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

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Wed, 05/04/2011 - 12:40 | 1238844 CH1
CH1's picture

At some point you have to stop this insanity and realize all you are doing is to help support the beast that empowers criminals over the lives of honest people.

Sadly true... and well said. Thx.

Wed, 05/04/2011 - 11:59 | 1238608 Mudflap
Mudflap's picture

"Democracy is four wolves and a lamb voting on what to have for lunch."

- Ambrose Beirce

Wed, 05/04/2011 - 12:48 | 1238881 Almost Solvent
Almost Solvent's picture

So it appears we're down to the last 2 wolves, government & big corporations, arguing over who gets to eat last . . .

Wed, 05/04/2011 - 11:23 | 1238368 EscapeKey
EscapeKey's picture

This thing is going to be lots of fun once yields start increasing. Then we'll see a parabolic rise in the deficit.

Wed, 05/04/2011 - 12:14 | 1238675 LoneCapitalist
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Lately Im thinking if yields havent gone up yet , why will they?  I think sooner or later, the fed buys 100% of our debt.

Wed, 05/04/2011 - 12:36 | 1238821 NotApplicable
NotApplicable's picture

Because everybody with a credit card balance is walking around with a ticking time bomb in their pockets.

Remember the new bankruptcy/credit card law? Well, the CC issuers front-ran it and changed everyone's card to a variable rate tied to prime. You could've opted out, and kept your old fixed rate on the existing debt, but it would cancel the card, and thus its entire credit history.

So, most people kept the card, and have since forgotten about the variable rate, as it has yet to rise. But if rates explode, CC interest will explode along with it, absorbing all remaining free credit, unless you can still service the debt. Bankruptcies will ensue, and the CC companies will profit further as the debt is no longer written off, but instead is paid on in perpetuity on a discounted principal.

Wed, 05/04/2011 - 12:42 | 1238836 NotApplicable
NotApplicable's picture

Oh, and once that all plays out, the mandate for QEX has been created, and then the Fed/IMF will ZIRP out the entire yield curve (that 100% purchase of debt you mention), nationalizing the financial industry in the process.

Wed, 05/04/2011 - 11:26 | 1238371 morph
morph's picture

And it is all playing out as predicted. Japan debt GDP ratios coming up soon.

Wed, 05/04/2011 - 11:26 | 1238375 Dr. Engali
Dr. Engali's picture

We're doomed.

Wed, 05/04/2011 - 11:27 | 1238378 FreeNewEnergy
FreeNewEnergy's picture

Default, bitchez!

Wed, 05/04/2011 - 11:26 | 1238381 nah
nah's picture

you know when a banker puppet sits in the treasury begging to spend money he doesnt have politics has no meaning... serious i cant wait for the tea party to cave in to 'prevent' WWIII lol

Wed, 05/04/2011 - 11:29 | 1238390 NOTW777
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LOL.  its a strong recovery - we only need 2 tril

Wed, 05/04/2011 - 11:27 | 1238403 NOTW777
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can we send timmy to the vacant home in abbottabad

Wed, 05/04/2011 - 11:29 | 1238391 SheepDog-One
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The 'efficient market' just took AAPL down 7% in seconds on what CNBC reported was a '100 share trade'...LMFAO!

Wed, 05/04/2011 - 12:00 | 1238614 sun tzu
sun tzu's picture

Why should it concern anyone except the buyer/seller of those 100 shares? Probably the same trader

Wed, 05/04/2011 - 11:29 | 1238393 jaffi
jaffi's picture

Ahhhhhhhhhhh, shit!

Wed, 05/04/2011 - 11:27 | 1238395 HamyWanger
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We are the United States of America, Home of the Braves, Land of the Free. We have lots of natural and intellectual resources. 

Debt does not matter, because we will always find lenders.

Wed, 05/04/2011 - 11:31 | 1238421 Tyler Durden
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Wed, 05/04/2011 - 12:04 | 1238629 disabledvet
disabledvet's picture

you mean "lenders."  as in "lenders of last resort."  sounds like the title of a good book, doesn't it?

Wed, 05/04/2011 - 15:49 | 1239837 RockyRacoon
RockyRacoon's picture

What does it matter?  The Fed is providing both sides of the trade.

Wed, 05/04/2011 - 11:29 | 1238422 Rusty Shorts
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Wed, 05/04/2011 - 11:36 | 1238452 unky
unky's picture

regarding food resources i would say the U.S. is a lot better off than china with a 5 times greater population but plenty of deserts and mountain regions

Wed, 05/04/2011 - 11:40 | 1238480 Clorox Cowboy
Clorox Cowboy's picture

To paraphrase:  I wouldn't even buy Treasuries with your money, Hamy.

Wed, 05/04/2011 - 11:48 | 1238522 SoNH80
SoNH80's picture

Ah, the ol' "We can always monetize our own debt, denominated in our own currency, the good ol' U.S. Dollar" argument.  But, when oil hits $500/bbl. as a consequence, what good will that be??  The Confederates were honest enough to admit that their paper currency was B.S., when will Americans at large?  Soon enough.

Wed, 05/04/2011 - 12:33 | 1238781 glenlloyd
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Those who've built their house upon the 'debt (deficits) does not matter' axiom will live to regret it.

Wed, 05/04/2011 - 12:37 | 1238797 Zero Govt
Zero Govt's picture

Hamy   ..."Debt does not matter, we will always find lenders"

Er, that's what Greece said ...that's what Ireland said... that's what Portugal said..

...makes 'perfect sense' in a deep recession to do the exact opposite of what all businesses and consumers are doing: ask for $2 Trillion extra limit on your credit card and keep spending like banshees're on Planet Govt mate : welcome to total economic and social dysfunction

Wed, 05/04/2011 - 16:02 | 1239900 Non Passaran
Non Passaran's picture

Hey Portugal just found a lender for $110b, no?

Wed, 05/04/2011 - 11:27 | 1238399 EasterBunny
EasterBunny's picture

Speaking of Libyan rebels..... With the oil sales having resumed from Libya, as part of an agreement with the rebels; who is actually being paid for the oil? and in what capacity?

Wed, 05/04/2011 - 11:37 | 1238461 NOTW777
NOTW777's picture

no prob. liberals have now decided they love war.  obama might start another or kill someone for a bump

Wed, 05/04/2011 - 11:29 | 1238400 Gubbmint Cheese
Gubbmint Cheese's picture

Tyler, can you please stop referring to it as a "debt ceiling" - its a debt target.

So the US hit its target early, and is now increasing its target by $2t..




Wed, 05/04/2011 - 11:31 | 1238415 jaffi
jaffi's picture


Wed, 05/04/2011 - 11:31 | 1238418 SheepDog-One
SheepDog-One's picture

Expert FED marksmanship, hitting debt target dead center.

Wed, 05/04/2011 - 11:33 | 1238448 Rick64
Rick64's picture

And thats not easy because it keeps moving.

Wed, 05/04/2011 - 11:50 | 1238561 Hulk
Hulk's picture

Debt target Bitchez! Hulk like!!!

Wed, 05/04/2011 - 12:05 | 1238654 Tinfoil Hat
Tinfoil Hat's picture

Not only can it be hit,  but ahead of schedule too!  Someone deserves a bonus!!

Wed, 05/04/2011 - 11:30 | 1238405 SheepDog-One
SheepDog-One's picture

$2 trillion? Pfffft, peanuts! Wake me when the FED says it needs $2 quadrillion just to service the interest. Ho hum. :D

Wed, 05/04/2011 - 11:36 | 1238457 Libertarian777
Libertarian777's picture

will be interesting when we have to import cotton from China to print the wheelbarrows of FRNs. What do we pay them in for the cotton linen?


more cotten linen?

Wed, 05/04/2011 - 11:47 | 1238516 augie
augie's picture

Fuck the cotton, the money is in wheel barrows. How else do you expect people to cart around all that cash?


that is totally the new saying:

"bulish for wheelbarrows."

Wed, 05/04/2011 - 11:49 | 1238543 101 years and c...
101 years and counting's picture

you're both wrong.  no cotton linen needed.  just a shitload of 0's on a laptop.  that is a lot of memory!  INTC bullish!!!



Wed, 05/04/2011 - 11:54 | 1238591 augie
augie's picture

lol bullish for binary.

Wed, 05/04/2011 - 11:30 | 1238408 lynnybee
lynnybee's picture

" DEBT CAPACITY "  ......... so that's what it's called !  Debt Capacity !    why don't they just say the truth ...... borrow more money from the bank that we will never be able to repay & allow the FED to suck up our blood in interest so they can live !

Wed, 05/04/2011 - 11:28 | 1238414 cxl9
cxl9's picture

So what's the real game, then? They say they need $2.0T and then, after much pulling of hair and gnashing of teeth, compromise and settle for $1.5T? And then claim they cut the debt by a "whopping $500 billion!!!!"


Wed, 05/04/2011 - 12:43 | 1238868 HoofHearted
HoofHearted's picture

I'll go long on that prediction. Anyone know how to get in on that action?

Wed, 05/04/2011 - 11:43 | 1238419 blindman
blindman's picture

Dr. Steve Pieczenik: Bin Laden, The Oswald Like Patsy Died 10 Years Ago! 1/7
hear this!
what is the voice of the people? when will it be heard?
the psyop resurrection

Wed, 05/04/2011 - 11:31 | 1238431 topcallingtroll
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(now i really am off on vacation to the original banana republic. Costa rica)

Wed, 05/04/2011 - 11:34 | 1238436 lieutenantjohnchard
lieutenantjohnchard's picture

as mentioned the financing needs must go on. checks gotta go out to extend the welfare state so that jpm can make money off the food stamp program.

so tptb push back hard on silver and gold, run the stops, buy back their shorts and then take delivery on silver and gold.

does anybody really doubt that tptb would like nothing better than to own all the silver and gold, then the printing can go to infinity with minimal effect on them personally.

Wed, 05/04/2011 - 12:20 | 1238723 LoneCapitalist
LoneCapitalist's picture

"from my cold dead hands"

Wed, 05/04/2011 - 11:34 | 1238438 FreeNewEnergy
FreeNewEnergy's picture

Larry Kudlow actually said this once: "You can't borrow your way to prosperity."

Even a broken clock is right twice a day.

Wed, 05/04/2011 - 12:06 | 1238643 disabledvet
disabledvet's picture

well "he is on twice a day."  what if he's a "clock that works?"

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