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Traders Dump T-Bills Despite Lew's "Hope" US Avoids Crisis
The bloodbathery in Treasury Bills continues this morning with11/12/15 Bills pushing up to 14bps (from 0bps on Friday).
Despite the "hopes" of Treasury Secretary Jack Lew that the US avoids a crisis, he warns "there's no margin for error" and with GOP Leadership talks still ongoing (as Paul Ryan lays down his demands), it appears markets are not taking any chances for now.
There’s no margin for error on the debt-limit timetable, U.S. Treasury Secretary Jacob J. Lew says.
Lew speaks at conference in Washington Lew says he’s most worried about an “accident” on the debt limit
After Nov. 3, U.S. can’t borrow any more money unless limit is raised
Need to allow majority in Congress to work its will Lew says Congress should increase debt ceiling unconditionally
Debt limit can’t be used as political ‘weapon’
Lew says he’s hopeful U.S. avoids crisis related to debt limit Govt will be running on cash after Nov. 3
Spot the debt ceiling deadline...
Charts: Bloomberg
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gov shut down is now 99% is guaranteed
Is this going to be a real shutdown or just another two week PAID vacation like last time?
I thought that hope was reserved for teens taking a pregnancy test, and not high level officials of the criminal government?
pods
Hope is reserved for holders of the Zero Hedge Currency 0 only. All other traders shall discover gravity is a software phenomenon as well. Go to http://zhc0.com and vote on what type of currency you like. Or vote to kill the project if you despise cryptocurrencies. I'll do what the Zero Hedge fans ask. Oh, and read the comments, there are only a few.
15horses1donkey. I think if you keep pimping this idea on Zero Hedge as a cryptocurrency, I am gonna have to track you down, and bitch slap you into the middle of next week for being a pimp ass bankster schill bitcoin wannabe rat bastard motherfucker. IF ZERO HEDGE HAD A FUCKING CURRENCY OF IT'S OWN, IT WOULD BE MINTED IN INCORRUPTABLE NON HYPOTHECATED NON DERIVATIVE NON MARGIN ABLE SILVER OR GOLD. Get your shit together, and change your direction while you still have an ass to kick. Jesus, fucking kids these days. You all think technology is a miracle. All it is is electrons that can be made to go poof any fucking minute now. if i blew up your phone right now, you would look like a cow at the slaughterhouse just at the moment the bolt gun goes off - " How could you do this to me ? What'll I do now ? " Improvise. Adapt. Overcome. Triumph over adversity. And, transform your idea into minting a fucking coin out of noble metals, or I will make you look like a one legged man at a nut kicking contest.
The Gov NEVER really shuts down. Just the non-essential parts.
Essential. Like the armed cowboys, manning national parks? Because without gumint, Yosemite ceases to exist.
What traders are holding t-bills?!?!?!
I call bullshit!
You're right, just 2(a)7 Govt & Mmkt funds
exactly, no traders.
Doesn't everyone of any consequence? rehypothecation right?
Government is run by the banksters so what do they WANT? Oh, right, eliminate cash and privacy. JP Morgan runs the food stamp program so they do have firm grip on what they would like to do. Grip your throat and balls. THAT is their mission.
Just like religion!
No. They'll get over it.
Just gaming.
Yep, the debt ceiling is the big show where the pukes in elected office can stammer on about how much they care about this great land.
Fuck them all with a cactus.
Each and every one of them (well, except for Hank "the island might tip over" Johnson and a few others) all know why the debt keeps going up, and why it will never go down. They all know it is our money supply.
So, for that, each is a traitor to every upcoming generation who is getting shafted by being born into a system of obligation that they have no idea how to escape.
Every single one of these bastards should be stripped and shame walked to the ocean and told to keep marching.
pods
The sad thing is, I don't think they know. But they do know who makes them rich.
WATCH YIELDS.
Rising yields in Tbills result in a write down of the monetary base, leaving fewer dollars for everything...including loan service. This impacts service of other TBills and all other credit, as well.
If this goes on for more than a week or two they will have to either restart QE as a delaying tactic, or face an imminent deflationary collapse.
"or face an imminent death of the FRN" -- fixed it for you!
with 7+ billion people, and growing, there is no deflation in anything that is required for a high standard of living, period.
Remember, the velocity of a dead currency is in fact ZERO.
remind us, what has the velocity of the FRN been doing again?
Currencies are not alive and so cannot die.
They can hyperinflate. They can mass deflate.
To go out of use - EVEN IN HYPERINFLATION OR DEFLATION - there must be a replacement.
I am not an advocate of the FRN, as you ought to know if you've been paying attention.
Lew says Congress should raise the debt ceiling "unconditionally".
Great. Hey Jack, how about you and Janet get together and cut us serfs some checks, $6 Million tax-free ought to do it for now.
I mean, if you can throw $1 Trillion at Wall Street in one year to fill their pockets (QE3) and $10 Trillion since 2008 bailing out the corrupt SOB's, why not?
Where's our cut? Where is our "unconditional" loan?
Bingo. Want to save the system? Cut ever single person who has paid income tax a check for 1 million dollars with the condition that any DEBT must be paid off first. Would be cheaper then bailing out the bankers and financiers AGAIN.
you won't get it, but the legions of the Free Shit Army as well as the Student Loan Debt Army with their useless degrees and $100k loans will.
They'll just add this cost to your taxes and your great great great grand children's tax burden. Enjoy!
Our great grandchildren will be wering a red star on their backs doing slave labor in a concentration camp somewhere in arkansas. No way our government holds onto it's soveriency playing the game and using it's present tactics. And by the time we get to great, greatgrandchildren the world will all have slant eyes.
They won't shut down. McConnell is holding out for a 9-figure earmark. Ryan is fluffing his way into Obamacorp(tm). Boehner will settle the deal for a drink. In the end they will join Obama for a rousing chorus of "Kumbaya" and proclaim the wonders of bipartisanship. Whores the lot of them.
Maybe the new sheriff will be riding on the high road and deal with the ceiling, and shut the town down.
Stop being the global cop,cut off giving away of tax dollars from the middleclass to foreign governments and reinvest in domestic infrastucture.Let corporations bring offshore money back in tax free.Audit the Pentagon and CIA,they are the cause of the deficits.Believe it or not they are unaccountable to ordinary taxpayers that have to go to work everyday and pay taxes and get a pay check in order to support their families.It's about time to reign in all the crooks and gangsters who's spending is out of control.
If we let corporations bring profits back tax free that will be the same as subsidizing them to move more capital offshore. Lowering corp taxes in the US would be more helpful.
What pissed me off the most about the last "shutdown" was how the different government (crime families) agencies each came out and said either give us more money or something bad will happen to you and your family. If I wanted to hear that shit I would move back to Chicago and hang out with some real mobsters.
The state of Chicago (IL) is having it's own financial Godzilla.
IL is Bankrupt. It can't raise taxes high enough to support it's generous public union pensions.
Or...like in 2008, Congress was warned of Martial Law if they didn't pass:
https://www.youtube.com/watch?v=zq7GVje4kz0
Detroit and Flint are the template.
And, they shut down a bunch of land that belonged to us and got downright pissy when people wanted to use it. Just look at how tourists at Yellowstone were treated on a tour when that shit went down.
So for Jack Lew hope springs eternal. Yes but it's autumn. The "full faith and credit" of the U.S. is about to take yet another hit. Good job boys. The world is watching and less and less are buying the bullshit.
I didnt realize that not taking out more debt to pay off existing debt is now called an accident. Does that also work for us mere mortals or is it strictly the magical government that a principle like that applies to?
I didnt realize that not taking out more debt to pay off existing debt is now called an accident. Does that also work for us mere mortals or is it strictly the magical government that a principle like that applies to?
To believe they won't raise the debt ceiling is to believe they are prepared for world-wide monetary collapse.
The debt ceiling is a joke, because they already surrendered discretion on debt increases when they created the Federal Reserve. The Federal Reserve Note (a.k.a. 'The Dollar') as a debt-based currency REQUIRES systematic increases in the public debt.
Congress' only authority since creating the Federal Reserve system is to decide whom to benefit with their public largesse.
They'll keep doubling the debt until it's realized that it's one huge counterfeiting Ponzi scheme.
I wonder how much insider trading Congress is doing on this event.
The Federal Reserve Bank of San Francisco published a working paper this month, "Measuring the Natural Rate of Interest Redux," in which it introduced the potential for using both negative short-end rates coupled with another round of quantitative easing (QE) focused at the long end, as a response to the next recession.
http://www.frbsf.org/economic-research/files/wp2015-16.pdf
Thomas Laubach
Board of Governors of the Federal Reserve System
and
John C. Williams
Federal Reserve Bank of San Francisco
October 14, 2015
Abstract
Persistently low real interest rates have prompted the question whether low interest rates are here to stay. This essay assesses the empirical evidence regarding the natural rate of interest in the United States using the Laubach-Williams model. Since the start of the Great Recession, the estimated natural rate of interest fell sharply and shows no sign of recovering. These results are robust to alternative model specifications. If the natural rate remains low, future episodes of hitting the zero lower bound are likely to be frequent and long-lasting. In addition, uncertainty about the natural rate argues for policy approaches that are more robust to mismeasurement of natural rates.
Natural Rate...THAT IS FUNNNNNNNNNYYYYYYY