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Treasury Adds Another $20 Billion In Debt Overnight, Just $160 Billion Below Revised Ceiling
Zero Hedge ^ | 8/08/2011 | Tyler Durden

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 ...


TOPICS: Business/Economy; Front Page News; Government; News/Current Events
KEYWORDS: borrow; debt; debtdeal; fed; loans; treasury
So, Obama got 60 days on the first tranche? What is going on?
1 posted on 08/08/2011 5:30:21 PM PDT by Former Proud Canadian
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To: Former Proud Canadian

I surprised it hasnt been reached already........


2 posted on 08/08/2011 5:34:53 PM PDT by Red Badger ("Treason doth never prosper.... What's the reason? Why if it prosper, none dare call it treason.")
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To: Former Proud Canadian
It's like trying to be logical with a drug addict. They don;t care about facts! They've got to have more, more, more!

Someone, other than the addict, has to take charge!

3 posted on 08/08/2011 5:36:12 PM PDT by CharlyFord (t)
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To: Former Proud Canadian

The Lightworker will be back at the well before the next election...he can’t compete without massive spending...er...vote-buying.


4 posted on 08/08/2011 5:36:23 PM PDT by dogcaller
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To: Former Proud Canadian

Turbo Tim has that extra 2 trillion that S&P overlooked, maybe.


5 posted on 08/08/2011 5:37:11 PM PDT by FlyingEagle
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To: Former Proud Canadian

Where is the money going? The only explanation is that it is being stolen, at the rate of 40+ billion per day.


6 posted on 08/08/2011 5:39:24 PM PDT by FlyingEagle
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To: Former Proud Canadian

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.


7 posted on 08/08/2011 5:41:04 PM PDT by kittymyrib
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To: kittymyrib

Obama will run out of money before the election. Too Bad.


8 posted on 08/08/2011 5:58:46 PM PDT by scooby321
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To: Former Proud Canadian
Ooops. I guess Barry's crack team didn't quite get their figures right.

If we go through this little exercise again in just a couple of months, things are going to get real interesting.

9 posted on 08/08/2011 10:29:28 PM PDT by mojito
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To: mojito

“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.


10 posted on 08/08/2011 10:34:42 PM PDT by JustAnotherOne (Perry-Huntsman 2012)
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To: Former Proud Canadian

The government is spending more money than a drunken sailor in a French whorehouse on “Dollar Day” ...


11 posted on 08/08/2011 11:02:31 PM PDT by Lmo56 (If ya wanna run with the big dawgs - ya gotta learn to piss in the tall grass ...)
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To: JustAnotherOne

““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.


12 posted on 08/08/2011 11:10:12 PM PDT by Monorprise
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To: JustAnotherOne

Give them California — at least the Bay Area anyway.


13 posted on 08/08/2011 11:10:28 PM PDT by comebacknewt ((on second thought, never mind, go away again Newt))
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To: All

Hey, we gave the Horn of Africa 100 million dollars today for humanitarian purposes. This group can always “find” more money.


14 posted on 08/08/2011 11:19:23 PM PDT by betsyross60
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To: Former Proud Canadian

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!!!


15 posted on 08/08/2011 11:47:36 PM PDT by kevao
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks Former Proud Canadian.


16 posted on 08/09/2011 2:32:35 AM PDT by SunkenCiv (Yes, as a matter of fact, it is that time again -- https://secure.freerepublic.com/donate/)
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To: mojito

Re post 9. Well, either Boehner really put one over on him or somebody miscalculated. Looks good on obie.


17 posted on 08/09/2011 5:25:39 AM PDT by Former Proud Canadian (We .. have a purpose .. no longer to please every dictator with a vote at the UN. PM Harper)
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To: kevao
Actually 53%, but I digress.

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.

18 posted on 08/09/2011 5:43:32 AM PDT by Former Proud Canadian (We .. have a purpose .. no longer to please every dictator with a vote at the UN. PM Harper)
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To: Former Proud Canadian

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.

or

B: Repaying those borrowings from other government accounts they used to delay hitting the ceiling.

But maybe I don’t understand the question...


19 posted on 08/09/2011 5:45:11 AM PDT by mrsmith
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To: mrsmith

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.


20 posted on 08/09/2011 5:53:49 AM PDT by Former Proud Canadian (We .. have a purpose .. no longer to please every dictator with a vote at the UN. PM Harper)
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To: Former Proud Canadian

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.


21 posted on 08/09/2011 5:55:53 AM PDT by Straight Vermonter (Posting from deep behind the Maple Curtain)
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To: Former Proud Canadian

But Alan Greenspan said...


22 posted on 08/09/2011 5:56:35 AM PDT by listenhillary (Look your representatives in the eye and ask if they intend to pay off the debt. They will look away)
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To: Former Proud Canadian

Inflation would make it sooner.

I wonder if the Fed is dumping it’s huge holdings of T notes into this market...


23 posted on 08/09/2011 6:09:00 AM PDT by mrsmith
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To: Former Proud Canadian
By the way, don't look for your present president

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....).

24 posted on 08/09/2011 6:25:02 AM PDT by kevao
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To: kevao
If the US defaults on its debt, don't count on any "international law". ALL bets are off.

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?

25 posted on 08/09/2011 6:28:58 AM PDT by Former Proud Canadian (We .. have a purpose .. no longer to please every dictator with a vote at the UN. PM Harper)
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