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We have a quick question for the Treasury Secretary: according to today's DTS, as of close yesterday, the Treasury had $14.274 trillion in debt subject to the ceiling of $14.294 trillion, or a $20 billion "buffer." To the best of our knowledge there were no redemptions today, and certainly none in the non-Bill pipeline this week. So, uh, how exactly did Tim Geithner auction off $32 billion today? (and plans to auction off another $40 billion tomorrow and Thursday)
Originally posted by violence=answer
how about we just not pay "our debt"?
does anyone know how we can do that?
We just ran across a newswire headline that said what we have been warning about for about a month: "US Treasury auction to take US over debt ceiling on Monday." As a result, we took a look at today's DTS update, and indeed, come Monday's full settlement of this week's auctions, the jig is up. Prior to this week's $72 billion in auctions, total debt subject to the $14.294 Tr ceiling has risen to $14.280 trillion. There is no way the Treasury can cut $42 billion in debt next Monday (pro forma for the $16 billion Bill paydown settlement). Next up: panic.
Treasury: No fire sale of gold to delay debt
NEW YORK (CNNMoney) -- This just in from the Treasury Department: The United States will not be unloading its nearly $400 billion stash of gold to delay hitting the debt ceiling.
At least not if Treasury Secretary Tim Geithner gets his way. - Full Text
It's official: the US credit card has officially been maxed out, just as we predicted on Wednesday, and througout Q1 and Q2. The United States is expected to reach the legal limit on its debt later on Monday and will start dipping into federal retirement funds to give the country more room to borrow, a Treasury official said. As Reuters reports further, The U.S. Treasury will settle $72 billion in maturing bonds on Monday, which will push the country right up against its $14.294 trillion borrowing cap, the official said. To all those who thought only the insolvent government of Ireland will plunder pension funds, our condolences.
Originally posted by Bordon81
So they supposedly have till August 2nd before TSHTF. They can keep on buying back treasuries and bonds with money from where again till then? I think its going to be a long hot summer.
America breaks the debt ceiling TOMORROW... for real now
While it won't be a surprise to anyone at this point, seeing it in black on white is about as startling as hearing that one's credit card has been denied. Yesterday, following the settlement of all of last week's auctions, total debt held by the public increased by$51.4 billion, just as we had predicted, bringing the total to $9.717694 trillion. And with the total debt subject to the ceiling maxed out legally by $14.294, Tim Geithner reported a total of $14,293,975 MM, $25 million away from the ceiling. What was the plug? Why "Intragovernment Holdings" of course, which declined by $14.3 billion. As Tim Geithner warned yesterday this is now money held in retirement trust funds, which is now being directly sacrificed in order to keep the ceiling from breach: "I will be unable to invest fully the portion of the Civil Service Retirement and Disability Fund (“CSRDF”) not immediately required to pay beneficiaries. In addition, I am notifying you, as required under 5 U.S.C. § 8438(h)(2), of my determination that, by reason of the statutory debt limit, I will be unable to invest fully the Government Securities Investment Fund (“G Fund”) of the Federal Employees’ Retirement System in interest-bearing securities of the United States." And as expected, once the debt ceiling is raised, the accrued shortfall will be filled, meaning upon a debt ceiling hike, which will come some time in July, total debt will explode higher, surging by about $300 billion in a few days.