Two Months Until The $500 Billion Rolling Debt Ticking Timebomb Goes Off

T-Minus Two Months Until The $500 Billion Rolling Debt Ticking Timebomb Goes Off

Enter the always forgotten maturing debt argument. And as a just released presentation by the Bipartisan Policy Center titled "Debt Limit Analysis" reminds us, aside from the actual deficit funding math, which is that in August there is a $134.3 billion cash shortfall that has to be funded with debt, there is a far greater risk. Or, put numerically, 467.4 billion risks. This is the amount of debt that matures through August 31, and has to be rolled over or the US is bankrupt... in every sense of the word.

The crisis has already started...

A record number of American aren't seeing the ``Obama recovery``...
Record 44.7 Million People Celebrate Geithner's Departure And The End Of QE2 Through Foodstamps


A lot of stuff in there will get cuts... if the debt ceiling ain't raised...

And I'm not even talking about the 260+ billion the federal government stole from the pension funds to fund the government since mid-May that won't be repaid.

But of course, the republicans are gonna cave in before that and raise the debt ceiling. Or Obama is just gonna ``save the country`` by ignoring the constitution and just raise it by executive order...

But that still won't fix the real problem... who's gonna buy US treasuries now that the FED ain't doing it no more?
Epic Bond Rout Leads To Biggest Weekly Percentage Surge In 5 Year Yield In History
They already saying they won't buy any US treasuries at those ridiculous low interest rates.

Over $70 BILLION a month listed simply as "Other spending"? That's over $800 billion a year, almost one third of the budget, as OTHER spending?

Come on, people. No wonder the US Govt is in trouble. When nearly a third of your budget can't be specifically listed, something is seriously wrong.

I don't see a specific line here for "Bush tax cuts and their extensions", either.

reply to post by babybunnies


"Other" spending is most likely a huge list of random expenses of funding a government. Building maintenance, grants, R&D, etc.

It's not like they look at the financial report and said "Hey, where's this $70 Billion go? All well, just file it under 'other' and forget about it".

Here come the drums, here come the drums. Drop your sht and run. That's all I can say...doesn't make me feel warm and cuddly

What I would like to know is, why aren't interest rates on US government owed debts rising? Is this solely because lenders and investors have confidence in the US to continue paying on its obligations? I'm assuming it is.

if the government or the elite wanted everyone poor why wouldnt they ever increase the benefits for the poor. So for example making free housing or utilities for the people that make less then 15000 a year. I know id say screw making 20000 if i could have all my housing and stuff paid. I know this is already done but to me it seems like its on a very small scale to what it actually should be. Besides food cards, I think that is equivalent to what I am talking about but rather do it for everything.

rates arent going up because they dont need to, every economy blows, all with high risk. the only people that would be a safe bet might be china, but those are the ones buying the debt not selling it.

Originally posted by surrealist
What I would like to know is, why aren't interest rates on US government owed debts rising? Is this solely because lenders and investors have confidence in the US to continue paying on its obligations? I'm assuming it is.

It's because the US bond market is a ponzi scheme.

And in every universities in the western world, they brainwash their students, have been for the last 60+ years, that America is the safe heaven and it will always be this way... that US treasuries bonds are GOLD...

One of my friend got his PHD in economics in Canada, and he's totally brainwashed, he loves Bernanke and QE...

In China they aren't teaching those lies no more.

reply to post by surrealist


Another part of the reason the rates haven't been going up has been the Fed buying them up. As yesterday was the last day they'll be doing this (sort of), you will probably start to see those rates start to climb.

Yet another reason is because as bad as our governments debt is, so is everyone elses.

reply to post by surrealist

What I would like to know is, why aren't interest rates on US government owed debts rising?

And you should read the entire OP...

Epic Bond Rout Leads To Biggest Weekly Percentage Surge In 5 Year Yield In History

BIGGEST WEEKLY PERCENTAGE SURGE IN 5 YEARS YIELD IN HISTORY...

Interest rates on US government debt ARE RISING....

Sorry I didn't read the entire OP cos I'm in and out and reading threads in haste. Interesting^. Has the forecast US potential government default been brought back from Aug 2? I thought I read that somewhere. Now I'm out again, off to the gym to throw some iron around.

Originally posted by surrealist
Sorry I didn't read the entire OP cos I'm in and out and reading threads in haste. Interesting^. Has the forecast US potential government default been brought back from Aug 2? I thought I read that somewhere. Now I'm out again, off to the gym to throw some iron around.

Still august... or so they say... since they are taking money from the pension funds. Back in early April, they said it would only last till July 8...

It would be ``funny`` if they were wrong about August 2 and actually defaulted on July 8...

That's what I find interesting, in that if there is a sudden confidence crisis sending interest rates up dramatically, the default deadline would likewise quickly advance, and while the politicians are arguing and fiddling, then suddenly bang - default.

Interesting article on Fox... Despite Deadline Uncertainty, U.S. Faces bad Choices if Debt Limit Not Raised

The U.S. government will run out of borrowing authority on Aug. 2, the Treasury Department reiterated Friday. The Treasury again urged Congress to raise the $14.3 trillion U.S. debt ceiling or face "the catastrophic economic and market consequences of a default crisis." President Barack Obama and congressional Republicans are trying to strike a deal to cut the deficit in exchange for lifting the borrowing limit.

U.S. to exhaust borrowing power August 2: Treasury

Yeah, so they'll just raise the debt ceiling again.

reply to post by surrealist


or start raiding the iras

www.washingtonpost.com...
congress had planned two or three separate groups for trips to europe over the weekend...to discuss the crappy economy with their european buddies.
well, the plans have been changes, I guess, they are now staying home and working on the debt ceiling problem.

but still, they thought nothing of spending a ton of money over the weekend and flying away to europe for nice vacation.

www.pr-inside.com...

and then there's the great billboard study where employees were sent on around the world vacations...to study billboards....
this has appearantly gone on for several years, they've studies concrete, bridges, and whatever else. matter of fact, they were out studying when a story about this was on tv, and well, we are told that this is the last trip they will be making...

actions speak louder than words!!!

Pull yourself togeather man

Thats only $1/2tr and was we that skint and needed money then we could go looking for the $2.3tr that went missing the day before 3 building fell over that we all forgot about.

We could cash in some of our $60-$600tr worth of credit default swaps or did you not know that we have been using CDS to bet against european banks that greece would default and since we own the IMF then we can make them default when ever we like.

No man go back to sleep because we can keep the virtual printing press running on warp speed so just put it on the credit card.

[Note to self]
Get more beans and pasta, buy more $$$ in the form of eagles and learn to speak Russian
[/Note to self]

Anyone catch that the treasury missed an interest payment to the "Social Security and Medicare" trust fund?

Did Treasury Just Strategically (Intentionally) Default?

Apparently the interest payment that was due on the intra-government bonds (non-marketable bonds that are traded for the incoming cash that SS and medicare get) was not paid. Pretty interesting with the financial voodoo that goes on so that the .gov and particularly the left can claim that Social Security is sound. The Clinton surplus never truly existed as it was mainly this fund that allowed them to claim a surplus.

Get ready for some fireworks folks, enjoy the ones on the 4th, but be prepare for those that come after.

reply to post by jefwane


social security has a massive surplus,
it's the gov't that has a massive deficit, and much of it is owed to the social security fund...
I wasn't aware that they were paying the interest on those treasuries anyways, thought that they were just turning them over into more paper iou's.....

look, as long as our elected officials are jet setting all over the place while claiming that we are on the brink of disaster, you can leave social security out of this!!!

I really resent the fact that Medicare is lumped in with Medicaid!

Medicare is something WE have Paid into!
Medicaid is something to help people that are on welfare or fallen on hard times - a Government HANDOUT.

They are not the same thing and should NOT be put into the same catagory.

reply to post by mappam

and even with medicare, medicaid, the problem isn't in medicare or medicaid but within the healthcare system....
we can't afford medicare, we can't afford medicaid, we can't afford the em ployee based healthcare plans, business can't afford the employee healthcare plans, state and local gov'ts can't afford the healthcare, people can't afford the healthcare, even with the insuraance....
when the base fee for around a 20 minute office visit is over $200, I am sorry, that is what we can't afford.....