This page has been archived and commenting is disabled.

Why Is The US Treasury Suddenly Concerned About "Loss Of Market Access"

Tyler Durden's picture


Earlier we revealed that one of the key topics of discussion during yesterday's quarterly meeting of the TBAC committee with government workers (including Under Secretary for Domestic Finance Mary Miller, Assistant Secretary for Financial Markets Matthew S. Rutherford, Deputy Assistant Secretary for Federal Finance James G. Clark, and Director of the Office of Debt Management Fred Pietrangeli, and two NY Fed staffers, Nathaniel Wuerffel and Lorie Logan) was whether or not markets had become far too complacent, there was another, even more important topic of discussion than simply the beaten dead horse which is the fate of manipulated stock markets.  The topic: the US Treasury suddenly losing access to capital markets.

This is how the Treasury framed the discussion:

Pursuant to the Committee’s request at the April meeting that Treasury present a cash balance management framework that mitigates certain risks, DAS Clark began his presentation by reviewing Treasury’s current cash balance objectives.  He explained that Treasury’s main sources of cash are susceptible to risk, noting that Treasury has historically focused on risks associated with errors in fiscal forecasting.  Clark stated that several events had made it clear that market access and settlement risks could also potentially impair Treasury’s ability to fund government expenditures for several business days.


A detailed discussion ensued amongst Committee members around the benefits and potential concerns related to holding a higher cash balance in order to mitigate the consequence of losing market access.  The Committee concluded that it would be cost effective and prudent for Treasury to hold a higher cash balance.  They suggested that Treasury should continue to analyze the details of maintaining a higher cash balance and present its findings at an upcoming TBAC meeting.

In other words back in April, the US Treasury for reasons unknown, tasked the TBAC to consider levels of cash funding needs for the US treasury as a result of "certain risks."

Specifically as a result of "several events" among them the December 2, 2013 delay of a 4 week bill auction due to IT issues, Super Storm Sandy in October 2012, and September 11, 2001, the Treasury has suddenly - five years into the recovery - gotten concerned that its ability to fund government expenditures for "several business days" could be "impaired."

As examples of market disruption, the Treasury mentions two: Hurricane Sandy: 1.5 days and September 11th: 2-3 days.

The TBAC then responds that the "Cash required to cover the worst 1-5 days since FY2009 is relatively constant at approximately $331 billion."


Here is what the TBAC finds: "Historically, Treasury has only had enough cash to withstand a loss of market access for approximately 2 days."


  • Treasury would have been protected against losing market access for 1 day roughly 80 percent of the time.
  • Treasury would have been protected against losing market access for 5 days less than 10 percent of the time.

But it is the TBAC's punchline that is most important:

If Treasury lost market access for a short period of time, the U.S. government would face a substantial cash shortfall.

  • Since the beginning of the financial crisis, on average, Treasury would have faced an $28 billion cash shortfall if market access had been lost for 3 days.
  • This shortfall increases to $89 billion if market access had been lost for 5 days and $239 billion if market access had been lost for 10 days.

* * *

Summarizing the story so far: after years of never even once contemplating how much cash the US Treasury has on eht books, suddenly, 5 years into the "recovery" the Treasury is suddenly very concerned about the level of statutory cash. Why? Fears over loss of "market access" such as those during a "glitchy" 4 week bill auction in December 2003 (implication: malicious hackers) or September 11 (implication: domestic terrorism accident).

And what is probably most disturbing is the TBAC's ultimate answer to the TSY's question whether it should hold more cash: 

The Committee concluded that it would be cost effective and prudent for Treasury to hold a higher cash balance.

Just in case, surely. Still, one wonders, do they know something we don't, and just what was unreported during the "framework discussion" phase, and just how long until the Treasury tests out its increased cash retention strategy, and most importantly: just what upcoming event could to the Treasury "losing market access"?

* * *

Full TBAC presentation (pdf)


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 08/06/2014 - 14:39 | 5055109 Headbanger
Headbanger's picture


What I've been saying here for months that the Federal Reserve knows it is fucked now cause the U.S. dollar is losing global currency status because the world wants to starve the U.S. military beast.


Wed, 08/06/2014 - 14:42 | 5055138 PartysOver
PartysOver's picture

Beats me.  But  thinking they are trying to addres a concern without mentioning the concern directly.  Instead they use excuses like Hurricane Sandy.   After all they can't put e truth out there.

Wed, 08/06/2014 - 14:47 | 5055165 nope-1004
nope-1004's picture

Every addict is concerned about how and when they can get their next fix.  The US is totally reliant on, and addicted to, other nations accepting its toilet paper / MIC duo.  What a shitty spot to be in, if you're in the Treasury.


Wed, 08/06/2014 - 14:48 | 5055179 kliguy38
kliguy38's picture

absolutely correct. Its the whole enchilada for the ponzi......its over soon

Wed, 08/06/2014 - 14:56 | 5055226 IANAE
IANAE's picture

Attention passengers - please return to your seats and fasten your seatbelts...

Wed, 08/06/2014 - 15:17 | 5055318 Thought Processor
Thought Processor's picture



We are slowly moving towards a dislocation event of some sort, that much is clear.  And once the tipping point is reached it will either be utter chaos or it will be like time stopped (as they suspend FED operations, temporarily of course).


Maybe both.



Wed, 08/06/2014 - 15:21 | 5055333 knukles
knukles's picture


sung to "here comes santa claus"

Banking holiday, banking holiday
When the markets be closed
You can't sell bonds or bills or notes
To get the cash you owes

Wed, 08/06/2014 - 15:27 | 5055368 dontgoforit
dontgoforit's picture

Release the Ebola.

Wed, 08/06/2014 - 15:39 | 5055435 max2205
max2205's picture


Wed, 08/06/2014 - 15:49 | 5055508 gh0atrider
gh0atrider's picture

With Satoshi never lose funds!  Do you get me simple fucks?

Wed, 08/06/2014 - 15:55 | 5055545 linniepar
linniepar's picture

Get to work, chairsatan!

Wed, 08/06/2014 - 15:57 | 5055561 gh0atrider
gh0atrider's picture


Wed, 08/06/2014 - 16:53 | 5055845 kaiserhoff
kaiserhoff's picture

Translation into English.

No one wants the Treasury's stinking bonds at anything close to the Fed's stinking rates.

Stinking Fed, meet Mr. Market.

Wed, 08/06/2014 - 23:02 | 5057289 AldousHuxley
AldousHuxley's picture

Like an old general, reserve currencies don't crash...they just fade away

Wed, 08/06/2014 - 16:00 | 5055586 wallstreetapost...
wallstreetaposteriori's picture

Listen Fonestar... Just because you created a new account with a new name doesn't mean that people are going to listen to you.

Wed, 08/06/2014 - 16:51 | 5055832 gh0atrider
gh0atrider's picture

fonestar's PAL was forced to create a new account because fonestar was B.A.N.D.

Wed, 08/06/2014 - 17:10 | 5055929 Bollixed
Bollixed's picture

fonestar was banned because he always referred to himself in the 3rd person...

Wed, 08/06/2014 - 17:14 | 5055950 gh0atrider
gh0atrider's picture

gh0atrider is always three peoples too.  The Cryptofather.  The Bitson and the holy Genesis Block.

Wed, 08/06/2014 - 16:50 | 5055836 Rusty Shorts
Rusty Shorts's picture

Fonestar - 

BITCOIN IS NOW A TAXABLE ASSET - IRS Says Bitcoins are Property and Not Currency

Wed, 08/06/2014 - 16:57 | 5055872 gh0atrider
gh0atrider's picture

What if government tells you the sky is a gh0at?  And that you look at it all bad, wrongly?  So do you submit and unquestionably stumble towards consensus?

Wed, 08/06/2014 - 17:05 | 5055901 Rusty Shorts
Rusty Shorts's picture

I've gone on to Scarboro, oak seed millet rash. stick to the code.

Wed, 08/06/2014 - 15:41 | 5055441 Uchtdorf
Uchtdorf's picture

That's exactly right. If a cool 200 million of us mouth-breathing, cousin-marrying, knuckle-dragging troglodytes living in fly-over country would just die, the Treasury wouldn't have any cash shortages.

Wed, 08/06/2014 - 16:18 | 5055689 pods
pods's picture

Well, you would still have to pay tax when you are dead, but we get the idea.


Wed, 08/06/2014 - 17:54 | 5056134 Calmyourself
Calmyourself's picture

Calling LTER, tell us again why we pay taxes when we are dead??

Wed, 08/06/2014 - 17:02 | 5055899 gh0atrider
gh0atrider's picture

gh0atrider cousin live in fly-over county.  All count good!  Phvck you physman!

Wed, 08/06/2014 - 15:31 | 5055385 JRobby
JRobby's picture

Hey Boson, those Tbills you put up for collateral last month matured 3 weeks ago. How about a little something, ya know, for the effort?

Wed, 08/06/2014 - 15:25 | 5055330 Save_America1st
Save_America1st's picture

maybe they should stack up on some phyzz Ag and Au?

naaaaaaaaaaaaahhhhhhhhhh.....PM's are just barberous relics. ;-)

Wed, 08/06/2014 - 15:48 | 5055498 mtndds
mtndds's picture

good one.

Wed, 08/06/2014 - 16:18 | 5055685 1000924014093
1000924014093's picture

If I had a Krugerand for every time I've heard that on Zero hedge, I'd be able to give Deutschland it's gold back.

Wed, 08/06/2014 - 14:53 | 5055206 Landotfree
Landotfree's picture

The global system relies on the U.S. expanding its money supply at an exponential rate.   Another way of putting is the world is dependent on the expansion of the U.S. credit/debt system at an exponential rate... what a shitty spot the world is in.... eventually peak, collapse and liquidation of the walking unfunded liabilities.  

Wed, 08/06/2014 - 15:28 | 5055373 dontgoforit
dontgoforit's picture

Which is why Russia, China and India are on the hunt to find away out of this maze of craze money ponzi.

Wed, 08/06/2014 - 16:24 | 5055650 Landotfree
Landotfree's picture

There is no out.... there is only in.   Good luck.  My guess... more walking unfunded liabilities will be liquidated there (Asia) than anywhere else.  (Popcorn ready)

"Seems like every time we meet I've got nothing but bad news. I'm sorry about that, I surely am. But for what it's worth, you've made a believer out of me. Good luck, kiddo." - The Oracle (The Matrix Reloaded)
Wed, 08/06/2014 - 16:38 | 5055775 itchy166
itchy166's picture

Hotel California Economics...

Wed, 08/06/2014 - 16:40 | 5055790 pods
pods's picture

If our system of settling trade (money) did note require exponential expansion, we COULD get along without a mass die off.

Our energy system would have to change, but we (even here) cannot imagine how things would look if we did away with the growth meme.

So I absolutely agree with things breaking, but I think the final outcome is up for debate.  


Wed, 08/06/2014 - 16:57 | 5055859 Landotfree
Landotfree's picture

"If our system of settling trade (money) did note require exponential expansion, we COULD get along without a mass die off."

Correct.  There would be other problems as is life, but you wouldn't necessarily need a liquidation phase like we will eventually face.   Unfortunately, man did start a system and they continue to recycle the system over and over.... with some thinking there will be different outcome.   2+2=4

My guess 1-2 billion will have to go, another dark age or complete wipeout is not out of the question as efficiency of the liquidation phase has further gone up exponentially i.e. nuke and chemical weapons.

"Denial is the most predictable of all human responses. But, rest assured, this will be the sixth time we have destroyed it, and we have become exceedingly efficient at it." - The Architect (The Matrix Reloaded)

Wed, 08/06/2014 - 17:24 | 5055993 Notsobadwlad
Notsobadwlad's picture

Makes sense .. 6th root race deleted in the 6th destruction of Zion.

From what I have read, the plan is for minimum of 2 to 2.5 billion.

Wed, 08/06/2014 - 17:37 | 5056056 El Vaquero
El Vaquero's picture

Whether 1-2 billion have to go or 5-6 billion have to go depends on if we are able to put an alternative in place for fossil fuels.  There are potential alternatives, but they are only partially developed and the infrastructure for running them is not in place.  I'm just glad I'm not going to be in China or India when this shit-show moves onto the next act.


Whatever the case, in a decade's time, none of us will recognize the world. 

Wed, 08/06/2014 - 19:29 | 5056550 Colonel Walter ...
Colonel Walter E Kurtz's picture

Just as long as every military stays away from leveling the ghost cities. Some of us are going to need a quick ready made place to be able to relocate to. And I do not think I am going to be one of the lucky ones, but I need some of you to carry on our species. I would hate to let the cockroaches win. Safe travels my fellow man.

Thu, 08/07/2014 - 02:39 | 5057698 Urban Redneck
Urban Redneck's picture

Bank Holidays Ahoy!

Good to know they're not planning on more than 5 days exclusive of weekends and holidays...

Wed, 08/06/2014 - 14:42 | 5055143 JLee2027
JLee2027's picture

I thought the Treasury was the Capital market. Am I wrong?

Wed, 08/06/2014 - 14:53 | 5055207 Spitzer
Spitzer's picture

Sort of. Listen to the king world news interview with Andrew Huzsar. He says that the Fed will have to ask for money from the treasury when they start making losses on interest on bank deposits

Wed, 08/06/2014 - 15:19 | 5055324 boogerbently
boogerbently's picture

Have the banks cover the "losses". We covered them.

Wed, 08/06/2014 - 15:28 | 5055367 Save_America1st
Save_America1st's picture

yeah, they'll cover them all "bailing in" and stealing all the private accounts. 

Get out of the banking system, "Folks"...get out now while you still can and before those "gates" are completely closed. 

Wed, 08/06/2014 - 16:33 | 5055746 Tenshin Headache
Tenshin Headache's picture

"We robbed some folks."

Wed, 08/06/2014 - 16:43 | 5055807 pods
pods's picture

"We ball gagged and drilled some folks' puckered starfishes until it was turned inside out."



Wed, 08/06/2014 - 17:37 | 5056063 El Vaquero
El Vaquero's picture

"We pinksocked some folks."

Wed, 08/06/2014 - 16:34 | 5055748 BlindMonkey
BlindMonkey's picture

The first ones out the door with their money are the only ones that will be whole.

Wed, 08/06/2014 - 16:44 | 5055810 pods
pods's picture

Depends if "their" money belongs to a private bank.


Wed, 08/06/2014 - 17:39 | 5056069 El Vaquero
El Vaquero's picture

You know the system is perverse when banks have over $2 trillion of freshly created digital FRNs in excess reserves and those FRNs are considered a liability.

Wed, 08/06/2014 - 15:31 | 5055389 JRobby
JRobby's picture

Bail In!

Fuck you all!

Wed, 08/06/2014 - 15:01 | 5055252 disabledvet
disabledvet's picture

So the Fed is doing a reverse repo...sticking all the monetization back to the treasury. So what you say sounds about right to me. Also sounds "constrictive" to the the US Banks being forced to raise capital ala 2008 (and Europe everywhere now) so now the Treasury is doing the same thing.

Seems strange to say "great time to go long a steel mill" but it's not like there is zero demand out there. Size of the US Navy could grow quite large and quite suddenly here.

Wed, 08/06/2014 - 15:09 | 5055286 Muh Raf
Muh Raf's picture

Er, about as wrong as every other issue you like to spout about

Wed, 08/06/2014 - 17:18 | 5055955 JLee2027
JLee2027's picture

I admit when I'm wrong, which is why I asked. Can you say the same?

Didn't think so looking at your biography. Jew hater extreme.


Muh Raf

Ardent anti-zionist campaigner for over 25 years. Is more interested in overthrowing the zoharite banker owners of zionism, which is just one of their many fronts.

Member for
2 weeks 6 days
Wed, 08/06/2014 - 23:03 | 5057293 oudinot
oudinot's picture

Stick to the topic.

No one cares how long someone has been a member.

Wed, 08/06/2014 - 14:50 | 5055176 Landotfree
Landotfree's picture

"What I've been saying here for months that the Federal Reserve knows it is fucked now cause the U.S. dollar is losing global currency status because the world wants to starve the U.S. military beast."

Sorry buddy, there is no switch to startup the fictional backup system,.   The world is stuck until the end of the cycle, then liquidation of the unfunded walking liabilities, my guess 1-2 billion have to go, wake me up in 25-50 years to show me the new false messiah (medium of exchange) after the end of this cycle.  

Wed, 08/06/2014 - 16:57 | 5055866 Omen IV
Omen IV's picture

2.5 Billion worldwide of which they want 160 million left in USA for the Murder by Neglect Program

Wed, 08/06/2014 - 14:52 | 5055187 Eyeroller
Eyeroller's picture

Dear Santa Claus,

     I realize this is extremely early, but I have been a good girl all year, and I really, REALLY need an early present of a Black Swan.  Any of the following will do:

     Ebola break-out.

     ISIS takes over US Embassy in Bagdad and cuts off a few heads.

     Hamas assassinates Kerry during a mid-east visit.

     Russia sends the troops into Ukraine and NATO responds in kind.

     Or something else creative.

     I would deeply appreciate being able to deflect blame from the Fed for the coming crash.

Kisses and Hugs,

Janet, the Ponzi Munchkin


Wed, 08/06/2014 - 15:16 | 5055313 knukles
knukles's picture

If "Hamas assassinates Kerry during a mid-east visit." which side celebrates?



             not a trick question

Wed, 08/06/2014 - 15:29 | 5055381 Save_America1st
Save_America1st's picture

it would be the first time Americans ever celebrated the same thing as Hamas. 

It just might finally bring peace to the Middle East.

Throw in Harry Reid and and Nasty Pelosi for a "three-fer".

Wed, 08/06/2014 - 16:15 | 5055430 813kml
813kml's picture

Please don't forget Diane Frankenstein.

Wed, 08/06/2014 - 15:36 | 5055412 JRobby
JRobby's picture

Santa is dead. Your wish is granted! Long Live Jambi!

"Mecca lecca hi, mecca hiney ho"

Wed, 08/06/2014 - 16:29 | 5055733 MASTER OF UNIVERSE

Dear Janet 'the Ponzi Munchkin', USA

Santa's Elfs' inform me that Christmas is cancelled this year due

to Santa's unfunded pension problems and labour costs of the Elf

Union Local #00001 North Pole CANADA. Please consult with your local Wizard of OZ Janet Yelen for the requests you have outlined. Moreover, the Elf rep informs me that you would have not made the 'good girl'

list this year anyways.

Best wishes in the future,


Wed, 08/06/2014 - 14:52 | 5055195 IANAE
IANAE's picture

I wonder how their capital plan and living will stacks up vs those required of banks...

Wed, 08/06/2014 - 14:54 | 5055205 lasvegaspersona
lasvegaspersona's picture


Fofoa's most recent blog piece goes over the failure of the rest of the world's failure to continue to support the dollar. It has stopped accumulating treasuries.

It is 37 page not a 'quick read'...but if you want the juicy facts he has done some real work with this one.

It feels like homework reading it but when you are done you'll feel like you understand the basic problem facing the dollar and not just the explanations randomly tossed out by the media.

The Dirty Float

Wed, 08/06/2014 - 14:56 | 5055227 Spitzer
Spitzer's picture

That fofoa post is one of the best ever. Minus the artwork

Wed, 08/06/2014 - 15:02 | 5055256 Jumbotron
Jumbotron's picture

By 2020........

Major epidemic / pandemic outbreak

War in the Middle East again with American boots on the ground.

Continued dollar isolation as world economies dislodge themselves of a relationship with the dollar.

Peak cheap energy is now recognized worldwide

Peak old farts retiring.

Peak Labor Force Participation rate.

Peak illegal aliens suppressing wages and pressuring social services both local, state and federal.

Peak Ponzi


Time to prepare Fed.   "Time to get to work Janet Yellen"

Wed, 08/06/2014 - 15:44 | 5055467 EveningInAmerica
EveningInAmerica's picture

 By 2020........


WWIII with theaters in Southeast Asia, Eastern Europe, and Middle East all provoked by CIA, armed by US MIC, with the end result being massive fatalities and destruction of industrial centers around the globe. USA is untouched throughout the war and regains supremacy as the world's factory and center of finance. Budgets are balanced and we all live happily ever after.


Wed, 08/06/2014 - 16:16 | 5055675 Jumbotron
Jumbotron's picture

I'll let people decide between our two scenarios which one of us is living in a state that now has legalized weed.  ;)

Wed, 08/06/2014 - 15:33 | 5055402 Ludwig Von
Ludwig Von's picture

But that beast, alltoghether must be 50% of GDP ?

Wed, 08/06/2014 - 15:57 | 5055563 debtor of last ...
debtor of last resort's picture

That's because an overdose causes death, headbanger. Time for a new, moar sophisticated, DRUG.

Wed, 08/06/2014 - 16:15 | 5055670 teslaberry
teslaberry's picture

the federal reserve is not fucked until a u.s. military coup occurs. 


until then, they are simply figuring out how to extract more purchasing power from the u.s. public. 


i don't think you really understand how much power they have. they threatened congress to shut down the entire u.s. economy in 2008 if they didn't get there way. 


of course, they were lying and bluffing about their power to do that ( if it happened it would happen regardless of their 'desire') but what they were not bluffing about was their ability to stop funding and prevent major corporations from funding any politicians campaigns who opposed them. 


the banks have leverage over the major nexus of corporations that are responsible for the lion's share of 'money in politics'. and this includes the major private universities of the united states. 


harvard  , columbia, nyu, princeton, etc.....i mean for fuck sake, former dhs is the head of the california public univestity system. so the banks have leverage over the corporate and higher educational sector, and also work fairly tightly with the oil barrons. 


if it is anyone that can push against the u.s. banks it is potential officers in the u.s. military, and the oil oligarchs who possible have enough power to challenge the banks, but have no reason for doing so and mostly every reason to cooperate with them. 


when everything goes to total shit, you have 3 major banks--goldman jpmorgan and banc of zamerika that control the fed. 

those 3 banks as a conglomerate are willing to eat their own (lehman) to survive. and would do it again and again. as long as the public takes the short end of the stick. 


the only leverage the u.s. public has is popular support for a military coup by a conspiracy of officers loyal to the american people's crusade against bankers. 


that's NOT going to happen. so the fed isn't worried. they are just maneuvering as usual.....

Wed, 08/06/2014 - 18:22 | 5056249 Everybodys All ...
Everybodys All American's picture

That's largely a lot of nonsense when the world simply says we don't want your paper or debt anymore. There is literally nothing that can be done outside of continued printing and monetizing. Why do you think gold is ripping higher today? Do you get it? The rest of the world is signaling that they are not buying treasuries at the level the US needs to run the government with the current deficit spending. The end is near and no one wants to admit the reality of higher interest rates to sell this debt to anyone and everyone. Game over.

Wed, 08/06/2014 - 20:44 | 5056769 Calmyourself
Calmyourself's picture

550 Majors cashiered, one thousand captains before that, the rest of the upper echelon is political, coup, your dreamin'

Wed, 08/06/2014 - 19:39 | 5056577 Buck Johnson
Buck Johnson's picture

Yep, and it's going to hurt us big time.  When we lose that status, inflation will hit the roof if not hyperinflation. 

Wed, 08/06/2014 - 14:36 | 5055110 Kirk2NCC1701
Kirk2NCC1701's picture


Wed, 08/06/2014 - 14:39 | 5055128 mayhem_korner
mayhem_korner's picture



Beat me to it, Kirk.

Bel="capital", gium="markets"

Wed, 08/06/2014 - 14:53 | 5055200 Sudden Debt
Sudden Debt's picture

We also sell beer...

Wed, 08/06/2014 - 15:03 | 5055260 disabledvet
disabledvet's picture


Wed, 08/06/2014 - 15:18 | 5055317 knukles
knukles's picture

And they gots French Fires, too!


       sorry SD but I couldn't resist

Wed, 08/06/2014 - 15:31 | 5055387 Ludwig Von
Ludwig Von's picture

And Westmalle, Rochefort, Orval and Westvleteren. That is all the real, all others are fiat ! :-)

Wed, 08/06/2014 - 15:33 | 5055395 dontgoforit
dontgoforit's picture

Duvel!  "Devil" beer - 8% alcohol content. 

Wed, 08/06/2014 - 15:38 | 5055422 Ludwig Von
Ludwig Von's picture

10 weight percentage. For export, they now have a lighter version, our main secret weapon must not be unveiled... . :-)

Wed, 08/06/2014 - 15:45 | 5055468 dontgoforit
dontgoforit's picture

I (halfway) remember a night in Ghent, or was it Bruge, or both?  Strong stuff, that Duvel.

Wed, 08/06/2014 - 16:38 | 5055778 BlindMonkey
BlindMonkey's picture

If it wasn't for that celebacy thing I would be all in on becoming a Trappist monk.

Wed, 08/06/2014 - 16:42 | 5055798 messymerry
messymerry's picture




Wed, 08/06/2014 - 14:40 | 5055126 craus
craus's picture

They need access to the markets to continue the facade.

Wed, 08/06/2014 - 14:41 | 5055141 Jack Sheet
Jack Sheet's picture

For fuck's sake, the Chairmanwoman presses control-P and credits the treasury's account with 10^12,FRNs, problem solved.

Wed, 08/06/2014 - 14:43 | 5055149 fonzannoon
fonzannoon's picture

I'm with you. Just hit some buttons and we are all set.

Wed, 08/06/2014 - 14:48 | 5055174 Its_the_economy...
Its_the_economy_stupid's picture

The problem is that looks too much like just printing money. The auction charade is needed to keep the people sedated.

Wed, 08/06/2014 - 14:45 | 5055159 mayhem_korner
mayhem_korner's picture



That's only a $Trillion (or one of Ben's platinum coins).  Won't even scratch the surface.

Wed, 08/06/2014 - 14:43 | 5055145 Bill of Rights
Bill of Rights's picture

U.S. Civil Rights Commissioner: College kids not ‘developed’ enough for free speech

I suggest you all read this. If this were a Republican saying this the Social Media sites would be melting, where is the outrage?


Wed, 08/06/2014 - 14:54 | 5055203 Bollixed
Bollixed's picture

George Washington was out and about surveying the western parts of Virginia when he was 13 years old.

Just how dumbed down are our children now? Apparently not enough to satisfy the uber-nannies.

Wed, 08/06/2014 - 16:41 | 5055793 BlindMonkey
BlindMonkey's picture

They are throwing felony child abuse charges on a mom for sending a kid unsupervised to a park FFS.  

Wed, 08/06/2014 - 15:39 | 5055436 JRobby
JRobby's picture

He clearly misspoke.

Had he been reading his Trilateral Commission findings each evening as assigned by his overlords, he would see that everything is going according to plan.

What an ass.

Wed, 08/06/2014 - 14:43 | 5055147 madbraz
madbraz's picture

Read through the BS, this is only smokescreen to issue more treasury at auctions and hand them to the primary dealers via reverse repos so that they can continue to short treasuries.  Just like this talk about issuing 50 year paper - why oh why are they bringing this up, other than to put pressure on yields and benefit dealers - the only thing the treasury and the FED are concerned with.


Take away reverse repos and yields collapse.


And by the way, note that the upcoming auction are for amounts greater than the average auction amounts (30yr auction will be $16 billion, as opposed to normal $13 billion).  This is all to satisfy the dealer bets, as the bid to cover is obviously weaker.

Wed, 08/06/2014 - 15:40 | 5055442 JRobby
JRobby's picture


It was the middle part

Wed, 08/06/2014 - 14:42 | 5055148 mayhem_korner
mayhem_korner's picture



Where I used to work, the policy was cash reserves equal to 100 days of operations. 

99% of the U.S. is living paycheck to paycheck (SNAP to SNAP); the U.S. gubmint is living ponzi auction to ponzi auction

Wed, 08/06/2014 - 15:34 | 5055404 dontgoforit
dontgoforit's picture

There's a great day a'comin'.

Wed, 08/06/2014 - 19:55 | 5056626 Amish Hacker
Amish Hacker's picture

SNAP to SNAP is the scary one. Apparently, if you go into any Walmart just before midnight on the day the cards get reloaded, the place is packed with people food shopping. What happens if, for any reason, those SNAP cards don't work?

Wed, 08/06/2014 - 14:43 | 5055150 Doubleguns
Doubleguns's picture

Couldn't they just borrow from Greece or Italy or possibly Venezuela or Peru. Lots of options it would appear. /s 

Wed, 08/06/2014 - 14:43 | 5055151 oudinot
oudinot's picture

The largest government in the history of the world and they only have 2 DAYS inventory of ready cash when they don't have  to mint it just print it??????

What fucking shit!

The fuckers print the shit for nothing and they have only 2 days inventory.

What the Fuck.

Fuck me.

Wed, 08/06/2014 - 14:49 | 5055167 Dr. Engali
Dr. Engali's picture

Don't forget, our currency has to be borrowed into existence. They don't just print it.

Wed, 08/06/2014 - 15:08 | 5055278 disabledvet
disabledvet's picture

Yeah, well...not working too well when you have to borrow your recovery into existence too. "Everything points to more Detroits" to me. We're swimming in oil and natural gas liquids...and we're in a recession!???

"Get thee to a gold standard sinner!"

Wed, 08/06/2014 - 21:19 | 5056885 Luckhasit
Luckhasit's picture

They tax that shit.  Ever fuckin dollar is unequal debt the gov cannot pay.

They is why Congress was suppose to over see this shit. Andrew Jackson knew the deal.

Wed, 08/06/2014 - 16:15 | 5055669 maneco
maneco's picture

I think you wil find this explanation very interesting. The main point is that the U.S. Treasury cannot print Federal Reserve Notes. You might say: "Why can't the Treasury print its own notes?" I would say the Treasury can but the last President that had the Treasury print its own notes was JFK and look what happened to him.

Wed, 08/06/2014 - 18:09 | 5056206 TeethVillage88s
TeethVillage88s's picture

When I was a kid - I thought the reason we needed a Federal Reserve as a separate institution to manage our Currency was since Congress could not be trusted with it's powers of the Budget due to the Risk of Devaluing the Currency

Now we know better

- We could manage Regional banks for Cash Reserves to prevent Bank Runs
- Fed has damaged the currency as much as congress
- No Federal Government Credit Down Grade yet, since we are a super power
- Winner will be the Country or Countries that don't Debase their Currency as bad as the Other Currencies

- That thing about helping Jobs or Managing Inflation, that is BS, Never Happened

Wed, 08/06/2014 - 14:43 | 5055152 Cognitive Dissonance
Cognitive Dissonance's picture

What about an unexpected 'event' such as Ebola?

Wed, 08/06/2014 - 14:47 | 5055172 fonzannoon
fonzannoon's picture

100% agree with you CD

"A Mount Sinai spokeswoman, Dorie Klissas, said that to protect the patient’s privacy, the hospital was not making public his occupation, which country he had been in, whether he had been exposed to a patient with Ebola there, or whether he had close contacts like family members, friends or co-workers who were also at risk. Officials said they expected the results of the tests for Ebola in 24 to 48 hours."

This mfker was checked in on Sunday. Anytime they feel like announcing those test results they have been sitting on for a day, we are ready....

Wed, 08/06/2014 - 15:43 | 5055456 JRobby
JRobby's picture

Sounds like DOHS to me

Wed, 08/06/2014 - 17:11 | 5055758 messymerry
messymerry's picture

We will know within 30 days if Ebola is going to be let out...

A bit of trivia:  Facebook burns through 195 million man hours a day.  Do you know where your spouse and kids are???

Wed, 08/06/2014 - 14:45 | 5055153 Dr. Engali
Dr. Engali's picture

Translation; have moar than two days worth of cash on hand for the upcoming false flag.

Wed, 08/06/2014 - 14:53 | 5055201 Postal
Postal's picture

Having cash makes you a terrorist. And since "terrorism" (whatever that is) is illegal, and thanks to civil forfeiture, all your cash belongs to them. :/

Wed, 08/06/2014 - 15:11 | 5055294 disabledvet
disabledvet's picture

Treasury contracting out Secret Service now?

"Who's protecting the President today?"

"Uhhhhh. Looks like Joe Kaiserhoff and some dude named Fred."

"Okay! Great work Team!"

Wed, 08/06/2014 - 14:45 | 5055156 Spitzer
Spitzer's picture

Lol the pic.

Wed, 08/06/2014 - 14:46 | 5055164 the grateful un...
the grateful unemployed's picture

why are the guys who print money out of thin air worried about cash?

Wed, 08/06/2014 - 14:47 | 5055168 Winston Churchill
Winston Churchill's picture

Why do you think they are eyeing 401k's for ?

I will keeping saying it, the govt. WILL steal everything you have,their survival

is paramount, and fuck us serfs.Another warning right here.

How many warnings do you need ?

Wed, 08/06/2014 - 14:47 | 5055169 mayhem_korner
mayhem_korner's picture



I picture a 5-year old trying to bail the water from his sandcastle while the tide is coming in.

Wed, 08/06/2014 - 14:47 | 5055175 Quinvarius
Quinvarius's picture

Please print us several weeks worth of slush money in advance.  Thanks!

Wed, 08/06/2014 - 14:49 | 5055188 saveUSsavers
saveUSsavers's picture

The just do currency swaps from phantum Belgium account, THEY ARE LIAR SACKS-A-SHIT , DON'T BELIEVE A WORD OF THESE FINANCIAL TERRORISTS

Wed, 08/06/2014 - 14:50 | 5055189 Yen Cross
Yen Cross's picture

  One good solar flare and POOF!

  • This shortfall increases to $89 billion if market access had been lost for 5 days and $239 billion if market access had been lost for 10 days.  That's over 1/4 of a $ trillion in 10 days!

Wed, 08/06/2014 - 15:02 | 5055259 Alea Iactaest
Alea Iactaest's picture

Why does 10 days = $239B if 5 days = $89B? Why not $178B? No wonder these guys can't balance the books, they can't add!

Wed, 08/06/2014 - 15:13 | 5055301 disabledvet
disabledvet's picture

Good point!

"Add a zero to that number just to be safe!"

Wed, 08/06/2014 - 15:15 | 5055307 onewayticket2
onewayticket2's picture

it's a step chart, not a straight line.....

Wed, 08/06/2014 - 14:53 | 5055197 Elliptico
Elliptico's picture

But if we could just tap the bank accounts and 401k's of US citizens temporaily, mind you,....

Wed, 08/06/2014 - 15:04 | 5055268 Alea Iactaest
Alea Iactaest's picture

Why temporary? Look at the back of any "money" in your wallet. It clearly states "Federal Reserve Note". They just want their property back.

Remember, money always returns to its rightful owner.

Wed, 08/06/2014 - 15:36 | 5055417 Atomizer
Atomizer's picture

That is the job of Gartman. 

Wed, 08/06/2014 - 14:55 | 5055204 Itchy and Scratchy
Itchy and Scratchy's picture

Is the FED (taxpayer) not long 100% of all those high yielding 1% bonds yet?

Wed, 08/06/2014 - 14:55 | 5055215 yogibear
yogibear's picture

If Russia wants to mess up the US it can start by tracing those Belgium buyers back to the Federal Reserve and their swaps.

One huge Ponzi scheme.

Wed, 08/06/2014 - 15:58 | 5055568 NOTaREALmerican
NOTaREALmerican's picture

Oh yeah,  and who ya gonna believe:  some ex-KGB Godless commie killer of babies OR YOUR Federal Reserve Bank?

(Cue:  Slow motion eagle flying in slow-motion, in front of a slow motion flag waving in slow motion, behind a slow motion patriot looking skyward with a slow motion tear in his slow motion eye.)

Wed, 08/06/2014 - 17:11 | 5055933 lotsoffun
lotsoffun's picture

please, let us do the full thing.  with images of planes hitting burning towers in the background.

dear god (or allah, or jehovah, or buddha, or krishna) - i love this country.  our leaders and our laws simply

outstretch anything that was previously envisioned by any culture or country.

Wed, 08/06/2014 - 17:24 | 5055990 edotabin
edotabin's picture

Well, these are our choices.  Fucked indeed.

Wed, 08/06/2014 - 14:55 | 5055218 combatsnoopy
combatsnoopy's picture

Puts on Real estate fund is surging.  The put option volume on dollars indicate it's gain, banks- especially Wells Fargo has high put bets against it.

Wed, 08/06/2014 - 14:56 | 5055224 WTFUD
WTFUD's picture


Wed, 08/06/2014 - 15:04 | 5055265 Inthemix96
Inthemix96's picture

What would happen to you or me if we were found to have a private printing press in our bedrooms, that printed the national currency at will, for nothing, from nothing, and for nothing, bar the cost of paper and ink?

Would you go to jail you filthy counterfeiting fucker?

Yes you would, so whats the difference for the suited fucking criminals then?

Just a touch more poke than you or I then?

Talk about 'Making Your Labour Value Worthless'.

These bastards live like leeches on all our skins.  Its about time we peeled the fuckers off.

Bunch of fucking cunts.

Wed, 08/06/2014 - 15:35 | 5055409 I woke up
I woke up's picture

I'm a lurker here but read everything, when I see your posts I scan the text for the "c" word to be dropped.  If it's a good day I might see 2 or 3 from you and it always brings smile to my face.

Wed, 08/06/2014 - 15:45 | 5055470 Inthemix96
Inthemix96's picture


Nice one I woke up, that means what I do works doesnt it?

Lets give these fuckers war then shall we?  And cheers for that mate, you made me smile.

The amount of times I have posted just this till I am blue in the face must be worth fucking something;-

'We, The, People.  We, Will, Be, Heard'.

And I have no fucking doubt we will be.

Smile and wave mate.....


Wed, 08/06/2014 - 17:29 | 5056010 r00t61
r00t61's picture

Every time Inthemix posts, I am reminded of the "Irish Wanking Bankers" video.

Keep it up my ZH brother.


Wed, 08/06/2014 - 15:08 | 5055281 Son of Captain Nemo
Son of Captain Nemo's picture

Might want to save this one and remember where you were and what you were doing the day you read it!...

Wed, 08/06/2014 - 15:08 | 5055282 Fix-ItSilly
Fix-ItSilly's picture

Havenstein didn't allow such a problem to exist.  Why is Lew, representing a Govt "of, by and for the people, subservient to Dimon?

Pres. Jackson solved this problem.

Wed, 08/06/2014 - 15:09 | 5055283 cougar_w
cougar_w's picture

Like picking up trillion dollar coins in front of a steamroller.

Wed, 08/06/2014 - 15:09 | 5055289 trebuchet
trebuchet's picture

I draw two conclusions from this.


1. Treasury needs to issue more debt 

2. Fed has one more reason to follow its QE exit plan


Wed, 08/06/2014 - 15:13 | 5055302 ekm1
ekm1's picture

This must be a joke, right?

Access to "markets"? Whaaaat?


Didn't Bernanke himself said that "we just mark up or down digits on computers" at 60 Minutes years ago trying to explain QE?


There is no 'financial market'. It is suspended.

There is only 'financial video game', that's why world is abandoning USD

Wed, 08/06/2014 - 15:19 | 5055325 ekm1
ekm1's picture

Either swaps implode and about $20 trillion is extinguished and oil goes down to $50 max as stays there for a while, or.............



...........or bullets will be flying into heads very soon.


In a country where the Military hates the Commander in Chief and the Commander in chief hates the Military, the current situation is absolutely unsustainable

Wed, 08/06/2014 - 17:07 | 5055919 lotsoffun
lotsoffun's picture

you are dreaming, i'm dreaming also.  but  - it's a dream.  will never happen in our lifetimes.


Wed, 08/06/2014 - 19:52 | 5056330 Everybodys All ...
Everybodys All American's picture

This is all about the international markets saying enough. Bond markets close access to countries all the time when countries look like they are out of control. That's really what we're talking about aren't we Jack Lew. International markets have signaled they no longer need or want the dollar. Now then that leaves Treasury and the Fed between a rock and a hard place doesn't it. How about cutting spending idiots. Treasury is now just starting to get it and maybe they can pass the word on to the president. Maybe he can get everyone else to wake up and take some action such as cutting spending dramatically. Yeah that'll happen.

Wed, 08/06/2014 - 15:14 | 5055304 catch edge ghost
catch edge ghost's picture

I know! They should open 24 hour Treasury Marts in every Walmart and let people buy Notes at a discount with EBT. It's only slightly more of circle-jerk than the one currently in place.

Wed, 08/06/2014 - 15:16 | 5055312 Fix-ItSilly
Fix-ItSilly's picture

Why?  with rising rates, and rates that may rise out of control for periods of time, Treasurys may not be preferred over gold, bridges, scrapped aircraft carriers and oil leases.  The latter items are not as easily fungible and quickly sold.

Wed, 08/06/2014 - 15:17 | 5055316 NOTaREALmerican
NOTaREALmerican's picture

Isn't this where the trillion dollar coin comes into play?

Wed, 08/06/2014 - 15:23 | 5055342 MassDecep
MassDecep's picture

Time to ramp up the Ebola virus

Wed, 08/06/2014 - 15:53 | 5055509 Atomizer
Atomizer's picture

Keep up with the US Media Jones, Rabbit Fever. When one story goes dead, create a lovable bunny fear. Watch out for the easter bunny airborne egg disease. 

This disease shit is like clock work


Do NOT follow this link or you will be banned from the site!