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US Debt Ceiling D-Day: September 14, 2012
Earlier today, outgoing Treasury Secretary and tax challenged part-time pathological liar (see here) Tim Geithner said that any worries of the US debt ceiling are misplaced, and that at best such an event would occur "late in the year" (and to think the August 2011 extended $16.394 trillion debt ceiling was supposed to last well into 2013). Naturally, coming from Geithner, it meant this statement was a flat out lief the second it left his mouth, which is why we decided to do our own analysis of just when the latest and greatest debt ceiling would be breached. The answer is that at the current rate of debt issuance, which incidentally is going to accelerate sharply due to the recent extension of the payroll tax cuts which will require an incremental $100-150 billion total debt to be funded, and extrapolating future issuance solely on historical patterns, the US debt ceiling D-Day will be September 14, 2012. This means that there will be just over 6 weeks for the GOP to hijack each and every presidential debate before the November election with just this topic. Because there will hardly be anything more humiliating for Obama than to have to defend his platform even as the country is once again past the verge of insolvency, and forced to "commingle" retirement funds to keep Treasury operations running. Which incidentally is just as we predicted would happen when we explained why the GOP fast shelved the payroll tax debate so rapidly. It was nothing but a prelude to precisely this. Because once it is raised, and it will be raised of course, next up will be yet another ratings downgrade by S&P and this time, Moody's as well. All of which will most likely happen before November.
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october surprise?
geithner on vacation then?
remember obama will have more flexibility after the election.
Just raise it by eleventy billion next time. Problem solved.
Twenty eleventy billion, piker!
Think big.
Anybody fly JetBlue?
Man had it right. No wonder the stock went up.
They'll pull every criminal trick in the book to push this issue out past the election.
The perpetually-raised debt ceiling is the fiscal equivalent of the "living constitution." The game is won when they have the masses choosing sides on an issue that shouldn't have sides.
You might wish to Tweet this to Ahmadenijad. It is my opinion that as this date approaches, more drones will suddenly appear over Iran. Nothing would stimulate the do-nothings in Congress more than a national security emergency. Would Obama start a war to ensure his re-election? I wouldn't bet against it.
Don't forget the Race War in "memory" of his hoodie homey, Tray_von Obama!
We are doomed.
Buy TNA.
Blows me away that maroons still post on MW.
Your projecting a straight line into the future? debt issuance may be a straight line, but tax receipts are most definitely NOT. If the economy falters, that straight line would have a decidedly upward curve to it. Sept 2012 is probably best case scenario if including tax receipts is part of this debt projection!
ELECT RON PAUL
Debt issuance is a parabola. Hence subtract 30 days.
And F that loser RP.
Re-elect Oblahma! Vote RP! Give yourself no chance!
Fuck all this!! Wednesday night music....
http://www.youtube.com/watch?v=uKw8cgjNZus&feature=results_main&playnext=1&list=PLB16BC19A97AAF338
Love the Rit
Our retirement funds are in a segregated account, aren't they? Aren't they?!!!
You'll need to wait for the results of the Corzine hearings to find out.
Get rid of the debt ceiling, problem solved. Never have to worry about a debt ceiling if you don't have one.
It doesn't matter until the US credit card is rejected. Worry about it when it's rejected.
Now that's thinking like a politician in DC!
WTF have they been doing for the last 3 yrs?
Thank you, Boner, may I have another?
(something about not having to say you are sorry here)
Is September 14 the day thay run out completely? Or the day they start taking money from government retirement accounts? They may still keep things going past election day.
Shame on you for using critical thinking and common sense. This is the DC politicans and hanger-ons we are talking about.
It'll go down something like this.
Despot Pelosi, or one of her Collabos, will this Spring/early summer or so introduce a Bill that will bump up the debt limit ceiling to provide political cover for her Messiah.
It'll be sold to the public as "really" being a "jobs and growth plan" or some such bullshit like that.
We can count on one hand the number of politicians in Congress who really give a shit about our national debt.
And for this we will pay dearly. We get the government we deserve apparently...
SanOvaBeach
Sorry I got you so upset tonight, allow me to let you in on a secret. Shhhh… don’t tell anyone, I have Afro-American friends. Your gig is up, but please continue your agenda. This will help your base understand the real motive in which you portray.
http://sadhillnews.com/
More Deadly than War <<< Look at your surroundings. Ask yourself, what timeline have I reached?
Lastly, a large chunk of different cultures & nationalities can see through your play book. Continuing to borrow foreign money to operate a reckless administration; by promising change has caught up with US elected liars.
Something people are missing regarding PMs: if they do crash with the market/world, they'll drop significantly, agreed. But people are assuming they'll (a) get timely delievery on any orders placed at that time (b) they won't get MF Globaled (c) they'll ever receive any gold for their order and (d) metals won't rise rapidly in the ensuing days. I feel like people are waiting for the disaster to start positions. Good luck with that strategy, fellow man.
WTF is 'an order'? Even factoring in the cost of gas, WTF? Drive, dick.
Disclosure: Gainsville is 4 hours away.
I take requests, paid in advance, under the understanding the price could change in those 4 hours.
But what will you have to give Gainesville?
"Here, take these Federal Reserve Notes" ???
Devo Federal Reserve Operation [Whip It]
:( Looks like you lost another argument. Perhaps I'm miss reading you?
Who the hell cares anymore. The entire Country hangs on some dipshit that has yet to prove he can read.
Vote RP! Byte me.
Figures it would be a Kennedy.
To the Fucking Moon, Bitchez!!!
Just watched ex Fed Gov. Kevin Warsh interviewed on Charlie Rose. Smart guy but I thought Fed boys were supposed to lie. He did not paint a pretty pic, in private banking cartel parlance in my opinion
Israel will hit Irans facilities and the game is on and the budget will not matter. Obama declares marshal law and no elections, problem solved!
Marshal law. That's the brother of martial law, isn't it?
GCT, I think if you go back in Internet history, you'll see the same thing was said of Bill Clinton. And George W. Bush.
Calm down.
Tim has a nice resume,
Timothy F. Geithner
AKA Timothy Franz Geithner
Born: 18-Aug-1961
Birthplace: New York City
Gender: Male
Race or Ethnicity: White
Sexual orientation: Straight
Occupation: Government, Business, Nepotism,
Nationality: United States
Executive summary: US Secretary of the Treasury
Wife: Carole Sonnenfeld Geithner (two children)
University: BA Government & Asian Studies, Dartmouth College (1983)
University: MA Intl. Economics & East Asian Studies, School of Advanced International Studies (1985)
US Secretary of the Treasury (26-Jan-2009 to present)
Federal Reserve Bank of New York President & CEO (2003-09)
International Monetary Fund Director, Policy Development & Review Department (2001-03)
US Treasury Department Under Secretary for International Affairs (1999-2001)
US Treasury Department Assistant Secretary (1997-98)
US Treasury Department Deputy Assistant Secretary (1994-97)
US Treasury Department Special Asst. to Under Secretary for International Affairs (1988-94)
Kissinger Associates (1985-88)
Bilderberg Group
Center for Global Development
Center for Strategic & International Studies
Council on Foreign Relations Senior Fellow, Economics (2001)
Economic Club of New York Trustee
Group of Thirty
Partnership for New York City Board of Directors (ex officio)
RAND Corporation Trustee
http://www.nndb.com/people/472/000162983/
I rescheduled my dental appointment that i canceled on March 23. . It costed me flucking $40 for a prep fee.
“It's A Krusty Kinda Christmas” brought to you by ILG - selling your body's chemicals after you die - and by L'il Sweetheart cupcakes - a subsidiary of ILG.
Of course this whole debate is mute (literally)if the state run media chooses to just not cover it. In space (and DC) no one can hear you scream. Not that it matters much as the Romulan will have to continue down the same path because IT IS WRITTEN and Romulans will cheer and say "but he is our ass"
To raise the debt ceiling shows a total lack of fiscal control by the president
I vote present
Let's see...November 6 minus September 14 is 52 days...Multiply by $4 billion per day gets...er...$208 billion. Got it. Do we have $208 billion left in Fed pensions? No? How much we got in 401(k)s of gov't employees?
-Timmah
Since the Chinease and Russians arent buying our debt anymore, gonna have to take those numbers PLUS debt rolls for QE3, 4, 5...
And do.t think Commrade O will go quietly into the night. He'll raid the SPR, sell gold and issue IOUs for tax refu.ds 1st.
"...for the GOP to hijack each and every presidential debate..." I must have missed the part where Republicans stood up against raising the ceiling the past thousand times. I blame them more than the Democrats; they're supposed to be pushing the lunatics back.
You think that GOP shhelved the payroll tax debate because they know the the USA's credit will be downgraded because of the need to borrow more money?
What non-sense. They raised the debt ceiling because they didn't want to be seen as the bad guy. If more Americans stood up and demanded they CUT the suicidal spending Obuma is curently on, we would have already felt the pain of restructuring bad debt (recession), and been well on our way of fixing the insane argument of borrowing more money to pay for things we can't afford.
Ha! No, DOD ( Debt of Debt) day will not be September 14, but rather August 14. Zero forgot a few variables in its calculation: 1. Lower, much lower corporate tax, 2. higher, much higher social security-related payment 3. fat, much fatter capital injections for Maes, and finally 4. emegency payment for Iran-related war. Hei, as it turns out, ironically, the DOD shall be July 14. That will be the icing on the cake. American people can resolutely celebrate firecracker day while eating it.
When I try to share good pieces from this site with my educated friends who don’t regularly read it, some of them notice the glaring mechanical errors and point to them as an indication of a lack of credibility with ZH. It frustrates me because I would like to interest folks in this site. But the errors, especially when combined with anonymity, restrict potential readership.
I think that this piece, for example, is important, and I would certainly recommend for others to read it, but I notice the errors below—just the ones I quickly catch:
misplaced, and==should not be a comma
flat out lief==embarrassing typo
Because there will hardly be anything more humiliating for Obama than to have to defend his platform even as the country is once again past the verge of insolvency, and forced to "commingle" retirement funds to keep Treasury operations running.—This is a clarity problem and a fragment combined
All of which will most likely happen before November.—a fragment that is perhaps not too egregious but which could still be linked to the previous sentence easily w/a comma
As for the general subject and the fascinating piece, the scheduling of the inevitable unfolding of the events will be hectic, and time can be tight on such matters. I think The Clash’s cover, then, of the Booker T. and the MGs’ classic is appropriate. Do yourself a favor: Turn it up loud; give it a chance. You can thank me later.
http://www.youtube.com/watch?v=mHggGK7vK2A
Go away