America breaks the debt ceiling TOMORROW... for real now

Treasury Prepares To Plunder Another $45 Billion From Retirement Funds As It Issues $110 Billion More Debt Next Week

Now that it has finally been made clear that in order to accommodate the debt ceiling by adding marketable debt, the Treasury has no choice but to literally plunder retirement accounts, we now know that in order to fit in the just announced $110 billion in new bond issuance over the next week, Tim Geithner will have to reduce US retirement funding (the bulk of which, the Social Security Trust Fund already lost $1.1 trillion in the past year) by at least $45 billion.

Nice uh? Stealing 45 billion in one week... what will it be in two weeks? 60 billion stolen? 100 billion?

They could do this for a LONG TIME... After all, there's several TRILLIONS in all pension funds. So they could use that money to fund the government for a few years.

Well those weaklings will probably give up and raise the debt ceiling ``for only a few months the time we figure out cuts``... yeah right.

Short debt limit hike possible: McConnell

Congressional Republicans, particularly in the House of Representatives, have balked at raising the debt ceiling unless it is accompanied by significant spending cuts.

McConnell said on Sunday the ceiling could be raised enough to last a few months so that negotiations can continue on a larger deal that would include changes to so-called entitlement programs like Medicare.

"The president and the vice president, everybody knows you have to tackle entitlement reform," McConnell said on CBS's "Face the Nation."

"If we can't do that, then we'll probably end up with a very short-term proposal over, you know, a few months. And we'll be back having the same discussion again in the fall," McConnell said.

What a joke.

So let's see here. A few months... how much do they need for that...

They need at least 250 billion for the money they have stolen from the pension funds... then they need a little more for the deficit spending... then they need a little more for 2 months. So they probably need to raise the debt ceiling by about 600 billion to last from August 1 to October 1.

Still, a 600 billion raise is quite something. We shall see.

Debt Ceiling Talks Collapse

5 weeks ahead of the day when the debt ceiling "extend and pretend" plan ends, talks have broken down, and in order to hike Congressional Nielsen ratings, this time seemingly terminally. From Reuters: "U.S. Deficit-reduction talks led by Vice President Joe Biden have reached an "impasse," House of Representatives Majority Leader Eric Cantor said on Thursday, adding that he will not participate in the meeting of the bipartisan group that had been scheduled for later in the day. Cantor, a Republican, said the group has identified trillions of dollars in spending cuts, but had been unable to resolve a disagreement over tax increases Democrats sought. A Senate Democratic aide said the two sides "need to continue talking", and were continuing to talk. But an aide to Senator Jon Kyl, a Republican member of the Biden group, declined to comment on whether the senator would attend Thursday's scheduled meeting."

Ah... Let it fail. Default. Let get this whole party started.

Finally...

Wonkbook: Is July 22nd the new debt-ceiling day?

You've probably heard that Aug. 2nd is the drop-dead date for a debt-ceiling deal. Nuh-uh, the White House tells Damian Paletta. It's actually July 22nd. Writing and passing the legislation takes some time, as does working the money through the Treasury Department. This can't be left until the last moment.

1) The administration is setting July 22 as the debt deal due-date, reports Damian Paletta: "The Obama administration believes congressional leaders must agree to a deficit-reduction deal by July 22 in order to raise the government's borrowing limit in time to avoid a default in early August, according to Democratic officials with knowledge of the negotiations. The government needs a week or two to write and pass the necessary legislation and take the steps necessary to avoid missing a payment. 'We're down to the wire,' one official said.

Well well well... deal tomorrow very likely... or it's gonna be fun since House republicans are on vacation during the week end and won't do anything... So that would leave July 25 at the earliest if no deal tomorrow.