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Visualizing America's Cash Outflows Between August 3 And August 15

Submitted by Tyler Durden on 07/26/2011 09:31 -0400

Reuters

We have previously presented this data in tabular format but because we realize that some readers visual learners, here is a compilation of total US Federal obligations (read cash outlays) between August 3 and August 15, this time from Reuters, at which point all the money runs out no questions asked. The total: $246 billion.

The day to day totals diverge modestly from what was presented before depending on calendarization, but the cumulative result speaks volumes.

h/t John Lohman

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Tue, 07/26/2011 - 09:33 | 1494063 rajat_bhatia

The fractal algo on the prowl in indian metals exchange http://t.co/1k4WYpw

Tue, 07/26/2011 - 09:34 | 1494066 The Grip

Anyone smarter than me know if Wells' analysis cited here holds water?

http://www.bloomberg.com/news/2011-07-25/u-s-can-avoid-default-at-least-until-september-silvia-says.html

Tue, 07/26/2011 - 09:43 | 1494079 No Bid

It likely does but that is for bare-bones funding. If we got to September and we were funding such a miniscule portion of the govt, I'd expect SPX 1000. I don't think it could ever get to that point. Congressmen have 401ks pensions too.

EDIT: strikeout text not working ["401ks"," too"]

Tue, 07/26/2011 - 09:51 | 1494103 redpill

Of course one could throw together a list of just 3-letter acronym agencies that could be shuttered tomorrow without much negative impact for taxpayers and we would have plenty of money to service our debt.

Tue, 07/26/2011 - 09:56 | 1494115 Global Hunter

They could merge the EEeePeeEh and the DeeHeychEsss and find 1 trillion of synergies over the next 100 years. Voila problem solved, surprised no congressmen or senators have proposed it.

Tue, 07/26/2011 - 10:02 | 1494135 trav7777

wrong.

You are forgetting that the monetary system is debt-based. Right now, the government is the only entity growing credit. Private actors are not. If you repay debt, the money is extinguished.

Tue, 07/26/2011 - 10:42 | 1494312 Azannoth

Correct that is why debt reduction isn't and will never be on the table, only debt-accumulation-rate reduction

Tue, 07/26/2011 - 10:57 | 1494378 Mongrel

No debt, no money. What a system! Thanks, Alex Hamilton . . . Props to Mr. Burr.

Tue, 07/26/2011 - 09:42 | 1494080 whatsinaname

How about the 1 T payment due August 15 ?

whats all the talk about that ?

or am I misinformed ?

Tue, 07/26/2011 - 10:00 | 1494128 The Grip

TD explains that here, which also answers my initial question:

http://www.zerohedge.com/news/projected-treasury-august-daily-cash-sweep-balance

Tue, 07/26/2011 - 12:37 | 1494869 Zero Govt

isn't that the downpayment for Obummas 2012 re-election campign?

Tue, 07/26/2011 - 09:58 | 1494123 jus_lite_reading

Should I bring my tomato plants in on the 15th? LMAO

Tue, 07/26/2011 - 10:24 | 1494230 boiltherich

In reading the linked story I saw this line... "The Federal Reserve may have the legal authority to extend a line of credit to the Treasury..."

If this is possible, that the treasury can borrow money from the federal reserve that is somehow not subject to the debt limits which are the whole point of the current partisan deadlock then why not simply stop printing up bills, notes, and bonds and just go to the Fed for our financing needs.

For that matter if the government is obligated by law to pay me a sum for my veterans disability on the first of each month and they miss a payment, or several then are they not increasing the debt of the USA, but instead of increasing it in the form of treasury debt vehicles they increase it in the form of owing millions of citizens. I say that once the debt ceiling was hit the government should have simply shut down because ongoing operations are still accruing new debt and are thus either illegal or the debt ceiling laws are irrelevant and should simply be ignored like so many other laws.

But as a citizen still even if that means little now, I want to know what the terms of this credit card contract between the Fed and Treasury will be. Why would issuing new debt in the bond markets be illegal while new debt owed to the Fed would not? Or owed to citizens because they did not make a required monthly payment?

AND WHERE IS THE BLEEDING SPELL CHECK BUTTON?

Tue, 07/26/2011 - 12:23 | 1494802 Raymond Reason

Well, it's semantics really. I think what they could legally do, for example...the Social Security Fund is full of Treasuries. They could sell the treauries, the Fed would probably buy most of them...and there's your operating capital. Is it legal? Loosely.

I believe the Fed is not permited to fund the govt directly. Technically the govt has to borrow through a dealer. But the Treasury actually prints the "physical" dollar bills, the actual paper. Printing isn't borrowing, so they could print, deposit, and write checks. Presto.

Tue, 07/26/2011 - 09:35 | 1494068 somethingelse

i have to open new tab or browser window to refresh ZH for new postings since you did the UI change. i used to just do F5 or click on your logo to refresh to get new articles. i'm using IE 8. please correct soon as this really slows down my enjoyment of ZH throughout my day.

thanks!

Tue, 07/26/2011 - 09:46 | 1494090 DUNTHAT

F5 refreshed for me with IE9

Tue, 07/26/2011 - 09:49 | 1494095 Gunther

Try "home" on top of the ZH page, works for me.

Tue, 07/26/2011 - 09:50 | 1494098 fishface

use a descent browser

firefox works

Tue, 07/26/2011 - 10:29 | 1494244 somethingelse

I know IE sucks but i have to use it for my work.

Tue, 07/26/2011 - 11:12 | 1494472 JohnG

Try Ctrl-F5

Tue, 07/26/2011 - 11:13 | 1494477 JohnG

or try the rss feed and refresh that manually

Tue, 07/26/2011 - 10:29 | 1494245 somethingelse

I know IE sucks but i have to use it for my work.

Tue, 07/26/2011 - 10:33 | 1494268 Hard1

How about a decent one instead!

Tue, 07/26/2011 - 09:38 | 1494075 duncecap rack

I read something that the treasury has alternate sources of funding such as leasing it's gold reserves to the fed. Would this approach work to ease the crisis?

Tue, 07/26/2011 - 09:45 | 1494084 fuu

It would kick the can down the road a few news cycles, but no it would not ease the crisis of spending more than is brought in.

Until either tax receipts go up or spending comes down this "crisis" will never end. Which is as intended.

Tue, 07/26/2011 - 10:10 | 1494163 jerry_theking_lawler

what...never heard of this...new conspiracy theory...

US leases Godl to FED for additional funding. US defaults so the FED gets all the gold. there is the happy ending, money shot, literally!!! game over, cycle complete. FED owns the real MONEY.

very interesting, can you provide a link? -theking

Tue, 07/26/2011 - 09:42 | 1494083 midtowng

How is it possible that we don't know exactly when we will run out of money, when we already know what we will be spending/borrowing? What sort of accounting is that?

Tue, 07/26/2011 - 10:39 | 1494295 MachoMan

government

Tue, 07/26/2011 - 09:50 | 1494100 heyligen

That is the whole pension of 2,46 million gamma Americans going out in one month, so what is the problem?

Tue, 07/26/2011 - 09:51 | 1494104 DonnieD

Don't like the green/red arrows. Clutters the comment box. Maybe I just need to get used to it. Does anybody know what the Total Score means? Is this a game?

Tue, 07/26/2011 - 13:03 | 1494965 knukles

Is this a game..........................................
Depends on whether you think it's real or all an illusion.
And how would you know anyhow since you only see your point of view inside your own mind?
Is it truth or honesty?

Is this all a game......................................

Tue, 07/26/2011 - 09:54 | 1494110 fishface

Tyler

the tabular format has a lot more information

you need to plot a line 'closing cash' in this graph to make sense

Tue, 07/26/2011 - 09:56 | 1494117 Lmo Mutton

Write all the odious debt off. Give it all to the FED RESV. Let them embrace their monster.

Tue, 07/26/2011 - 09:59 | 1494127 Texas Ginslinger

Tyler, when are you going to make your graphs 3D..??

Tue, 07/26/2011 - 10:03 | 1494141 Dr. Engali

Yes with lots of pretty colors. Oh and flashing lights, I like flashing lights.

Tue, 07/26/2011 - 13:55 | 1495171 jomama

http://www.youtube.com/watch?v=ila-hAUXR5U&ob=av2e

Tue, 07/26/2011 - 11:00 | 1494390 Astute Investor

Deficit figures can be manipulated until the cows come home, but the change in cash never lies. That's why the projected levels of deficit reduction in the various proposals being bandied about by the politicos aren't worth shit. The change in the national debt oustanding provides a more accurate assessment of the federal government's cash burn.

Tue, 07/26/2011 - 11:01 | 1494397 Sudden Debt

Does everything go to Gold and Silver bullion?

Tue, 07/26/2011 - 11:22 | 1494534 Gimleteye

Will the military obey their oath to the CONSTITUTION or when BHO gives the illegal orders will they obey? In lieu of obedience will they stage a coup?

Tue, 07/26/2011 - 12:52 | 1494926 knukles

Thanks, Tyler :)
My mom always uses different colors for different things on graphs 'cause she thinks it keeps my attention longer.

Tue, 07/26/2011 - 14:17 | 1495262 Doyle Hargraves

Insolvency Bitchez!

Tue, 07/26/2011 - 14:36 | 1495323 Gold Man-Sacks

So, now we have until August 15?

Tue, 07/26/2011 - 15:28 | 1495577 Bob Sacamano

If the Federal Obligations bar chart includes any debt that comes due (am guessing it does, but can not tell), it is very misleading.

Maturing debt obligations can be refinanced without any increase in the debt ceiling. So those obligations should not be a part of the calculus for the debt limit discussion.

The administration (echoed thousands of time by the liberal MSM) is lieing when they say not raising the debt ceiling will result in default -- absolutely not true. Plenty of money coming in to service the debt -- which it will be paid.

The rating agencies will downgrade the US with or without debt deal or size of deal (unless the deal is about $10T) -- it is just a question of when. And the market seems to show no fear of a downgrade (and not because they do not think there is going to be one).

Tue, 08/23/2011 - 22:57 | 1593362 karmete

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Wed, 09/14/2011 - 03:42 | 1667072 chinawholesaler

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Visualizing America's Cash Outflows Between August 3 And August 15

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