Monday may be interesting. I say “may” because, as I have illustrated, liars will lie when in a tough spot; pardon, politicians will obfuscate or stretch the truth when in a tough spot. Why is Monday special? Because Monday is when this week’s freshly printed IOUs of Tax-Cheatin-Timmy’s Treasury Department will settle, and on settlement the USA will have breached the debt ceiling.
Jeffery Sparshott wrote the following article for the Nasdaq website:
Jeffery Sparshott wrote the following article for the Nasdaq website:
Treasury Auctions To Take US Over Debt Ceiling On Monday
WASHINGTON -(Dow Jones)- The Treasury Department auctioned $56 billion in new debt Tuesday and Wednesday, enough to take the U.S. over its federal debt ceiling when the three- and 10-year notes settle on Monday.
Treasury officials last month flagged May 16 as the day the government would hit the $14.294 trillion debt limit.
The U.S. is selling $72 billion in new debt over three days this week. The Treasury auctioned $32 billion in three-year notes Tuesday and $24 billion in 10-year notes Wednesday, and will sell $16 billion in 30-yearbonds Thursday. All of the auctions will settle Monday.
As of Tuesday, total debt subject to the limit was $14.274 trillion, according to the Treasury Department.
The Obama administration has asked Congress to raise the limit, warning that failure to act could lead the government to default by Aug. 2--and could spook investors even before then.
House Speaker John Boehner (R., Ohio) said Monday that any increase in the government's debt limit should be accompanied by trillions of dollars in spending cuts.
"It's true that allowing America to default would be irresponsible. But it would be more irresponsible to raise the debt limit without simultaneously taking dramatic steps to reduce spending and to reform the budget process," he said.
The federal budget deficit widened in April, with the government spending $ 40.49 billion more than it collected last month, a Treasury Department report said Wednesday.
The deficit was the 31st monthly shortfall in a row. With seven months of fiscal 2011 elapsed, the government has spent $869.90 billion more than it has collected.
Even the most aggressive plans wouldn't wipe out budget deficits for years, meaning that debt will continue to mount.
I hope Jimmy Buffett doesn’t mind me taking liberties with his 1974, but I must…
Sung by Tax-Cheatin-Timmy - backed by Benny & the Inkjets
Headin' up to D.C.
for the May 14th show,
I've got my Testoni shoes on,
I guess I never was meant for
austerity next year or tomorrow.
And honey (blank check) I didn't know
that I'd be missin' you so.
[Chorus:]
Come Monday it'll be all right,
Come Monday I'll be holding you tight.
I spent four lonely days in a scary dream haze
and I just want you back by my side.
Not to worry Timmah, the louse infested rats in D.C. that you’re running back to will kick that can down the road and you will be back to your “honey”...unlimited spending power...a blank check.
Trade Date: 5/11/11
E-Mini S&P Trades*
(before fees and commissions):
E-Mini S&P Trades*
(before fees and commissions):
- OTF sell @ 10:21am at 1348.75 = +1.00 & +6.25 (2 lot)
- Algorithm positions (8)
- "Reading the Tape" positions (11) ...combined Secret’s, Algo, & "Reading the Tape" total... +16.75
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