Skip to comments.Treasury Adds Another $20 Billion In Debt Overnight, Just $160 Billion Below Revised Ceiling
Posted on 08/08/2011 5:30:11 PM PDT by Former Proud Canadian
Ok, someone please explain this one to us because we must be a little slow. Wasn't the whole thing with the debt ceiling hike such that no more Congressional melodramas would have to be inflicted upon the population until after Obama [won|lost] the 2012 elections? Because according to the one again exponentially increasing debt balance of the US Treasury (there is another $51 billion in debt/cash coming in next week), the total US treasury balance (subject to the ceiling) is $14.54 trillion (and $14.58 trillion for total), an increase of $20 billion overnight, the Treasury will hit its latest ceiling no later than the end of September. As the latest DTS statement indicates, the debt ceiling now is $14.694 trillion: a number which Tim Geithner will hit in about a month. So if this is due to a planned expansion as part of the two step plan, we would like to understand how it works, because the $400 billion additional ceiling is barely sufficient to cover the catch up in funding for the SSN and the various governmental trust funds. And the far bigger concern is that tax receipts are about to plunge courtesy of the imminent double dip. So we wonder just based on what assumptions does the Treasury believe that its issuance needs will be met by this paltry debt ceiling.
(Excerpt) Read more at zerohedge.com ...
I surprised it hasnt been reached already........
Someone, other than the addict, has to take charge!
The Lightworker will be back at the well before the next election...he can’t compete without massive spending...er...vote-buying.
Turbo Tim has that extra 2 trillion that S&P overlooked, maybe.
Where is the money going? The only explanation is that it is being stolen, at the rate of 40+ billion per day.
The U.S. Treasury spent $250 Billion in interest payments on our debt in the first 24-hours after the debt ceiling was raised...an embarrassing new spending record even for Democrat wastrels.
Obama will run out of money before the election. Too Bad.
If we go through this little exercise again in just a couple of months, things are going to get real interesting.
“If we go through this little exercise again in just a couple of months, things are going to get real interesting.”
If we go through this exercise again, somebody will seize an asset of the USA. More than likely a state on the mainland, simply because the territories and possessions have negative intrinsic value. And not a soul is the least concerned.
The government is spending more money than a drunken sailor in a French whorehouse on “Dollar Day” ...
“If we go through this little exercise again in just a couple of months, things are going to get real interesting.
If we go through this exercise again, somebody will seize an asset of the USA. More than likely a state on the mainland, simply because the territories and possessions have negative intrinsic value. And not a soul is the least concerned.”
States are NOT Federal possessions! To cease control of them in payment of Federal debt is like a banker ceasing control of your house to pay your negbors debt.
You want to ceases Federal assets go after their land and equipment holdings. Unfortunately for foreigners only our States are in a real position to do that.
Give them California — at least the Bay Area anyway.
Hey, we gave the Horn of Africa 100 million dollars today for humanitarian purposes. This group can always “find” more money.
Let’s just default now and get it over with. Better today than 18 months from mow, when we’ll be weaker still, with an additional $2.4 trillion in debt and an even smaller GDP.
Let’s face it. We hit the iceberg in November 2008. And that serenade we’re hearing from the world financial markets is “Nearer My God to Thee.” And we’ve been sold out even by our own people — Boehner and his rubber-ducky debt-deal.
I’m tired of just *us* producers having to pay the price for all this $hit. Just let the whole damn thing come crashing down, so that the 52% a$$holes who voted for Zero can “share in the sacrifice” too!!!
Thanks Former Proud Canadian.
Re post 9. Well, either Boehner really put one over on him or somebody miscalculated. Looks good on obie.
Default on the US debt is not really an option for a variety of reasons. US corporations have billions in overseas assets. Think plant and machinery. A default would put all those assets at risk as foreign creditors look to collect. Think about the overseas investments of Deere, Ford, GM, GE and so on.
That said, there really was no risk of default last week. There is plenty of money to pay the interest and the maturing debt could have been rolled over.
The US economy, and people, are strong and resilient. The economy would bounce back literally in weeks given the chance. The prescription is easy: cut spending, cut regulation, cut taxes.
Beyond that, specific policies to create a good climate for business are also simple, especially in the energy sector. Government policy should be aimed at letting business create vast amounts of cheap energy in all forms. A good start would be to close the EPA and the Energy Department. You would save a lot of money and cut a lot of red tape. The US is an energy colossus. It has been tied down by government policies. Unleash the colossus and the economy will thrive.
By the way, don't look for your present president to invoke any of these policies.
Why is debt up so fast?
A: The market is paying a premium for treasury bills right now so they are selling as much as they can as fast as they can.
B: Repaying those borrowings from other government accounts they used to delay hitting the ceiling.
But maybe I don’t understand the question...
No, I think you are correct. The point is that this thing that was supposed to be over until 2013 is going to come back up again much sooner.
Don’t forget the government had been running for months on money diverted from pension funds etc. I’m guessing they paid the overdue money into these funds after the debt ceiling was lifted.
But Alan Greenspan said...
Inflation would make it sooner.
I wonder if the Fed is dumping it’s huge holdings of T notes into this market...
He's not my president, FRiend. :)
Default on the US debt is not really an option for a variety of reasons. US corporations have billions in overseas assets. Think plant and machinery.
I don't believe a foreign country can nationalize a private corporation's assets in compensation for that private corporation's sovereign's debt default. By that I mean a foreign country that follows international law (countries like Cuba and Venezuela have nationalized foreign-owned corporations just because they wanted to and nobody was going to stop them....).
Do you actually believe that China is going to make a distinction between GM and the US government? Do you think they are going to follow some quaint notion of "international law" in the event of a default?