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Retirement Fund Plunder Update: $206 Billion So Far, $62 Billion Left

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http://www.zerohedge.com/article/retirement-fund-plunder-update-206-billion-so-far-62-billion-left

As of today, since the debt ceiling breach on May 16, the Treasury has plundered about $206 billion from the two primary retirement accounts: the G-Fund and the Civil Service Retirement and Disability Fund, according to calculations performed by Stone McCarthy. The full breakdown for sticklers is provided below, however what is more important is that with just 4 weeks left until the D-Day, there is about $62 billion in available debt ceiling stretching options. In other words, Tim Geithner has burned through 75% of his dry powder just 50 days into the debt ceiling breach. What happens in the next few days - Stone McCarthy gives the full breakdown "Based on our projections for marketable borrowing and trust fund flows, we think Treasury would need to use about $37 billion of that $62 billion in July, and would exhaust the rest with the settlement of auctions on August 1. If things go down to the wire, Geithner could create a little more room by declaring that the Debt Issuance Suspension Period will last longer than the original May 16-August 2 timeframe, which would be reasonable if Congress hasn't acted by August 1 or August 2." Said otherwise, with the market still completely ignoring the debt ceiling situation, if nothing has changed by the last week of July, it will once again, very much retroactively, panic.

SMRA reminds us that QE is now over, which means Primary Dealers will now be used as a monetization buffer. "Based on our current cash flow projections, we think Treasury could pay its obligations for the first couple of weeks of August, and probably manage to pay the August 15 coupon interest payment. That assumes that Treasury would be able to roll over maturing debt at auctions in the first half of August, even in the absence of a debt limit increase. We imagine under such a scenario that there would be stepped-up pressure on primary dealers to participate in Treasury auctions."

If the debt ceiling doesn't get increased Timmy is going to have a bit of a problem, the people who's money he's stole maybe a little bit peeved.

So when the debt ceiling is increased it looks like they'll have to have a massive sale to put all of this money back.

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If the debt ceiling doesn't get increased Timmy is going to have a bit of a problem, the people who's money he's stole maybe a little bit peeved.

You can steal money from the sick, disabled and old ... they don't fight as much in the streets.

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Based on our current cash flow projections, we think Treasury could pay its obligations for the first couple of weeks of August, and probably manage to pay the August 15 coupon interest payment.

Ladies and gentlemen, the "richest" country in the world.

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If the debt ceiling doesn't get increased Timmy is going to have a bit of a problem, the people who's money he's stole maybe a little bit peeved.

So when the debt ceiling is increased it looks like they'll have to have a massive sale to put all of this money back.

I'm looking forward to America kicking off, lots of patriots, lots of people with guns, lots of unemployed people who have lost big and are ready to roll heavy. One big idiot in charge who rips up the constitution at every opportunity. If it gets to the stage of martial law over there I could well see the troops saying fukc it as they too are pissed off of watching their country being sailed down the Suwannee River.

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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