US Treasury Burns 90 Billion (Pension Fund $'s) in 8 Days, $270 Billion by August 2nd

http://www.zerohedge.com/article/us-treasury-burns-90-billion-8-days

More scary stuff from the US Treasury which has resumed living auction to auction, even as it has plundered over $80 billion in G and CSRD retirement fund money http://www.zerohedge.com/article/quantifying-treasurys-plunder-retirement-accounts-80-billion-between-g-and-csdr-funds-debt-c to provide cap under the debt ceiling, a number which will eventually rise to $270 billion by August 2nd at which time all bets are off unless the politicos in DC finally relent with their soap opera and allow the inevitable $2 trillion debt ceiling hike (which probably won't happen.

Instead Congress will start voting on incremental $200 billion debt ceiling hikes month to month in order to keep the public glued to their TV in a demonstration of just how fiscally prudent Congress is). In the meantime, here's the math: in the first 8 days of the month of June, the Treasury has seen its cash balance decline from $112.6 billion to $23.5 billion: a solid burn rate of $90 billion in just over a week. But lest readers think that this is due to paying down debt, it isn't: total US debt was flat (at the ceiling), while intragovernmental holdings declined by $20 billion to accomodate another $20 billion in marketable debt (see the plunder of retirement accounts discussed above). So how does one reconcile this data? Simple - in June the Treasury has collected $44 billion in withheld individual income taxes (and a whopping $400 million in corporate tax), while spending double that, or $89 billion. Fiscal prudence? Rhetorical.



June Cash:



June Debt:



snip

enormity of what this means....

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http://online.wsj.com/article/SB10001424052748704823004576192791330273986.html

Plus, interest rates are still basically zero for short term Treasury notes, wait till the bond market jacks these up to 4% or 6% (and potentially whole lot more), you are staring at over a $1 Trillion plus a year easy in debt service alone.

But hey, can't touch that $1.2 trillion+ a year defense/black ops/homeland security war machine!


http://motherjones.com/politics/2011/03/real-us-national-security-budget-1-trillion

:puke:

Oddly, they don't believe any of this will affect them.

It is grand theft by Congress

we put a Republican in the White House.

Both the GOP and the media would stop talking about it in an instant.

was driving up the deficit?

Nothing.

And let's not fool ourselves. Pulling the economy from the abyss was expensive and it hurt revenues significantly.

And started the second a Democrat came into office. They know the way of our economic problems, and they will not let any Democrats solve the problems they created.