This page has been archived and commenting is disabled.

US Treasury Burns $90 Billion in 8 Days

Tyler Durden's picture




 

More scary stuff from the US Treasury which has resumed living auction to auction, even as it has plundered over $80 billion in G and CSRD retirement fund money to provide cap under the debt ceiling, a number which will eventually rise to $270 billion by August 2nd at which time all bets are off unless the politicos in DC finally relent with their soap opera and allow the inevitable $2 trillion debt ceiling hike (which probably won't happen. Instead Congress will start voting on incremental $200 billion debt ceiling hikes month to month in order to keep the public glued to their TV in a demonstration of just how fiscally prudent Congress is). In the meantime, here's the math: in the first 8 days of the month of June, the Treasury has seen its cash balance decline from $112.6 billion to $23.5 billion: a solid burn rate of $90 billion in just over a week. But lest readers think that this is due to paying down debt, it isn't: total US debt was flat (at the ceiling), while intragovernmental holdings declined by $20 billion to accomodate another $20 billion in marketable debt (see the plunder of retirement accounts discussed above). So how does one reconcile this data? Simple - in June the Treasury has collected $44 billion in withheld individual income taxes (and a whopping $400 million in corporate tax), while spending double that, or $89 billion. Fiscal prudence? Rhetorical.

June Cash:

June Debt:

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 06/09/2011 - 16:46 | 1355603 camaro68ss
camaro68ss's picture

Amerika, land of the in debted, home of the slave.

Me love Amerika

Thu, 06/09/2011 - 17:47 | 1355915 Strider52
Strider52's picture

Man, there's a GREAT pic of Bernanke burning money at

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/6/6_Peter_Schiff_-_We_Will_Destroy_the_Currency_Completely.html

  Someone with pic-posting priveledges should go get it and post it here. 

  Tyler? Tyler?

 

 

Fri, 06/10/2011 - 16:45 | 1359444 speconomist
speconomist's picture

There you go:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/6/6_Pet...

And remember that you have to pay the special fee (donation to Tyler and Marla) to be able to post pictures!

Thu, 06/09/2011 - 20:01 | 1356361 MarketTruth
MarketTruth's picture

We're all living in Amerika...

www.youtube.com/watch?v=yVKPuONDWyk

We're all living in Amerika
Amerika ist wunderbar
we're all living in Amerika
Amerika
Amerika

Do you want me?
(no I don't)
Do you need me?
(No I don't)
Dance with me I'm leading?
(No I can't)
Will you love me?
(No I won't)...

If you don't want me
(You'll get hurt)
If you don't need me
(You'll get hurt)
If you don't love me
(You'll get hurt)
Fuck you is the magic word

We're all living in Amerika
Amerika ist wunderbar
we're all living in Amerika
Amerika
Amerika

We're all living in Amerika
Coca Cola, Wonderbra
We're all living in Amerika
Amerika
Amerika...

Thu, 06/09/2011 - 16:50 | 1355634 equity_momo
equity_momo's picture

Dont fight the Fed? Bernanke should not fight the Math.

Thu, 06/09/2011 - 16:48 | 1355638 One_Eyed_Pony
One_Eyed_Pony's picture

I've been posting notes on US Treasury Daily and Monthly reports for years on what these Washington Wackos are doing...

 

Glad to see ZEROHEDGE finally picked up on my posts/threads in cyber-circus-world

Thu, 06/09/2011 - 16:55 | 1355660 Tyler Durden
Tyler Durden's picture

Oddly enough, we have been posting on the DTS for years too...

Thu, 06/09/2011 - 17:05 | 1355744 One_Eyed_Pony
One_Eyed_Pony's picture

Yes, we know the past... and had to correct your "mis-understanding" that the Treasury Supplemental Financing Program (TSFP) was active again and what it meant.

Thu, 06/09/2011 - 17:12 | 1355756 Tyler Durden
Tyler Durden's picture

The only "misunderstanding" is predicting ahead of everyone it was going to be shut down for the Treasury to avoid an early debt ceiling hit.

Here Comes Another $25 Billion In Excess Weekly Liquidity To Ramp Up Stocks

...followed promptly by this:

Whispers Of The Inevitable Unwind Of The Fed's SFP Program And The Ensuing $200 Billion Liquidity Injection Commence

Also it is SFP.

Thu, 06/09/2011 - 17:17 | 1355816 camaro68ss
camaro68ss's picture

Sorry one eye pony, Zero Hedge ALL THE WAY BITCHEZ!

Thu, 06/09/2011 - 20:10 | 1356396 holdbuysell
holdbuysell's picture

Seven minutes to reply and provide previously-posted data.

Nice.

Fri, 06/10/2011 - 08:56 | 1357439 writingsonthewall
writingsonthewall's picture

First rule of zero hedge - NEVER argue with Zero hedge

Now when does project mayhem start? or have I missed the boat on that one too?

Thu, 06/09/2011 - 17:50 | 1355922 Clayton Bigsby
Clayton Bigsby's picture

Dude, the hater store called - looks like they're all outta you...

Thu, 06/09/2011 - 22:58 | 1356818 JW n FL
JW n FL's picture

Hey Tyler! do you remember when I taught you how to type in word?

 

how about when I taught you how to drink vodka?

 

how about when I taught you how to order hookers 3 at a time? double winning is for bitchez! we triple win mother fuckers!

 

Tiger blood that! I taught Tyler his abc's! and his 123's!

 

as a matter of fact.. refreasher! http://www.youtube.com/watch?v=ODGA7ssL-6g

 

for all of those worried.. Tyler was not hurt in the typing of this silly shit! I am just sorry I missed this other dumb fuck above!?!!?!!!!!?????!!??!!?! damn it!

Thu, 06/09/2011 - 18:21 | 1356001 Kina
Kina's picture

1-eyed only came to advertise its site. Had to say some shit to get attention.

Thu, 06/09/2011 - 16:49 | 1355640 tony bonn
tony bonn's picture

well that's 4.1t annualized but the indonesian originally asked for 3.8xt....so what's the difference - libya or dubuya?

Thu, 06/09/2011 - 16:52 | 1355641 GeneMarchbanks
GeneMarchbanks's picture

"Instead Congress will start voting on incremental $200 billion debt ceiling hikes month to month in order to keep the public glued to their TV in a demonstration of just how fiscally prudent Congress is"

Really? This shitshow is on TV? Maybe this is just some theater for the Chinese since ,technically, they are the only ones who should care.

Thu, 06/09/2011 - 16:49 | 1355643 plocequ1
plocequ1's picture

I increased my weekly federal witholding tax an extra $50.00. Im having bad feelings

Thu, 06/09/2011 - 16:56 | 1355645 Spalding_Smailes
Spalding_Smailes's picture

When will this hit the street  ....

 

WASHINGTON (CNNMoney) -- Many American companies would love to move the big pot of money they make overseas back to the United States -- saying they could use the money to create jobs -- and they're pushing in Congress for a tax break to do so.

But as Congress continues to grapple with mounting budget deficits, and amid talk of revamping the tax system, the corporate tax holiday could get traction. Generally, the U.S. corporate tax rate stands at 35%, the highest in the industrialized world. But companies don't have to pay that rate on profits made outside of the United States. So lots of companies shelter profits offshore.

The tax holiday would lower the corporate tax rate to 5.25% for big companies such as the bill's proponents -- including Google , Oracle, CiscoProponents say the move would bring as much as $1 trillion into the United States, spur big companies to create jobs and give Treasury more revenue to work with to slash mounting federal deficits.

But tax holiday opponents, including Treasury Secretary Timothy Geithner, are skeptical. They say a similar holiday in 2004 didn't spur companies to hire more or grow.

Nevertheless, last week, a bipartisan group of lawmakers filed a bill that would reduce the corporate tax rate to 5.25% on offshore earnings brought back to the United States.

 

http://money.cnn.com/2011/05/20/news/economy/tax_holiday_offshore_profit...

 

Thu, 06/09/2011 - 16:57 | 1355686 Tyler Durden
Tyler Durden's picture

This hit the street 4 months ago when both Zero Hedge and the street found it would have no impact whatsoever on anything.

  1. In 2005, HIA-1 delivered much less in direct employment and
    investment than promised. For example, see “Tax Incentives and Domestic
    Investment: An Empirical Analysis of the Repatriation Decisions of U.S.
    Multinational Corporations Following the Implementation of the Homeland
    Investment Act of 2004” Michaele L. Morrow, Ph.D,. Dissertation, Texas
    tech University, May 2008, or “Watch What I Do, Not What I Say: The
    Unintended Consequences of the Homeland Investment Act “ J Dhammika
    Dharmapala, C. Fritz Foley and Kristin J. Forbes, Journal of Finance,
    forthcoming (2011).
  2. Under HIA-1, the incentives to increase
    employment and investment were limited. The major impact of HIA-1 was to
    allow foreign earnings to be repatriated at low tax rates, with few
    binding additional requirements. From firm’s point of view, HIA-1 was
    equivalent to a lump-sum tax benefit which would generate additional
    investment and employment primarily in cases in which firms had
    restricted access to credit markets. Firms with large amounts of profits
    abroad probably could borrow domestically for hiring or capital
    expansion so would not have been constrained in their prior investment
    decisions.
  3. Crafting a bill that increases direct marginal
    incentives for employment and investment is difficult. If the
    requirements are too stringent, firms will simply pass on repatriation.
    If firms are already unconstrained with respect to hiring and
    investment, a marginal increase may bring forward investment plans into
    2011, with some payback in subsequent years. If the terms are relatively
    lax, as in HIA-1, the impact on direct employment and investment will
    be small.
  4. The firms that have the money abroad (tech, pharma)
    are not the sectors that need the most balance sheet help (households,
    real estate, state and local government) nor does it help firms whose
    operations are primarily domestic.
  5. Repeating HIA produces
    incentives for firms to keep funds abroad. There is the risk that firms
    will see HIA as a once or twice a decade low-tax repatriation
    opportunity. The extent of these incentives depends on the gap between
    US domestic and foreign tax rates. The combined effect of HIA plus a
    reduction in US corporate rates would largely mitigate these incentives.
    Surprisingly, BEA data suggests that until the possibility for HIA-2
    emerged again in early 2009, the aggregate dividend repatriation rate
    was not much lower than it had been prior to HIA-1(Figure 1), and the
    low repatriation since 2009 could also reflect limited US investment
    possibilities.
Thu, 06/09/2011 - 16:58 | 1355708 Spalding_Smailes
Spalding_Smailes's picture

Just passing along the update ....

 

Proponents say the move would bring as much as $1 trillion into the United States, spur big companies to create jobs and give Treasury more revenue to work with to slash mounting federal deficits.

Thu, 06/09/2011 - 17:05 | 1355745 Nathan Muir
Nathan Muir's picture

No, you pass on garbage MSM propaganda. 

Fri, 06/10/2011 - 03:36 | 1357110 A Man without Q...
A Man without Qualities's picture

Proponents say the move would bring as much as $1 trillion into the United States, spur big companies to buy back stock from preferred clients, pay large bonuses to senior management, and encourage more businesses to move operations offshore (tax deductible exceptional costs) in order to take advantage of next tax holiday, shove money to lobbyists and into the coffers of campaign funds and give Treasury more time to come up with a weak excuse why it has not helped to slash mounting federal deficits.

I think that's fixed it...

Thu, 06/09/2011 - 18:02 | 1355953 Fiat2Zero
Fiat2Zero's picture

Smailes you're weak.  Express an opinion that isn't regurgitated directly from your squid Master.

Thu, 06/09/2011 - 19:18 | 1356187 karzai_luver
karzai_luver's picture

take it like a man(?) after a crushing like that....just pull the covers

over yer head son.

 

 

Thu, 06/09/2011 - 19:41 | 1356282 cosmictrainwreck
cosmictrainwreck's picture

poor bastard thought he had somethin' (finally) ooops..........

Thu, 06/09/2011 - 20:34 | 1356489 prophet
prophet's picture

In just one minute.

Amazing.

Thu, 06/09/2011 - 16:58 | 1355711 101 years and c...
101 years and counting's picture

ROFL!  companies just want to bring that cash back so they can buy back company stock so the execs can sell at higher prices.  they dont want to hire anyone.

seriously, anyone believing this garbage needs to get examined.

 

Thu, 06/09/2011 - 17:31 | 1355858 earnyermoney
earnyermoney's picture

+1

Thu, 06/09/2011 - 17:36 | 1355873 SilverDosed
SilverDosed's picture

Hey, at least they're not causing giant disasters *cough BP* to drive the price of their stocks down for major buybacks and then laughing at the measley couple billion they dont actually pay for the cleanup.

Thu, 06/09/2011 - 18:11 | 1355977 tiger7905
tiger7905's picture

Here's where Royal Bank of Scotland is getting there excess funds, screw the little guy. They put loan sharks to shame.

http://goldandsilverlinings.com/?p=1172

Thu, 06/09/2011 - 17:46 | 1355911 Fiat2Zero
Fiat2Zero's picture

You're such a shill smailes.  The only question is whether you get paid for your shilling, or whether you're doing it "pro bono" (i.e. begging at the Master's table for some scraps).

MSM puppet.

Thu, 06/09/2011 - 16:50 | 1355646 JollyRoger
JollyRoger's picture

No one can stop the QE deficit spending love affair.  Their feelings for one another are too strong.

 

http://www.silvercointrader.com/

Thu, 06/09/2011 - 16:57 | 1355705 bigdumbnugly
bigdumbnugly's picture

i bet they'll have ugly offspring...

Thu, 06/09/2011 - 17:10 | 1355754 cougar_w
cougar_w's picture

http://www.thesahara.info/movies//deliverance_guitar.jpg

And the actor was not actually in-bred. But they all say that.

Thu, 06/09/2011 - 16:54 | 1355650 A Man without Q...
A Man without Qualities's picture

Just to put this into context, Apple's recent blockbuster quarter produced $25 billion in revenue, and $5.99bn profit.  So this profit would only cover the government deficit for ONE FUCKING DAY!  

Thu, 06/09/2011 - 17:09 | 1355748 LongBalls
LongBalls's picture

Please do not put anything into context ever again. Doom will not come if we do not focus on it.

Thu, 06/09/2011 - 16:51 | 1355654 Temporalist
Temporalist's picture
Fresh Downgrade Threat to U.S. Debt

"A third rating agency threatened to downgrade the U.S. government's credit status if Congress failed to increase the nation's borrowing limit by early August, increasing pressure on lawmakers and the Obama administration to reach a deficit-reduction deal."

http://tiny.cc/5qlwx

Thu, 06/09/2011 - 17:00 | 1355713 cougar_w
cougar_w's picture

The rating agencies work for the banks. The banks want the QE3, and they want it yesterday. Increasing the borrowing limit is necessary since the Tres needs to sell bonds into queasing for the Fed to monitize as part of QE3 for the banks. Without a rise in the debt ceiling the beautiful music stops.

And we cannot have that, certainly not.

Thu, 06/09/2011 - 16:52 | 1355666 101 years and c...
101 years and counting's picture

obama on vacation again this week....burning thru the cash?

 

Thu, 06/09/2011 - 17:36 | 1355869 Waterfallsparkles
Waterfallsparkles's picture

When Obama won the Presidency he thought he won an all expense vacation for 4 years to anywhere he wanted to go.  Only prerequisite was to give a speech every now and then.

Thu, 06/09/2011 - 16:52 | 1355667 Rodent Freikorps
Rodent Freikorps's picture

Blue Oyster Cult - Burnin for you

http://www.youtube.com/watch?v=utTrbSo3hS4

 

Thu, 06/09/2011 - 16:59 | 1355670 HamyWanger
HamyWanger's picture

And so what???

It's not like we're a poor country. We have the means to spend all that money in one week. We ain't no Bangladesh or Zimbabwe. 

I can't imagine for a second the United States of America going bankrupt.

Thu, 06/09/2011 - 17:00 | 1355714 JuicedGamma
JuicedGamma's picture

Well then just stick your head in the sand.

Thu, 06/09/2011 - 17:06 | 1355750 Coke and Hookers
Coke and Hookers's picture

I remember asking one of my Ph.D. econ student buddies at university what he thought of the current account deficit. Being a non-econ student, and therefore unenlightened, I wanted to benefit from his wisdom. Note that this was back in 1996 when the deficit was small compared to now. My buddy (who is now an econ professor at a very respected university) cleared his throat and said: "Well, a deficit means that more goods are coming into the country than are exiting it, so that's a good thing. It means that the country is getting richer." Since then the US has gotten very rich indeed.

Thu, 06/09/2011 - 17:18 | 1355819 Dr. No
Dr. No's picture

Actually he is right....if you measure wealth in property and goods.  We are exporting promises to pay (fiat) for durable goods, to be held in our possession.  The trick will be on a predetermined day, announce the fiat is no longer redeemable.  We can then keep all the goods without risk of some other country looking to spend all that fiat we exported.

Thu, 06/09/2011 - 17:36 | 1355857 Coke and Hookers
Coke and Hookers's picture

Yes I know but this illustrates what these guys were being taught. They just looked at one side of the equation. They didn't take into account...

...that money is debt and increased debt results in devaluation and the transfer of real assets from the debtor to the debt holder.

...that account deficit is partly the result of less domestic-wealth creation and (later) the deindustrialization of the country.

...that imported goods amortise and lose their value while the debt incurred by their purchase grows.

... etc etc

What my friend was actually saying is that the country will get richer by creating less wealth. This is what they were taught and the model the economy was/is based on. Even if the fiat money were to be declared unredeemable at some point, the wealth imported would have lost most of its value and the nation would be poor AND unable to create wealth.

Thu, 06/09/2011 - 17:36 | 1355882 Dr. No
Dr. No's picture

My premis of getting richer by importing requires a sudden change in currency (break the contract).  Breaking the contract of course requires a big stick and is a very dishonest strategy; something you would expect from Dr. No, not a mainstream curriculum.

Thu, 06/09/2011 - 17:48 | 1355927 Coke and Hookers
Coke and Hookers's picture

Well the contract IS being broken now by the devaluation of the dollar. As a bonus, the budget deficit will move all wealth from the slave class to the elite - both current and future wealth. This is a very dishonest strategy to say the least. Makes me think that some Dr. No may be in charge.

Thu, 06/09/2011 - 17:48 | 1355917 Fiat2Zero
Fiat2Zero's picture

That's because you're a fucking replicant hamy.  You can't imagine anything because your Masters won't let you.

 

Thu, 06/09/2011 - 17:51 | 1355932 Coke and Hookers
Coke and Hookers's picture

Hamy is just being cynical on purpose. In fact, his comments perfectly mirror what most people think. That's what makes them outrageous to us.

Thu, 06/09/2011 - 16:55 | 1355676 drink or die
drink or die's picture

Just like a virus, it keeps going and going until nothing is left.  Protect what you, can I suppose.

Thu, 06/09/2011 - 16:52 | 1355678 One_Eyed_Pony
One_Eyed_Pony's picture

One Other Thing...

 

The US FEDERAL RESERVE = racketeering/counterfeiting/RICO monetary terrorist!

 

PS: accomplices = US Treasury and Capital Hill

Thu, 06/09/2011 - 17:07 | 1355752 Nathan Muir
Nathan Muir's picture

In other news, the sky is blue. 

 

This is fight club, not yahoo.

Thu, 06/09/2011 - 17:20 | 1355790 hambone
hambone's picture

Digital, socially networked "fight club" minus the fighting but with lots of nasty vitriol!!

I'd digitally kick any of your asses for claiming gold sucks (unless I actually met you and then I'd totally apologize and totally agree).

Thu, 06/09/2011 - 17:29 | 1355834 Dapper Dan
Dapper Dan's picture

In other, other news,

@Reuters FLASH: U.S. Secretary of State Hillary Clinton seeking World Bank presidency, sources say
Thu, 06/09/2011 - 17:16 | 1355799 skohiu
skohiu's picture

CapitOl Hill

Thu, 06/09/2011 - 16:56 | 1355684 chdwlch1
chdwlch1's picture

Anyone know if there is a new POMO schedule between now and June 30th? The latest schedule I have shows a final settlement date of tomorrow (June 10th).

Thu, 06/09/2011 - 16:54 | 1355687 Trundle
Trundle's picture

Who do they think they are? 

A biotech startup?

Thu, 06/09/2011 - 17:03 | 1355688 Alcoholic Nativ...
Alcoholic Native American's picture

Propaganda bullshit.  Plundering retirement funds?  lol, who are they trying to fool?

They will keep these ignorant senile geezers placated and medicated before they even start to give a shit about the youth.  They already have.  After all they are the ones who vote on emotion while the younger generation has already been disillusioned with this western democracy BULLSHIT.

Thu, 06/09/2011 - 16:59 | 1355694 billwilson
billwilson's picture

Try something scary! Ask the average person how many millions there are in a trillion. Bet you fewer than 50% can tell you. People have no concept about how big trilliosn and billions are. They are all just "big numbers".

Thu, 06/09/2011 - 17:12 | 1355783 hambone
hambone's picture

7?  Do I win something?

Thu, 06/09/2011 - 17:33 | 1355851 bigdumbnugly
bigdumbnugly's picture

just bill's respect...

Thu, 06/09/2011 - 18:46 | 1356080 NotApplicable
NotApplicable's picture

I was told there would be no math.

Thu, 06/09/2011 - 17:08 | 1355740 gwar5
gwar5's picture

..

Thu, 06/09/2011 - 17:08 | 1355741 gwar5
gwar5's picture

Folks, better get a self-directed IRA and secure it in a bunker by any legal means possible. It's clear where Treasury is going --- this is the turn to Argentinaville.

Besides, our dear leaders don't think it's fair that some saved while others did not. Might still be time before the election.

Thu, 06/09/2011 - 17:08 | 1355755 Alcoholic Nativ...
Alcoholic Native American's picture

Yes, cause the treasury is not to be trusted with injecting liquidity, lets leave it up to the private federal reserve.

"this is the turn to Argentinaville."

That is what has been engineered.  Fuck the election.

Thu, 06/09/2011 - 17:05 | 1355747 whoopsing
whoopsing's picture

Ignorance make's it easier for the sheeple to keep grazing unfettered with such worry

Thu, 06/09/2011 - 17:13 | 1355762 RobotTrader
RobotTrader's picture

The problem is that the Fed is not printing fast enough.

Bernanke needs to think like Japan, and print at a faster rate than spending.

Then and only then can the U.S. enjoy:

- Infinite Fiat Financing as far as the eye can see

- A surging currency that requires repeated intervention to hold its value down

- Sub 2% 10-yr. Treasury yields, negative T-Bill spreads

 

Thu, 06/09/2011 - 17:26 | 1355830 hambone
hambone's picture

C'mon Robo,

it's not that they aren't printing fast enough; it's that they aren't enticing folks to take the loans. 

You know the real answer, pay people 1% to take the loans (just like we do w/ the PD's) but charge them 1% interest for non-valued activities like savings in a bank.  Risk on.

Thu, 06/09/2011 - 17:49 | 1355918 Fiat2Zero
Fiat2Zero's picture

This will be remedied soon enough.

Thu, 06/09/2011 - 19:00 | 1356125 Robslob
Robslob's picture

Robo even marathon runners get tired...

Thu, 06/09/2011 - 17:13 | 1355764 cougar_w
cougar_w's picture

That's a serious crack habit you got there Tim.

Thu, 06/09/2011 - 17:24 | 1355826 camaro68ss
camaro68ss's picture

skip the pipes and go right to the neddle

Thu, 06/09/2011 - 17:34 | 1355856 Michael Victory
Michael Victory's picture

johnny blaze

Thu, 06/09/2011 - 18:02 | 1355955 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

He can stop anytime he feels like it.  He just doesn't feel like it right now.

Thu, 06/09/2011 - 17:18 | 1355784 Michael Victory
Michael Victory's picture

2011 - US Treasury Burns $90 Billion in 8 Days

2012 - US Citizens Burn Paper Currency to Keep Warm

Thu, 06/09/2011 - 17:18 | 1355818 Rodent Freikorps
Rodent Freikorps's picture

Just as a thought experiment, what are you going to light on fire tonight?

 

Thu, 06/09/2011 - 17:25 | 1355820 Alcoholic Nativ...
Alcoholic Native American's picture

This is propaganda.

Income taxes?  Quaint relics.

It's like the GOP strategy at this point.  Loot what you can, taxes don't actually go to pay anything, it would just hinder the "recovery"(You can't lose with this strategy! The rich get it the plebes are idiots).  Tyler you need to stop posting this propaganda bullshit.

 

Thu, 06/09/2011 - 17:20 | 1355824 slewie the pi-rat
slewie the pi-rat's picture

you had me in a freaking swoon @:  "...- in June the Treasury has collected $44 billion in withheld individual income taxes (and a whopping $400 million in corporate tax), while spending double that, or $89 billion."

i've fallen & i can't get up!

Thu, 06/09/2011 - 17:21 | 1355827 BlackholeDivestment
BlackholeDivestment's picture

http://www.youtube.com/watch?v=Wp3x6l5dZp8

I hereby (my authority equal with the Constitution) arrest the Department of Treasury for espionage. Think I'm joking? Inflation is your only way to tax zero interest and I refuse to provide labor. I'm your black hole, Bitch. Ah haa haa. Arrested!!!

http://www.youtube.com/watch?v=KQ5-BTdcqjk

Thu, 06/09/2011 - 22:48 | 1356785 JW n FL
JW n FL's picture

that was a like a double time machine!

Thu, 06/09/2011 - 17:29 | 1355835 Eireann go Brach
Eireann go Brach's picture

One eyed pony..is that you Timmay Geitner? I knew you read Zero Hedge....You are a fucking idiot!

Signed

Everyone in America

Thu, 06/09/2011 - 17:30 | 1355836 Waterfallsparkles
Waterfallsparkles's picture

How many of those Billions went to POMO.  To support the Bankers?  That is the question.

So, Federal Retirement Funds are fair game for looting to keep Bankers and Wall Street Up.

Maybe they should just tell the Federal Workers their Retirement is an Entitlement, subject to reduction or cancelation.

Thu, 06/09/2011 - 17:31 | 1355859 Dr. Acula
Dr. Acula's picture

So basically the Treasury devours an Apple ($307B) every 27 days?

Thu, 06/09/2011 - 17:39 | 1355881 Vendetta
Vendetta's picture

After a long week burning megacash ... now its miller time ...

Thu, 06/09/2011 - 17:40 | 1355897 MonsterZero
MonsterZero's picture

Now Hillary can bail us out when she becomes head of the World Bank. Approve her or get labelled terrorist nation or worse we'll open up a can of twitter on your ass!

Thu, 06/09/2011 - 17:51 | 1355923 Fiat2Zero
Fiat2Zero's picture

We've definitely gone "full metal Alice in Wonderland" here.  I'm starting to think reality is just a simulation, run on a bunch of PS3 machines.

Thu, 06/09/2011 - 18:00 | 1355948 rsnoble
rsnoble's picture

still gota catch up to michael jackson.

Thu, 06/09/2011 - 18:36 | 1356045 Harbourcity
Harbourcity's picture

Not to be a conspiracy nut, but isn't this the best way to access retirement funds in a passive aggressive way - all the while being able to play the victim while you're doing it...?

Thu, 06/09/2011 - 18:33 | 1356046 jo6pac
jo6pac's picture

Well those employees didn't need no stinkin pension any way.

Thu, 06/09/2011 - 18:39 | 1356062 davepowers
davepowers's picture

The drawdown of the Treasury's checking acct at the FED shows again that bank reserves may well continue growing even if/when QE2 wraps up.

This week's Fed balance sheet showed the FED bought $22 bn in treasury paper. This was all QE2, as there was no MBS/GSE rollover (QE Lite).

But bank reserves went up $70 bn, covering not only the $22 bn QE purchases, but the $50 bn drawdown in Treasury cash reserves.

Also, the above title is wrong according to the Fed's balance sheet. The Treasury's checking account was reduced by $50 bn so far in June, not $90 bn. The account balance was only $74 bn on June 1.

http://www.federalreserve.gov/releases/h41/20110602/

See note 8.

Thu, 06/09/2011 - 22:52 | 1356796 JW n FL
JW n FL's picture

Dave.. whats a few 10's of billions? when it belongs to the tax payers? we dont care about them Dave! we are just throwing around their monies.. so that we have an excuse to print some more.. dont you love the smell of ink in the morning Dave? I do.

 

dont sweat the lil things Dave.. for every 10 billion you can find they have robbed "We the People" of.. there is another 100 billion that is off book, sucker ass sucker! at least!

Thu, 06/09/2011 - 18:45 | 1356065 gianakt
gianakt's picture

Large US banks using QE2 money to short stocks. Only in America. God Bless America!!!

Thu, 06/09/2011 - 19:11 | 1356135 Use of Weapons
Use of Weapons's picture

Rorschach: [Turns] Never compromise. Not even in the face of Armageddon. That's always been the difference between us, Daniel.
[
Leaves the building]
Adrian Veidt: I've made myself feel every death... see every innocent face I've murdered to save humanity.
[
Turns to Jon]
Adrian Veidt: You understand, don't you?
Jon Osterman: Without condoning... or condemning. I understand.

 

 

 

Deal has already been done, ladies. (For the hollow men; dark pools drain your Cassandra touch, dark pools drain mercurial liquidity... and now, all is void, gone beyond your cold touch).

 

C'est Fini.

Thu, 06/09/2011 - 19:06 | 1356150 PulauHantu29
PulauHantu29's picture

Tytler, can you please refer econ 101 flunkies like me where to read to better understand the Fed balance sheet and its relation/transactions to the Treasury. A nice article or book would be delightful. I try to learn from bits and poeice but need a more organized approach.

Of course, all reasonable suggestions are welcomed.

Thanks!

Fri, 06/10/2011 - 08:56 | 1357435 writingsonthewall
writingsonthewall's picture

.

Mon, 06/13/2011 - 22:45 | 1366726 jonjon831983
jonjon831983's picture

I forgot, what is the gov't burning all this cash on every day?

Do NOT follow this link or you will be banned from the site!