Infinite Unknown

- U.S. treasury raids federal employee pension funds to cover debts (Natural News, Jan. 25, 2012):

There is a saying, “Desperate times call for desperate measures.” Roughly, it’s an expression that’s meant to be reassuring, conjuring up an image of a true statesman-like leader who is preparing to do whatever is necessary to lead the masses out of danger.

Of course, the expression doesn’t have the same connotation when applied to the Obama administration in its futile struggle to balance the nation’s books. Left to fend for itself by a hapless Congress that couldn’t agree on the color of red bricks, let alone pass a budget that actually curbed spending and lowered the national debt, the administration has taken to theft as a way to pay the country’s bills. Specifically, the Treasury Department is stealing cash from federal employees pension funds so the government can obtain more credit to pay its debts.

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Tags: Barack Obama, Debt, Global News, Government, Obama administration, Pension, Politics, Timothy Geithner, Treasury, U.S.

What can you say?

- Treasury Adds Another $20 Billion In Debt Overnight, Just $160 Billion Below Revised Ceiling (ZeroHedge, Aug 8, 2011):

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.

Tags: Barack Obama, Global News, Government, Obama administration, Politics, Timothy Geithner, Treasury, U.S.

FOX News:

- Obama Privately Told The Banksters: We’re Not Defaulting:

While officials from the Obama Administration raised their rhetoric over the weekend about the possibility of a debt default if the debt ceiling isn’t raised, they privately have been telling top executives at major U.S. banks that such an event won’t happen, FOX Business has learned.

In a series of phone calls, administration officials have told bankers that the administration will not allow a default to happen even if the debt cap isn’t raised by the August 2 date Treasury Secretary Tim Geithner says the government will run out of money to pay all its bills, including obligations to bond holders. Geithner made the rounds on the Sunday talk shows saying a default is imminent if the debt ceiling isn’t raised, and President Obama issued a similar warning during a Friday press conference after budget negotiations with House Republicans broke down.

- Primary Dealers Met With Treasury on Debt Ceiling, Auctions (Bloomberg, July 29, 2011):

The U.S. Treasury Department met with bond dealers in New York to discuss next month’s quarterly auctions of notes and bonds and the debt ceiling.

The Treasury canceled its regularly scheduled individual meetings with bond dealers in favor of the group meeting, the department said in a statement today. All 20 primary dealers were invited.

The government is inching closer to running out of cash before an Aug. 2 deadline to raise the $14.3 trillion debt ceiling. House Republican leaders scrapped a vote on the debt ceiling bill late yesterday, fueling concern a compromise by the two parties won’t be reached before the deadline and casting doubt on whether the Treasury can sell more debt.

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Tags: Barack Obama, Bonds, Debt, Fukushima, Government, Obama administration, Politics, Timothy Geithner, Treasury, U.S.

“Protecting America’s creditworthiness and our economic leadership position in the world is a duty to our country that is shared by policymakers in both parties, in the Legislative Branch as well as the Executive Branch. Therefore any attempt by either party to use the full faith and credit of the United States as a bargaining chip to advance partisan policy agendas would be irresponsible.”
- Timothy Geithner

Those criminals (Republicans and Democrats alike) are intentionally bankrupting America. They are spending America into oblivion.

And yes, they know exactly what they are doing:

‘Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren,” Obama said in a 2006 floor speech that preceded a Senate vote to extend the debt limit. “America has a debt problem and a failure of leadership.’
- Barack Obama

And even Bush’s record budget deficit of $482 billion pales if you compare it to Obama’s projected deficit:

- President Obama Sends Congress $3.73 Trillion Budget:

The administration is projecting that the deficit will hit an all-time high of $1.65 trillion this year.

Elite puppet President Obama is 3,42 times worse than even elite puppet President Bush and Obama correctly stated that under Bush “America had a debt problem and a failure of leadership.’

What does this say about Obama?

Secretary Geithner Sends Debt Limit Letter to Congress

- Secretary Geithner Sends Debt Limit Letter to Congress:

By: Erika Gudmundson
5/2/2011

Today, as Members return from recess, Secretary Geithner sent the following letter to Congress regarding the debt limit, which we estimate will be reached on May 16. He also details the extraordinary measures that Treasury will begin implementing this week in advance of that deadline (download the signed letter here). For more information on the State & Local Government Series (SLGS)  referenced in the letter, read these FAQs. And get the facts about the debt limit, including previous letters from the Secretary and other information here.
May 2, 2011

The Honorable John A. Boehner

Speaker of the House
U.S. House of Representatives
Washington, DC  20515

Dear Mr. Speaker:

Further to my letters of January 6 and April 4, 2011, I am writing again to Members of Congress regarding the importance of protecting America’s creditworthiness by enacting an increase in the statutory debt limit.  This letter is to inform you of the extraordinary measures the Treasury Department will begin taking this week in anticipation of the date the debt limit will be reached, and to provide an updated estimate of the Department’s ability to use these measures to preserve lawful borrowing authority without exceeding the debt limit.  In my last letter, I described in detail the set of extraordinary measures Treasury is prepared to take in order to extend temporarily our ability to meet the Nation’s obligations if an increase is not enacted by May 16, when we estimate the limit will be reached.  Because it appears that Congress will not act by May 16, it will be necessary for the Treasury to begin implementing these extraordinary measures this week.

On Friday, May 6, Treasury will suspend until further notice the issuance of State and Local Government Series (SLGS) Treasury securities.  SLGS are special-purpose Treasury securities issued to states and municipalities to help them conform to tax rules that restrict the investment of proceeds from the issuance of tax-exempt bonds.  These bonds are used to fund a variety of expenditures, including infrastructure improvements across the country.  When Treasury issues SLGS, they count against the debt limit.  Because the United States is very close to reaching the debt limit, Treasury must take this action now.  However, it is not without costs; it will deprive state and local governments of an important tool to manage their outstanding debt expenses.

If Congress does not increase the debt limit by May 16, the Treasury Department will be forced to employ further extraordinary measures on that date to provide headroom under the limit.  Therefore, on May 16, I will (1) declare a “debt issuance suspension period” under the statute governing the Civil Service Retirement and Disability Fund, permitting us to redeem existing Treasury securities held by that fund as investments, and to suspend issuance of new Treasury securities to that fund as investments and (2) suspend the daily reinvestment of Treasury securities held as investments by the Government Securities Investment Fund of the Federal Employees’ Retirement System Thrift Savings Plan.  (Under the law, Federal employees are protected by a requirement that both funds be made whole after a debt limit increase is enacted.)

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Tags: Barack Obama, Debt, Economy, Global News, Government, Obama administration, Politics, Timothy Geithner, Treasury, U.S.

First, the irrelevant news:

Today’s $29 billion 7 Year auction just closed at a yield of 2.895%, the highest since April 2010, just the time when QE1 was ending and everyone was certain there would be no follow through monetization. The Bid To Cover was 2.79, weaker compared to recent auctions, and 2 bps wider of the When Issued, implying the auction was not all that hot. Directs took down 8.76%, in line with the last year average, Indirects accounts for 49.41%, or the lowest foreign take down since November 2010, while PDs bought 41.83% of the auction. Altogether a weak auction but it’s not like the PDs would let it fail especially not with QB9 becoming the next “flip back to the Fed” bond for the PD community.

(Click on image to enlarge.)

Next, the relevant news:

Now bear with us for a second: the most recently disclosed total debt was 14,211,567,662,931.23 as of March 28. This excludes the settlement of all of this week’s auctions which amount to $35 + $35 + $29 billion (including today) or $99 billion. Adding the two amounts to $14,310,567,662,931.23. As a reminder the debt ceiling is $14,294,000,000,000.00. In other words, the total US debt just passed the debt limit – break out the Champagne! Granted there is a buffer of $52.2 billion between the total debt and the debt actually subject to the ceiling, meaning that America is not in default, yet.

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Tags: Barack Obama, Bonds, Debt, Economy, Global News, Government, Politics, Timothy Geithner, Treasury, U.S.

Silver will skyrocket:

- Silver: Shortage This Decade, Will Be Worth More Than Gold (MUST-SEE!)

Added: 10. December 2010

Related information:

- The Ultimate Cost of 0% Money

- These Central Banks Are Printing Money – Prepare Yourself

- Quantitative Easing Explained

Gold:

- ‘GoldNomics’: Cash or Gold Bullion?

- George Soros’ and John Paulson’s Biggest Holding Is GOLD

- China, Russia, Iran are Dumping the Dollar, Buy Gold And Silver

- Gold and Gold Mining Shares As a Percentage of Global Assets or ‘The Once In a Lifetime Ride’

Silver:

- US Mint Reports Unprecedented Buying Spree Of Physical Silver

- BullionVault.com Runs Out Of Silver In Germany

- Silver: Shortage This Decade, Will Be Worth More Than Gold

- Silver Derivatives – China and JP Morgan

- Max Keiser: Want JP Morgan to Crash? Buy Silver!

- Max Keiser: Crash JP Morgan – Buy Silver!

- JPMorgan Silver Manipulation Explained (Must-See!)

And don’t forget to do this (!!!):

- James G. Rickards of Omnis Inc.: Get Your Gold Out Of The Banking System

Tags: Bank of England, Bill Murphy, Bonds, Debt, Deutsche Bank, Dollar, Economy, Fed, Federal Reserve, Global News, Gold, Goldman Sachs, Government, Inflation, JPMorgan, Politics, Robert Rubin, Silver, Treasury, U.K., U.S.

A statue of Albert Gallatin, a long-serving U.S. secretary of the Treasury, stands in front of he U.S. Treasury Building in Washington, D.C. Photographer: David Rogowski/Bloomberg

The Treasury sold $10 billion of five-year Treasury Inflation Protected Securities at a negative yield for the first time at a U.S. debt auction as investors bet the Federal Reserve will be successful in halting deflation.

The securities drew a yield of negative 0.55 percent, the same as the average forecast in a Bloomberg News survey of 7 of the Federal Reserve’s 18 primary dealers. The sale was a reopening of an $11 billion offering in April. Conventional Treasuries rallied amid speculation about the amount of debt the Fed may purchase to spur the economy in a strategy called quantitative easing.

“It signals people’s expectation of the Fed being able to create some inflation with the QE program,” said Alex Li, an interest-rate strategist in New York at Deutsche Bank AG, one of 18 primary dealers required to bid at Treasury auctions. “With nominal rates so low, in order have high TIPS breakevens you’ve got to have negative real yields on the five-year.”

Holders of TIPS receive an adjustment to the principal value of their securities equal to the change in the consumer price index, in addition to a fixed rate of interest that is smaller than the interest paid to a holder of conventional debt. The difference between is known as the breakeven rate.

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Tags: Bonds, Debt, Deflation, Economy, Fed, Federal Reserve, Inflation, Politics, Quantitative Easing, Treasury, U.S.

See also:

- Obama Bankster Bill Lets Banks Have US Over A Barrel Again (Telegraph)

U.S. Treasury in Washington

July 20 (Bloomberg) — U.S. taxpayers may be on the hook for as much as $23.7 trillion to bolster the economy and bail out financial companies, said Neil Barofsky, special inspector general for the Treasury’s Troubled Asset Relief Program.

The Treasury’s $700 billion bank-investment program represents a fraction of all federal support to resuscitate the U.S. financial system, including $6.8 trillion in aid offered by the Federal Reserve, Barofsky said in a report released today.

“TARP has evolved into a program of unprecedented scope, scale and complexity,” Barofsky said in testimony prepared for a hearing tomorrow before the House Committee on Oversight and Government Reform.

Treasury spokesman Andrew Williams said the U.S. has spent less than $2 trillion so far and that Barofsky’s estimates are flawed because they don’t take into account assets that back those programs or fees charged to recoup some costs shouldered by taxpayers.

“These estimates of potential exposures do not provide a useful framework for evaluating the potential cost of these programs,” Williams said. “This estimate includes programs at their hypothetical maximum size, and it was never likely that the programs would be maxed out at the same time.”

Barofsky’s estimates include $2.3 trillion in programs offered by the Federal Deposit Insurance Corp., $7.4 trillion in TARP and other aid from the Treasury and $7.2 trillion in federal money for Fannie Mae, Freddie Mac, credit unions, Veterans Affairs and other federal programs. Continue reading »

Tags: Barack Obama, Economy, Fed, Federal Reserve, Global News, Government, Neil Barofsky, Obama administration, Politics, Taxpayers, Treasury, U.S.

Totally unsustainable. Prepare for collapse.

- US: $13 Trillion Debt Poised to Overtake GDP (Chart of Day)

Doomed!

WASHINGTON June 8 (Reuters) – The U.S. debt will top $13.6 trillion this year and climb to an estimated $19.6 trillion by 2015, according to a Treasury Department report to Congress.

The report that was sent to lawmakers Friday night with no fanfare said the ratio of debt to the gross domestic product would rise to 102 percent by 2015 from 93 percent this year. Continue reading »

Tags: Barack Obama, Debt, Economy, GDP, Global News, Government, Obama administration, Politics, Treasury, U.S.

Added: 13. Mai 2010

Tags: Afghanistan, Apple, Banking, Bankruptcy, Barack Obama, Bonds, China, Commodities, Constitution, Consumers, Corporations, Debt, Department of Education, Department of Energy, Dollar, Dow Jones, Economy, Fed, Federal Reserve, Food stamps, GDP, Gerald Celente, Gold, Great Depression, Healthcare, Hyperinflation, Hyperinflationary Depression, Inflation, Iraq, Jim Rogers, Keynesianism, Marc Faber, Medicaid, Medicare, Meltdown, Meltup, Military, Obama administration, Oil, Oil Prices, Peter Schiff, Politics, Quantitative Easing, Ron Paul, Silver, Social Security, Society, Stock Market, Taxes, Taxpayers, Treasury, U.S., Unemployment, Wall Street, War, Yuan