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US Treasury: Winning The Future, One Math Failure At A Time
We just ran across a newswire headline that said what we have been warning about for about a month: "US Treasury auction to take US over debt ceiling on Monday." As a result, we took a look at today's DTS update, and indeed, come Monday's full settlement of this week's auctions, the jig is up. Prior to this week's $72 billion in auctions, total debt subject to the $14.294 Tr ceiling has risen to $14.280 trillion. There is no way the Treasury can cut $42 billion in debt next Monday (pro forma for the $16 billion Bill paydown settlement). Next up: panic.
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eubonics
What does your comment have to do with the topic at hand? Newsflash - it's WHITE guys that have bankrupted our country and looted the treasury.
Prejudice and ignorance, one is never far behind the other.
I'm thinking he meant EUropean EUbonics, not Ubonics as in black-speak.
Ebonics?
It'z I-BONIX, damn pale face get it str8...
Perhaps he was thinking of eugenics?
http://answers.yahoo.com/question/index?qid=20060715094317AAcmeTf
I am Chumbawamba.
YEAH! WHITE ... PEOPLE!
DAMN... WHITE PEOPLE!
wtf kind of shit is that? I'm white, and I don't give a fuck about your comment because racism has no context and if you're implying white people are solely responsible for the mess this country's in you're as ignorant as they come.
Give the man a break and let him be right.
Don't we blame black people for almost every crime in the world? and aids?
look at it like this : we're even now.
calm down - it was a simple sarcastic poke at the low standards of the fed, treas. and this admin - across the board. you know like obiden - we have to spend more to get out of debt. the adoring MSM always gives them a pass and we hear all the time how brilliant these harvard people are. for a time there was a push to actually promote and teach eubonics in school.
btw IS - you re just like obama. YOU play the race card and then you accuse others of being racist
Think you need to remove the "Savant" part from your name.
"Debt ceiling" has such a negative tone to it.
If your house was flooded and it reached the ceiling, is that good?
When you yell at your kids and need to come down off the ceiling, is that good?
We should call it a "credit binge", because binging and indulging is more publicly acceptable and doesn't stipulate an upper limit to the insanity.
Well if we are going down this road...
Yes, maybe something more like a "binge offering"... Perfect... The government has too much BO and needs to reduce it... Much better!!
The roof
The roof
The roof is on fire...
We don't need no water let the motherfucker burn
Burn, Motherfucker! BURN!
Row Row Row the boat, slowly down the waterfall
MERELY MERELY MERELY
Life isn't a dream!
OH YEAH MOTHERFUCKERS, THIS IS VERY REAL!!
I do love singing... :)
By George, that sure could be Ben B. in the band.
yep, take at look at 3:46
http://obamadollar.com/Ben-Bernanke-Mr-Fantasy.jpg
full video http://www.youtube.com/watch?v=7_nwbTeIN4Y
For sure, the words are right.
You are the one who can make us all glad
But doing that, you break down in tears
Please don't be sad, if it was a straight life you had
We wouldn't have known you all these years
No problem...I stored enough wood in the attic to build a new house
almost George Carlinesque there nope, keep working on it :)
What's the problem? Really. Does anybody expect the Federal Government to EVER get it right again???
Let's go ahead and max debt out.
The quicker we can blow the dollar, the quicker we can get our troops home, quit fighting foreign wars, and get back to the gold and or silver standard, AND GET THE FEDERAL GOVERNMENT OFF OUR BACKS AND OUT OF OUR LIVES.
That's the way it was intended to be. Back to the States. Bye bye Fed.
Tyler, I'm pretty much a novice at deciphering these statements...could we have an article devoted to explaining the math underlying the upcoming breach and what Treasury proposes to do about it? I haven't been able to find a clear description of the "extraordinary measures" that will get us to August 2nd.
http://www.treasury.gov/connect/blog/Documents/FINAL%20Debt%20Limit%20Letter%2005-02-2011%20Boehner.pdf
here is his letter, I'm trying to figure out what the heck it means, but looks like he will be a busy man on the 16th invoking some arcane rules
"If Congress does not increase the debt limit by May 16, the Treasury Department will be force to employ further extraordinary measures on that date to provide the headroom under the limit. Therefore, on May 16, I will (1) declare a "debt issuance suspension period" under the statute governing the Civil Service Retirement and Disability Fund, permitting us to redeem existing Treasury securities held by that fund as investments, and to suspend the issuance of new Treasury securities to that fund as investments and (2) suspend the daily reinvestment of Treasury securities held as investments by the Government Securities Investment Fund of the Federal Employee's Retirement System Thrift Savings Plan. (under the law, the Federal employees are protected by a requirement that both funds be made whole after a debt limit increase is enacted.)"
Am I the only one that is scared that he used the word headroom? Or that the word investment is used more than debt or reduction in a section describing how we avoid breaching the ceiling?
For the Federal employees, what do he mean? My initial interpretation is that they come to re-invest in new treasuries, he says no but doesn't give them money for the maturing issues. the next day they come back with even more money to reinvest. again he says no and doesn't give them cash, until after the debt ceiling is raised, all this rolling default is turned back into debt?
It seems like they basically default on what they owe to this savings plan until they increase the debt ceiling? Is that crazy? is that right?
I can't even figure out what the Civil Service Retirement and Disability Fund will do? I assume they don't get paid though on existing debt that matures? they just get some IOU that doesn't count against the limit?
I think it looks like this:
Certain inflows to treasury are supposed to go to retirement and disability funds. Treasury has been taking that money and issuing IOUs (in the form of debt). Treasury will continue to take those funds, but won't issue the IOUs. At least not immediately. The IOUs will be written once the debt ceiling has been officially raised.
We've been stealing from those funds in the past, but at least noting the debt. Now, no noting of debt.
He better hope that's a hell of a lot of inflows, because they have to make up for several dozen $billion dollars.
so basically we will just not issue iou's that we are supposed to until we have a new debt ceiling, and in the meantime, although we recognize that we didn't issue iou's that we were suppossed to, they don't count as iou's?
It means that the govt will use the TSP G fund as if it was its own cash and temporarily cease paying interest on those funds. Once the ceiling is raised, historically, the funds are put back and interest is paid in arrears.
However, during the post limit excursion, employees cannot retrieve their funds, since they are being used by Treasury. This is not an issue for the vast majority of govt employees unless the excursion is extensive in time.
"Am I the only one that is scared that he used the word headroom?"
Don't worry, he meant to say:
"...the Treasury Department will be force to employ further extraordinary measures on that date to provide the lebensraum...."
had to look that one up...
http://en.wikipedia.org/wiki/Lebensraum
Extraordianry measures would mean not spending money. Believe me, for a government, that is unheard of!
The intergalactic hitchhiker's guide in cases like this advises: DON'T PANIC.
Right, but the ultimate answer is 42, not 42,000,000,000.
I think you left off a few 0's
I hope this is the intergalactic refrigerator light that sends the cockroaches scurrying. One can always hope.
Michelle, get me a beer while you're in there, OK?
That damn monkey would drop it. Then I would have to deal with Timmay all over me!
Agreed. :-)
http://www.youtube.com/watch?v=6tWLffi-XUg&feature=related ...the Hitchhiker stood by the side of the road and level his thumb in the calm calculus of reason:
(42)ZIRP=Cygnus X1 http://www.youtube.com/watch?v=cJzV0_SaV-k
I prefer: So long and thanks for all the fish
That is à good book :)
It was pretty popular when i was young. I wonder if todays kids ever heard of it.
Why panic? These things ALWAYS take care of themself and the Treserve is fully on top of this. I hope all Americans did their patriotic duty and bought today's dip.
Send Timmie down to wall street with a bell and a bucket?
Debt ceiling = X/0
Dude, I've totally got this. We just got this offer from JP Morgan Sucks that will allow us to transfer any balance with no interest for the first 12 months. There's that pesky 3% fee, but what could 3% of $15 trillion be. Really? Oh shit. Well, do it anyhow. We'll have 12 more months to figure it out then.
** Breaking **
Obama to sell Osama death pics to highest bidder to help raise funds: Starting bid $1trillion.
***JUST IN***
We have a winner...apparently in a bold "bid" initiated by their representatives (at their behest), American taxpayers have "won" the pictures (which will be safeguarded for them in a vault deep in the Pentagon) for the tidy sum of infinite fiat liability. Congratulations Sheeple!!!
***This "success" and ultimate "saftey" from dangerous bearded scary men who boldly attack w/ box cutters make the sheeples debt servitude seem so much more palatable.
Why sell them? Just put them on the balance sheet...
priceless. and that is exactly how they'd mark them.
I'm sure the MSM will get right on this story...right after they mention what went down today in Greece.
Greece was nasty but Spains economic figures gave it that sinking feeling. Personal income tax receipts are down 19.4% Corporate income tax receipts are down 42.7% VAT collection is down 22.4% Excise tax receipts are down 40%.
Winning!
good time to take over the 401ks'!
G-Fund raid first - don't even need to break the law to do that one...
...all your Bureaucrat Pensions are belong to us!
Now comes the shell game...Timmay is a master w/ the "now you see it, now you don't" accounting.
Still, seems all this will be accounted for in a rush as soon as the ceiling is passed and we'll realize we are well past $14.5T all of a sudden.
i assume that version of Turbo Tax is not available to the retail consumer, maybe it's the oligarch edition
Sweet! There's gotta be a torrent for a pirated copy of that somewhere.
Was NAFTA Passed in Exchange for Mexican Gold to Support the US Dollar?
http://silverdoctors.blogspot.com/2011/05/docs-thoughts-on-case-of-myste...
Just another government obligation that isn't paid for yet. Same as everything else that expects to be paid for commitments already made. Debt ceiling raise just semantics.
Just another day in Paradise...
There is no way the Treasury can cut $42 billion in debt.
Oh yes he can. He's da Timmaymeister.
Theyre going to 'deal with it Monday'...still 2 days to cash in your 401K and pension plan.
And spend it while it's still worth something :)
Gold and Silver on a dip Bitchez!
Sheesh! Seems it would be damn tough for Tiny Timmay to hit ANY ceiling. Jump, Timmay...Jump higher, Timmay.....
USD dead cat bounce starts decline on Tuesday. Wonder what kind of distraction they can drum up that beats dead osama...
'Al CIAda' nuke in a major US city going off?
Sadly, I am afraid that perhaps they may actually be thinking on those lines.
do not worry.....they will make the debt ceiling hike a reality TV show...with a happy ending
Just like they did when Govt was being shut down
Everything is good TV.....
This is way less important than "American Idol."
Or 'Glee'. I watch and shake my head as my mom lets my nieces watch the pure garbage full of homo kids.
This weekend: Creative accounting contest!! No math skills required! À simple birth certificate Will do!!!!
But ski masks probably are required.
Only if you want to withdraw Some money.
Do i have to have a real Birth Certificate or can i make one?
Is it Hawaiian?
You can even mail it, as long as it's 300 dpi in case we need to print it if the masses want to see it, and if possible in PDF so we can easely post it online as proof.
DP
TP
Golden parachutes first!
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=20110511...
Obama is to introduce a new law to modify the word 'debt' in the dictionary and in all cases where the word is used from Monday until the law is repealed to be substitued with the letters 'credit' - but still contain the same meaning
Some math failure from Spain, enjoy!
http://globaleconomicanalysis.blogspot.com/2011/05/prepare-for-bailout-o...
It's okay because the FED announced the level of QE2 auctions last year, so the debt limit/spending problem is something that is Congress's fault for not cutting the Domestic Budget. So Congress will by forced by the Chairsatan to stop put stop payments on Social Security, TANF, and Tax Refund checks.
You must be mistaken my Dear friend. Congress and Obama clearly said That THE debt ceiling was at 15 trillion.
What are the odds of a major terrorist attack happening this weekend to help the masses forget all this 'debt ceiling' business?
Didn't something major happen the day after Rumsfeld said the Pentagon had 'lost' $2.3trillion?
http://www.youtube.com/watch?v=3kpWqdPMjmo
Al CIAda nuke in major US city cures all pesky debt problems.
Solar flare?
Asteroid?
Idol 24 hour marathon?
That guy posting about the Comet being a valid price discovery mechanism was right after all...
+1
Idol 24 hour Marathon sure would zombifie the sheeple.... I think that would work. If not we can try The Voice
Idol sucks this season. The sheeple are getting restless...
rumor has it that the IDF crossed into Palestinian territory today to "clear tunnels"... so far it does not look like the Palestinians have taken the bait.
If there were only a way to hike margins to prevent a debt breach...........
at current valuation the US govt allegedly has 600 billion in gold bullion. Any chance of this getting liquidated at the rock bottom price of 600 billion to pay govt obligations before gold skyrockets to 10k an ounce?
Sounds like a plan to me. They should contact Gordon Brown, he has some experience in the matter.
Without more debt everyone dies.
OT
Cisco, after initial exuberance, is again finding out that reality sucks.
Oh, I guess we wont be seeing a Cisco chart from the RainbowTrader then.
Nope...but maybe he gives us an intraday chart of CNC. And just as we finished prosecuting the Raj for insider trading, some enterprising hedge fund somewhere goes all in on that one...I'm sure for fundamental reasons.
Check out the intraday on it because I'm sure there is some news just around the corner that inspired such volume and price action ;
Im sure it was just unfettered buyers and sellers making a free market stock transaction, what?
Perfectly normal price behavior for a $98 billion market cap stock on Cisco. Yep, free market....sure.
Additional:
Oh oh....huge short sale on the Roach Motel in the after house session...5 million shares. But I'm sure its nothing.
Double oh oh...Cisco announcing layoffs. Well, so much for the superdee duper economic recovery. Guess we did not spend enough Bernanke bucks. Print up another trillion.
Oopsies, looks like initial melt up met with the bad conference call. Well Im sure all those former Cisco employees can find gainful happy employment at the USA's new #1 employer McDonalds now.
Must be time for Cisco to make some contributions and spur the magic money machine hose in their shares direction.
Yeah... And...?
I'm sure we're just beginning to see the sell-off in the market to come as a means of driving 'demand' into treasuries and to hold the politicians who have so much invested in this rally to comply or risk losing their precious gains.
Timmy was probably expecting a typical surplus for April.
Instead.. he got a 40 billion deficit.
ironic end for Mr. Turbo Tax Timmy.
Going "over" something is positive, like going "over" the shark.
More semantic tolerance, people.
I thought the debt ceiling was just some sort of nebulous concept. I mean, is there an electronic tripwire somehwere?
Who knows, maybe Jeethner will be arrested on Monday. lol
I like the 13 billion that is Guaranteed Debt of Government Agencies. Good thing Fannie and Freddie don't count.
.
oh what a feeling, when we're dancin' on the ceiling
Does this mean we're bankrupt?
We're not bankrupt,... just out of money.
You can win 120 million with Euromillions this weekend.
Maybe if Bernanke buy à Heck of à lot of lottery tickets, he can buy Some more time?
5 seconds or so....
POMO finance meets 17th Century finance.
"Why, you haven't changed a bit"
When are you fools going to get it?
Debt ceilings don't matter.
Deficits don't matter.
Wild, out of control spending doesn't matter.
Today's action in the XAU and the USDX is proof enough.
this might be the best comment Robo has said ever
The problem with moronic posts such as this is nothing ever matters, until it suddenly and tragically does.
Exac_alac_ly
Yes like a 30% drop in the price of silver.
LOL, RoboTrader apparently desperate to keep his 'Most Irrelevant ZH Poster In History' title securely on his mantle, although I see no challengers at all to this chowderheads endless posts of pure drivel sprinkled with childish arrogance.
Haven't seen any charts from him lately ... loss of posting privileges perhaps?
I agree, but dear Robo, what does matter? Profitting along w/ the uber class along the way?
Robo tries to act like he scorns the Pigmen, but secretly he yearns to be one of them.
I'm with Robo on this one too.
This is America, we love debt. The ceiling will increase (and signficantly if my hunch is correct-so that Dems can't be held hostage again before November).
With the increase will come pork. This is America.
"Reagan proved that deficits don't matter" -Dick Cheney
Yep, one day price action trumps 150 years of debt accumulation. Are peak oilers scratching their heads too? I think you made that comment back at sub $80/barrel.
All the problems have been solved, Cisco beat the "the street" and it's up smartly after hours.
I would swear that Bob Pisani minced those words.
Up smartly after hours? Looks pretty bright red to me.
Please correct me if I'm wrong, I am somewhat of a newbie...
Is it possible for the Federal Financing Bank to purchase Treasuries which would then be classified as debt not subject to limit?
From TresuryDirect http://www.treasurydirect.gov/govt/resources/faq/faq_publicdebt.htm:
And from the Federal Financing Bank http://www.treasury.gov/ffb/:
Of course any such shenanigans would show up on the DTS, but is this a legal course of action to avoid a breach of the limit?
hahah, awesome. Just throw it in the attic/basement and pretend it never existed. Arthur Andersen/Enron were wimps compared to the Feds!
timmay lays out in his letter what he plans to do on the 16th to avoid breach. i posted it above, i can't understand a word of the letter but i think he laid out his plans for all to see
I'm having trouble parsing your moniker. Is it
(Man) Bear Pig
or
(Man Bear) Pig
Good questions!
Actually it's ManBearPig (one word; the name was taken on ZH so I had to improvise)... you know, half man, half bear, half pig... =)
(It's a Southpark reference)
One potential issue is the Federal Financing Banks cash. Do they have the cash to buy the debt? The FED certainly does since they have this machine, called a printing press (Bernak's words). Since the FED has a monoply on printing greenbacks on that fancy machine, I do not beleive the FFB you referenced has the means to soak up $100B/month debt.
Where's Eric Holder? Can't private parties file a writ of mandamus or other injunction with the Supremes?
Seriously Holder??! He's the bag man.
Yeah, i know he's a POS just like the rest, but it is his responsibility whether he cares or not.
100% CERTAIN THE DEBT CEILING WILL BE RAISED BEFORE MONDAY.
And Boehner will get whatever he wants and the money will be shifted to his donors. He holds the ultimate bargaining chip, Dems are defenseless (weak "BATNA" in negotiation-speak).
you forgot the /sarc flag. Some people here might think you are serious.
HUGE rally is coming. BTFD BITCHEZ!!
They will just go to off balance sheet accounting. It will be set up in such a way that it will make no sense, but they will keep borrowing. We will never know anything after this.
Theyll keep 'borrowing' from who exactly?
unborn American taxpayers
Just like an attack on Libya became a "kinetic military action...."
Wednesday, May 11, 2011
By Nicholas Ballasy
(CNSNews.com) – House Majority Whip Kevin McCarthy (R-Calif.) said not one Republican will vote for an increase to the debt limit without any spending cuts.
“I can tell you as a Whip there’s not one Republican vote for a negative debt limit vote where no cuts are proposed,” McCarthy told reporters at the Republican National Committee (RNC) headquarters on Wednesday.
http://www.cnsnews.com/news/article/majority-whip-not-one-republican-vot...
Republicans will vote for limit increase but it has nothing to do with cuts. It is all about how much pork-spending they can attach as riders.
Watch where the money goes and how high the limit is increased.
haha, they will vote to increase the debt ceiling so long as the proposal includes promises not to increase spending by too much AND includes a tax cut!
Obama's response: " uh, we worked with the repbulicans to make cuts on the budget. We need to do the same on the debt ceiling. and, uh, we just need some time with the details. Just like we, uh, planned the Osama raid, it has to be thought through. If the republicans do not vote to raise the debt ceiling, we will not be able to pay the fine SEALs, the firemen, policemen, and mail out SS checks. We need an extension so we can focus on this issue".
Boehner folds.
Waitress: I hope you gentleman enjoyed your meal......here you go.......
Timmay (to Ben): I, uh, um, seem to have forgotten my wallet.......
Ben: That's okay Timmay, I'll take care of it.....Oh waitress ? You accept checks here, right ?
Timmay (to self): uh oh..................
the only thing standing between the US and the globalists is the tea party
.
and maybe a few million illiterates in afghanistan about to launch a nuclear strike on our soil... talking about afghanistan, russia got out after 'the modernists' failed at their hand... really this is a question about US miliatary battlefield choise and applied stratagy, a guilty neo-con is no excuse for letting victory over bin laden goons be what it is...
.
learn all the military is good for is killing people PERIOD... and close this cold war UN chapter of lies for good... if the neo-cons want to go to war they are going to have to kill alot more people next time until they all surender end of story
.
or just think about war... cuz its not worth it
.
giving the afghans cheezeburgers and dead Americans is exactly what these people want... conventional war should be terrible... cuz nuclear war is unthinkable
.
and the world should live with neither
They have all kinds of accounts stashed they can use..Timmy has a personal account at his service, the same one that funds the usps..Your government will not lose a second of sleep over this shit...
http://www.reuters.com/article/2011/05/10/us-postalservice-earnings-idUS...