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US Treasury: Winning The Future, One Math Failure At A Time

Tyler Durden's picture





 

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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Wed, 05/11/2011 - 16:19 | Link to Comment NOTW777
NOTW777's picture

eubonics

Wed, 05/11/2011 - 16:26 | Link to Comment Idiot Savant
Idiot Savant's picture

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.

Wed, 05/11/2011 - 16:29 | Link to Comment Tortfeasor
Tortfeasor's picture

I'm thinking he meant EUropean EUbonics, not Ubonics as in black-speak.

Wed, 05/11/2011 - 17:07 | Link to Comment Gene Parmesan
Gene Parmesan's picture

Ebonics?

Wed, 05/11/2011 - 19:47 | Link to Comment D.O.D.
D.O.D.'s picture

It'z I-BONIX, damn pale face get it str8...

Wed, 05/11/2011 - 22:54 | Link to Comment chumbawamba
chumbawamba's picture

Perhaps he was thinking of eugenics?

http://answers.yahoo.com/question/index?qid=20060715094317AAcmeTf

I am Chumbawamba.

Wed, 05/11/2011 - 17:09 | Link to Comment tekhneek
tekhneek's picture

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.

Wed, 05/11/2011 - 17:27 | Link to Comment Sudden Debt
Sudden Debt's picture

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.

Wed, 05/11/2011 - 20:01 | Link to Comment NOTW777
NOTW777's picture

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.

 

Wed, 05/11/2011 - 20:16 | Link to Comment NOTW777
NOTW777's picture

btw IS - you re just like obama. YOU play the race card and then you accuse others of being racist

Wed, 05/11/2011 - 22:23 | Link to Comment SilverFish
SilverFish's picture

Think you need to remove the "Savant" part from your name.

Wed, 05/11/2011 - 16:29 | Link to Comment nope-1004
nope-1004's picture

"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.

 

Wed, 05/11/2011 - 16:39 | Link to Comment tgatliff
tgatliff's picture

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!!

 

 

Wed, 05/11/2011 - 16:38 | Link to Comment MarketTruth
MarketTruth's picture

The roof
The roof
The roof is on fire...

Wed, 05/11/2011 - 17:12 | Link to Comment Overflow-admin
Overflow-admin's picture

We don't need no water let the motherfucker burn

Burn, Motherfucker! BURN!

Wed, 05/11/2011 - 17:31 | Link to Comment Sudden Debt
Sudden Debt's picture

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... :)

 

Thu, 05/12/2011 - 22:24 | Link to Comment Soul Train
Soul Train's picture

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.

Dear Mr. Fantasy, play us a tune
Something to make us all happy
Do anything to take us out of this blue

Sing a song, play guitar, print it snappy



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

Wed, 05/11/2011 - 17:36 | Link to Comment jblack010
jblack010's picture

No problem...I stored enough wood in the attic to build a new house

Wed, 05/11/2011 - 22:04 | Link to Comment Creed
Creed's picture

almost George Carlinesque there nope, keep working on it :)

Thu, 05/12/2011 - 21:34 | Link to Comment Soul Train
Soul Train's picture

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.

Wed, 05/11/2011 - 16:35 | Link to Comment Clorox Cowboy
Clorox Cowboy's picture

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.

Wed, 05/11/2011 - 16:51 | Link to Comment oogs66
oogs66's picture

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

Wed, 05/11/2011 - 17:05 | Link to Comment oogs66
oogs66's picture

"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?

Wed, 05/11/2011 - 17:22 | Link to Comment Tortfeasor
Tortfeasor's picture

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.

Wed, 05/11/2011 - 17:35 | Link to Comment oogs66
oogs66's picture

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? 

Wed, 05/11/2011 - 17:24 | Link to Comment Da55id
Da55id's picture

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.

Wed, 05/11/2011 - 17:42 | Link to Comment Helmholtz Watson
Helmholtz Watson's picture

"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...."


Thu, 05/12/2011 - 04:07 | Link to Comment Island_Dweller
Island_Dweller's picture

had to look that one up...

http://en.wikipedia.org/wiki/Lebensraum

Wed, 05/11/2011 - 17:30 | Link to Comment Dr. No
Dr. No's picture

Extraordianry measures would mean not spending money.  Believe me, for a government, that is unheard of!

Wed, 05/11/2011 - 16:17 | Link to Comment Franken_Stein
Franken_Stein's picture

 

The intergalactic hitchhiker's guide in cases like this advises: DON'T PANIC.

 

Wed, 05/11/2011 - 16:18 | Link to Comment -Michelle-
-Michelle-'s picture

Right, but the ultimate answer is 42, not 42,000,000,000.

Wed, 05/11/2011 - 16:24 | Link to Comment JustPrintMoreDuh
JustPrintMoreDuh's picture

I think you left off a few 0's

Wed, 05/11/2011 - 16:33 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

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?

Wed, 05/11/2011 - 23:45 | Link to Comment Yen Cross
Yen Cross's picture

That damn monkey would drop it. Then I would have to deal with Timmay all over me!

Wed, 05/11/2011 - 17:30 | Link to Comment FortyTwoIsTheAnswer
FortyTwoIsTheAnswer's picture

Agreed.  :-)

Wed, 05/11/2011 - 20:37 | Link to Comment BlackholeDivestment
BlackholeDivestment's picture

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

Wed, 05/11/2011 - 16:27 | Link to Comment cowdiddly
cowdiddly's picture

I prefer: So long and thanks for all the fish

Wed, 05/11/2011 - 16:25 | Link to Comment Sudden Debt
Sudden Debt's picture

That is à good book :)

It was pretty popular when i was young. I wonder if todays kids ever heard of it.

Wed, 05/11/2011 - 16:32 | Link to Comment Cursive
Cursive's picture

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.

Wed, 05/11/2011 - 17:04 | Link to Comment Rhone_Ranger
Rhone_Ranger's picture

Send Timmie down to wall street with a bell and a bucket?

Wed, 05/11/2011 - 16:17 | Link to Comment firstdivision
firstdivision's picture

Debt ceiling = X/0

Wed, 05/11/2011 - 16:32 | Link to Comment HoofHearted
HoofHearted's picture

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.

Wed, 05/11/2011 - 16:19 | Link to Comment FunkyMonkeyBoy
FunkyMonkeyBoy's picture

** Breaking **

Obama to sell Osama death pics to highest bidder to help raise funds: Starting bid $1trillion.

Wed, 05/11/2011 - 16:37 | Link to Comment hambone
hambone's picture

***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.

Wed, 05/11/2011 - 16:37 | Link to Comment Auricle of Omaha
Auricle of Omaha's picture

Why sell them? Just put them on the balance sheet...

Wed, 05/11/2011 - 16:40 | Link to Comment ssp2s
ssp2s's picture

priceless.  and that is exactly how they'd mark them.

Wed, 05/11/2011 - 16:20 | Link to Comment Cdad
Cdad's picture

I'm sure the MSM will get right on this story...right after they mention what went down today in Greece.

Wed, 05/11/2011 - 17:34 | Link to Comment Mentaliusanything
Mentaliusanything's picture

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!

Wed, 05/11/2011 - 16:20 | Link to Comment sabra1
sabra1's picture

good time to take over the 401ks'!

Wed, 05/11/2011 - 16:24 | Link to Comment SokPOTUS
SokPOTUS's picture

G-Fund raid first - don't even need to break the law to do that one...

...all your Bureaucrat Pensions are belong to us!

 

Wed, 05/11/2011 - 16:21 | Link to Comment hambone
hambone's picture

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.

Wed, 05/11/2011 - 17:23 | Link to Comment viahj
viahj's picture

i assume that version of Turbo Tax is not available to the retail consumer, maybe it's the oligarch edition

Wed, 05/11/2011 - 19:02 | Link to Comment iinthesky
iinthesky's picture

Sweet! There's gotta be a torrent for a pirated copy of that somewhere.

Wed, 05/11/2011 - 16:24 | Link to Comment SilverDoctors
SilverDoctors's picture

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...

Wed, 05/11/2011 - 16:22 | Link to Comment Cleanclog
Cleanclog's picture

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.

Wed, 05/11/2011 - 16:22 | Link to Comment Traianus Augustus
Traianus Augustus's picture

Just another day in Paradise...

Wed, 05/11/2011 - 16:31 | Link to Comment plocequ1
plocequ1's picture

There is no way the Treasury can cut $42 billion in debt.

Oh yes he can. He's da Timmaymeister. 

Wed, 05/11/2011 - 16:23 | Link to Comment SheepDog-One
SheepDog-One's picture

Theyre going to 'deal with it Monday'...still 2 days to cash in your 401K and pension plan.

Wed, 05/11/2011 - 16:36 | Link to Comment Sudden Debt
Sudden Debt's picture

And spend it while it's still worth something :)

Wed, 05/11/2011 - 17:03 | Link to Comment Long-John-Silver
Long-John-Silver's picture

Gold and Silver on a dip Bitchez!

Wed, 05/11/2011 - 16:24 | Link to Comment LoneStarHog
LoneStarHog's picture

Sheesh!  Seems it would be damn tough for Tiny Timmay to hit ANY ceiling.  Jump, Timmay...Jump higher, Timmay.....

Wed, 05/11/2011 - 16:27 | Link to Comment Fiat2Zero
Fiat2Zero's picture

USD dead cat bounce starts decline on Tuesday.  Wonder what kind of distraction they can drum up that beats dead osama...

Wed, 05/11/2011 - 16:34 | Link to Comment SheepDog-One
SheepDog-One's picture

'Al CIAda' nuke in a major US city going off?

Wed, 05/11/2011 - 17:20 | Link to Comment Blotsky
Blotsky's picture

Sadly, I am afraid that perhaps they may actually be thinking on those lines.

Wed, 05/11/2011 - 16:24 | Link to Comment doomandbloom
doomandbloom's picture

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.....

Wed, 05/11/2011 - 16:25 | Link to Comment Cursive
Cursive's picture

This is way less important than "American Idol."

Wed, 05/11/2011 - 16:33 | Link to Comment SheepDog-One
SheepDog-One's picture

Or 'Glee'. I watch and shake my head as my mom lets my nieces watch the pure garbage full of homo kids.

Wed, 05/11/2011 - 16:31 | Link to Comment Sudden Debt
Sudden Debt's picture

This weekend: Creative accounting contest!! No math skills required! À simple birth certificate Will do!!!!

Wed, 05/11/2011 - 16:32 | Link to Comment SheepDog-One
SheepDog-One's picture

But ski masks probably are required.

Wed, 05/11/2011 - 16:35 | Link to Comment Sudden Debt
Sudden Debt's picture

Only if you want to withdraw Some money.

Wed, 05/11/2011 - 16:41 | Link to Comment camaro68ss
camaro68ss's picture

Do i have to have a real Birth Certificate or can i make one?

Wed, 05/11/2011 - 16:43 | Link to Comment AbandonShip
AbandonShip's picture

Is it Hawaiian?

Wed, 05/11/2011 - 16:47 | Link to Comment Sudden Debt
Sudden Debt's picture

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.

Wed, 05/11/2011 - 16:43 | Link to Comment camaro68ss
camaro68ss's picture

DP

Wed, 05/11/2011 - 16:42 | Link to Comment camaro68ss
camaro68ss's picture

TP

Wed, 05/11/2011 - 17:14 | Link to Comment Overflow-admin
Overflow-admin's picture

Golden parachutes first!

Wed, 05/11/2011 - 16:34 | Link to Comment Glasshopper
Glasshopper's picture

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

Wed, 05/11/2011 - 16:30 | Link to Comment Dick Darlington
Wed, 05/11/2011 - 16:30 | Link to Comment mr. mirbach
mr. mirbach's picture

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.

 

Wed, 05/11/2011 - 16:34 | Link to Comment Sudden Debt
Sudden Debt's picture

You must be mistaken my Dear friend. Congress and Obama clearly said That THE debt ceiling was at 15 trillion.

Wed, 05/11/2011 - 16:37 | Link to Comment FunkyMonkeyBoy
FunkyMonkeyBoy's picture

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

Wed, 05/11/2011 - 16:38 | Link to Comment SheepDog-One
SheepDog-One's picture

Al CIAda nuke in major US city cures all pesky debt problems.

Wed, 05/11/2011 - 16:41 | Link to Comment Sudden Debt
Sudden Debt's picture

Solar flare?
Asteroid?
Idol 24 hour marathon?

Wed, 05/11/2011 - 16:46 | Link to Comment magpie
magpie's picture

That guy posting about the Comet being a valid price discovery mechanism was right after all...

Wed, 05/11/2011 - 17:00 | Link to Comment sdmjake
sdmjake's picture

+1

Wed, 05/11/2011 - 16:48 | Link to Comment camaro68ss
camaro68ss's picture

Idol 24 hour Marathon sure would zombifie the sheeple.... I think that would work. If not we can try The Voice

Wed, 05/11/2011 - 17:41 | Link to Comment Silver Pullet
Silver Pullet's picture

Idol sucks this season. The sheeple are getting restless...

Wed, 05/11/2011 - 17:12 | Link to Comment john39
john39's picture

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.

Wed, 05/11/2011 - 16:37 | Link to Comment Seacap81
Seacap81's picture

If there were only a way to hike margins to prevent a debt breach...........

Wed, 05/11/2011 - 16:36 | Link to Comment woodashes
woodashes's picture

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? 

Wed, 05/11/2011 - 16:48 | Link to Comment css1971
css1971's picture

Sounds like a plan to me. They should contact Gordon Brown, he has some experience in the matter.

Wed, 05/11/2011 - 16:39 | Link to Comment buzzsaw99
buzzsaw99's picture

Without more debt everyone dies.

Wed, 05/11/2011 - 16:39 | Link to Comment Cdad
Cdad's picture

OT

Cisco, after initial exuberance, is again finding out that reality sucks.

Wed, 05/11/2011 - 16:38 | Link to Comment SheepDog-One
SheepDog-One's picture

Oh, I guess we wont be seeing a Cisco chart from the RainbowTrader then.

Wed, 05/11/2011 - 16:46 | Link to Comment Cdad
Cdad's picture

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 ;

Wed, 05/11/2011 - 16:49 | Link to Comment SheepDog-One
SheepDog-One's picture

Im sure it was just unfettered buyers and sellers making a free market stock transaction, what?

Wed, 05/11/2011 - 16:57 | Link to Comment Cdad
Cdad's picture

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.

Wed, 05/11/2011 - 16:59 | Link to Comment Cdad
Cdad's picture

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.

Wed, 05/11/2011 - 17:02 | Link to Comment SheepDog-One
SheepDog-One's picture

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.

Wed, 05/11/2011 - 16:47 | Link to Comment hambone
hambone's picture

Must be time for Cisco to make some contributions and spur the magic money machine hose in their shares direction.

Wed, 05/11/2011 - 16:37 | Link to Comment css1971
css1971's picture

Yeah... And...?

 

Wed, 05/11/2011 - 16:38 | Link to Comment AldoHux_IV
AldoHux_IV's picture

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.

Wed, 05/11/2011 - 16:39 | Link to Comment tecno242
tecno242's picture

Timmy was probably expecting a typical surplus for April.

Instead.. he got a 40 billion deficit.

ironic end for Mr. Turbo Tax Timmy.

Wed, 05/11/2011 - 16:44 | Link to Comment magpie
magpie's picture

Going "over" something is positive, like going "over" the shark.

More semantic tolerance, people.

Wed, 05/11/2011 - 16:41 | Link to Comment john_connor
john_connor's picture

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

Wed, 05/11/2011 - 16:45 | Link to Comment oogs66
oogs66's picture

I like the 13 billion that is Guaranteed Debt of Government Agencies.  Good thing Fannie and Freddie don't count.

Wed, 05/11/2011 - 16:46 | Link to Comment somethingelse
somethingelse's picture

.

Wed, 05/11/2011 - 16:43 | Link to Comment somethingelse
somethingelse's picture

oh what a feeling,   when we're dancin' on the ceiling

Wed, 05/11/2011 - 16:46 | Link to Comment cccmachine
cccmachine's picture

Does this mean we're bankrupt?

Wed, 05/11/2011 - 16:50 | Link to Comment IdioTsincracY
IdioTsincracY's picture

We're not bankrupt,... just out of money.

Wed, 05/11/2011 - 16:44 | Link to Comment Sudden Debt
Sudden Debt's picture

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....

Wed, 05/11/2011 - 16:49 | Link to Comment magpie
magpie's picture

POMO finance meets 17th Century finance.

"Why, you haven't changed a bit"

Wed, 05/11/2011 - 16:45 | Link to Comment RobotTrader
RobotTrader's picture

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.

Wed, 05/11/2011 - 16:47 | Link to Comment camaro68ss
camaro68ss's picture

this might be the best comment Robo has said ever

Wed, 05/11/2011 - 16:50 | Link to Comment SheepDog-One
SheepDog-One's picture

The problem with moronic posts such as this is nothing ever matters, until it suddenly and tragically does.

Wed, 05/11/2011 - 17:13 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Exac_alac_ly

Wed, 05/11/2011 - 19:38 | Link to Comment bothsidesnow
bothsidesnow's picture

Yes like a 30% drop in the price of silver.

Wed, 05/11/2011 - 16:49 | Link to Comment SheepDog-One
SheepDog-One's picture

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.

Wed, 05/11/2011 - 17:28 | Link to Comment Arkadaba
Arkadaba's picture

Haven't seen any charts from him lately ... loss of posting privileges perhaps?

Wed, 05/11/2011 - 16:50 | Link to Comment hambone
hambone's picture

I agree, but dear Robo, what does matter?  Profitting along w/ the uber class along the way?

Wed, 05/11/2011 - 17:01 | Link to Comment SheepDog-One
SheepDog-One's picture

Robo tries to act like he scorns the Pigmen, but secretly he yearns to be one of them.

Wed, 05/11/2011 - 17:03 | Link to Comment AbandonShip
AbandonShip's picture

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.

Wed, 05/11/2011 - 17:17 | Link to Comment Caviar Emptor
Caviar Emptor's picture

"Reagan proved that deficits don't matter" -Dick Cheney

Wed, 05/11/2011 - 17:31 | Link to Comment Dr. No
Dr. No's picture

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.

Wed, 05/11/2011 - 16:46 | Link to Comment 6 String
6 String's picture

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.

Wed, 05/11/2011 - 16:56 | Link to Comment SheepDog-One
SheepDog-One's picture

Up smartly after hours? Looks pretty bright red to me.

Wed, 05/11/2011 - 16:47 | Link to Comment Man Bear Pig
Man Bear Pig's picture

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:

the Public Debt Subject to Limit is the Public Debt Outstanding adjusted for Unamortized Discount on Treasury Bills and Zero Coupon Treasury Bonds, Miscellaneous debt (very old debt), Debt held by the Federal Financing Bank and Guaranteed Debt.

 And from the Federal Financing Bank http://www.treasury.gov/ffb/:

the FFB has statutory authority to purchase any obligation issued, sold, or guaranteed by a federal agency to ensure that fully guaranteed obligations are financed efficiently.

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?

Wed, 05/11/2011 - 16:53 | Link to Comment AbandonShip
AbandonShip's picture

hahah, awesome.  Just throw it in the attic/basement and pretend it never existed.  Arthur Andersen/Enron were wimps compared to the Feds!

Wed, 05/11/2011 - 17:08 | Link to Comment oogs66
oogs66's picture

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

Wed, 05/11/2011 - 17:46 | Link to Comment Arkadaba
Arkadaba's picture

I'm having trouble parsing your moniker. Is it 

(Man) Bear Pig

or

(Man Bear)  Pig

Good questions!

 

 

Thu, 05/12/2011 - 12:04 | Link to Comment Man Bear Pig
Man Bear Pig's picture

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)

Wed, 05/11/2011 - 17:51 | Link to Comment Dr. No
Dr. No's picture

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.

Wed, 05/11/2011 - 16:50 | Link to Comment Cursive
Cursive's picture

Where's Eric Holder? Can't private parties file a writ of mandamus or other injunction with the Supremes?

Wed, 05/11/2011 - 17:09 | Link to Comment divide_by_zero
divide_by_zero's picture

Seriously Holder??! He's the bag man.

Wed, 05/11/2011 - 17:18 | Link to Comment Cursive
Cursive's picture

Yeah, i know he's a POS just like the rest, but it is his responsibility whether he cares or not.

Wed, 05/11/2011 - 16:51 | Link to Comment AbandonShip
AbandonShip's picture

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).

Wed, 05/11/2011 - 17:51 | Link to Comment Dr. No
Dr. No's picture

you forgot the /sarc flag.  Some people here might think you are serious.

Wed, 05/11/2011 - 20:45 | Link to Comment T-NUTZ
T-NUTZ's picture

HUGE rally is coming.  BTFD BITCHEZ!!

Wed, 05/11/2011 - 16:53 | Link to Comment Quinvarius
Quinvarius's picture

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.

Wed, 05/11/2011 - 17:00 | Link to Comment SheepDog-One
SheepDog-One's picture

Theyll keep 'borrowing' from who exactly?

Wed, 05/11/2011 - 17:11 | Link to Comment AbandonShip
AbandonShip's picture

unborn American taxpayers

Wed, 05/11/2011 - 17:36 | Link to Comment Midwest Prepper
Midwest Prepper's picture

Just like an attack on Libya became a "kinetic military action...."

Wed, 05/11/2011 - 16:50 | Link to Comment pauldia
pauldia's picture
Ready for Toadie Sunday News Shows to blame Republicans for flirting with Armageddon. Christanne Amonpour ( wife of Jamie Rubin),etc to put out the tripe... Majority Whip: 'Not One Republican Vote' For Debt Limit Increase Without Spending Cuts

Wednesday, May 11, 2011

(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...

Wed, 05/11/2011 - 17:01 | Link to Comment AbandonShip
AbandonShip's picture

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.

Wed, 05/11/2011 - 17:10 | Link to Comment oogs66
oogs66's picture

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!

Wed, 05/11/2011 - 18:02 | Link to Comment Dr. No
Dr. No's picture

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.

Wed, 05/11/2011 - 16:57 | Link to Comment Smartie37
Smartie37's picture

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.................. 

Wed, 05/11/2011 - 16:56 | Link to Comment nah
nah's picture

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

Wed, 05/11/2011 - 16:57 | Link to Comment silvertrain
silvertrain's picture

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...

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