VIEWS: 8 PAGES: 6 CATEGORY: Tax Forms POSTED ON: 9/19/2013
At 4:00 p.m. on Wednesday, the U.S. Treasury released its daily statement revealing how the accounts of the federal government stood as of the close of business on Tuesday, Sept. 17.
Treasury: We’ve Kept Debt Exactly $16,699,396,000,000 For 4 Months Terence P. Jeffrey CNS News Sept. 19, 2013 At 4:00 p.m. on Wednesday, the U.S. Treasury released its daily statement revealing how the accounts of the federal government stood as of the close of business on Tuesday, Sept. 17. According to this official accounting, the federal government's debt that is subject to a legal limit set by Congress stood at exactly $16,699,396,000,000 at that hour yesterday. That marked the fourth straight month that the U.S. government’s debt has ended up at exactly $16,699,396,000,000 at the close of each business day. Coincidentally, $16,699,396,000,000 is about $25 million below the legal limit on the debt—which is currently set by law at $16,699,421,095,673.60. If at the close of any business day, the debt were to slip just $26 million higher, it would exceed the legal limit. Instead, at the close of every business day since May 17, the debt has remained just $25 million below the limit. This is despite the fact that the Treasury has continued to sell more Treasury securities than it is redeeming and to run massive deficits. In May, the month the Treasury froze the debt subject to the legal limit at $16,699,396,000,000, the federal government ran a deficit of $138.732 billion for the month, according to the Treasury’s monthly statement. In June, the Treasury said the government ran a one-month surplus of $116.501. But then it ran a deficit of $97.597 billion in July and $147.923 billion in August. In sum, from May through August, the federal government ran a net deficit $267.751, according to the Treasury’s monthly statements. In the first eleven months of this fiscal year (October 2012 through August 2013), the federal government ran a deficit of $755.345 billion, according to the Treasury. During the period that the Treasury has kept the debt frozen just $25 million below the legal limit, Treasury Secretary Jack Lew says that the Treasury has been using “extraordinary measures” to keep the debt from exceeding the legal limit. On May 17, when the Treasury first froze the debt at $16,699,396,000,000, Lew sent a letter to House Speaker John Boehner stating: “In total, the extraordinary measures currently available free up approximately $260 billion in headroom under the limit, as described below.”. Among the “extraordinary measures” Lew said he could take to create this “headroom”:1) not investing new money from the Civil Service Retirement and Disability Fund (CSRDF) in U.S. Treasury securities, which he said would create $6.4 billion in “headroom” per month, 2) not reinvesting $58 billion ion Treasury Securities held by the CSRDF that would be maturing and not reinvesting $16 billion in interest owed to the fund, which would create $74 billion in headroom, 3) suspending the routine daily reinvestment of $160 billion in special Treasury securities held by the Federal Employees’ Retirement System Thrift Savings Plan, which would create another $160 billion in headroom, and 4) suspending the routine daily reinvestment of Treasury securities held by the government’s own Exchange Stabilization Fund, which would create another $23 billion in headroom. On May 20, Lew sent a letter to Boehner saying the “debt issuance suspension period” he had declared would “last until August 2, 2013, the last day that Congress is expected to be in session before Labor Day.” However, on Aug. 2, Lew sent Boehner another letter. This time, he said: “I have determined that a ‘debt issuance suspension period,’ previously determined to last until August 2, 2013, will continue through October 11, 2013, the last day Congress is expected to be in session before the Columbus Day recess.” Then, on Aug. 26, Lew sent Boehner another letter stating: "Based on our latest estimates, extraordinary measures are projected to be exhausted in the middle of October." Between now and then, President Obama and the leaders of the Republican-controlled House will need to negotiate and enact new legislation authorizing federal spending. That is because the current law authorizing federal spending expires on Sept. 30. Bernanke Admits Economy Is In Bad Shape Kit Daniels Infowars.com September 19, 2013 Fed continues the destruction of the dollar with QE3 This morning, former congressman Dr. Ron Paul explained why Federal Reserve chairman Ben Bernanke’s unexpected decision yesterday to continue pumping $85 billion a month into the economy is bad for the American people. On today’s edition of MSNBC’s Morning Joe show, anchor Joe Scarborough asked Dr. Paul what he thought about this morning’s front page of the Wall Street Journal: “Fed Stays On Easy-Money Course.” “I think that it’s a major admission by Bernanke that things aren’t good,” Paul said. “He’s literally saying ‘We’re in bad shape!’” “Yet the markets didn’t interpret it that way because the markets are reflecting just that ‘easy money’ going into the stocks but it doesn’t help those 99% or at least the large middle class and poor; it won’t help them one bit.” Paul further stated that it won’t help Americans get jobs, so there’s still a large disconnect between Wall Street and the public. “I think it was a very, very bad announcement yesterday that the economy is a lot worse off,” he continued. “I think in time that will prove to be the case.” Other economic indicators back up Dr. Paul’s statements. This morning, the price of oil rose above $108 a barrel after the Fed decided to keep their inflation- creating policy called quantitative easing unchanged. In making that decision, officials with the central bank admitted that the growth of the economy hadn’t met their expectations and they even lowered next year’s outlook. The Fed began this current iteration of quantitative easing, the third one since 2008, back in Sept. 2012. Initially with QE3, the Fed pumped $40 billion of new currency into the economy per month through an open-ended bond purchasing program. Last December, the Federal Open Market Committee increased money creation to $85 billion per month, which has continued into the present, contrary to its decision in June to scale it back this month. The Federal Reserve Bank of San Francisco, however, admitted that after five years of quantitative easing, bond purchasing programs have had little effect on the economy. The chart below shows the U.S. GDP growth in nominal terms (the dark blue line), the performance of the Dow Jones Industrial Average (the black line), and the real GDP growth that accounts for inflation (the light blue line): Ron Paul Bernanke Is Literally Saying Is WE'RE IN BAD SHAPE! VIDEO BELOW http://www.youtube.com/watch?v=CQm35kyeqOo Marc Faber: Fed’s Money Printing About Protecting the Elite Zero Hedge September 19, 2013 With rumors this evening of the White House calling around for support for Yellen, Marc Faber’s comments today during a Bloomberg TV interview are even more prescient. Fearing that Janet Yellen “would make Bernanke look like a hawk,” Faber explains that he is not entirely surprised by today’s no-taper news since he believes we are now in QE-unlimited and the people at the Fed “never worked a single-day in the business of ordinary people,” adding that “they don’t understand that if you print money, it benefits basically a handful of people.” Following today’s action, Faber is waiting to seeing if there is any follow- through but notes that “Feds have already lost control of the bond market. The question is when will it lose control of the stock market.” The Fed, he warns, has boxed themselves in and “the endgame is a total collapse, but from a higher diving board.” Faber on the reaction that there’s going to be no taper for now: “My view was that they would taper by about $10 billion to $15 billion, but I’m not surprised that they don’t do it for the simple reason that I think we are in QE unlimited. The people at the Fed are professors, academics. They never worked a single life in the business of ordinary people. And they don’t understand that if you print money, it benefits basically a handful of people maybe–not even 5% of the population, 3% of the population. And when you look today at the market action, ok, stocks are up 1%. Silver is up more than 6%, gold up more than 4%, copper 2.9%, crude oil 2.68%, and so forth. Crude oil, gasoline are things people need, ordinary people buy everyday. Thank you very much, the Fed boosts these items that people need to go to their work, to heat their homes, and so forth and at the same time, asset prices go up, but the majority of people do not own stocks. Only 11% of Americans own directly shares.” On whether interest rates are held down when the Fed continues this type of policy: “On September 14, 2012, when the Fed announced QE3, that was then extended into QE4, and now basically QE unlimited, the bond markets had peaked out. Interest rates had bottomed out on July 25, 2012–a year ago–at 1.43% on the 10-year Treasury note. Mr. Bernanke said at that time at a press conference, the objective of the Fed is to lower interest rates. Since then, they have doubled. Thank you very much. Great success.” On what the endgame is: “Well, the endgame is a total collapse, but from a higher diving board. The Fed will continue to print and if the stock market goes down 10%, they will print even more. And they don’t know anything else to do. And quite frankly, they have boxed themselves into a corner where they are now kind of desperate.” On Janet Yellen: “She will make Mr. Bernanke look like a hawk. She, in 2010, said if could vote for negative interest rates, in other words, you would have a deposit with the bank of $100,000 at the beginning of the year and at the end, you would only get $95,000 back, that she would be voting for that. And that basically her view will be to keep interest rates in real terms, in other words, inflation-adjusted. And don’t believe a minute the inflation figures published by the bureau of labor statistics. You live in New York. You should know very well how much costs of living are increasing every day. Now, the consequences of these monetary policies and artificially low interest rates is of course that the government becomes bigger and bigger and you have less and less freedom and you have people like Mr. De Blasio, who comes in and says let’s tax people who have high incomes more. And, of course, immediately, because in a democracy, there are more poor people than rich people, they all applaud and vote for him. That is the consequence.” On where he sees gold heading: “When I look at the market action today, I would like to see the next few days, because it may be a one-day event. The markets are overbought. The Feds have already lost control of the bond market. The question is when will it lose control of the stock market. So, I’m a little bit apprehensive. I would like to wait a few days to see how the markets react after the initial reaction.” On whether the 10-year yield will float back up to where it was before 2pm today: “I will confess to you, longer-term, I am of course, negative about government bonds and i think that yields will go up and that eventually there will be sovereign default. But in the last few days, when yields went to 2.9% and 3% on the 10-year for the first time in years i bought some treasuries because I have the view that they overshot and that they could ease down to around 2.2% to 2.5% because the economy is much weaker than people think…I think in the next three months or so.” On gold prices: “I always buy gold and I own gold. I don’t even value it. I regard it as an insurance policy. I think responsible citizens should own gold, period.“ Marc Faber: Fed’s Money Printing About Protecting the Elite VIDEO BELOW http://bloom.bg/18zIe7j INFOWARS.COM BECAUSE THERE'S A WAR ON FOR YOUR MIND
Pages to are hidden for
"Treasury: We’ve Kept Debt Exactly $16,699,396,000,000 For 4 Months"Please download to view full document