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US Treasury Tells Lawmakers It Needs $2 Trillion In Debt Capacity

Tyler Durden's picture




 

Reuters reports that the US Treasury has informed lawmakers it needs a $2 trillion debt limit increase to operate... until the end of 2012. Better stated, this is 112% of US GDP (which will soon be declining). This is precisely as Zero Hedge speculated. We hope PIMCO will be swayed soon enough to buy all this extra debt about to start coming down Geithner's conveyor chute. But yes, the Fed will most certainly not be needed to monetize this extra debt: Japan, Europe and Libya have it covered. That said, we don't know if Libyan rebels will have the capacity to monetize the $3 trillion in debt in 2013, $4 trillion in 2014, and so forth. The pattern is clear.

 

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Wed, 05/04/2011 - 12:19 | 1238700 tahoebumsmith
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What will be interesting to see is how the money will make its way to the treasury? POMO Beatchez...  The CRONIES will be flipping them there bonds in NANO SECONDS... The Banks are currently programming the algorithms to their robo bond flippers so they can sit back and watch the money tick into their pockets as quickly as the hands on the debt clock take it from the taxpayers.....

Wed, 05/04/2011 - 12:17 | 1238703 johnnymustardseed
johnnymustardseed's picture

The ship is sinking... I do get upset when I watch how they manipulate markets and the sheeple. It will end badly. If you continue to look at silver and gold in terms of dollars you will stress out. Silver and gold will feed your family and afford you the opportunity to buy the NEW currency when the day comes. So let them play their games and continue to accumulate and prep.

Wed, 05/04/2011 - 12:17 | 1238704 johnnymustardseed
johnnymustardseed's picture

The ship is sinking... I do get upset when I watch how they manipulate markets and the sheeple. It will end badly. If you continue to look at silver and gold in terms of dollars you will stress out. Silver and gold will feed your family and afford you the opportunity to buy the NEW currency when the day comes. So let them play their games and continue to accumulate and prep.

Wed, 05/04/2011 - 12:19 | 1238717 johnnymustardseed
johnnymustardseed's picture

Sorry for the double post...ffffffinnnnng computer

Wed, 05/04/2011 - 12:27 | 1238749 Sudden Debt
Sudden Debt's picture

And the debt ceiling is fixed on the GDP number, and if Bernanke's fear is true and we get deflation that ceiling needs to come down BECAUSE IT'S THE LAW!!

And they can't bring it down that fast. If even...

That means we'll get the debt ceiling raise before the end of june. Before Q2 comes out.

 

 

Wed, 05/04/2011 - 12:28 | 1238760 Threeggg
Threeggg's picture

So let me get this right.

The whores need 2 trillion, PM's getting crushed along with oil and the market. ????

Are those sneaky bastards trying to drive everybody to cash (the Dollar) so it has some support. ?

Nice !

LOL

BTFD!!!!!!!!!!!!

Wed, 05/04/2011 - 12:35 | 1238807 Kina
Kina's picture

Also good to see JPM and CFTC giving cheap physical silver to Asia. Pretty clever, make it cheap, allow Asia to gobble it up, make it more scare than ever.....bigger trouble than when you started.

 

 

 

Wed, 05/04/2011 - 12:41 | 1238839 drivenZ
drivenZ's picture

the pattern is clear alright...

 

every 5-8 years since 1975 the US debt has doubled….by 2012 debt will be 16 Trillion. By 2020, 30+ Trillion...in a vacuum.

 

something tells me we'll never make it to that point....the pain is coming.   

 

 

Wed, 05/04/2011 - 12:45 | 1238863 JuicyTheAnimal
JuicyTheAnimal's picture

What's the big deal?  2T only amounts to what, about 6k per man, woman and child.  No biggie.  I'll just sell my kidney for my part.  I'm excited for this oppurtunity to help out Uncle Sam.  Anyone need a kidney?

Wed, 05/04/2011 - 12:51 | 1238899 TruthInSunshine
TruthInSunshine's picture

What about the other 202 Trillion? What collateral do you have for that?

U.S. Is Bankrupt and We Don't Even Know It: Laurence Kotlikoff
Wed, 05/04/2011 - 12:59 | 1238965 JuicyTheAnimal
JuicyTheAnimal's picture

We can pay that off later.  I will have kids with kidneys some day.  And their kids will most likely have kidneys. 

Wed, 05/04/2011 - 13:03 | 1238995 TruthInSunshine
TruthInSunshine's picture

The old "selling childrens' and grandchildrens' organs" play.

Interesting.

SNAP pays $615 monthly for a family of four, so quit working, and get busy re-creating.

Wed, 05/04/2011 - 13:28 | 1239134 Ignatius J Reilly
Ignatius J Reilly's picture

You are late to that play.  In my town, people have been doing that for years.... just for the increased gov't check.

 

PS I don't need a kidney, but I'm going to start buying cases of whiskey.  One to drink now, and one to barter with later.  So, I call dibs on your liver, if you are offering.

Wed, 05/04/2011 - 14:00 | 1239333 JuicyTheAnimal
JuicyTheAnimal's picture

I'm not a Dr. but I suspect I can't sell the liver until I don't need it anymore.  I'm not sure when that will be and I don't ride a motorcycle so I'm not sure it'll be worth a shit when I'm done with it either.  But yes, you got dibs. 

Wed, 05/04/2011 - 15:01 | 1239655 JW n FL
JW n FL's picture

dont forget the molotov cocktails!

http://www.youtube.com/watch?v=cYwyfx3oEHY

looks like the famers kids are training hard for the FED Storm Troopers Invasion!

Wed, 05/04/2011 - 13:14 | 1239058 AldoHux_IV
AldoHux_IV's picture

If (and most likely will) the debt ceiling is raised, nothing changes fundamentally about what's going on in this country.  It's painfully obvious that the markets are 100% manipulated-- we should actually be hitting new highs in PM's just based on the fact that there are many out there who see the debt monster growing with no real solution in sight.  Stimulus (as designed by the oligarchs) does not work, Austerity (as designed by the same oligarchs) does not work. What will work is a change in the whole system and it needs to begin with taking our economy and livelihood back from the assholes who are so hell bent on enslaving us to further debt.

Physical works in a controlled comex.

Wed, 05/04/2011 - 13:20 | 1239088 jtz5
jtz5's picture

Why can't we take all of our soldiers stationed overseas (Iraq/Afg/S Korea/Germany/etc.) and bring them home; create military bases along the US border and have soldiers protect the border and also do infrastructure projects here in the states?  It keeps the military employed, while also meeting functional needs here at home.

 

Just a thought...getting tired of this SS/Medicare/Medicaid debate without defense spending included in the mix.

Wed, 05/04/2011 - 13:29 | 1239123 PiratePiggy
PiratePiggy's picture

"Reuters reports that the US Treasury has informed lawmakers it needs a $2 trillion debt limit increase to operate... until the end of 2012. Better stated, this is 112% of US GDP (which will soon be declining)."

 

uuh oh

 

somebody forgot about "thesubtraction"

 

GDP is decling now.  By the government's own numbers, the numbers are increasing slower than "theinflation". 

 

http://www.ronpaul2012.com/ 

 

 

 

 

 

Wed, 05/04/2011 - 13:35 | 1239181 stiler
stiler's picture

We're supposed to be a nation built on self-governance, beginning with governing thyself and going out from there to the local school board, etc. "But the friuit of the spirit is ...self-control". Our nation was built on spirit in its people. Not the law reigning from without. If the majority can't control themselves in spending, the government can't either. We need some austerity from without in spades.

Wed, 05/04/2011 - 15:14 | 1239711 Sudden Debt
Sudden Debt's picture

Our nation was built on spirits in its people

Drunks, Alcoholics... why do we even wonder why it's finally falling apart...

 

 

Wed, 05/04/2011 - 18:53 | 1240903 stiler
stiler's picture
*hick*
Wed, 05/04/2011 - 14:44 | 1239589 Platinum_Investor
Platinum_Investor's picture

Oh this is going to be fun!  Just $2 trillion?  walk in the park.

Wait till the unfunded liabilities start to kick in full steam.

Oh we are only at the first few innings of this ball game.

Wed, 05/04/2011 - 16:15 | 1239964 Cole Younger
Cole Younger's picture

I am to the point I don't care anymore. Let them borrow and let them default. The quicker we default, the quicker we can restructure this government. 

Wed, 05/04/2011 - 17:52 | 1240538 Buck Johnson
Buck Johnson's picture

They are doing exactly as Zerohedge said they would.  They are just delaying the inevitable, they plan to hyperinflate the US economy and it won't work it never works.

Wed, 05/04/2011 - 18:31 | 1240714 PulauHantu29
PulauHantu29's picture

Does this mean QE3? or Ramped up Monetization?

....is there a difference?

Either way, it guarantees a serious rise in PMs and oil.

Wed, 05/04/2011 - 19:01 | 1240935 Sam Christie
Sam Christie's picture

Gold and silver will rebound, unsure when, but this economic debt spiral is far from done.

The Treasury asking for $2 trillion more in debt is absurd. $2 trillion is 2 million millionaires.

Wed, 05/04/2011 - 21:37 | 1241592 geologyguy
geologyguy's picture

To Quote the Joker from Batman TDK "Everything Burns!"

Thu, 05/05/2011 - 04:03 | 1242206 honestann
honestann's picture

FILIBUSTER.

FILIBUSTER.

FILIBUSTER.

Read my lips... no new debt.

CUT SPENDING... DRAMATICALLY.

Or just get it over with now and shut down the central government and central bank that cause more harm and destruction than everything else on earth combined.

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