasn't mentioned this at all so no one is really aware it's happening, so why can't it go on for a few years at least?
The total amount of funds in 401(k), IRA, and TSP accounts add up to more than $30 trillion.
Yup. I suggest that all reading this forward this article to every member of your family who still has a 401K. This is madness, and it isn't going to stop.
Can we at least wait until the government 401ks are looted, then protest? Just saying.
yeah private pensions/01ks are a further stretch and if so, the government falls shortly thereafter because of the demographic who would lose.
You're talking about your managers, your engineers, lawyers, doctors, etc. All the professional classes that make up the revolutions.
Then there is the matter of how could the government sell the assets from the 401s.
Yep, you're right. The tapeworm will keep eating until it gets eradicated. We must destroy this tapeworm. But of course we won't. We'll just keep feeding the fucking thing, like it is actually doing us some good.
Kill the fucking tapeworm.
Ding: We have another winner! A few years? Naaaa... only $300B in accessible cash pension surplus IMHO which should last only until July/11. Thinking why exactly would MSM bother to upset the Onions membership - by making them worry about their pension surpluses that have been seized?
http://www.contramanfund.com/
And they are going to make it more difficult to tap your 401k...
http://dont-tread-on.me/dont-say-i-did-not-warn-you-about-your-401k/
The current penalties make it very self-difficult. my first time was like my first raise in my first poker hand. tough. but it paid off for me, nicely. borrowing out makes it easier
"We are not sure how this will actually happen."
- You believe in fairies, right? Well, i hear the Bernank likes to dress up like a fairy.
Bernanke's philosophy. http://www.youtube.com/watch?v=RDPhEkqa1XY
It's all fucked-up like a soup sandwich...
Like a soupy SHIT sandwich!
But the corruption is redundant like a Crouton Sandwich...
Redundant... Bread Sandwich...
I love that one...
Make mine a whole wheat on rye.....and hold the mayo, dammit!
YEAH IT IS!! THATS WHY GOLD WILL GO TO $4000 VERY SOON!!!
http://fiatsfire.blogspot.com/2011/05/weakest-link-thursday-linkedin-pri...
You aint seen nothing yet!!! NEW WAR WITH SYRIA.... the whole EU BURNING!!!!
Isn't that something the politicians said they wouldn't do? Oh, wait...they're politicians! My mistake. place of refuge 2012 dot com
SELL SELL SELL ! ! ! !
Keep spending...
Keep printing...
Keep stealing...
Great strategy, Chairsatan and Congress.
This is bullish, totally fucking bullish.
"Bullish"?
Close, but I think the "t" on your keyboard may not be working properly.
And I think you might have a touch of dyslexia...
Might want to look into that
I'm so happy I closed out my TSP account, took the tax hit, and converted it all to physical Silver @ $12 and Gold @ $700.
Thats why my net worth fits in the size of a suitcase.... I dumped my entire stock holdings in 2009 and 2010 and bought all the gold and silver I could find. And I mean that literally. This aint a normal market.
Ahhh your a crazy anti-government crazy, hick, hayseed, no good bad person. Economic terrorist!
And you're probably racist too.
(/libtard)
BTFD Bitchez!!
BTFD
gotta love it when the fed gov't is cannibalizing itself..........
They will soon come after 401(k) and IRA plans just as Argentina did.
Yes, own physical!
Indeed, and the MSM will nary report on it. It's swell when only two people own the entire MSM and both of them are in on the plan.
Especially when there is slim pickins......
Let them eat cake
I guess they are also cannibalizing the $75 billion they already cannibalized when they spun of the Post Office which the Post Office is trying to get back.
http://postaljournal.com/2011/04/28/the-postal-services-75-billion-csrs-...
Postal workers are going to end up with the same haircut a lot of us in the private sector have already gotten.
This is surreal, f... unbelieveable ... hope they are just frenzy now to feed gov and will stop this ret fund looting
It will not end until the money is gone. Think in terms of a viral infection.
Isn't all pretty much the same thing? Whether they take it from your IRA / 401K and/or devalue the worth of that money? Net - net they will take it and it's just the mechanics were discussing. Obviously, the more hedges the better but seriously, how long til gold / silver "transaction taxes"...they have the power and they want your money. It's just the "how" we're discussing.
If tptb can tax death they can tax anything
World ends Saturday, or so I am told, so no sense fretting over this.
Lunch time is over, back to the machine shop.....
Man I'd love to have my own lathe / mill setup in the garage. Bet I could get a nice Jap mill DRO and all about $5k - $6k, good 12" x 48" lathe around $3k.
Perhaps the beginning of the end, based on news that Iran Bushehr reactor is now operating ?
Limited window for destruction via bombing before radioactive fall-out debris accumulates too much.................
http://news.xinhuanet.com/english2010/world/2011-05/18/c_13881621.htm
Any serious fallout would land in the ME, India and maybe China.
So the problem is ... what is the problem again?
Not my idea of cool. Just say'n.
do isreal's bidding, bomb Iran and poison the world even more? why bomb Iran? ask yourself a simple question, who is the real threat? compare how many countries the U.S./Israelis have invaded in the past decade, to the number of countries Iran has invaded... tell me again, who is the bad guy?
The man speaks truth. It goes against what Americans are told and taught every single day of their lives but alas, there it is.
Two countries are causing most of the horror in the world, the US directly, and Iran indirectly through proxies Hamas, Hezbollah. the Taliban and Al Quida independent but have adopted Iran's Shiate madmen philosophies about world domination and Sharia law.
US isn't going to attack Iran.
Doing so would bring living hell down on America. And they know it.
THE WAY THINGS ARE GOING WE BETTER HOPE IT DOES!!!!
This is a sick sick sick sick sick world. Corrupt does not even describe it anymore. We need a new word to describe the current conditions we live in.
Until then buy gold and silver. Protect yourself and your family. Best luck to all my fellow ZH'ers... THANK YOU ZEROHEDGE!! There is no other website in the world like this!!!!!
I have the perfect word for you.
Evil
HAH!
That preacher's church is in Oakland! His world probably will end Saturday...
His last prediction: 1994 Judgment Day...
I've been waiting patiently... why no story up on MSNBC about this yet?
Because their would be no opportunity to have a reasonable dialogue. Considering that SS is broke, all that is happening is an illusionary line being crossed to use yet another credit card (of sorts)
They are owned by GE aka Government Electric
I am hoping that Obombastic and Boner don't cut a deal, they do not get the debt ceiling raised, and tiny tim runs out of options. That, my friend, is called default and that is what we need to get to the other side.....
Go into the light timmy, go into the light
We won't default unless we stop paying interest on the debt. Interest expense for 2011 is $244 billion. Treasury takes in $2.1 trillion in taxes.
True, but the options are default on interest payments, mostly to foreigners, default on military payments, or default on entitlement payments. Which would you choose? In any event still default.If we could make all required payments from revenues we wouldn't have $1.4 trillion deficit.
That, my friend, is called default and that is what we need to get to the other side.....
No default. They have trillions in 401k, IRA, etc assets to keep them going. Plus all the public pension fund assets.
How in the world do you "borrow" from SS when they aint nuttin but IOUs in there anywho?
It is not SS they are taking from, it is the federal worker retirement funds, completely different.
The shoe is on the other foot now; a lot of those Fed guys probably got paychecks funded out of the looted SS trust over the last several years.
I mean did they really think the looting wouldn't find them too, some day?
I'm sure they did.
Magical thinking rules the roost nowadays.
Because they already pilfered Trillions from the Social Security "Trust" Fund.
What's disconcerting is how trivial tens and hundreds of billions seem now.
I just typed that out...exactly, how can IOU's be used as money when it's all negative equity?
You simply do not understand the finer points of Finance Capital and Fractional Reserve Banking, Charlie Brown...
This is not Social Security. This is the Government employees equivalent of a 401(k) plan. Anyone still in their TSP plan at this point is an idiot.
I would like clarification. Typically a 401(k) is employee funded, with a company match for fun. Are these pensions employee funded or 100% gov funded?
The Federal Employee contributes up to 7% of his income which is matched by the Government up to 5%. Interest is paid on this account which is rolled back into the Employees account. The government is now taking that money and using it to fund government operations.
So if I understand this right, they are no longer getting a company match. Why is this such a big deal?
It's not in reality, but the FSA is making it that way.
So if I understand this right, they are no longer getting a company match.
... and the next step is dipping into fund assets ...first a little ...eventually all of it.
... until Bernokio decides to start up QE3.
Tim I want to introduce you to two friends of mine. Stand right over here between Rock and Hardplace ...
And "investors" keep wolfing down Treasuries at the slightest whiff of a selloff in commodities or stocks.
Any convulsion in the financial markets sparks a U.S. government bond buying panic.
Interest rates plunge.
"Animal Spirits" are reinvigorated as margin interest rates plunge to new lows.
"Enterprising Speculators" cannot resist the urge of borrowing at near zero to buy dividend stocks or HeatMap the latest Social Networking/Cloud/Gaming IPO.
"Wash, Rinse, Repeat" cycle continues indefinitely.
Robot is that you? Coming to your senses? Bump your head?
I hardly think so.
Timmay:
Did you finish your 2010 tax return yet??????
When will the Public Sector old timers realize the govt never replaces things they "borrow"
They can't roll their money out of the TSP without leaving their jobs. They are hostages. The only out is to quit or take out a TSP loan.
Isn't that so Long John?
Why isn't silver at $100 yet with the amount of fiat crap these assholes are stealing and printing??!!!!!
There are still enough (stupid) people that think the paper Silver they have is still good.
Why isn't silver at $100 yet with the amount of fiat crap these assholes are stealing and printing??!!!!!
Stealing doesn't inflate the money supply and debase the dollar. Printing does.
Which is why stealing (from federal pension funds, then 401k, IRA, etc, then public pension funds (yes, in that order)), may be the preferred course for a while, maybe why they're holding off on QE3.
Tough to be bearish when WYNN is still pinned at 3-year highs.
$20 to $145, wow.
Yes, when the stock was down at $17 I was telling people to buy, buy, buy......but very few heeded that friendly non-broker advice....
I agree, ride the wave till it crashes on the beach.
I presume you know when that will happen?
I don't see how this is plundering retirement accounts.
The direct obligation (defined benefits) of the federal government is still very much intact and the feds will plunder private wealth and property outright before they default on that particular IOU. In fact this action increased the likelihood of that outcome.
You are correct sir! This is not unlike the "government shutdowns" which end up costing the taxpayer more money than if the government didn't shut down.
Shorting this market is tough.
It's like pulling teeth from a crocodile's mouth.
Gotta be quick to take profits, otherwise you get your hand bitten off.
LOL....
I guess that leaves me no choice but to go long. I didnt even need a chart to figure that one out.
This is what happens when you place all your present value in future expectations, it necessitates robbing more of the future to pay for past and present indulgences.
The only way under a fiat regime to devalue unrealistic expectations of issued debt is to issue more unrealistic debt, or rob from present value (which unless it is real money is more unrealistic expectations). Real money has no counter party risk.
YouTube's Harisebon7777777 should be commended for his work on measuring the radiation levels in Tokyo. The device he uses costs about $1000, which I am sure he has paid out of his own pocket to provide us with the truth of what is really going on in Japan.
It is eerie to watch his videos. Typically, his hand is shown holding a geiger counter in some public place with people walking all around him as if there was nothing of importance going on; while all along, the geiger counter in his hand reveals what is really happening. Harisebon is documenting the slow irradiation of the Japanese archipelago. A visual unfolding of a tragedy.
While watching these videos. it is hard not to wonder how many of the folks one sees walking down the street will come down with cancer in 10, 20 or 30 years.
Go to Harisebon's YouTube channel and give him a shout-out. He deserves it.
http://fukushimadisaster.blogspot.com/2011/05/radiation-harajiku-omotesa...
that can't be Tokyo...tmosely-claven told me that everybody would be dead or evacuated from there by April 2, tops.
Also, what units is his display measuring in? if that is uSv/hr, it is about average. if mSv/hr, then around 700-1000x average. Average worldwide is .2 uSv/hr. Highest place people live (and are actually healthy too) is 400x that.
these crimes will go unnoticed. we expect our banksters to break all laws necessary, to show them as powerless totems before their god of ineffable, rationally incomprehensible finance.
prez0 is giving him cover. stfu and don't ask kwestinZ, dammit. this is getting serious and our inhuman crusade for power and plunder under the cover of universal human rights, self-defense, and EAT ME!, is getting seriously close to a face-plant.
but don't tell anybody, ok?
the french have saved our Republic, again!
p.s. don't tell the public employees that after we spend their retirement we will hafta send them home, in an orderly market kinda way, of course...
[i am not a member of Public Employees For QE, Local III]
“The last official act of any government is to loot the treasury.” ~ George Washington
They are squeezing the last bit of tooth paste from the tube.
It goes back much further.
Pg 129
The Collapse of Complex Societies
George Washington
This is like me going into my 401K or pilfering my vested IRA when I stupidly go beyond my monthly budget. I know I will pay these back, but I never seem to have enough to do so. Why don't people understand this very simple concept. Why am I so stupid to be disappointed in Americans? How can I get out of this free fall mad house?
Like I did. Convert it all to physical Gold and Silver.
This is like me going into my 401K or pilfering my vested IRA when I stupidly go beyond my monthly budget. I know I will pay these back, but I never seem to have enough to do so. Why don't people understand this very simple concept. Why am I so stupid to be disappointed in Americans? How can I get out of this free fall mad house?
Convert and be on the "good" side of the rapture?
prudent advice...
AARP is onto Gietner now and is arming its standing army as we speak -- well more of a 'reclining' army really. They are issuing flack jackets and walkers. This will be henceforth known as the "Cane Mutiny".
Oh my. I think you've been waiting in the wings a long time to trot that one out on cue.
ftw
Timmy's treasury treason.
I hope a piano doesn't fall on him, twice.
A considerable number of federal employees are military veterans. Going after their retirement plans first is a really stupid idea.
I just closed my roth physical silver account and having them send the coins to me. With all this talk of Gov. being out of cash, they may start acting like a drowning man and grab any cash within grasp. I'll pay my 10% penalty and tax...but this is a good time to do this since the price of silver is down and my tax rate will never be this low ever in my lifetime...
How 'bout first using the 4+ Trillion the Treasury is sitting its fat ass on? Geithner, you're a lousy poker player.
F16,
Totally agree. What about all of those MBS's they bought. What about all of the Government Debt. Maybe they should sell it.
How about all of the Money they have from the sale of GM, the Warrants from all of the Banks. Where is that Money?
Arrrghh, a buyer o' crap they be...hold to maturitee.
Neighh, a seller o' goods not to be, those assets you will never see...
What about all of those MBS's they bought.
They're worthless.
What about all of the Government Debt.
Treasury doesn't own it, Fed does.
How about all of the Money they have from the sale of GM, the Warrants from all of the Banks.
Selling that stuff would crash Wall Street overnight. Not gonna happen.
All that's needed is a new financial product that nobody understands... should fix everything in a wink.
I'd suggest a reverse, naked underhanded credit-default swap collateralize against the dark energy assumed to be residing at the earth's core. We simply realize anticipated profits by a lease option buy-back leveraged deriviative squared via a tachyon FTL anti-matter drive with the Andromedans.
Then its just a matter of getting it a good rating via one of the top tier agencies and there you are...
All fixed!
I nefe
Soon Federal Pensions will be Entitlements.
Just keep printing and avoid a deflationary depression and we'll all be happy.
"Just keep printing and avoid a deflationary depression on Wall Street and we'll all be happy."
Fixed it.
We already have a depression on Main Street ...to keep Wall Street riding high ...and yes that must continue, we must keep Wall Street riding high at all cost ...and it will cost ...everything Main Street has eventually.
I think Timmy is trying to get a two-fer with this gambit. He gets to politically blame the debt ceiling and the other side of the aisle for this theft ('they made me do it') and he gets to condition the public into having their private pensions being nationalized to be the bagholders for the worthless bonds. That amount of money isn't going to come back to those pensions. It's gone.
A QE Inflation-deflation stock market roller coaster ride with people's private sector 401Ks could help coerce a scared public, wary of a crash, into letting Gentle Ben confiscate their private pensions. It's already been discussed. Why couldn't the Fed just use public/private pensions to dump their own bond positions on the taxpayers? It could give the rats a way out from the Fed going insolvent if/when they had to jack up rates.
So they plunder these accounts saying that they'll pay it back if the new debt target is raised right? (govt. employees should be rioting already!)
What if that ceiling isn't moved? I guess they'll just keep the money...
Stealth Austerity
That is a great question.....I guess everyone knows that if the Obambastic and tiny tim put us in default, we are all screwed anyway.
The retirement benefits due are not payable for years, so the government would have to fund them with tax dollars.
In the end, the Fed will print, the IOUs will be paid back, just with FRNs that are worth less than the IOUs were at issue....
Just inflate it away!!!
the connundrum for tax-cheat timmy & copter Ben is how they tell us that we're dining @ the Waldorf while we're really eating out of a dumpster !!!
Eat thyself beast...gorge until you are so full you cannot move.
they'll keep doing this until there are consequences.
The Government has yet to pay back the IOU's it long ago borrowed from the Social Security "Trust" Fund...it's like a third mortgage on your home.
hmm.. latest Fed balance sheet, shows roughly net $20 bn of QE Treasury purchases. But those were not 'paid for' via typing reserves, which fell $8 bn.
Net of that all relatively minor account changes/deck chair rearranging ( the 'other asset' catagory Tyler is always on about fell this week), the FED needed to come up with $22 bn in new debt to pay for QE and reserve contraction. They achieved this because the Treasury deposited an added $22 bn in its checking account at the FED.
Don't know how the dates line up, but it is possible that money went from the pension funds to the Treasury into the FED?
One day, presumably, the Treasury will write checks on the account and/or have to pay back the pension funds (post lifting of the debt limit). The FEd could 'pay' for that by simply typing up the banks' reserve accounts yet again.
Bank reserves could keep right on growing (along with whatever stock and commodity speculation derived therefrom) even in the absence of a formal QE program.
And not a peep from the MSM about this and/or questioning the politicians on what they should do.
what if people with mortgages stopped paying their mortgages? what if everybody with money in the bank withdrew their money on the same day? what if?
I wonder how many sheeple will read this and still think their 401k, IRA, etc is safe.
I bet Leo K still thinks public pension funds are safe.