PONZI: Treasury Forced to Issue $1T in New Debt in First 6 Weeks of FY14

[mamboni]

mamboni comments: rest assured dear reader, this is not an Onion piece.


Treasury Forced to Issue $1T in New Debt in First 6 Weeks of FY14


November 18, 2013 - 5:52 PM
By Terence P. Jeffrey (http://cnsnews.com/source/terence-p-jeffrey-0)



http://cnsnews.com/sites/default/files/imagecache/medium/images/obama-lew-ap%20photo-cropped.jpg (http://cnsnews.com/image/barack-obama-jacob-lew)Treasury Secretary Jacob Lew and President Barack Obama (AP Photo)



(CNSNews.com) - Between Oct. 1, 2013, the first day of fiscal 2014, and Nov. 14—which was less than a month after Congress agreed to temporarily suspend the legal limit on the federal debt—the Treasury was forced to issue more than $1 trillion in new debt.
During that time, according to the Daily Treasury Statement (https://www.fms.treas.gov/fmsweb/viewDTSFiles?dir=w&fname=13111400.pdf), the Treasury issued $1,014,215,000,000 in new bills, notes, bonds and other securities.


The government needed this $1,014,215,000,000 to cover government obligations and expenses that exceeded the $255,080,000,000 it raked in through tax revenues during the same six-week period.


Where did that combined $1,014,215,000,000 in newly borrowed money and $255,080,000,000 in new tax revenues go?
The lion’s share went to payoff maturing securities the Treasury had sold before and had now come due.
In total, according to the Daily Treasury Statement, the Treasury needed to redeem $879,734,000,000 in maturing debt during the first six weeks of the fiscal 2014.


After that, the government’s biggest expenses were $98.853 billion in Social Security benefits, $77.704 billion in Medicare expenses, $35.304 billion to Defense Department vendors, $34.623 billion for Medicaid, $20.537 billion for the salaries for federal workers (who have now been compensated for the time they missed during the partial shutdown), $20.155 billion for the Department of Education, $13.060 billion for the Department of Agriculture’s Food and Nutrition Service (which includes the food stamp program), $11.152 billion in Health and Human Services Department grants, $10.648 billion for Housing and Urban Development Department programs, and $9.172 billion to buy insurance for federal employees over and above the $20.537 billion they were paid in salaries.


The Treasury also had $67.234 billion cash on hand at the close of business on Nov. 14--but that was down $21.152 billion from $88.386 billion cash on hand the Treasury had when the fiscal year started Oct. 1.


So, in addition to the $1,014,215,000,000 in new borrowing the Treasury undertook in the first six week of fiscal 2014, it also drew down its cash by $21.152 billion.


When Treasury Secretary Jacob Lew appeared in the Senate Finance Committee on Oct. 10 and called for Congress to increase the legal limit on the federal debt, he lamented that people do not understand that the Treasury needs to constantly borrow new money to meet ongoing expenses and pay off the tremendous volume of old debt that must be redeemed.

(this is the very definition of a Ponzi scheme)






“Every week we roll over approximately $100 billion in U.S. bills,” Lew testified. “If U.S. bondholders decided that they wanted to be repaid rather than continuing to roll over their investments, we could unexpectedly dissipate our entire cash balance.”


“There is no plan other than raising the debt limit that permits us to meet all of our obligations,” Lew said later in that hearing.


“Let me start by saying what I think should be obvious: that if we don't have enough cash to pay all our bills, we will be failing to meet our obligations, and under any scenario we will be defaulting on obligations,” said Lew.


“Let me remind everyone,” he said, “principal on the debt is not something we pay out of our cash flow of revenues. Principal on the debt is something that is a function of the markets rolling over.”

Lew’s description of the way the government handles its now-$17-trillion-plus debt mirrors the Securities and Exchange Commission’s definition of a Ponzi scheme (http://www.sec.gov/answers/ponzi.htm).

“A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors,” says the Securities and Exchange Commission’s definition.

“With little or no legitimate earnings, the schemes require a consistent flow of money from new investors to continue,” said the SEC. “Ponzi schemes tend to collapse when it becomes difficult to recruit new investors or when a large number of investors ask to cash out.”

To keep the government in cash during fiscal 2013, which ended on Sept. 30, the Treasury had to sell $8,323,949,000,000 in new debt. The government's single larget expense in fiscal 2013 was paying off $7,546,726,000,000 in debt that matured during the year.




- See more at: http://cnsnews.com/news/article/terence-p-jeffrey/treasury-forced-issue-1t-new-debt-first-6-weeks-fy14#sthash.gk4PZ1uC.dpuf

[Spectrism]

Nigga wants his Cadillac & color TV but got no money. Credit card debt to the max. Ghetto man is a sucka for the jewman banksters.

They don't even try to hide the lack of principles anymore. They keep pushing the edge of absurdity to see how much the stupid people will swallow. Looks like there is no sign of rejection by the majority yet. Bring on some more Obamacare policies.

Too many people are still working. We need more people on entitlements. More food stamps to help Amerika get to the right path. More free stuff from Obama. Ho ho ho! Merry ObamaDay!

http://www.lewrockwell.com/assets/2008/11/obama-santa.jpghttp://irregulartimes.com/obamarep3.jpg

[Neuro]

federal workers (who have now been compensated for the time they missed during the partial shutdown)
Interesting, they didn't go to work, but they got payed anyway? I am sure they will 'work' even harder now for another debt ceiling public holiday...

[Ares]

(this is the very definition of a Ponzi scheme)

It's not a Ponzi scheme if the government does it. They've been running a Ponzi scheme since Social Slavery was introduced.

[Hypertiger]

You all have to constantly borrow oil from holes punched into the ground to sustain your existence...Please wake up soon from the cartoon you are a character in before you are doomed.

Taking more power than you give to sustain the Ponzi has you all chopping down trees faster than they regrow until they run out.

Sharing power equally is chopping down trees as fast as or slower than they regrow to sustain the Ponzi scheme.

One has a systemic logical conclusion that equals collapse of the Ponzi

One does not have a systemic logical conclusion.

Antisocialism...or Animal nature...Finite...Direct current or the path of least resistance

vs

Socialism...or Human nature...Infinite...Alternating current or the path of most resistance.

You will never prove me wrong.

It is impossible.

It is why the word impossible exists.

[Ares]

You all have to constantly borrow oil from holes punched into the ground to sustain your existence...Please wake up soon from the cartoon you are a character in before you are doomed.

:rolleyes:

Looks like someone is tired of being on the bottom.

[Hypertiger]

You are an ant that can be crushed with ease in real life...reality...On the Internet or the fantasy world...I can communicate with ants and they with me.

[Hypertiger]

http://commons.wikimedia.org/wiki/File:US_Population_Graph_-_1790_to_2000.svg

The increase in demand for yield...from the supply of yield...you all do not shit out gold or anything else you demand (tax) from each other to sustain existence.

The Denarius was the Coin of Rome like the British Pound Stirling is of Britain and the US Dollar is of the USA.

And no one seems to know why coins debase.

Population of the the city of Rome area according the the Roman census.

294 B.C. 262,321

14 A.D. 4,937,000

In around 300 years the silver requirement to sustain the city of Rome area increased 18.8 times...

Demand outstripped supply...the trees ran out due to the reaching of the logical conclusion of the take more than you give equation.

Inflation...not too much...not too little...but always greater than previous or...you die.

like Rome did...well Rome collapsed...and then rose again and collapsed again by 1345... and now you all are at the tip top of the rise from 1345 until now...

The global system was based in Rome then Venice and then the rebuilt Londinium...or as you know it today...The city of London.

http://en.wikipedia.org/wiki/Global_Financial_Centres_Index

"London was still at the top of the financial pyramid with New York"--Alan Greenspan KBE September 25, 2002 in a speech to business leaders and dignitaries at both the Treasury and the Bank of England after receiving his KBE...From Her Majesty Elizabeth the Second, by the Grace of God of the United Kingdom of Great Britain and Northern Ireland, and of Her other Realms and Territories Queen, Head of the Commonwealth, Defender of the Faith.

http://en.wikipedia.org/wiki/KBE_(disambiguation)

http://en.wikipedia.org/wiki/Order_of_the_British_Empire

[mick silver]

i had a talk with my bees and told them that i needed more honey from them . i just hope the talk works out

[Hypertiger]

http://hypertiger.blogspot.ca/2008/05/break-free-or-march-to-oblivion.html

[Hypertiger]

You have the GOD given right to cause actions...You do not have a GOD given right to escape the consequences of your actions.

Sorry.

[Hypertiger]

Your worship of ignorance as the path to salvation or bliss is reaching the logical conclusion of the reasonable assumption.

[Hypertiger]

There is no way the people that actually work for a living to support all of you that imagine you work for a living is going to last much longer...sorry.

[Hypertiger]

The principal portion of the debt is created out of thin air by the banks and lent out and inflates the total credit supply and returns back into thin air when it is paid back which causes the total credit or money supply to deflate back into thin air.

The attached interest portion of the debt is the tax or rent paid to the bank on the credit or debt they create out of thin air to supply the demand of the borrower.

The top or owners of the money/credit/debt supply rent it to all below and the cost to pay the rent or taxes due is hidden in the prices of everything.

This is how commercial banking has worked for centuries...the entire history of the USA and world was financed for its entire existence this way.

But the USA ran out of resources to supply the demand for positive power or inflation by the magic printing press in 2008...and It along with the 1944 Bretton woods global trade system has been collapsing or cannibalizing itself since then to now.

[Hypertiger]

"Is it possible to make too much money? “Is it possible to have too much ambition? Is it possible to be too successful?” Blankfein shoots back. “I don’t want people in this firm to think that they have accomplished as much for themselves as they can and go on vacation. As the guardian of the interests of the shareholders and, by the way, for the purposes of society, I’d like them to continue to do what they are doing. I don’t want to put a cap on their ambition. It’s hard for me to argue for a cap on their compensation.”

So, it’s business as usual, then, regardless of whether it makes most people howl at the moon with rage? Goldman Sachs, this pillar of the free market, breeder of super-citizens, object of envy and awe will go on raking it in, getting richer than God? An impish grin spreads across Blankfein’s face. Call him a fat cat who mocks the public. Call him wicked. Call him what you will. He is, he says, just a banker “doing God’s work”"

"In a discussion about morality and markets at St. Paul’s Cathedral in London, Goldman Sachs international vice chairman Brian Griffiths, a former adviser to Margaret Thatcher, described giant paychecks for bankers as an economic necessity. “We have to tolerate the inequality as a way to achieve greater prosperity and opportunity for all,” he said."

http://blogs.wsj.com/marketbeat/2009/11/09/goldman-sachs-blankfein-on-banking-doing-gods-work/

"For at least another hundred years we must pretend to ourselves and to every one that fair is foul and foul is fair; for foul is useful and fair is not. Avarice and usury and precaution must be our gods for a little longer still."--JOHN MAYNARD KEYNES (1930)

"Lies and delusions or lies you tell to yourself can outlive liars and the delusional."--Hypertiger

"Absolute capitalists employ Absolute self indulgent reason to solve the problem of existence within the Universe. So do animals and lightning bolts since it is the path of least resistance."--Hypertiger

"(Absolute) Capitalism is the astounding belief (delusion) that the most wickedest of men will do the most wickedest of things for the greatest good of everyone."--JOHN MAYNARD KEYNES


"I have completed to-day a very great thing. I have finished the National Bank Act. It will be a blessing to the country long after I am dead."--Salmon P. Chase, Lincoln's Secretary of the Treasury

"My agency, in promoting the passage of the National Bank Act, was the greatest mistake in my life. It has built up a monopoly which affects every interest in the country. It should be repealed, but before that can be accomplished, the people should be arrayed on one side, and the banks on the other, in a contest such as we have never seen before in this country."--Salmon P. Chase

The Chase in Chase Manhattan bank...Also the face on the 10,000$ banknote...The largest circulating US dollar banknote ever issued.

The National bank act...basically forced national banks to buy US Treasuries in order to back the "Greenbacks" issued by the US treasury...to this day

http://en.wikipedia.org/wiki/National_Bank_Act

http://en.wikipedia.org/wiki/Primary_dealer

"Primary dealers purchase the vast majority of the U.S. Treasury securities (T-bills, T-notes, and T-bonds) sold at auction, and resell them to the public. Their activities extend well beyond the Treasury market. For example, according to the Wall Street Journal Europe (2/9/06 p. 20), all of the top ten dealers in the foreign exchange market are also primary dealers, and between them account for almost 73% of foreign exchange trading volume. Arguably, this group's members are the most influential and powerful non-governmental institutions in global financial markets.'

The primary dealers use their interest profits from mortgage and loan originations to Buy the Treauries issued by the US Treasury.

In 2005...the primary engine of inflation within the US economy...New home construction...collapsed...from 1991 to 2005 the new home construction in the USA inflated exponentially on average by 11% per year...then ended...leading to the yield starvation that became visible in 2008 with the controlled demolition of Lehman brothers and the installation of President Obama.

Since 2008...the profits or yield from the US economy and world to the primary dealers has been zero...or negative...That is the purpose of the QE...the FED was created to be the bank of the banks in 1913 and given the banknote issuing monopoly...and has been lending the primary dealers a fake 1...where the real zero is appearing since 2009 to sustain the global banking algorithm.

or the bonds would not be bought...yield rates would skyrocket and the US economy along with the 1944 Global Bretton woods system inflated into what it is right this nanosecond would hyperdflate to oblivion.

The primary dealers can be traced to the buttonwood agreement outside the Tontine coffee house under a buttonwood tree in New York.

http://en.wikipedia.org/wiki/Tontine

http://en.wikipedia.org/wiki/Tontine_Coffee_House

http://en.wikipedia.org/wiki/Five_Points,_Manhattan interesting similarity.

http://en.wikipedia.org/wiki/Buttonwood_Agreement

http://en.wikipedia.org/wiki/Bank_of_New_York

which created the NYSE and the first stocks traded were shares in the Alexander Hamilton's bank of New York...and the first securities traded were US Treasuries composed of the consolidated debt of the 13 colonies from the revolutionary war...issued by Alexander Hamilton as the 1st treasury secretary appointed by George Washington...on Sept 11, 1789...Using the powers granted to George Washington...By the US Constitution...by "We the people"

One of those people being Alexander Hamilton...the only signer of the 1789 constitution of the USA from New York that Alexander Hamilton helped to craft as one of "We the people"

Who is buried on Wall Street.

http://en.wikipedia.org/wiki/File:Alexander_Hamilton_Grave.JPG --Hamilton's tomb in the graveyard of Trinity Church at Wall Street and Broadway in Lower Manhattan

"'The spectacle of men fighting for work...'My God! This is terrible! Battling for the privilege of working all day for enough to eat--and the next day go at it again; and so on until the earth rattles on their pine boxes. Cannot the good God do something to relieve his wretched children? Or is this thing to go on forever?
Why not give some good-hearted, honest man supreme power for four years, and let him improve God's world or blow it up. He could not make it much worse than it is, for the great mass of mankind. A judicious hanging bee in Wall Street would be a good measure with which to begin the reformation."
-- I.D. [Ignatius Donnelly] in The Representative, 29 August 1894

http://projects.vassar.edu/1896/depression.html

[Hypertiger]

"Banking was conceived in iniquity, and was born in sin. The Bankers own the Earth. Take it away from them, but leave them the POWER to create deposits, and with the flick of the pen, they will create enough deposits, to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear, and they ought to disappear, for this would be a happier and better world to live in. But if you wish to remain the slaves of Bankers, and pay the cost of your own slavery, let them continue to create deposits."--SIR JOSIAH STAMP, (President of the Bank of England in the 1920's, the second richest man in Britain)

[mamboni]

Hypertigeroloquaciosis perstans - the irresistable urge to spam internet forum threads with repetitive technobabble and idiomatic verbal ejaculations, generally associated with subtherapeutic serum lithium levels.

[ximmy]

Interesting, they didn't go to work, but they got payed anyway? I am sure they will 'work' even harder now for another debt ceiling public holiday...

They were considered essential workers...

[Hypertiger]

Hypertigeroloquaciosis perstans - the irresistable urge to spam internet forum threads with repetitive technobabble and idiomatic verbal ejaculations, generally associated with subtherapeutic serum lithium levels.

Opinion is based on a French word...the antonym or opposite of which is "FACT".

Meaning....everyone is entitled to their fictions...or lies.

"The essential claim of sophistry is that the actual logical validity of an argument is irrelevant (if not non-existent); it is only the ruling of the audience which ultimately determines whether a conclusion is considered "true" or not. By appealing to the prejudices and emotions of the judges, one can garner favorable treatment for one's side of the argument and cause a factually false position to be ruled true."--Sophistry A.K.A Democracy or Truth by Popular delusion/consensus

"We must win the war of democracy"--Vladimir Lenin

"A lie told often enough becomes the truth."--Vladimir Lenin

“If you tell a big enough lie and tell it frequently enough, it will be believed.”--Adolph Hitler.

"A lie is designed to masquerade as Truth and since Truth is infinite and indestructible and never changes must mimic Truth by Not changing."--Hypertiger

Measure twice...lie once.

Welcome to the real world COMRADE.

[Hypertiger]

Grow some legs to stand on...and from what I recall...You were poisoned and killed by a "treacherous bitch" in Kill Bill.

[mamboni]

Grow some legs to stand on...and from what I recall...You were poisoned and killed by a "treacherous bitch" in Kill Bill.

Yes, the bitch poisoned my fish heads and left me for dead. I awoke in an alternative reality called GSUS. If you will take your lithium, I will reveal to you the mysteries of Kung Fu.

[ximmy]

Yes, the bitch poisoned my fish heads and left me for dead. I awoke in an alternative reality called GSUS. If you will take your lithium, I will reveal to you the mysteries of Kung Fu.

http://static.rogerebert.com/redactor_assets/pictures/far-flung-correspondents/kill-bill-and-the-love-of-cinema/kill-bill-pai-mei-death.jpg

[madfranks]

Yes, the bitch poisoned my fish heads and left me for dead. I awoke in an alternative reality called GSUS. If you will take your lithium, I will reveal to you the mysteries of Kung Fu.

Bravo, good sir.