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Here We Go Again: US To Breach "Transitory" Debt Ceiling On Monday
It is hard to believe that the last time the US had breached its debt ceiling was a whopping one month ago. Courtesy of much toil, tears and televized theater (not to mention fake compromises), the Obama administration managed to get an accordion-feature extension of the debt-ceiling-cum-target, whereby it is currently at $14.694 trillion, and can be extended in $500 billion increments, for a total of $1.5 trillion provided congress and senate do not vote down such an expansion. The reason we bring this up is because as the data below demonstrates, the US Treasury will breach its brand new debt ceiling... on Monday.
That's right: as of yesterday, total US debt was $14.717 trillion (obviously an all time record, and every day closer to parity with US GDP), while debt subject to the ceiling was $16.772 trillion, or just $22 billion below the total before someone has to go ahead and commence the whole debt ceiling fiasco from scratch. And since as the Treasury is auctioning off another $32 billion in 3 Year bonds on Monday, that process better scramble or else all that rhetoric about Social Security being nothing but a plundered ponzi scheme will be proven true yet again. And while we see flashing headlines that Obama's proposal is now set to be a bullshit $450 billion (bullshit because republican will absolutely not go ahead with it), we are positive that not one word will be uttered to inform the public that as of this moment Harry Reed has already started the process of the next $500 billion debt ceiling expansion, one which will bring total US debt-to-GDP to over 100% for the first time since the post-WW2 period.
Most recent total debt breakdown:
And next week's full debt auction schedule.
And the issue in question that will tip us over:
The only saving grace is that the settlement of these auctions will take a few days, so the latest spectacle may take at least 2-3 days before it has to be voted on and by then everyone will have long forgotten that the US most certainly lives Keynesian paycheck (aka bond auction) to paycheck.
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YEEEEEEEE-HAW!!!!!!!!
The unreported story is that if that guy's stimulus passes, it will move the ceiling up pre Election Day.
That fight will get refought in September of next year. Yes, the fight that cost him 15% of approval.
I'm not all that anti Obama, but the profoundly stupid things he does are really mind boggling.
Another chance for conservatives and libertarians to cave.
So much for the queasing.
That's a handy little piece of information to have right there.
Cue Boehner tears.
The ceiling, the ceiling is on fire!
We don't need no fiat, let the Cash_Is_Trash burn!
Pardon me.....
Another chance for conservatives to cave and libertarians to show how ineffectual they are.
Libertarians have been completely discredited. Equity prices have plummeted over the last few weeks as market participants have been unable to think positively and unwilling to spend. This is PROOF of the disastrous nature of free market prices. OBVIOUSLY the opinion of an eloquent and charismatic nobel prize winner like Dr Paul Krugman is worth more than some redneck doomer libertarian in a pickup truck. And hence experts should have a larger influence on prices and capital allocation than the common people. It's just common sense! I'm sure Keynes is turning in his grave while all these irrational and incompetent market participants continue to distort our economy with their quaint, naive and uninformed opinions.
Oh yeah! Well my truck is paid for, thank you.
Are you for real dufus or are you just trolling for neg hits?
I'm pretty sure MillionDollarBonus_ is being sarcastic, but for those reading along at home...
The crash of 07/08 was in fact proof that central planning fails and the free market will revert to some semblance of true percieved speculative value at some point. The market was propped up for too long by cheap money, and the mortgages underlying MBS were mispriced in risk terms. These were failures of central planning.
The Crash was the market fixing these problems, and if the central planners had kept out of the way, the companies involved (TBTF) would have been efficiently broken up and the profitable parts purchased by investors at a more reasonable value. The worthless bits would have been written off, and those who foolishly invested in them would have lost their money. Which is free market capitalism.
This would have been bad for retirees who were unwittingly forced by central planners to invest in assets of poor quality, but again that is a failure of central planning, not the market.
To prop up asset values in the vain hope that things will change back to how they were is ridiculous. Libertarians were right, the market was right, the Keynesians and central planners are wrong and the market will prevail eventually as it always has since well before Adam Smith or the invention of the term 'free market' or 'capitalism' because people will only pay what they can for what they need and eventually the illusions are dispelled.
You're argument is based on the premise that all opinions are equal in the market place. But this simply isn't true. The crash happens only because the general population decide to pay less for stocks. They make these decisions based on quaint, peasant-like preferences. Only PROVEN professionals and seasoned pros should be pricing goods in the market place, and the rest of the population shouldn't have to worry about these issues since they are far to complicated. They can happily trade goods and services at the prices set by the experts. In this system, market crashes are a thing of the past because the experts are too cool headed and professional to panic and set lower prices.
That's funny shit. Thanks for the laugh.
Hard to take economic analysis from someone who doesn't know your from you're. Thanks for checking in from the flyover states. Come again soon.
You're putting us on aren't you? No one could be as moronic as you appear to be.
Does anyone remember economics is a study of human behavior? "Professionals" and "experts" don't set prices. Prices are agreed upon by individuals participating in a transaction based upon self-interest. Is MillionDollarBonus a bad comedian, not finished with undergraduate studies, or just plain retarded? Sorry, just had to add some sort of ad hominem attack in the end there. Fucking stupid.
Doomer libertarians, redneck or otherwise, drive Volvo's.
Hey, million dollar dickhed, there is no nobel prize for economics, and loser krugman never got a nobel, as cheap as they are given out. Example: warmonger obama gets one - war on libya "just because".
Eh? What libertarians?
The people the Tea Party voted for have proven quite clearly that they aren't libertarian. It's still just Ron out there, so far as I know.
Thank you for saying this.. I fully concur. They are too busy whooping up Bachman who is clearly not presidential material in my opinion and then singing up the praises of Perry the Platypus.. the "double agent" who says he's conservative but actually plays for the elites.
Ron Paul.. check the box or write in..
Decepti-con Perry is the opposite of what he claims to be, in a bizzaro way. Example: Claims to be conservative, was state Algore 4 President campaign manager in Tx. Claims to be hereto, is actually gayboy. More to follow
Hot dog! That was so much fun last time.
It would have been better if it was announced before Obummer's speech tonight.
But but but ... the debt ceiling was raised last month? Or not?
the stingy bastards
/sarc
Obviously transitory....
Just think, another $500 billion and we can keep Solyndra in business at least another 12-18 months.
yes LookingWithAmazement, it was raised.
If you havent been privvy to developments, prior to the agreement the govt was raiding the social security piggybank, and as soon as the debt ceiling was raised it repaid that piggybank (or so were led to believe) and that ate up much of the debt ceiling increase already
question, how much faith do you have in the basic mathematics skills of your congressmen & senators???
They haven't reached the $16.772 trillion yet. So what's the problem?
but by then we will have obama's job plan so all will be good!
Exactly. Boring world we live in.
How convenient. This debt ceiling will be broken, announced as "transitory", hence meaningless, and then when the real ceiling break eventually occours will be written off as insignificant, as it was already broken on this occasion.
Or am I just a cynic?
This should bring EURUSD back to 1.45 next week.
Until.. Greece defaults (finally officially) and the USDEUR can go higher.
Depending on the schedule of default news and debt limit increases, the EUR could trade either 1.25 or 1.55 on 12/31/2011
By the way... we haven't seen official POMO schedules but anyone here believe the monetization is not ongoing? The PDs are still being primed and the money still goes into equities. The game has no end it seems.
i can't wait for the potus speech tonight.
Gee, will he be addressing the 2012 budget that kicks in on October 1st? Oh, thats right.
He is trying to spend more money, so I doubt he will mention that they hit the ceiling again...
Pay no attention to the figure behind the curtain!
Social Security is VERY Sustainable..
But we would have to collect Taxes from the Top 0.1%.. to be able to pay for Social Security..
and the AARP does not have a Lobby big enough to stop the elite rich of America, Sorry!
****************************************************************************
As the same issue applies.. the Top 0.1% will not be Taxed! EVER!! America Can Not Afford Anything!
The top 0,1% doesn't care about Social inSecurity
My Rope doesnt care about stretching the Top 0.1%'s Neck!
Of course you'd rather just steal the money but if you have to slink around dark alleys in the dead of night with a garrote I'm sure you're up for that as well.
By the way, that makes you a bad person.
They don't want to pay for it, but that's how they feel about everything.
All the money coming in, nothing going out.
http://www.youtube.com/watch?v=VsgS9PsUf5U
Uploaded by RussiaToday on Sep 8, 2011
This week Max Keiser and co-host, Stacy Herbert, discuss the threatening downward spiral of all out war of bankers versus everyone else. In the second half of the show Max talks to Israeli economist, Shir Hever, about protests, apartheid and the warfare state.
No, it's the war of the looters and moochers against those who work and save. It's clear what side you're on.
talking about taxing the top 0.1% is neosocialist nonsense for two reasons.
First, it ignores the fact that the reason these people have so much money is because they have bought and paid for the political system which gives it to them, there is no way that same system will take anything away from them.
Second, it doesnt address the root causes of the wealth imbalance which is exessive financialisation of the economy at the expense of the real economy. This is again a systemic issue, and has its root causes in the fiat/fractional system.
If you dont end the fed and let the markets set interest rates, and require extensive transparency for OTC derivatives (along with some kind of Tobin tax), the financeers will just create enough money to buy the world back for themseleves no matter how much you tax them.
http://robertreich.org/post/3331762717
Remember, the Social Security payroll tax applies only to earnings up to a certain ceiling. (That ceiling is now $106,800.)
Today, though, the Social Security payroll tax hits only about 84 percent of total income.
It went from 90 percent to 84 percent because a larger and larger portion of total income has gone to the top. In 1983, the richest 1 percent of Americans got 11.6 percent of total income. Today the top 1 percent takes in more than 20 percent
If we want to go back to 90 percent, the ceiling on income subject to the Social Security tax would need to be raised to $180,000.
Presto. Social Security’s long-term (beyond 26 years from now) problem would be solved.
NPR said don't worry, all good [today! On all bullshit considered] They said even if you are 20 you will get 75 per cent of benefits if they don't change anything at all.
They are really smoking the hopium there, I must say.
Yeah, Robert Reich. He's the same White House adviser who told congress that they didn't want to hire white people with the Obama stimulus money. Keep on rootin' for that guy.
http://www.youtube.com/watch?v=opxuUj6vFa4
Does this means another US downgrade when the ceiling is raised........again?
Next time will be an upgrade if they dont argue about it. Political unity will save us. Debts don't matter anyhow.
/sarc
Nope...they got rid of the guy who made that downgrade.
No such thing as a debt ceiling anyway. All spending is on autopilot. A debt ceiling is just another prop on the crisis governance stage.
Sensing a wee bit of acceleration in the debt. LOL.
Gee Tyler...what's the fuss about? The breach is not until Monday. You make it sound like it is already upon us.
And anyway, I'm sure there are some pension funds to raid again [did the Federal pension plan looting ever get paid back last time], or there is the Social Security Lock Box, or there is Ben Bernanke.
Everything is cool, man. Party on momo chasers...
I've been wondering if they paid back the money they stoled from Peter to pay Paul. Its doubtful. If you consider the ethics currently they probably paid the TBTF bonuses with it.
You would think that financial news journalists [ahem...helloooooo COMCAST] would have been spurred on by now to discover the answer to that question....or maybe union reps. Nope. Crickets.
Thats not good. Does this mean they are going to preempt Columbo? Oh the horror. The horror
Preempt Columbo.....that's some funny shit right there !
Just one more thing...
McCloud is on Mondays, not Columbo.
This marvelous debt gives new meaning to the term 'intellectually bankrupt'.
Damn, and the S &P chief was just about to give Barry his credit back! It will be hard to get your credit back Barry if we have to ask the super commitee er (politburo) to raise the debt ceiling every 30 days!!!
Damn, and the S &P chief was just about to give Barry his credit back! It will be hard to get your credit back Barry if we have to ask the super commitee er (politburo) to raise the debt ceiling every 30 days!!!
Think of the debt ceiling adjustments as geiger counter clicks. As you get closer to a deadly level of radiation, the clicks come faster and faster, and then even though you're sure to die already, they get faster still -- and that's exactly where we're at with repect to debt.
That explains the vomitting and hair loss.
Oh what a feelin, when you're dancin on the ceiling
The big O: the rules are there are no rules
+1 Whalley....
Hat tip to you Salty
paycheck to paycheck? more like credit card to credit card. or even snake oil sale to snake oil sale.
http://www.wfaa.com/video?id=129427988&sec=552897
if they do this when they are not hungry, what will they do when they are hungry? my advice. make a tactical withdrawal from the cities..........while you still can...
Looks like a nice, racially diverse group of people.
/sarc
Students!
Yea, students.
This means it's a failure of government. Prez Zero now has clearance to expand spending on education.
Funny thing is, I live a place where they "bus" the students to get a more "racially diverse" mix of students. Somehow, they county can't figure out why enrollment is dropping: people who can put their kids into private institutions or flat out move to surrounding counties. The remaining "students" already drop out on their own.
Wow.
I'm so glad I 've up here in the Ozarks.
Let's just make it $20 trillion and we won't have to worry about the damn thing until the end of October!!
Honest question, did Tiny Tim return the money moved from the Fed workers (Pillaging the pillagers as it were)? If he did then I suppose that explains the 500 billion in month burn..if he didn't then that's a hell of a month of partying on Wall Street and DC!
That's a good Q with no A ......that pension fund might now be a revolving credit line with the UST forever.......or it just fills all the way up with IOUs. Paying it back right away doesn't seem rational. Pissing it down a rathole does.
Hookers and blow are not free.
Tylers--just heard on bloomberg that Obama/fed intends to "get involved " with European crisis--does that mean what I think it does? You on top of this?
Well i don't think it is a coincidence that the Greek Pm and Lagarde are going to be meeting in Washington on September 20th.
My god--how did I not see this coming? No wonder ben's been so dodgy. They've probably already been pumping our next QE into the IMF. If this is legit and gets out into the mainstream news it's gonna get Bolshevik out there.
If that is a true story, it needs to be screamed at the top of everyone's lungs.
We really were not kidding when we says: Latest Greek Economic Collapse Means Country Will Soon Be Out Of Eurozone, Or Bankrupt, Or Both
Yeah, but is there a crisis?
It'll all work out. I think. Won't it?
Hasn't it always?
It seems we need to put some of those new infrastructure jobs to work on that ceiling thinga mabob. It keeps on getting breached. I'm afraid whatever is on the other side might fall sometime soon.
QE, Don't need no stinking QE. We got the tresury issuing so much debt and paying out so much diaster relief that NoPotus don't need to do any more stimulus it's happening as we write.
You don't know the half of it.
The Fed has all those Treasury securities that pay quarterly interest.
They take that interest and send it back to Treasury.
Treasury calls that incoming check "revenue" and uses it to reduce the quoted deficit and therefore the quoted debt subject to the ceiling.
We pay these guys.
we don't need no stinking ceiling
Your right Drifter..This was a flash mob...no doubt..planned. People should get out of big cities if they can. This type of people thrive in anarchy. less order the better.
spam ceiling....yummmmm!!!!!!!!
Is this what we have become? Somehow it reminds me of the applause for Perry executions.
Who cares?
Someone kills one of my children and they find SOB, I'll be clapping like hell when they execute his ass!
I wouldn't wait for someone else to do it.
I'm just saying; applause, means to me that death of a fellow human, deserved or not, is a celebratory thing. It ain't. A society which does not value life will soon not value yours.
Junkie needed another shot.
But junkie is promising to stop fixing from tomorrow on.
When withdrawal has begun, world will be feeling a really bad cold turkey.
New perfume of the season: the smell of war.
bring on the war, then. I'm too "mutilated" by military definition to serve anyway. And hell if I'd cover up my ink. You guys go on and fight other guys that have been told to fight to honour the bankster's levy. I'm sure there's great prosperity in it for some group of moneyed peoples.
In case anyone wants to listen to what Scrotum Face is gonna say:
http://www.whitehouse.gov/live
Channelling some Orwell ... Debt = FREEDOM!!!
If the debt ceiling and budget are controlled by congress, why does the administration keep getting dragged into the freakshow?
Here we go!
I went to see the report...and guess what I got. CA power outtage impacting the Treasury...or are they changing their numbers?
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