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US Treasury Burns $90 Billion In Cash In Under Two Weeks

Tyler Durden's picture


Now that's what one calls prudent fiscal planning...

Source: DTS

Now granted this is mostly due to paying off maturing Bills, which Geithner can't roll due to the debt ceiling being breached. But keep in mind that as we pointed out in T-Minus Two Months Until The $500 Billion Rolling Debt Ticking Timebomb Goes Off that there is nearly $500 billion in maturing short and long-term debt in the next month and a half which there will be no money to fund unless a debt ceiling decision is reached, but not by August 2, but July 22... or a week from today. And with Boehner refusing the Camp David dance invitation today, one can see why for the first time this afternoon we saw a coordinated sell off in bonds and stocks as the market is finally asking "what if..."




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Thu, 07/14/2011 - 16:22 | 1457376 ffart
ffart's picture

Catastrophic things will happen if they don't get their next dose of heroin.

Thu, 07/14/2011 - 16:53 | 1457528 malikai
malikai's picture

Treasury> Spare some change?

Me> Fuck off, parasite. Get a job.

Treasury> I just need money for a bus.

Me> Sorry. Get a job.

Thu, 07/14/2011 - 18:34 | 1457821 flacon
flacon's picture

If the date is July 22nd, then why are all the politicians talking about August 2nd? Can someone let me know? Thanks!

Thu, 07/14/2011 - 19:10 | 1457908 Cassandra Syndrome
Cassandra Syndrome's picture

Red Tape. They need agreement on the Debt Ceiling by 22nd July at the latest, so that it has time to be officially legislated and prepared and ready for Darth Obama's signature by August 2nd.

Thu, 07/14/2011 - 19:20 | 1457936 flacon
flacon's picture

Thank you. 

Thu, 07/14/2011 - 21:24 | 1458192 Harb
Harb's picture

You mean Oh Blama's Bday party on the 3rd

Thu, 07/14/2011 - 20:56 | 1458122 V in PA
V in PA's picture

Just one fix. I promise it's the last one!!

Thu, 07/14/2011 - 16:22 | 1457378 Robslob
Robslob's picture

They just bought Google with it...up 10% (53 points AH)....



Thu, 07/14/2011 - 16:25 | 1457387 mynhair
mynhair's picture

GOOG chopped heads, so buy!

Thu, 07/14/2011 - 16:23 | 1457381 Clueless Economist
Clueless Economist's picture

Looks prudent to me.  Why didn't they blow through 2 or 3 times as much.  Just think of the jobs created or saved!

Thu, 07/14/2011 - 21:40 | 1457637 TruthInSunshine
TruthInSunshine's picture

Dr. Krugman,

Would GOOGLE's CEO be wise to offshore more jobs to India, which has lower wages, but an english speaking and technically proficient labor force, especially in the IT sector?

What would John Maynard Keynes have said about this possibility, its consequences to both the U.S. and India, and to tax revenues and government expenditures?

Finally, which locale would Keynesianism hold out as the ideal place, given comparative advantages, to build a massive, 5 million square foot shovel factory, to equip the Keynesian Model worker of the future, for his/her shovel ready job?

My best guess is either in Guangdong Province, China, or Indonesia.


Thank you for your response.

Thu, 07/14/2011 - 16:24 | 1457385 mynhair
mynhair's picture

Never let children play with matches.

Thu, 07/14/2011 - 16:25 | 1457389 JW n FL
JW n FL's picture

Austerity for the Rich!


and "We the People" are the back stop and the form of payment in the event of a default! PLUS! "We the People" will pay 6% to the Federal Reserve for the Loan!


Wake Up!


When the Federal Reserve Loans Money to the United States of America! "We the People" pay / carry the interest!

Thu, 07/14/2011 - 18:11 | 1457764 flacon
flacon's picture

There is nothing wrong with being rich - it's HOW you got rich (by stealing, or did you get rich honestly) - and some of the richest people in the world are still up to their eyeballs in debt - remember when Donald Trump filed for bankruptcy a few years ago? 

Thu, 07/14/2011 - 21:56 | 1458236 ThirdCoastSurfer
ThirdCoastSurfer's picture

You're right, there is nothing wrong with being rich. 

I would however like to have someone who is rich and is Howard Beale mad over repeal of the Bush tax cuts to submit to an analysis of what they pay in taxes as compared to an analysis of the cost of the government services they use. 

It's a little hard to define what I mean, but I'm cynical enough to suggest that the madder you are, the more you are hiding. Besides, surely the rich (and I really mean business owners and their employees/staff/families) do things like fly more than average, so the cost of TSA and even airports should be considered. The rich travel overseas so the cost of protecting them, they own larger properties, drive more and live farther away so the cost of extended infrastructure should be factored in. I know there are other taxes that offset some of this, but on balance it would just be interesting to see the big picture and how it all is really distributed because figures don't lie but liars figure and the truth doesn't matter as much as perception and finding the proper spin to promote your cause.     

Thu, 07/14/2011 - 22:25 | 1458285 JW n FL
JW n FL's picture

Do you have a couple Global Expresses?

Do you have a super yacht with a sister?

Do you have trusts that hedge against each other? on and off shore?


Do you know that $20 Million net worth and under is considered middle class?


well, I think we have cleared up what is the difference is.

Thu, 07/14/2011 - 18:49 | 1457869 sun tzu
sun tzu's picture

First you need to define the rich. In California, anyone with over $46,000 of taxable income is in the highest tax bracket aka the "rich"

Thu, 07/14/2011 - 17:06 | 1457394 Sudden Debt
Sudden Debt's picture

Maybe they upgrade from Ipad 1 to 2 for every government employee?

I've heard the IPAD1 can't run the US AUSTERITY APP.

whatever. What's 90 billion in a trillion dollar world?


Did anybody see the Google revenue?

Revenue of 7,85$ per share this Q with a pricetarget of 600$?



Revenue soared 36 percent to $6.92 billion from $5.09 billion a year ago.

Analysts expected Google to earn $7.85 a share on revenue of $6.55 billion, according to Thomson Reuters.

Net income increased 36 percent to $2.51 million, or $7.68 a share.

Google shares have a had a rocky week after a downgrade by Morgan Stanley, which cut its price target on the stock to $600 from $645.


This is how the 2000 tech bubble looked like and ended:

But this time will be different off course... of course...


Thu, 07/14/2011 - 17:25 | 1457652 TruthInSunshine
TruthInSunshine's picture

What's really interesting is that there non-GAAP earnings "crushed" estimates, while their GAAP eps came in at....

....tada!!!  Estimates.

Thu, 07/14/2011 - 16:27 | 1457395 SokPOTUS
SokPOTUS's picture

Bah.  Cash is trash.  Timmay knows what Ben's been up to...

Thu, 07/14/2011 - 16:27 | 1457396 WallStreetClass...'s picture

Dude, these are not linear. Look at the opening balance at the beginning of the year. Stop posting junk, please?

Thu, 07/14/2011 - 16:27 | 1457400 mynhair
mynhair's picture

"what if..."

Little TaxCheat gets a bridge loan from JPM?

If the Morgue will do it for CA, they'll do it for any bankrupt entity.

Thu, 07/14/2011 - 22:29 | 1458293 JW n FL
JW n FL's picture

what is the Bridge Attached too?


JPM may be looking at some very nice Un-Emcumbered Property on the beach on down town? but I doubt that Cali got a freebie from JP.. because JP had the loan sold before it wrote the contract.

Thu, 07/14/2011 - 16:28 | 1457405 Helena Bonham-Carter
Helena Bonham-Carter's picture

For our losses the exchequer is too poor; for th' effusion of our blood, the muster of its kingdom too faint a number; and for our disgrace, even Obama kneeling at our feet but a weak and worthless satisfaction.

Thu, 07/14/2011 - 16:46 | 1457489 slewie the pi-rat
slewie the pi-rat's picture

nice to seeya spending more time @ the fight club set!

whatever, you do, don't scream with prez0 kneeling at yer feet like that.  think what could happen!  oh!  the humanity!  LOL!

Helena Bonham Carter Remembers Peeing Herself During Harry Potter | Movieline

Thu, 07/14/2011 - 16:28 | 1457406 Hondo
Hondo's picture

They're out of control and need to be taken off the track to cool down for awhile.

Thu, 07/14/2011 - 16:32 | 1457415 mynhair
mynhair's picture

"Put down" would be a more appropriate racing term.

Thu, 07/14/2011 - 17:24 | 1457642 CH1
CH1's picture

Uh... yeah, but they don't want to, and they employ all the armed men.

Thu, 07/14/2011 - 18:08 | 1457757 Max Hunter
Max Hunter's picture

Exactly!!.. Like sex with Kobe or Ben Toothlessburger.. you can try to say no.. but.. .. but.. it's gonna happen..

Thu, 07/14/2011 - 16:29 | 1457408 Tense INDIAN
Tense INDIAN's picture

indian IT  index n nifty updates::

Thu, 07/14/2011 - 16:33 | 1457418 mynhair
mynhair's picture

Dang, didn't know those redskins had a market.  What's the listing for Firewater?

Thu, 07/14/2011 - 16:36 | 1457433 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

$90b used to be a lot of money... sadly, it wasn't too long ago.

Still the citizenry sit idle by, they will literally put up with anything. Proven 100%.

Thu, 07/14/2011 - 16:41 | 1457467 NotApplicable
NotApplicable's picture

Well, a dollar used to be money.

Thu, 07/14/2011 - 16:43 | 1457475 Sudden Debt
Sudden Debt's picture

Gold also used to be money... now it's only a tradition

Thu, 07/14/2011 - 16:42 | 1457469 Sudden Debt
Sudden Debt's picture

I only need to work about 100.000 years for that money.

If only if I where able to keep my luxery expenses like morgage, food and clothing at zero....

so make that 150.000 years give or take...

Thu, 07/14/2011 - 16:38 | 1457447 HungrySeagull
HungrySeagull's picture

If I had 90 Billion, there is no way I can spend all that in two weeks. Hell I might just use most of it to keep my county solvent and take care of the people in my area. They would spend it better than I ever can.

With that said, I might indulge in a small jet and learn how to fly it.

Thu, 07/14/2011 - 16:45 | 1457483 Sudden Debt
Sudden Debt's picture

It's only 300$ per inmate, I mean American, I mean person who lives in America.


Thu, 07/14/2011 - 16:48 | 1457497 mynhair
mynhair's picture

Lightweight.  Buy a shuttle and get the flock out of Dodge with $90 bil.

Of course then the IRS would start their own space program.

Thu, 07/14/2011 - 16:44 | 1457481 Cognitive Dissonance
Cognitive Dissonance's picture

US Treasury Burns $90 Billion In Cash In Under Two Weeks

This has got to be a Freudian slip.....right Tyler? Because they only burned cash in Wiemar Germany and recently in Zimbabwe.

Say it ain't so Tyler, say it ain't so.

Thu, 07/14/2011 - 16:50 | 1457513 mynhair
mynhair's picture

Didn't you get your $2 in the mail for the AIDS survey?

Thu, 07/14/2011 - 16:47 | 1457493 Piranhanoia
Piranhanoia's picture

They had to bail out Vulgaria, Moronica and Sylvania. They have blackmail on so many folks claiming to be born in this country.

Thu, 07/14/2011 - 21:04 | 1458140 V in PA
V in PA's picture

and  Jackoffinstan.

Thu, 07/14/2011 - 16:48 | 1457496 bugs_
bugs_'s picture

the train seems to go faster as it approaches the end of the tracks

Thu, 07/14/2011 - 17:07 | 1457584 Jimminy Christmas
Jimminy Christmas's picture


Thu, 07/14/2011 - 16:48 | 1457500 r101958
r101958's picture

90 billion = over $600 for every working person in the U.S.>>>in two weeks

Thu, 07/14/2011 - 16:52 | 1457525 Sudden Debt
Sudden Debt's picture

I don't think they spend it on working people :)


Thu, 07/14/2011 - 17:12 | 1457599 fuu
fuu's picture

Well, working girls maybe.

Thu, 07/14/2011 - 16:49 | 1457505 papaswamp
papaswamp's picture

$90 Billion or 5x's the projected revenue ($2 Trillion over 10 yrs) amount of possible revenue gained from taxing the 'wealthy' per month.

Thu, 07/14/2011 - 16:54 | 1457506 adr
adr's picture

You know if you told investors at the top of the last bubble that corporations like Lulu, Netflix, Autozone, Chipotle, and Priceline would be trading at the levels they are now, they would have said you were insane.

Can you imagine in 2007 saying, "Hey I think Priceline is a $500 stock."

Ever see the movie Fail Safe? I think a couple guys want to drop the bomb just to see what will happen. This market has inflated to a 100 Megaton warhead aimed straight at the heart of America.

Thu, 07/14/2011 - 16:58 | 1457548 papaswamp
papaswamp's picture

William Shatner is a goldmine!

Thu, 07/14/2011 - 17:21 | 1457627 HungrySeagull
HungrySeagull's picture

I pity the Executor who has to process the estate.


It will take a decade to sort the claims. But the other hand 4% of the total value will make a pretty good living.

Thu, 07/14/2011 - 17:32 | 1457675 TruthInSunshine
TruthInSunshine's picture
by adr
on Thu, 07/14/2011 - 16:54

You know if you told investors at the top of the last bubble that corporations like Lulu, Netflix, Autozone, Chipotle, and Priceline would be trading at the levels they are now, they would have said you were insane.

Can you imagine in 2007 saying, "Hey I think Priceline is a $500 stock."

Ever see the movie Fail Safe? I think a couple guys want to drop the bomb just to see what will happen. This market has inflated to a 100 Megaton warhead aimed straight at the heart of America.


by TruthInSunshine
on Thu, 06/16/2011 - 14:20

The Winners of the New World By Jim Cramer 02/29/00 - 09:42 AM EST

You want winners? You want me to put my Cramer Berkowitz hedge fund hat on and just discuss what my fund is buying today to try to make money tomorrow and the next day and the next? You want my top 10 stocks for who is going to make it in the New World? You know what? I am going to give them to you. Right here. Right now. OK. Here goes. Write them down -- no handouts here!:


724 Solutions (SVNX), Ariba (ARBA_), Digital Island (ISLD), Exodus (EXDS), (INSP_), Inktomi (INKT), Mercury Interactive (MERQ), Sonera (SNRA), VeriSign (VRSN_) and Veritas Software (VRTS_).


We are buying some of every one of these this morning as I give this speech. We buy them every day, particularly if they are down, which, no surprise given what they do, is very rare. And we will keep doing so until this period is over -- and it is very far from ending. Heck, people are just learning these stories on Wall Street, and the more they come to learn, the more they love and own! Most of these companies don't even have earnings per share, so we won't have to be constrained by that methodology for quarters to come.

Thu, 07/14/2011 - 16:55 | 1457537 Brian
Brian's picture

Why July 22?

Thu, 07/14/2011 - 17:19 | 1457626 Hansel
Hansel's picture

I was wondering the same.  This WSJ article says

The government needs a week or two to write and pass the necessary legislation and take the steps necessary to avoid missing a payment.

Fri, 07/15/2011 - 00:57 | 1458484 John_Coltrane
John_Coltrane's picture

Three little words:  Rand Paul filibuster.

Filibuster Topic:  Introduction to anethesia for lawyers/politicians.  He's a doc who can really talk.  And while he talks Reid will squak.  But we at ZH will mock the useless kleptocratic flock.

Thu, 07/14/2011 - 21:19 | 1458174 V in PA
V in PA's picture

72211 is Little Rock Arkansas. The location of the Clinton library.

The 32 year two family dynasty of America is the Bush and Clinton (1981 to 2013)


Thu, 07/14/2011 - 17:00 | 1457559 slewie the pi-rat
slewie the pi-rat's picture

@Brian:  sherlock sez, "follow the clues, or remain freaking clueless."

But keep in mind that as we pointed out in T-Minus Two Months Until The $500 Billion Rolling Debt Ticking Timebomb Goes Off that there is nearly $500 billion in maturing short and long-term debt in the next month and a half which there will be no money to fund unless a debt ceiling decision is reached, but not by August 2, but July 22... or a week from today.

Thu, 07/14/2011 - 17:23 | 1457639 Brian
Brian's picture

Thanks, but I had read that one when it first came out, where Tyler first referenced July 22, and I have still not been able to figure out that date.

There is no legal reason that legislation takes 10 days to become effective.  I've researched, and congress and the president can move a bill into law in exactly zero days, if they so choose.  I talked with a constitutional attorney friend of mine who confirmed that if they pass the legislation on Aug. 2, and the Pres. signs it into law on Aug. 2, it will raise the debt ceiling on Aug. 2.  There is no inherent lead-time required.

So, I'm still left wondering why, other than that traditional legislation takes 10 days or so to become effective, that July 22 would be any kind of real deadline...


Thu, 07/14/2011 - 18:15 | 1457776 slewie the pi-rat
slewie the pi-rat's picture

i misunderstood sherlock, B.  now he is telling me he said, "follow the clues and remain clueless."

the which he now adds, " the rest of us." 

who the hell can understand tyler?  the implication seems to be that by 7.22 the maturing debt will not be rollable b/c of the debt ceiling. not sure why.  or some other reason, like Treasury not able to stick to aug 2 budget, cash burn shows tham auguring in next week, 7.22.  

i prefer door #2, since i've been braiwashed to think that aug 2 included the ability to re-fund maturing debt, till then.  

i can't speak for tyler.  

t.y. for playing!

Thu, 07/14/2011 - 18:35 | 1457823 slewie the pi-rat
slewie the pi-rat's picture

i think i may have solved today's daily publisher's koan of the day!

yep, it's the burn rate.  T started the month w/ $137 Bil.  2 weeks later (now) they have  burned $91B and have $46B left, which at this rate, will be adios amigos by 7.22.11.

Fri, 07/15/2011 - 01:08 | 1458497 John_Coltrane
John_Coltrane's picture

Ah, but grasshopper, you forget those treasuries in the SS "lock box" just waiting to be monitarized to serve the god of government cash flow.  Reputedly, 2.6T$, enough to "fund" the ponzi for another year-but it might cost the dems at the polls-for perhaps the bonds are already gone like the gold at fort knox?  After all, they've been running the government with the federal employees trust fund for the last two months-just switch to SS to get through the next election cycle.  Why not go whole hog?  Really eat the seed corn, so to speak.

Life is short, eat dessert first.

Thu, 07/14/2011 - 17:02 | 1457567 YesWeKahn
YesWeKahn's picture

Piece of cake.


Your friend Ben Bernanke.

Thu, 07/14/2011 - 17:07 | 1457583 monopoly
monopoly's picture

Gold just a tradition. lolol

Thu, 07/14/2011 - 17:09 | 1457593 YesWeKahn
YesWeKahn's picture

Piece of cake.


Your friend Ben Bernanke.

Thu, 07/14/2011 - 21:32 | 1458202 V in PA
V in PA's picture

Deja Vu

Thu, 07/14/2011 - 17:20 | 1457625 pbmatthews
pbmatthews's picture

Can someone answer a question for me---because I think this article is not correct.

Why can't Timmy Turbo Tax Cheat roll maturing debt---as long as he does not issue MORE debt.

For example, if $50 billion of say 3-month bills matures, why can't he issue $50 billion more in 3-month bills (or for that matter any other maturity)?

The net impact would be no net increase in debt.

I concur that Timmy CAN'T issue say $75 billion of new bills but why can't he roll the exact same amount.

Thu, 07/14/2011 - 17:22 | 1457636 Hansel
Hansel's picture

I'm guessing it's because the new bill auction would have to happen first to have the money to pay off the old bills.

Thu, 07/14/2011 - 17:33 | 1457683 oldmanagain
oldmanagain's picture


Thu, 07/14/2011 - 17:36 | 1457693 mynhair
mynhair's picture

pbm, you are correct.  We just had a roll.

Thu, 07/14/2011 - 17:44 | 1457711 g1ass
g1ass's picture

plus they also have to compensate the people for their work, intrest payments etc etc etc

Thu, 07/14/2011 - 17:48 | 1457719 RmcAZ
RmcAZ's picture

Timmy will make it rain on these hoes.

Thu, 07/14/2011 - 18:21 | 1457790 chump666
chump666's picture

...and investment banks go to the black.

Thu, 07/14/2011 - 18:35 | 1457824 Hugh_Jorgan
Hugh_Jorgan's picture

The global elitist, academic clowns running this freakshow treat our vital institutions like a meth addict's brain treats their body.

It would be simple suicide if it weren't for the fact that they're taking 6.5 billion other people with them down the toilet.

Thu, 07/14/2011 - 19:02 | 1457895 Buck Johnson
Buck Johnson's picture

By next week they have to raise it, no wonder Obama and others are in a fast panic.  August 2 is a few weeks away, but the July 22 is the one breathing down their necks and that is alot of money to roll over.  You can't take money out of federal pension funds to roll that amount of money, no way.  This isn't theater in a sense that both sides are just playing, they are trying to go all the way to the line August 1st to see who will blink.  And they don't believe the August 2 date at all.

Thu, 07/14/2011 - 19:14 | 1457919 JLee2027
JLee2027's picture

Does the 500 billion include the 200+ billion that Treasury has already looted from the pension funds?  I'd assume not.

Nearly a trillion, so now we're talking real money.

Thu, 07/14/2011 - 21:09 | 1458149 centerline
centerline's picture

The real bang will be how quickly the money will fly out of the treasury.  Any trivial increase in the debt ceiling will be spent in the blink of an eye like a crack addict who finds a $20 bill.  So, the increase needs to be substantial in order to kick the can into 2012.  That won't go over so well given how entrenched the criminals, err politicians, have made themselves over this issue.  My guess is they create just enough room to make it to late 1Q2012 or early 2Q.

Thu, 07/14/2011 - 20:41 | 1458083 jack stephan
jack stephan's picture

Homer: Or what? You'll release the dogs? Or the bees? Or the dogs with bees in their mouth and when they bark they shoot bees at you?

Thu, 07/14/2011 - 20:54 | 1458115 CalibratedConfidence
CalibratedConfidence's picture

Timmay should call lil wayne...he's got cake like errday his birfday


Thu, 07/14/2011 - 21:30 | 1458198 gookempucky
gookempucky's picture

( Details, rounded in trillions, may not add to totals)

Had to fix that for ya TD......Treasury Dept.

Thu, 07/14/2011 - 22:09 | 1458267 ThirdCoastSurfer
ThirdCoastSurfer's picture

If the balance of the G-Fund was $73.3 as of May 31st, is that fund now depleted?

Thu, 07/14/2011 - 22:39 | 1458304 zorba THE GREEK
zorba THE GREEK's picture

 Obama does't want debt ceiling agreement, Obama wants opportunity to grab more power.

 He wants to declare emergency and raise debt ceiling without congress. That way he can be seen 

 as hero saving SS recipients from starvation and making sure military families get checks.

 All hail Emperor Obama. He save us from Republican congress.

Thu, 07/14/2011 - 23:38 | 1458403 davepowers
davepowers's picture

In the last two weeks (July 7 and 14), the Treasury's checking account at the FED has been reduced by $66 bn. 

And the FED got the money to cover these checks by borrowing it from the banks in the form of typing an additional $65 bn in reserves.

this confirms my prediction that bank reserves would continue to expand even with the end of QE2.

Fri, 07/15/2011 - 03:33 | 1458589 frank888
frank888's picture



From my view they are just trying to get something from their main creditors...

Of course the menace of a default must be credible.

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