US Plans To Issue $846 Billion In Treasurys In The Next 6 Months, 35% More Than Previous Year
Since obviously nobody in charge has learned anything at all, and all the old school games will continue until they no longer can, and demand for US paper, already plunging at the international level, disappears (aside from the Fed of course: the Fed will always be a happy last ditch monetizer of one-ply US paper), here is the Treasury's just released schedule for bond issuance for Fiscal Q1 (Oct-Dec 2011), and Q2 (Jan-March 2012), which amounts to $305 billion and $541 billion, respectively, or a total of $846 billion in 6 months, a $141 billion run rate per month. This compares to a total of $628 billion issued over the comparable period a year ago (although granted the Treasury did burn a whopping $225 billion in cash in Q1 of 2010). In other words, the US Treasury is planning on issuing 35% more in the first half of the fiscal year than a year previously, even though this time last year the Fed was monetizing all gross issuance, and even though the European EFSF was not about to ramp up issuance and soak up hundreds of billions of excess fixed income targeted capital. Now we only have some vague, ineffectively sterilized duration transfer operation which is doing nothing to lift belly demand, and merely takes care of the long end (while the Fed's promise to keep rates at zero until 2013 makes all bonds 2 years and less to be off zero effective duration). We doubt this schedule is even remotely sustainable without some imminent form of Large Scale Asset Purchase program being implement (with or without MBS monetization: for a definitive answer on this issue, please call 949-720-6226), and none of that Nominal GDP targeting mumbo jumbo. Unlike Europe, the Fed knows that money talks, and bullshit targeting walks.
From the Treasury:
The U.S. Department of the Treasury today announced its current estimates of net marketable borrowing for the October – December 2011 and the January - March 2012 quarters:
- During the October – December 2011 quarter, Treasury expects to issue $305 billion in net marketable debt, assuming an end-of-December cash balance of $60 billion. This borrowing estimate is $21 billion higher than announced in July 2011. The increase in borrowing relates to lower receipts, higher outlays, and changes in the cash balance assumptions partially offset by higher net issuances of State and Local Government Series securities.
- During the January - March 2012 quarter, Treasury expects to issue $541 billion in net marketable debt, assuming an end-of-March cash balance of $60 billion.
During the July - September 2011 quarter, Treasury issued $286 billion in net marketable debt, and ended the quarter with a cash balance of $58 billion. In July 2011, Treasury estimated $331 billion in net marketable borrowing and assumed an end-of-September cash balance of $110 billion. The decrease in borrowing was related to lower receipts offset by lower outlays and cash balance adjustments that lowered the estimated end-of-quarter cash balance.
And here is the full breakdown. Compare the projected two quarters with the comparable prior period.
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Yep, that means a deficit of 1.692 trillion... and since it's the treasury saying that, you bet they are underestimating it, as always.
One month in the fiscal year and already 203 billion in debt.
We doubt this schedule is even remotely sustainable without some imminent form of Large Scale Asset Purchase program being implement
Bring on the QEasy Money. Be nice if some genius like Tyler or J.Richards would do us all the favour of calculating when Twist will have run its course and QE3 will be rolled out of the showroom.
This is contingent upon another debt ceiling raise, no?
Who cares about the ceiling when the roof is on fire?
The banking system they created on Jekyll Island, GA really really sucks.
Who sold us this product and where is the return department?
You sell really shitty financial products.
Pensions? Pensions? You 25% of the population who get pensions don't get no stinking pensions.
You get whatever the government has in their bank accounts.
Zero Credit!
I was really rooting for the Irish to tell the banksters to go fuck themselves like Iceland did.
It's nice the Greeks finally got up the balls to tell the banksters to go fuck themselves.
I'm rooting for the Greeks now. Lets just say about the Irish, I'm disappointed.
How about North Korean communist way? Kim shot the central bank chief in the head.
Who cares about the roof of a bankster's house? Let it collapse and everyone else can cash in on the CDS protection on the house.
Nothing like shorting bank stocks.....
Bernanke will announce QE3 tomorrow. Just a weird guess.
Federal reserve to the American public
The Fed says:
These are big words that many people do not understand, so let me rephrase it in a way which people CAN understand:
I think it's debatable as to whether they will even publicly announce QE 3 thru QE infinity.
A stock market crash could fund the treasury with plenty of takers. It's that, or LSAP, or failed auctions. Given the Europe spillover effects, and that by March of next year it'll be clear to all we're in a world wide depression, I'm just gonna have to guess it'll be LSAP given Ben's proclivity for stock ramping.
What happens if the Chinese decide they prefer Gold? But, of course, that is why the price of Gold is being manipulated.
Tylers, one and all, please keep posting these kinds of stories. Chronicle the insanity that is the U.S. debt bubble.
Greece? Italy? A mere sideshow to the massive black debt hole that is the United States of America. Unquestionably the U.S.A. has passed the debt event horizon. It's only a matter of time before the North American colonies meet the singularity. It really is game over, Congress, the Fed and Treasury simply are "taking a knee" while the clock runs out.
Again, keep up these posts. I believe, truly, the Zhedge archives will be an important part of the historical record, and future generations can read, page by page, the financial implosion of the United States.
$1 x 60 seconds/minute x 1,440 minutes/day x 365.25 days/year x 53,616 years = $1.692 Trillion
Put that in your pipe and smoke it.
We're so far beyond fucked, we can't even catch a ride back to fucked
https://www.youtube.com/watch?v=j2AvU2cfXRk&feature=player_embedded
Printers to warp 9
The Treasury and the Fed can do no wrong. Not yet anyway...
It's wonderful when you can be your own buyer. Not only can you never have a failed auction, when push comes to shove you can use some of that overseas monetization to simulate foreign demand. Smoke, mirrors, and one hell of a Houdini show. Who needs credibility? On with the performance!
being your own buyer is a disgusting act of auto-eroticism
Lets just call it being a financial wanker.
do we know how much is maturing on the feds BS in the first half of 12'?
it's rotting, rotting ... not maturing
Overlays ! , I say! TRUTH!
Won't the all the money flowing out of Euro markets flow into treasuries and usa stocks?
Yes , it will flow into [ usd ] , and then into T- 10's. I understand your frustration. Technically ( lower) yields mean a softer dollar.
Canned goods, batteries, water, candles, MATCHES or LIGHTERS, rice, rice, rice, spam, tuna, pens, paper, typewriter, solar powered calculator. CAN OPENER!
+ 1
Water cleaning devices. Guns & ammo. Prescription meds. Gold & silver.
A couple of females.
"feminine hygiene" products and toilet paper.
Earplugs
Stock up on CS instead of the antibiotics. And have a couple bars of pemmican in the BoB at least. High calorie density. The Berkey is a great water filter, you can even get a fluoride filter for them.
pods
Obviously QE3 is coming no later than January of next year.
A million here, a billion there. Pretty soon we would be talking about casualties.
Nope, you are off in your scale. It's not millions/billions. It's becoming trillions/quadrillions.
That's going to buy a lot of "$16 muffins".
www.pmbug.com
And watch gas go to 7-8 dollars a gallon, and food prices shoot up another 20%.
It's going to end very badly and bloody.
Unrest in the Middle East this year will look like a joke next year when finally inflation hits the rice prices. There goes Asia.
I finally opened up a can of spam to see what I had been storing. I haven't eaten that shit since childhood. It's not too fuckin bad. Stock up on spam. Alas Babylon!
look for cans without BPA (used in linings). its a nasty chemical, known endocrine disrupter, that leeches into your food. trader joes sells much of their canned food without bpa
roger that Sir
BPA only has a negative effect on young boys, fyi. It imitates estrogen, and as such, interferes with sexual development based on testosterone. Adult males have an excess of testosterone, and are already fully developed, so small levels of BPA have no effect.
So it should be avoided by pregnant women and boys under the age of 14. But you can't, because the shit is literally everywhere, including the water.
BPA may be associated with obesity, diabetes, cardiovascular disease, problems with thyroid and pancreas, reduced sexual desire and erectile dysfunction. So no, really nothing bad at all if you're a male over 14.
http://www.medpagetoday.com/PublicHealthPolicy/EnvironmentalHealth/21882
http://healthcarehacks.com/the-effects-of-bpa-on-grown-men
and
http://news.consumerreports.org/health/2009/11/health-effects-of-bisphenol-a-bpa-may-affect-sexual-function-in-adult-men-study-finds.html
for starters. Apparently over 6.4 billion pounds per year is manufacturered, so thats comforting.
I read Alas Babylon 30 years ago in High School. Good book.
The only thing possibly worse than Spam is starvation.
"Corned beef and pork and beans" is a recipe my wife uses on rare occasions. Fry the Spam with onions, removing any of the white stuff you might find (don't ask, don't tell). When nearing end (some will crisp up a bit), move aside and fry an egg. Boil some white rice. Heat up some baked beans. Put it all on a plate and eat with some tomato sauce. I don't know why it's called "Corned beef and pork and beans", because I can't find much pork there, but it makes an ok meal. Seriously, don't knock it until you've tried it.
Edit : Actually, I realize it's tinned Corned Beef she uses, not spam. Still, until she cooked this for me, I assumed both were more or less inedible.
I have fried Spam and then put it into soups like split pea and lentil, or it can go in right out of the can and heated in the soup.
Can add diced Spam in with some frozen peas and butter/olive oil in a sauce pan with some onion and garlic and put it over pasta with some parmesean cheese like a Hobo carbonara.
Diced Spam fried with potatoes and onions and cayenne pepper for some spicy hash browns.
Thinly sliced into strips for Chef salad.
Put in a processor and add some celery and/or Italian peppers and oilve oil to make it spread like for crackers.
Sautee it with mushrooms and onions and eat with eggs.
Put in a quiche with cheddar or pepper jack and zuchinni.
Or just use it to defend yourself and throw the can at a would be attacker.
Note to self: don't read ZH comments before breakfast.
An old recipe for fried Spam is to dip slices of it in beaten egg and then dredge it through crushed cracker crumbs and fried. It's good.
...Memories of the childhood and camping...
Let's see - issuing more than originally planned due to (1) lower revenues and (2) higher outlays than first estimated. Who would have ever guess those estimates to be off in this direction?
What are they going to send to the IMF? I am sure they are getting the US bank exposure numbers on the European CDS and ready to write the check as soon as the last greek vote is done. Seems like all the market moves to be made that are prudent and based on where things should end up don't happen. The contrarian Zero Hedge blog would make some bank while head shaking in disgust the whole time. No crash comming for a while boys, print and boom.
Now is a good time to go long on ink.
This is not a typical Wednesday, Tylers< Stay awake! Thank you YEN. London calling,?
Debt, deficits, world conflagration, Fuckushittin me melt down again, Kim Kardashian is hurting from a failed marriage and I just want her to know that I'm available. Won't even demand a pre-nup. See Kim, that way I won't have to worry about the government breaching the debt ceiling. I'll leave a note in the personals of the Enquirer next week so you can get in touch with me.
XO
Uncle Knukie
Just remember that no matter how good she looks, some other guy is already tired of her shit.
just imagine the paparazzo images 'Kim Kardashian cheek to cheek with her new lover, musing about verbal poison to squirt at the financial elite in their favourite fringe blog'
Dude, to quote Triumph the insult comic dog, "She's had more bones buried in her than Forest Lawn."
WTF - (Win the future) jackass will be on TV 24/7 with his handy teleprompter telling us the world is coming to an end if Dr. Deficit cannot make a new batch of QE3 rice.
LOL
All communications will be OWN (Obama Winning Networks) on Nov. 9 when the FCC does the takeover "drill" at 2pm Eastern (and we all know how drills turn out)....
"It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments. Ideologically it belongs in the same class with political constitutions and bills of right."
Ludwig von Mises, 1912
Bravo, sir. Bravo.
People that do not like the Austrian School must not read well, because Mises was a bad assed mother fucker.
Fuckin' A, Ludwig von M!
"The Federal Reserve will not monetize the debt" -Ben Bernanke Congressional testimony June 3, 2009
Big Ben has clocked out. Just serving his masters
He was chosen with purpose because his views on economics are, and have always been, very one sided.
And he'll keep his word. He'll demonetize all that debt as soon as everything goes back to normal
Tyler, Tyler, Tyler. In a floating-rate nonconvertible fiat monetary system the government sector's debt is the non-government sector's savings, due to a straightforward accounting identity. If the national debt goes up, that means people are saving more. Isn't that entirely expected, given the current investing climate?
Once again, the MMT argument, that is as as in vitro (i.e. isolated from the reality of capital markets) now as it has always been. There are numerous posts on Zero hedge explaining why this so called identity is wrong. Read this as an introduction away from neo Keynesian brainwashing: Guest Post: The Great American False Dilemma: Austerity vs. Stimulus
Wow. Here I thought that have read Everything on ZH yet I missed that whopper while traveling.
Question: are there other posts that critique MMT from perspectives other than resource scarcity?
Perhaps none other are needed, but I'm just trying to get a sense of the range of debate.
Perhaps a simpler, yet more effective counter to the claim that since private savings = public debt (hey, where did private debt/equity go?), therefore we can reverse the identity to prove that public debt = private savings, would be that since E=mc², therefore, mc²=E.
While both are technically true in completely closed systems, good luck with that - what with all the gulags and social controls necessary to craft the "New Soviet Man".
Thanks for the link, but I don't see Chris explain how sectoral balances is "wrong", merely that he understands one of the very key points of MMT ("[t]he US is a monopoly issuer of its own currency, and while inflation is a risk, default (per se) is not") and is "sympathetic" to arguments for more govt spending (as well as being sympathetic to less govt spending on wars and pork).
MMT isn't "isolated from reality", in my opinion. It describes how fiat money functions much more accurately than other approaches. Seems to me you just don't like the politics of most MMT'ers :)
You're joking right? Money is nothing more than a record of resource or work, energy or some solid tangible asset. Debt is a deferment of that exchange with added cost but always under the assumption that it can and will be paid. .
Every time people tell me its not as bad as I say it is, I will just keep these figures in mind. Seriously, we are barelling down on the 2 trillion dollar defecit per year fast. Basically, we have a humungous deficit, accumulated debt, & world record low interests rates but no one finds a problem with this? I will just have to buy more physical pm's while the algos sort this mess out. Watching rome burn from the sidelines.
949-720-6226, Newport Beach, CA. Let me guess, Pimco. It's ringing. Hello. It's a Greek restaurant. 90% off gyro's and Greek bonds.
Milk the Cow!
800-995-1708 works better.
Can you say "PIIGSUS" or "US PIIGS"? High debt to GDP ratio. That sounds highly familiar.
Lieber tanzender Schwanz, a sudden collapse where you might need matches, can opener etc is POSSIBLE, however everyone who watches out for this type of collapse misses the slow-mo collapse which has been happening since a while and will go on for a while. Both collapses have the same effect in the end, but the slo-mo one is completely different to 'ride'.
Think big re diversification! Cover as many bases as you can imagine...
This will be a powerful incentive in prompting the super committee to rein in our deficit spending problem.
They will be proud and smiling, offering us their innovative ideas well before November 23rd, for a grand total of $899 Billion. (Over 10 years of course) [And valued in 2020 adjusted dollars.]
The bankers and financial authorities have painted themselves into a financial corner, and have declared a plan to get out of the trap, requiring only the use of more paint.
Right.
....hope...and...pocket change
http://geraldcelentechannel.blogspot.com/search?updated-min=2011-10-01T0...
.
Max Igan : The Vatican controls all the Central Banks around the Planet
Max Igan - The Occupy movement is not complaining about the economic downturn it is complaining about the economic system itself , it's the money that's the problem it is not the economic downturn , the problems that we face in the planet is because of the central banking system which has been imposed around the planet by the crown Corporation which is created by the Vatican , the Vatican controls all these central banks anyway and now their answer to the problem is to further centralize the power and give more power to the Vatican
As Gerald Celente said, “If the names on Wall Street were Italian, they would call it the Mafia.” Whataya call it when all the names are Jewish? The Vatican?
Mervyn King, the Bank of England. Ben Bernanke, the Federal Reserve Central Bank. Stanley Fischer, the Bank of Israel. Jean-Claude Trichet, just retired European Central Bank. Josef Ackermann, Deutsche Bank (ranked by NY Times as "one of five most powerful men in world"). Timothy Geithner, U.S. Treasurer. Gary Gensler, the Commodities Exchange, Duncan Niederauer, the New York Stock Exchange. Robert Zoellick, the World Bank and IMF. Dominque Strauss-Kahn, ousted the IMF. Goldmanite William Dudley replacing Stephen Friedman, the New York Fed. Goldmanite Mario Draghi, the Financial Stablity Board, president ECB. Mary Schapiro, the U.S. Securities and Exchange Commission. Jacob Lew, the Office of Management and Budget. Gene Sperling, National Economic Council. Richard Ketchum, FINRA, acronym for the Financial Industry Regulatory Authority (FINRA) -- the largest self-regulatory organization (SRO) in the United States created in 2007 by the merger of the National Association of Securities Dealers and the regulatory and enforcement divisions of the NYSE… ET CETERA… All Catholics!!
Priceless find, Blindman.
that is a real good site.
"If that mischievous financial policy,[interest free colonial script money], which had its origin in the North American Republic, should become indurated down to a fixture, then that government will furnish its own money without cost. It will pay off debts and be without a debt. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of civilized governments of the world. The brains and the wealth of all countries will go to North America. That government must be destroyed or it will destroy every monarchy on the globe." Source: The Flaming Sword, Vol. XII September 2, 1898
What this means is that our $250T debt would not exist today if congress had not passed the Federal Reserve Act in 1913, and we as a country would collectively be $250T richer - more than $1M per taxpayer richer.
I say We The People tell congress the US Constitution does not give congress authority to delegate to the Fed or anyone else, the power to create our money. We declare the Fed's powers unconstitutional retroactively and recoup the illegally paid interest. All $1M per taxpayer to be returned back from the owners of the FED.
Yeah the government is openly laughing at us right NOW!
http://theintelhub.com/2011/11/01/former-fed-chairman-laughs-at-american...
It's fun teabaggin people till they start biting your balls off.
I think that website is missing the point that he's laughing because it didn't happen under him and he knows how fucked everything is because the Keynesian Fever virus has spread and infected the host so bad it is killing it; something he probably wouldn't have allowed and corrected which is why Obama's team didn't like the Volker Rule or his program and policies. He's not laughing AT the people he's laughing incredulously that they haven't revolted already.