Posted on 03/14/2011 2:15:34 PM PDT by RobertClark
Title truncated due to length. It is: As Treasury Cash Drops To Just $14.2 Billion, And No Bond Auctions Until Next Week, Is America About To Run Out Of Cash?
And so the US Treasury has hit the proverbial paycheck to paycheck sustenance level. After burning $12.8 billion (without a change in gross debt) in cash today alone, and $75 billion in the month of March so far, primarily driven by a back end-loaded tax refund calendar, according to the Daily Treasury Statement, today's cash balance dropped to the scary level of just $14.2 billion. Without the benefit of incremental funding, this is the same amount that the Treasury burns on a good day! In other words, we take back what we said about the US Treasury existing paycheck to paycheck - Geithner now has to scramble to find funding on a day to day basis. If tomorrow operating outflows surpass $14.2 billion (and, again, the amount was $12.8 billion today) the world's "greatest" country (i.e. banana republic) runs out of cash, period. And as the following schedule indicates, there are no Long-Term bond issuances until next week (and the Bill issues are merely funding of rolling issues), we have some trouble seeing how the US Treasury will fund itself for the balance of the week...
And the forward issuance calendar: remember, this is where the bulk of money for deficit funding comes from there days.
On the other side of the ledger, total debt was $14.164 trillion, with $50 billion left in the liquidating SFP account. That means there are just two more 56-Day CMB maturities left before the credit ceiling gimmick expires. Once that happens, and in the absence of any clarity on the debt ceiling debacle, America may soon grind to a halt as the incremental debt capacity is hit in just over a month.
It is not possible to print as much as they are spending when limited to 100 Obamabuck bills.
are you kidding he is taking the whole tribe to Brazil this weekend
bet they take the dog, and Reggie too
so there
Obama needs a wider financial crisis to force more people into .gov subsistence programs. Food, water, shelter, emergency medical needs... heck I fully believe he wants to force us back into recession and then pray something like the Japan quake hits the US.
The perfect storm for him to enact massive programs and force millions into .gov reliance.
Think about it...
No brainer...
No brainer...
Quick, get in line for the Obama stash!
Ink maybe. Perhaps a bit late on paper delivery. But I don’t think the Bamster will run out of cash.
As we say here on FR, this could be “hugh and series”.
But does it really matter? The checks won’t bounce and the Fed will be around next week to pick up the unsold Treasuries.
What I would like to know is what happens when the Fed ends this support for Government debt. That’s the real question - they can’t go on printing $Xerox forever.
Yes, I think Bo usually gets a plane of his own, since Mohammedans aren't allowed to travel with dogs.
The list, ping
Let me know if you would like to be on or off the ping list
That's no way to refer to Moochelle.
Spend all you want, we’ll print more.
Something tells me that I better get my taxes in now (I’m owed a decent amount)...while there’s still some little bit of dough left.
LOL!!
Weimar America
Even Ponzi schemes have cashflow problems. If the Treasury runs out of cash, because outflow has exceeded inflow for too long, and if the Treasury is not authorized to sell securities, whether to the Fed or China, then the checks SHOULD bounce.
We have had occasions in Kalifornia when the state started issuing IOUs instead of payments and for a while some banks would accept them, expecting payment at a later date.
If banks are willing to cash checks for the federal government without the government having the authority to create such debts, then our debt ceiling would become absolutely meaningless. From that point on, we wouldn't even need to have the Fed buy the debt. Just print the checks.
I thought it was all digi-dollars anyway.
Just add a few more digits here and there, and, voila! Instant money! /s
But running out of REAL cash? wow
Bennie and the InkJets, running out of ink. amazing
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