As US Reaches Debt Limit, Geithner Implements Additional Extraordinary Measures to Allow Continued Funding of Government Obligations
Today, the United States has reached the statutory debt limit. Secretary Geithner sent the following letter [2] to Congress this morning alerting them to actions that have be taken to create additional headroom under the debt limit so that Treasury can continue funding obligations made by Congresses past and present. The Secretary declared a "debt issuance suspension period" for the Civil Service Retirement and Disability Fund, permitting Treasury to redeem a portion of existing Treasury securities held by that fund as investments and suspend issuance of new Treasury securities to that fund as investments. He also suspended the daily reinvestment of Treasury securities held as investments by the Government Securities Investment Fund of the Federal Employees’ Retirement System Thrift Savings Plan.
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what does the meteor have to do with the topic.
ReplyDeleteIts a debt turd
ReplyDeletethe debt limit will be raised evrytime it gets close to.
ReplyDeleteIts all good in Ponzi finance
ReplyDeleteThe Fed /treasury scam will will buy up any extra Treasury bills to finance any necessary deficit spending for wars and any continuing bailouts
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True, it doesn’t look like Japan will help much as they have their own problems ,fukashima and all..
In fact they might even cash in a few odd old treasury bills they have saved up to pay for the clean up
BUT the Fed will step in as buyer to fill any gaps .
So its all good in la la land !
The Chinese do not look like they will buy many new treasury bills now either, as they too seem to have a few problems of their own ,what with their own housing bubble and growing inflation. In fact they are starting to have problems selling their own Yuan currency denominated Chinese treasury bills.
Chinese do not want to buy these bonds because the dividend returns do not cover inflation.
News:
“The (Chinese )central bank scheduled the auction of RMB 20 billion worth of one-year treasury bonds and RMB 10 billion in six-month bonds on the country’s interbank bond market for May 13. But banks, faced with tight liquidity, only purchased RMB 11.71 billion worth of one-year bonds and RMB 9.63 billion worth of six-month bonds, the report said.
The reference yield of one-year treasury bonds was raised to 3.0246% from the previous issuance, while the bond yield of 182-day discounted treasury bonds was 2.91%, the paper said.”
So the Chinese too might be cashing in a few old odd US treasury bills they have saved up to keep their economy moving.
But No problems, the USS Fed can always issue and buy up more trillions more of US dollar debt paper as needed.
So its all still good for the American Ponzi “ recovery” .
Meanwhile “Hot money” . US bankster bailout money available interest free from the Fed to “save America” ,heads straight off the US press for China.where a profit might still be got in the future.
Even Patriotic Disney and Mickey Mouse helps out China with cash injections ,after all there is no point investing in the US Ponzi economy now gone belly up .
The USA is an old has been economy !
http://www.bloomberg.com/news/2011-05-17/foreign-investment-in-china-rises-15-as-consumers-lure-starbucks-disney.html
“Foreign Investment in China Climbs 15%”
Foreign direct investment in China climbed 15 percent in April as companies including Starbucks Corp. (SBUX) and Walt Disney Co. expand to tap rising incomes in the world’s fastest-growing major economy .”
“Buddy can you spare a dime”
Americans on food stamps cant afford Starbucks now in a failed capitalism.
Starbucks appears to be following US industry to China !
But the rich Chinese “communists” are doing fine on Starbucks anyway
and preparing their bolt holes in case of another Maoist revolution if the property bubble crashes or the Chinese inflation thing does get out of hand.
http://www.bloomberg.com/news/2011-05-16/chinese-spreading-wealth-make-vancouver-homes-pricier-than-nyc.html
China Buyers Make Vancouver Pricier Than NYC
Vancouver’s Royal Pacific Realty had such a surge of business during the first two weeks of February that agents and assistants worked day and night shifts to find homes for Chinese buyers visiting during the Lunar New Year.