Treasury Cash Drops By $15 Billion Overnight, At $51.6 Billion; $5 Billion In SFP Bills Roll Off

Tyler Durden's picture

Two weeks ago Zero Hedge first presented the comparison of the Treasury cash balance to cash equivalents held by global public companies (a meme that has since propagated in a very dumbed down and unattributed fashion). Here is the update. As of last night, the US Treasury had just $51.3 billion in Federal Resere cash, and furthermore, Tim Geithner let the $5 billion in residual CMBs under the Fed's Supplementary Financing Program mature without rolling. In other words, the Treasury just burned $15 billion, or $20 billion when accounting for the CMB roll off, overnight. At this burn rate there is precisely 3 days or so of cash, although this naturally does not include the bulk payment due to SSTN discussed previously. It is now officially time to panic, although those who so wish, can put their money in not just Apple ($76.2 billion), but GE ($136.4 billion) and Microsoft ($62.4 billion) all of which have more cash than Tim Geithner. Of course, as Gartman put it, in three days everyone will have more cash than the US Treasury. Incidentally, someone may wish to inform the irrelevant data chasers that a far better comparison is that of the US Treasury not to companies that have X cash, but to those that have a $15 billion cash burn per day.

And a history of Treasury cash:

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mynhair's picture

Who got bribed this time?

mr.glitch's picture

Yawn...So when do gold and silver start moving in a big way?

Mr Lennon Hendrix's picture

Gold has been on a big run!  Where have you been?  But when will they move together "in a big way"?  The end of August, through fall, and into winter.

mr.glitch's picture

I've been stacking physical on the way up, I'm well aware of the "big run" you are talking about.  Seeing as how people are not rushing into gold and silver right now amidst the looming crisis, the prices appear to be rangebound.

I was thinking we'd see SOMETHING as a catalyst for the next leg up this week but it hasn't happened, which leads me to believe the next leg will be down in a big way.

Why "end of August" as the beginning?  Isn't this whole facade worth a few bucks of premium on spot given the consequences we are facing from both a domestic and international front?

Gold and silver not running to new highs all week is foreshadowing bad things for commodities.



AustriAnnie's picture

"Gold and silver not running to new highs all week is foreshadowing bad things for commodities." the short run perhaps.

I HOPE the next leg will be down.  It makes me giddy just imagining how many more shiny maple leaves I can buy for the money!  

LongBalls's picture

QE 3 is coming. My precious to the moon.....MMMMM my precioussssss...

StychoKiller's picture

Perhaps everyone is waiting to BTFD after the debt ceiling gets raised, I know I am!

LaughingMan's picture

Everything that rises must converge.

davepowers's picture

prediction - next week's Fed balance sheet will show a sizeable boost to the Treasury checking account at the Fed, offset by a corresponding reduction of bank reserves at the same place.

what the typist giveth, the typist taketh away

and vice versa



bob_dabolina's picture

Harry Reid has said extremists have locked down the White House. 

He says they have vests laden with deficit cutting measures. They are threatening to bring responsibility to our government. 

If they succeed, it's the end of life as we know it he says.

Nancy Pelosi says, if they succeed it's the end of life on planet Earth. 


mynhair's picture

Pelousy was referring to herself.

dwdollar's picture

They fail to see that more and more people want life to end as we know it and a new paradigm to emerge.

They should be careful using that scare tactic.

bob_dabolina's picture

So we won't all turn into stone if the debt ceiling is not raised? 

Tell that to the 100% of senate democrats that voted against raising the debt ceiling INCLUDING HARRY REID & OBAMA (while Bush was in office)

Harry Reid and Obama would have been considered "extremists" in their own words (by their own standards) just a few short years ago. 

Mr Lennon Hendrix's picture

And Mel Watt just screamed his head off about lord knows what.  And now Fwank is on the mic, looking like he just swallowed his tongue.  Name calling, name calling, name calling.  And Shiela Jackson Lee urges the President to invoke a debt raise on his own, which is insane.  She is insane.  Repubs look just as stupid.  They have not brought up one real issue on why the debt is a problem.  The problem is this country has handed over all their wealth to an group of corporate banks.  There is no accountability from either side.  Both ignore the problem:  Monetary and fiscal policy is a sham. 

It is run by a private banking cartel known as the Federal Reserve System.  The "Fed" and its cartel of globalist banking housees seem to be in the clear, while politicians nit pick about the crumbs that are left out of the people of the Unidted States of America's pocket.

One big circus, I tell you.  One big circus.

Oh, and the US government will default.  Yes they will.  And then the BIS, IMF, and World Bank will swoop in and treat the situation like they do with failed 3rd world states.  They will use as collateral the gold on the Fed's books, the debt/GDP of the US, and the other credits and obligations of the Treasurie and Reserve Bank.  Good luck America, for we hardly knew thee.

Vic Vinegar's picture

Okay this is another comment that should be locked-in.

Is your picture showing the Motor City Madman?  I don't like these small photos.

Vic Vinegar's picture

Then that must make you the Street Preacher:

Outside the limit of our sight, feeding off us, perched on top of us, from birth to death, are our owners! Our owners! They have us. They control us! They are our masters! Wake up! They're all about you! All around you!

Piranhanoia's picture

It's just a television show with bad actors that have voluntarily canceled their pensions and future plans of world domination. You can turn it off.

AustriAnnie's picture

+ gazillion green up-arrows!  This party-blame-game has been going on for an eternity.  Like Ron Paul said, people should stop talking about the U.S. defaulting.  It already IS defaulting.  What does your dollar buy you today?  What will it buy you in five years?  Default has hit Americans square between the eyes and they still don't recognize it.

glenlloyd's picture

Perhaps she really means it's the end of life on planet Pelosi?

Vic Vinegar's picture

a meme that has since propagated in a very dumbed down and unattributed fashion

It's on the top of Drudge right now.  Drudge sometimes links to some shitty sites.

lieutenantjohnchard's picture

since gold is not money as bernanke says wonder if after 3 days at the $15b/day burn rate if tiny tim would like to test bernanke's hypothesis.

bania's picture

Gartman - always good for a chuckle, whether you laugh with him or at him!

bob_dabolina's picture

Gartman knows when earthquakes happen before earthquakes even thought about it.

CrimsonAvenger's picture

Gartman doesn't use sunblock; the sun uses Gartmanblock.

bob_dabolina's picture

The moon doesn't revolve around the earth; the moon revolves around Gartmans portfolio, and the Earth revolves around the moon

davepowers's picture

got a question

since the Treasury has tapped all sorts of Fed retirement accounts, does that mean that once the debt ceiling is lifted, the Treasury will have to 'pay back' what it tapped? And, if so, won't that more quickly eat up whatever debt ceiling room is added?

ok, that's two questions

mynhair's picture

1. No.  It's defined benefit.

2.  See 1.

davepowers's picture

then what funds have been tapped, if any?

tyler has been posting all sort of articles over the last month or so which I read (possibly wrongly) as tapping retirement accounts at the Federal level.

here's an example

once the ceiling is raised, will the Treasury have to reverse this plunder, thereby consuming headroom within the new debt limit?

Larry Darrell's picture

Tiny Tim was not tapping the accounts themselves.

He was tapping new money that was supposed to go in to fund said accounts.

So instead of taking X number of dollars from tax receipts and paying into the accounts, he took the X dollars and spent them elsewhere.

Since government parasites are on defined BENEFIT plans instead of defined CONTRIBUTION plans, he does not have to immediately put the money that was supposed to go into the funds into them when he gets his new money.  He can put it in when he feels like it because, well, we are ruled by psycopaths who do what they want when they want.

Of course, this only causes those funds to run out of their promised defined benefits to federal retirees later, but hey, this is Amerikka, and we steal from our children.

davepowers's picture

thanks for the explanation

i wonder which of our leaders will make a big deal about it if Treasury persists in leaving a another dry IOU in the retirement accounts?

AustriAnnie's picture

They will all pretend to make a big deal about it, then promptly write more checks to their special interest group of choice.

mynhair's picture

Depts, such as the USPS, are supposed to put in token cash to the account to give the appearance of solvency each quarter.  That's the gruel being stolen.

JohnG's picture

That's what's supposed to happen, but will it?  Do you trust these bastards?

StychoKiller's picture

The purpose of a system is what it does!  What is the purpose of this system?

I "Trust" this system to eventually shaft most Public Employees and NOT pay them what the Govt owes them.

EscapeKey's picture

GE's got $136bn in cash? Presumably those are stashed overseas. Additionally, don't GE have some crazy mountain of debt?

Anyway, it's probably a good thing they put the money to use, while it still has some kind of worth. USD/Yen @ 76.88.

EscapeKey's picture


Total debt: $472bn.


Balance Sheet Total Cash (mrq): 136.40B Total Cash Per Share (mrq): 12.86 Total Debt (mrq): 472.00B Total Debt/Equity (mrq): 361.96 Current Ratio (mrq): 180.73 Book Value Per Share (mrq): 12.08
mynhair's picture


As good at cash management as he is at filing taxes.

Best and Brightest (of all the dim bulbs in the drawer).

equity_momo's picture

BRING OUT YOUR DEAD.   Im sorry i cannot be bothered with intelligent discussion tonight. Bwarnet Fwank just put me off my dinner so im going to sit on my porch sipping Bourbon whilst polishing my metal until the blinding light.

Anyone offering pain free solutions now is as high as Amy Winehouse was circa 4 days ago. A hail of bullets or a ball of fire.  Enjoy your choice.

When the "extremists" are the only ones with answers you know your country is fucked.

mynhair's picture


Bring out yer banks!

(ding ding)

Bring out yer banks!

Happy FDIC Friday!

andybev01's picture

"I'm not insolvent yet..."

Iam_Silverman's picture

Now that was funny!

I'm sure the three that made the list last night were saying the same thing!

DosZap's picture


There are around 200 million "extremists", give or take, likely more.

The EXTREMIST's are the idots holding the World hostage over a 2012 Election Bye..............

Now that a balanced Budget Amendment is required, even Obama won't sign off on it............if he get's it past the election cycle.

I hate that the Walter Mittty of the Senate is the #2 Extremist.

YesWeKahn's picture

How they could have such high burn rate. If this was a public corporation, it would have been delisted, and Ch11'd long time ago.

The Axe's picture

Of course this means that Monday will bring a huge rally....of course....

kevinearick's picture

Schools of Fish

The point of the Internet is to develop global communities of apparently random leadership, which requires intimate community relationships, beyond the knowledge of the sharks. If you do not know what you are going to do next, neither can the shark. The school looks like easy prey to the shark, but it loses interest quickly with each hunting failure, leaving it only its own algebraic reduction. The key at that point is replacing the divide and conquer mentality of good and evil with understanding that systems result in distributions of behavior within which individuals fall. As you improve social circulation / elasticity in your community, system economic profit increases. The planet requires a return on its initial investment in your surplus.

There will always be plenty of participants choosing to fall behind and become slaves to monetary masters, thinking that money is intrinsically valuable. Floating downstream is much easier than swimming against the current. The shark doesn’t go hungry; it fulfills its purpose. The point of the school is to protect and develop its youth toward self-sufficiency and surplus to open the NPV window, so kids may enter into the corporate contract as equals. Corporations and their ilk cannot think; they can only negotiate, seeking to catch the fish in a barrel before dropping the lure.

The economy is crashing because communities are providing the barrel and all participants are competing to become increasingly stupid, relative to those moving into the future. Because of the Internet, which is transitional by nature, the Corporation may no longer predict future behavior, leaving it to consume increasingly scarce resources with inelastic social processes. In fear, it seeks more and more control, automatically tightening the noose around its own neck. Now, its policy is to hire only the competitors still working for the system, which may only accelerate the result.

So, I’m in a town with “stated” 15% unemployment and all kinds of stimulus coming in, but the employers will not hire the locals and the local property owners will not rent to anyone without a job secured by the Corporation, to lure new participants into the barrel.

Have a nice day.

mynhair's picture

You really need to go to a TEA party.  You are making the same mistake as all the Establishment types by not realizing 'this time is really different'.  There is a sea change occurring in politics; don't be left behind.