I Get By With Alittle Help From My Friends....
Last edited by MrsCK on Wed Mar 30, 2011 12:21 pm; edited 1 time in total
Govt shutting down is a ruse to keep the US from defaulting next week | |
[link to blogs.wsj.com] Fed Would Stay Open Amid Government Shutdown As the battle over the U.S. budget threatens to leave the government without money starting from Friday, there’s at least one key agency that would not be affected: the Federal Reserve. But its job may be complicated if other parts of the government close. Since it doesn’t rely on Congressional funds, the U.S. central bank would remain open for business as usual, with normal staffing levels. The Fed would therefore be able to continue with its day-to-day operations, such as buying some $7.0 billion U.S. Treasurys on Monday, April 11. But the IRS will be closed. That means no checks. [link to www.zerohedge.com] In Case Of Government Shut Down, Close IRS... But Keep POMO Open In order to make the biggest strawman so far in 2011 really scary and nasty, the administration just announced that as part of a government shut down, the IRS would end up being closed. While according to some this is the ulterior motive all along to avoid the premature outflow of tens of billions in cash due to federal tax refunds hitting the IRS next week, which without a debt ceiling hike would push the country into technical default possibly as soon as next week (debt subject to the limit was $14.2 trillion two days ago, just $94 billion under the ceiling and with about $74 billion in debt to be issued next week a $20 billion tax refund withdrawal would push the Treasury over the limit) Since the debt ceiling is 14.294 trillion... and the current debt is about 14.2 trillion, there's 94 billion left till default... and next week, there's 74 billion in debt to be purchased... that means 20 billion left... so if the government were to be open next week, the US would default. And I've looked for the total ``government tax refunds`` for any given year, I couldn't find it, but I found out that only the child tax credit for 2002 was 14 billion $... so you can bet the total tax refund for 2011 is way higher than the 20 billion left on the credit card. And while they will say on TV that this upcoming government shutdown is about the budget, the truth is, it's about the US defaulting... which it will do so next week, if it isn't shutdown... But it will only be a ``temporary`` solution, since the FED is gonna sell more treasuries in two weeks time... which will make it breach the debt ceiling even if the government is closed. The end game is here. They have 3 choices. Shutdown the government and this happens : - Raise debt ceiling before the bonds auction in two weeks or - Default in two weeks Don't shutdown the government : - Raise debt ceiling before the bonds auction next week - Default next week Or : Cut spending so there's no deficit Either way, the end game is here. And EVEN if that little troll Geithner is able to pull this : [link to www.federaltimes.com] The government could temporarily tap tens of billions of dollars from two federal employee retirement programs if Congress fails to raise the federal debt ceiling next month It wouldn't last that long since the US government spends 4 billion in new debt per day. |
chevy#3 wrote: "Nobody seems to notice"...apparently not much in the MSM on Bretton Woods II which starts "today" Internationalist billionire George Soros & international conference running TODAY thru 4-11 at Bretton Woods,N.H. Apparently to "rearrange" the entire financial order". called "Bretton Woods II" this meeting coincides with Trilateral Commission meeting at the same time in Washington,D.C. with an apparent goal of launching nothing less than a new global economy.The US$ getting thrashed/gov.shut down today? So many things tying together today.....just thinking!
MrsCK wrote:Neu 2011-04-18:
[16:45] reader question - Greek bonds at 20.1% on weekends if necessary currency reform:
The Greeks Bonds now stands at 20.1%. How likely do you think the chance that the euro goes down this week and we may still be on Easter weekend will see a currency reform? The timing would be ideal, 4 days at a time at which the banks are closed.
The insider grapevine sign anything, but surely it would if it were planned for the weekend.
That the Greeks soon perish, is clear. This is not so tragic, because GR is of the markets already have already written off. Only a few idiots think the Greeks paper. Greater the risk of the True Finns, who do torpieren a Portugal-bailout - it is believed that "rescue" not then, then the whole PIIGS Bond dung flies to the location on the market. And that's even more dangerous place today, half a downgrade of the U.S. (outlook negative).
The probability is likely to be over 50% said that the euro will not live to see the beginning of summer. But it still tries everything to maintain the system. With gold over $ 1500 is the much more difficult.
....'once below 70cents would have been because the fed by design has over-years steadily increased the monetary base XXX-fold...but once at 70cents waiting for recover for impared assets becomes meaningless:...with the dollar (at today's stance)will loose "more" tenth's of it's value in day's to come,waiting for assets trading under 70cents on the $$ to recover is mentally-retarded!MrsCK wrote:Post from Germany talking about the "bye bye dollar":
April 21st:
Oh people look, the dollar declines in the moment always doll!
He is under 74 points, as deep as not for long. ME 72 was about 3 years ago, the Deep!
Is it perhaps just one U.S. dollars panic? What is to be WKE old statement by 70 points replace system?
I remember this back in Oct/Nov. 2008...everybody was say if the dollar dropped below 70 cents it would push for a replaced system...it never did. The the word out in the world since Thanksgiving is break at 72 cents. Just something "else" to keep an eye on.
I Get By With Alittle Help From My Friends.... » Rumors and Chats » Rumors and Chats » world economy RUMORS I find:
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