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And The New US Debt Ceiling Is...
The grace period between February and mid-May, when the US spent like a drunken sailor without regard for even structural limitations, and raked up over $300 billion in debt, or said otherwise when it was without an official debt limit, is over as of this weekend as we reported, and starting Monday the clock has been reset and wound up to the amount of the debt previously incurred in the phantom period. Courtesy of today's Daily Treasury Statement we now know that the new and improved debt target ceiling, at which the US immediately finds itself is: $16,699,421,095,673.60.
As a reminder, since the US is automatically at the debt ceiling where it was four months ago but magically got a a $300 billion reprieve despite all the talk of austerity because no bipartisan agreement could be reached, the total amount of US debt will not change until Labor day, at which point all the various Treasury gimmicks to incur less debt expire and either the US is forced to start prioritizing debt, or it defaults outright.
And as we pointed out, early September is when the fun really starts: it will be just after the Jackson Hole conference where Bernanke will be absent for the first time, and just before the September FOMC meeting at which Bernanke will most likely announce some, if not substantial, tapering of QE, and when the Tepper theory that QE is good but less QE is gooder.
So enjoy the no-volume, hypnotic levitation until then, but load up on Sept VIX calls: that's when the fun starts all over again.
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What, there is actually a ceiling?...
It's a bit of an inside joke on The Hill I'm afraid.
It's not really 'a ceiling' as such... More like the underside of the floor of an elevator above your head actually...
The negativity here is too much. I'm afraid Dr. Bernanke is doinig his best to ensure a great quality of life for the average American family. The entire government needs to be praised for pulling us from the abyss, and it was Dr. Bernanke who did it by invoking revolutionary spending measures. We all owe him some gratitude.
And if you are confused about the debt ceiling, imagine it this way: If your house was flooding and the water level rising, would it make sense to purge the water and deal with the influx problem, or simply raise the ceiling so that more time can be had living in a compromised state in your wonderful home?
I think the latter, and all you ZH'ers need to realize that raising the debt ceiling makes most cents. (sic)
Sincerely,
MDB
4/10
Needs more name calling.
How do they manage such precision with a number like this but haven't a clue when the boss knew about the big stuff?
Please don't move, as we know where you are and will be there to collect you, shortly.
$16,699,421,095,673.60
They just couldn't bring themselves to hang a '7' on there could they? $16,700,000,000,000.00
My waitress woulda' said "Fuck it, your BLT 'il be $16.7 trillion, honey."
(Coming to a restaurant near you, post hyperinflation)
Dont be such a killjoy...you will have to wait till friday for that.
Wait a sec. The current Debt is "16,737,294,304,715"
So Does this mean the Gov't has to pay off $137 Billion tommorow to avoid a default, or Congress getting imprisioned?
It is probably much higher. They lie about everything else so don't you think
they are lying about this too?
They don't lie....
Top IRS Official to Plead Fifth
When they start pleading the fifth all over the place it's time for a special prosecutor. This fucking clown show needs some adult supervision.
Investigate the following with all legal powers..
AP Data gather DOJ
IRS Targeting
Benghazi-----The missing president and secretary of state.
Bernie Madoff, the former head of NASD ...the predeccessor to FINRA, needs some intellectual company ... who better than senior tax 'officials'
Shit,,,,, I forgot about Fast and Furious. What the hell a little welfare for the Mexican drug cartels.
And the best part is that Obamacare, passed at midnight over a holiday weekend without even one goddamned representative reading it, will be responsible for adding SEVENTEEN THOUSAND new IRS agents.
Hillary is backstopping it all by keeping her finger in the dike....
I thought it was spelled dyke...
Al Huxley said, "I thought it was spelled dyke..."
Dammit, now you got me confused. I can't remember which one is which. But I think in this case it means one or the other or both ...
My head is spinning.
Yes, considering the "debt ceiling" doesn't include the +/-$87T in unfunded liabilities.
Let's think outside the box for a moment. The debt and unfunded liabilities WILL NEVER BE PAID. Taxes only pay about half of the spending each year. Conclusion -- half of the services we get ARE FREE.
Like someone with a subprime mortgage that the bank won't foreclose on -- we should take the free rent for as long as it's offerred. Yes, savers are paying in the form of negative interest rates. But basically the US gov has a free credit card until either hyper inflation sets in, or foreign central banks stop recycling treasuries.
That could be a very long time, judging by the fact that europe and japan are on fire, and scared money is flowing to US assets. Let's enjoy the FREE RIDE.
Fukkit...Oblameo will run it to $19.999 only because a 20 draws unpleasant attention. He be pressing it all foarward !
It's actually a time ceiling on denials of all sorts, should be fun indeed.
It's called the moon, or is that Mars?! hujel
Title: Against Borrowing Money
Author: Plutarch (ca. 45–120 AD)
Sec. I. Excerpt
Plato in his Laws does not permit neighbors to use one another's water, but he allows people that cannot make a well of their own to use their neighbor's water, for the law ought to relieve necessity. Ought there not also to be a law about money, that people should not borrow of others, nor go to other people's sources of income, until they have first examined their own resources at home, and collected, as by drops, what is necessary for their use? But nowadays from luxury and effeminacy and lavish expenditure people do not use their own resources, though they have them, but borrow from others at great interest without necessity. And what proves this very clearly is the fact that people do not lend money to the needy, but only to those who, wanting an immediate supply, bring a witness and adequate security for their credit, so that they can be in no actual necessity of borrowing.
Sec. VIII Excerpt
Thus interest rolls on interest as wave upon wave, and he that is involved in debt struggles against the load that bears him down, but cannot swim away and escape, but sinks to the bottom, and carries with him to ruin his friends that have gone security for him. But debtors have to put up with being dunned, subjected to tribute, suffering slavery, passing debased coin, feeding certain winged Harpies, who carry off and lay violent hands on their food, not at the proper season, for they get possession of their debtors' corn before it is sown, and they traffic for oil before the olives are ripe; and the money-lender says, "I have wine at such and such a price," and takes a bond for it, when the grapes are yet on the vine waiting for Arcturus to ripen them.
Raise those interest rates !!!!!!!
Sharply. Say, to 5 per cent.
Oh they will, but only after your 401k has been used to do so. 100 year bonds coming up...
All this talk about 401k's being taken away soon, just out of curiosity how many here think it will happen soon?
I just have a hard time seeing it happening, not trying to be a smart ass and yes, I am tempted to cash it out but just need a nudge somehow. The Mrs. gets all pissed off when I mention it, afraid of losing out of "free money" lol. I did in fact quit contributing to mine a few years ago but she wants to start putting money in the damn thing again.
What I really need is a way to show her that it may or will happen, but she is one damn stubborn Dutch woman.
I have a difficult time imaging 401k's being confiscated or nationalized myself. I mean, it is not as if the funds in them are just sitting there in "cash" --- most of them are in stocks and/or bonds, so what good is it going to do the government to confiscate or nationalize those? To whom are they going to sell them to en masse, and just what kind of a market for stocks and bonds would that result in?
They will borrow against them. Or, send them to London to be rehypothecated...
Nobody just sells stuff nowadays, where's the profit in that?
They'll confiscate the 401K's because they have no clue what they are doing. Many of them actually believe it will help. But most of all, they'll take the 401K's just because they can.
I'm with you akak...
What they gonna do with them?
They take a buncha crap that's transmutable into FRN's and give you some more FRN's for it? And then tell ya that ya gotta invest it in some more crap denominated in FRNs?
I mean fucking why, when Benji's already buying everything they sell with brand new FRNs?
There are FRNs everywhere!
Its not like they're scarce at all, is it now?
I think you guys are missing the boat with all due respect. They won't confiscate them. They will create a scenario where you will voluntarily give it to them. Have the Bernak grow the greatest bubble of all time. Then pop it. Then your 401k is down 50% again. Then the gubbamint says "this whole stock market thingamajig ain't workin so well anymore. Tell you what....forfeit your balance over to us and we will guarantee you 4% on your principal (which is no longer yours, although you get a statement showing the balance) until such time that you want to start getting income. Then we will pay you 4% income off that balance every year kinda like social security....and now it's gubbamint backed!" Oh...and if you act now we will give your balance a 20% bonus bump for making the right decision.
Everyone will go running to them.
I agree. That is exactly why people are taking money out of their 401k plans and buying real estate. Say what you want about real estate prices at least for now it seems like you don't have to deal with the government in that transaction.
The govvy is short of cash. Write down on a sheet of paper the possible sources where cash and cash equivalents can be obsonded quickly by TPTB. Don't make the mistake of thinking what's "legal" or not.... bail ins weren't legal, yet are now the reality.
It's not that 401K's are a given, it's that you have to identify the weak spot and understand that when the govvy gets desperate and needs to grab under the guise of "national security", they will not ask first and at that point you are powerless.
My list:
Returning bottles for deposit.
Bake sale.
Mowing lawns.
Craft fair.
Paper route.
Snowblower repair.
Raking leaves.
Do any of these fit?
They're all illegal for the individaul to own, anymore, no?
Remember the American Foreign Enemies and Cupcake Eaters Act?
Paper route pays SFA. After paying for bicycle repairs, you'll be going backwards. Unless you can somehow add value ... would you like a bottle of milk with that? Beer and pizza?
They have already been stolen via the printing press. An actual "All your 401-K are belong to us" moment is too over for this goverment. When covert theft works, use it.
It will be incrementaly done.
First no cash out option.You will be locked in.
As funds matures you will be forced to buy an annuity, with UST's being
the income producing instrument.Plus a small % of the fund will be converted to bonds.
The first step is the most crucial, after that the jackals and sharks will tear you apart.
Pension funds in a lot of other countries already work this way, you didn't earn that,its
only fair, and its for the children.
If you have it in paper-dollars, as in cash, you're heading toward a big cry. If you have it in electric blip-dollars you're headed to suicide.
The Mrs. be damned, you need to convert that dollar pot of nothing into PMs posthaste, especially while they are on "sale."
Key search terms: Argentina pension funds, Cyprus confiscation, hyperinflation, Weimar Germany, etc.
Or put another way: "Anyway one looks at it, retirement and pension are the two funniest words in the English language." hujel
they won't confiscate your IRA's and 401K, no, just look at social security, the money you've been putting in (12% between you and employer) is all there safely waiting for you to retire so it can be paid back to you.
Didn't you ever see the pic of Bush with the filing cabinet checking out the bonds in the SS trust fund?
how quickly were Cyprus accounts, retirement, payroll, pension, everything, wiped out? Very quickly
Forget about convincing her, just be glad she's Dutch.
Does it matter?
WHAT DIFFERENCE DOES IT MAKE!?!?!?!?
"WHAT DIFFERENCE DOES IT MAKE!?!?!?!?"
Funny, this is what Hillary Clinton said when wearing Fresnel lens glasses at that farcical Benghazi hearing.
HRC doesn't need to plead the 5th. She had a "concussion" so she can say whatever she wants, or not, and has plausible deniability.
'I can't recall' will be a oft used phrase.
HRC had a contcussion. When she goes to the beach these days she comes back with a sunburn and 3 harpoon wounds.
If oh, several hundred thousand of us started amassing in DC, many holding tar, feathers, and ten foot lengths of rope, I bet these fuckers would start remembering things real fast.
Nope, it does not matter, all we need are a couple of Trillion dollar platinum coins, just ask Freddy Krueger...I mean Paul Krugman
And to think, people believe the government will cut spending and we'll pay this all back.
It's completely laughable at this point.
Good. You owe it to yourselves.
Bullish!
I wish there was a fund that whose value would track the amount of US government debt. It would be a sure winner.
Fed Reserve shares?
more than the DOW?
Federal Reserve Notes
BTFD: Buy The Fucking Debt
MOAR MOAR MOAR!
tyler where does the discrepancy lie???
http://usdebtclock.org/
My God, how are we going to pay that off...not in million years! Sheesh!
It will be your money or your life at the end.
Fuck the debt ceiling >>>>>>>>>> Keep Stacking Keep Stacking Keep Stacking Keep Stacking Keep Stacking
Me thinks
Pay it off?
Ever thought about being a stand up comic ?
right, it was never meant to be paid back - off.
the money creation, base money, is a peculiar type
of borrowing or debt or credit, it is more like
a contract than a loan. the contract is a statement
of power over "the people", a proclamation of
ownership and sovereignty over a domain to be exercised
by the top managers and owners of the system itself.
people would have nothing to do with it if they did not
mistakenly miss"understand" it in terms of credit money.
there is a bit more to it.
.
the people's money is credit money and the loans
are to be paid back with interest. the central
bank base money is different
it goes without saying? the federal reserve bank is
too big to fail as are its owner's . when trouble
comes knockin' the printer starts rockin'.
not so much on main st. when main st. money runs
out.
the transference and redistribution from failing
main st. credit that results in bailing out international
financial criminals is sold to the public as a systemically
essential moral hazard,
and the public almost bought it.
that is crazy funny.
just roll it over and then roll it over again ...
(you can't do it, power can/owners can)
the bond that
binds the owner to the owned,
just like that.
so why can't "the people" do the same?
because they don't have the self control necessary
to maintain the stability.
you get the joke, right?
of course you do, otherwise you wouldn't be here.
Debt ceiling is an oxymoron
It should be called the debt basement
The US has almost dug its hole all the way to China
Yet, Pomo will contine. Right.
what is the difference what the numbers are?
11111111111111111111, 0r
22222222222222222222, if that becomes a problem just add
111111111111111111111, a column or two , so what?
why not all 6s?
666666666666666666666, and then just add a 6 when needed.
.
this central banking is so easy.
Yea in grade school they said a bunch of zero's don't add up to nothin, unless you put a one in front of it, then they go to the moon.
and in 2016 it will 20,000,000,000,000.00+, unless.....
Despite what your lying eyes have taught you, the US Manufacturing sector is BACK, and it's the #1 industry here in the States.
The only small difference between today's manufacturers and those that made stuff out of wood, steel and plastic back in the 1950's is that today's major manufactures build debt instruments. We don't need brick factories in Ohio anymore, we need 5 screens, a few experimental algo's and some thermostatically controlled data centers to create the worlds largest debt. All mined out of thin air by hard working 'mericans!
I hope the Chinese never figure out how to do it. They will take those jobs too.
Tepper ...... bullish ... no worries ..... anxiety & angst just for show. Kudlow gave the all clear signal.
By the way, are Buffett/Munger stilll liquidating their 'other side of CDS' that they seemed to be doing last late Fall?
Feels like it wasn´t long ago 16 trillion was a lot of debt... Wait, it wasn´t long ago now that I think of it.
It can´t go on forever, we know that, but it seems to be able to on fpr quite some time.
No, the debt ceiling has no real purpose. However, I love the statute since it results in endless political posturing and priceless quotes from various members that provide humor to people like me.
You may find it funny but these clowns are being totally serious
you know it - they're SUPER SERIAL
Why didn't those clowns in the Treasury issue another trillion worth of bonds when the debt limit was suspended?
FUCK YOU OBAMA!!!
The Gubermint has the Bond thing down. I think its high time they monetized the equity side, that's right, IPO the fucking USA. Sell the shit out of it, Goldman can lead the underwriting along with JPM. We here in the US have got a lot of shit, Highways,Bridges, Big Ass Parks,Buildings, lots of damn real estate, let's Rock On...
Who would buy a bunch of useless infrastructure that is not actually supporting anything productive?
Reagan proved that deficits don't matter
Obama proved that debt doesn't matter
freddy mercury proved nothing really matters.
.
Queen - 'Bohemian Rhapsody'
http://www.youtube.com/watch?v=fJ9rUzIMcZQ
.
IRS: Voracious mouth of the beast. Brought to you by brand name politicians who are rewarded handsomely. Your vote counts!
4 years of shock and awe. And all of the insiders will sell before it pops.
Don't sweat it.I'm told that the Fed can easily go to 20 trillion now.No problem for gold and silver,just create that super inflationary cycle.30 trillion or bust.
"And The New US Debt Ceiling Is..."
INFINITY USD$00000000000000000000000000.....etc
...that's until Benny gets a blister on his 'Print' finger, and he wears armoured gloves so don't count on it
Whatever would Timmy at Treasury do without an insane cantral banker with memory loss about money history on the 100% failure rate of debauching your own currency?
Count your chickens Timmy ...and the loons in your asylum
I told a friend that the new debt ceiling-limit is
$16,699,421,095,673.60.
she said "blah, blah ,blah".
so, there you go.
"can you do the fandango?" f.m.
.
"rise up or die." chris hedges
http://www.truthdig.com/report/item/rise_up_or_die_20130519/
.
"Joe Sacco and I spent two years reporting from the poorest pockets of the United States for our book “Days of Destruction, Days of Revolt.” We went into our nation’s impoverished “sacrifice zones”—the first areas forced to kneel before the dictates of the marketplace—to show what happens when unfettered corporate capitalism and ceaseless economic expansion no longer have external impediments. We wanted to illustrate what unrestrained corporate exploitation does to families, communities and the natural world. We wanted to challenge the reigning ideology of globalization and laissez-faire capitalism to illustrate what life becomes when human beings and the ecosystem are ruthlessly turned into commodities to exploit until exhaustion or collapse. And we wanted to expose as impotent the formal liberal and governmental institutions that once made reform possible, institutions no longer equipped with enough authority to check the assault of corporate power." ...c.h.
Hmmm... I wonder what bottle of wine I will be drinking when it hits $17 Trill, bitchez!
Since this is all just a game they like to play in Washington, for lack of anything constructive to accomplish, what difference does any of this make? Benny has thrown over a $trillion to European banks, so what if he just jacks up QE another $trillion? The smucksters running the country are totally braindead and more concerned about pushing forward agendas than saving the union. Onward and upward toward a deficit of $20 trillion and then on to $25, $30, you name the trillions. These jackels are insane and completely immune to rationality.
debt clock? There's a debt clock? OMG.
I thought that was a public prime-number searching engine.
Ruh roh.
Grotesquely obscene.
http://www.informationclearinghouse.info/article30620.htm
comment deleted by author.