US Treasury Nearly Out Of Money...Again

C

Cheese Kun

New Member
Hello everyone, it looks like the US will reach its debt ceiling again sometime next month. In November the US government's expenses such as paying social security and other bills etc will exceed the amount of money they have possibly leading to another government shutdown.

Concerns that the U.S. could run out of money next month rippled through the bond market Friday, marking a return to the worries of previous debt-ceiling standoffs.

The yield on the U.S. Treasury bill maturing on Nov. 12 rose to 0.036% Friday, the highest since Aug. 19 and up from 0.005% Thursday. Prices fall as their yields rise.

While yields remain ultralow, the trading is a reversal for a security whose yield for the past few weeks has often been below zero, reflecting outsize demand from money-market funds and other investors and a decline in bill issuance by the U.S. government.

Congressional leaders appear increasingly unlikely to reach any kind of budget deal in time to ease passage of an increase in the federal borrowing limit needed by Nov. 3. Failure to reach a budget agreement by early next month would put pressure on Republican leaders and President Barack Obama over the terms of a debt-limit increase.
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Continue reading the rest of the article here http://www.wsj.com/articles/debt-ceiling-standoff-hits-bond-market-1445025394

More here:

The US government will hit a legal debt limit and be unable to borrow more money around November 5 - earlier than expected - Treasury Secretary Jack Lew has said.
In a letter to US Congressional leaders, Mr Lew said the federal government would likely have less than $30bn in cash at that point, straining its ability to pay its obligations.
"I respectfully urge Congress to take action as soon as possible and raise the debt limit," Mr Lew said.

The federal government is currently scraping just under its $18 trillion legal debt cap, with political wrangling over fiscal policy putting Washington at risk of not being able to pay its bills.

Mr Lew said that the latest corporate and individual tax receipts received by the Treasury were lower than previously projected and trust fund investments higher, resulting in a net decrease in money available to the US government.
While Congress on Wednesday averted a government shutdown by passing a stop-gap measure to extend funding to federal agencies until mid-December, there has yet to be a deal reached on addressing the nation's debt limit.

Earlier this week, US House Speaker John Boehner left open the possibility of advancing an increase to the debt limit before he resigns from Congress on October 30.
Analysts and officials have warned that missing payments could lead to economic calamity. The Treasury already came close to missing payments in 2011 and 2013 when Congress delayed increasing the borrowing limit.
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http://www.telegraph.co.uk/finance/...o-hit-debt-ceiling-earlier-than-expected.html


It will be interesting to see what effect this will have to the price of PM's in November. On one hand the slowdown of the Chinese economy has caused the price of commodities to decrease while low oil prices should also decrease the production costs of mining ore for mining companies to an extent implying lower prices but with events like this in the financial/political sphere continuously occurring it is hard to tell what exactly will happen.
 
Cheese Kun said:
It will be interesting to see what effect this will have to the price of PM's in November. On one hand the slowdown of the Chinese economy has caused the price of commodities to decrease while low oil prices should also decrease the production costs of mining ore for mining companies to an extent implying lower prices but with events like this in the financial/political sphere continuously occurring it is hard to tell what exactly will happen.
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this by itself it will have little to no effect on the price of PM's

your smoking some good crack if you think otherwise.
 
Court Jester said:
Cheese Kun said:
It will be interesting to see what effect this will have to the price of PM's in November. On one hand the slowdown of the Chinese economy has caused the price of commodities to decrease while low oil prices should also decrease the production costs of mining ore for mining companies to an extent implying lower prices but with events like this in the financial/political sphere continuously occurring it is hard to tell what exactly will happen.
Click to expand...


this by itself it will have little to no effect on the price of PM's

your smoking some good crack if you think otherwise.
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I am not expecting anything major I am just speculating whether this will have a small temporary effect on spot prices in November by a few percent. The US will of course raise the debt ceiling again to nearly $20 trillion. In the long term you have to wonder how long the debt level can keep rising. Under the last two presidents the US national debt has increased considerably as the government keeps having to borrow more to pay existing debts, if it keeps growing faster as time goes on then the time intervals between potential government shutdowns may grow shorter, that is unless they increase the ceiling limits more and more as time goes on.
 
I think they need to find a better name than debt ceiling

Something like debt ozone layer
 
trew said:
I think they need to find a better name than debt ceiling
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That's all it needs, a good re-branding.
Throw a few million at the best ad agency.
(I'm serious, that shit works on the sheeple!)
 
This bollocks again... really?

There is no emergency, no looming diaster. Even if it goes right down to the wire they will get more money in the end. Print, print, print.
 
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