But, hey! Who's counting?
Showing posts with label Debt Ceiling. Show all posts
Showing posts with label Debt Ceiling. Show all posts
Tuesday, January 31, 2012
Monday, August 1, 2011
Sunday 31 July: Virginia and DC Area Travels, And The Deal
Hard to know where to begin, so let's begin with The Deal--you know The Deal that has dominated headlines now for a month.
OS thinks of this more and more in terms of a failed marriage, where both husband and wife know they have failed, but are so angry about it that they can't get past blaming the other spouse for all the problems of the world. And, Mister and Missuz also know they have to keep things glued together For The Sake of The Kids, 'cuz however bad things are now, they only get worse if a divorce occurs. So they're stuck, like participants in a gaucho knife fight, each with a knife and a burning hatred, but tied together at the wrist. Not a pretty sight, is it?
That's where we are, in OS's humble opinion, and it won't get better for a long time. 2012 gives us an opportunity to remove the truly bad actors like Obama and Pelosi, but the animosity will burn on for a generation.
With all the cry of 'Our debt will be downgraded by the ratings agencies', one thing seems pretty certain: Whether or not Moody's or S&P downgrade US Treasury debt this month, the event is inevitable. It is inevitable because, in reality we do not deserve a AAA rating. We borrow .40 of every 1.00 in operating costs, and spend with no budget in place, and no sense of shame. The US government acts like the coke or meth-addicted cousin that so many families endure. No matter how many entreaties are made, sooner or later he's gonna steal and pawn the family jewels, and 'borrow' the family's pickup truck, which will end up wrapped around a tree on some sharp curve on a country road. If you get mad at him for these things, you'll be accused of heartlessness and blamed for making him this way during his childhood. But he'll promise never to do it again, until next time.
The Deal will be signed, but it will not hold up. It's just being done For The Sake Of The Kids.
OS's travels took him to the DC area. For those who haven't been there, think of it as one giant parking lot, about 60 miles by 60 miles, jammed with vehicles all attempting to exit through one gate.
On the upside, OS enjoyed walking a course constructed in 1969, when persimmon clubs and steel shafts ruled the day. OS's persimmon and steel set did just fine, thank you. It's a joy to hit a good drive and not have to reach for the 3-wood to lay up on a par 4.
It will be interesting to see what happens to this part of the country, which for so long has floated on a sea of money emanating from Washington, much in direct payroll from Treasury, thus floating on a sea of borrowed money which is about to dry up. It will be interesting times. For now, the restaurants and retail are thriving, thank you, and the streets are filled with late-model vehicles. For now, at least.
OS thinks of this more and more in terms of a failed marriage, where both husband and wife know they have failed, but are so angry about it that they can't get past blaming the other spouse for all the problems of the world. And, Mister and Missuz also know they have to keep things glued together For The Sake of The Kids, 'cuz however bad things are now, they only get worse if a divorce occurs. So they're stuck, like participants in a gaucho knife fight, each with a knife and a burning hatred, but tied together at the wrist. Not a pretty sight, is it?
That's where we are, in OS's humble opinion, and it won't get better for a long time. 2012 gives us an opportunity to remove the truly bad actors like Obama and Pelosi, but the animosity will burn on for a generation.
With all the cry of 'Our debt will be downgraded by the ratings agencies', one thing seems pretty certain: Whether or not Moody's or S&P downgrade US Treasury debt this month, the event is inevitable. It is inevitable because, in reality we do not deserve a AAA rating. We borrow .40 of every 1.00 in operating costs, and spend with no budget in place, and no sense of shame. The US government acts like the coke or meth-addicted cousin that so many families endure. No matter how many entreaties are made, sooner or later he's gonna steal and pawn the family jewels, and 'borrow' the family's pickup truck, which will end up wrapped around a tree on some sharp curve on a country road. If you get mad at him for these things, you'll be accused of heartlessness and blamed for making him this way during his childhood. But he'll promise never to do it again, until next time.
The Deal will be signed, but it will not hold up. It's just being done For The Sake Of The Kids.
OS's travels took him to the DC area. For those who haven't been there, think of it as one giant parking lot, about 60 miles by 60 miles, jammed with vehicles all attempting to exit through one gate.
On the upside, OS enjoyed walking a course constructed in 1969, when persimmon clubs and steel shafts ruled the day. OS's persimmon and steel set did just fine, thank you. It's a joy to hit a good drive and not have to reach for the 3-wood to lay up on a par 4.
It will be interesting to see what happens to this part of the country, which for so long has floated on a sea of money emanating from Washington, much in direct payroll from Treasury, thus floating on a sea of borrowed money which is about to dry up. It will be interesting times. For now, the restaurants and retail are thriving, thank you, and the streets are filled with late-model vehicles. For now, at least.
Wednesday, March 9, 2011
Can You Say 'Cash-Burn'?
I knew you could.
The US Treasury burned through 81.6 billion dollars in the first four days of March.
It has about 100 billion left on hand. About 5 days of cash, at the current burn rate.
The debt ceiling is only 14.294 trillion. That's trillion, with a 'T'. We've been rolling over Federal gubbmint debt since the early 1930's, from when OS's sainted mother was a pre-schooler. The debt limit has to be raised, the gubbmint sez, in order to stay in business.
The Democrats in the Senate beat their breasts, and declare with much weeping and gnashing of teeth that the House bill, cutting 60 billion of spending out immediately, is just completely, well well well(lip trembling, eyes tearing up) draconian!
HowKoodJoo! HowKoodJoo! HowKoodJoo! YouBrute! YouBrute! YouBrute!
Three days of spending equals 60 billion dollars. Three days. We've got the fleet and the military deployed around the world, five days of cash on hand, and the Democrats won't consider spending a penny less on anything, anywhere, anytime.
The chaos in Africa (and it ain't jest North Africa, ya'll), the Middle East (The House of Saud just may be a house of cards), and tomorrow's deadline for the Spanish cajas to get their act together or else, sent a huge passel of money in the direction of the latest 10yr T-bill auction, so thus far we haven't had a real mess on our hands. Yet. OS also wonders if the recent stock market spikes aren't the assets of the Rich Who Don't Wish To Be Famous parking their cash in a safer clime.
The Treasury’s largest single expenditure in the first four days of March, according to the Daily Treasury Statement, was paying off maturing debt. During those four days, Treasury paid $128.477 billion to redeem old bonds. At the same time, it borrowed $133.196 billion by selling new bonds.
Wonder what happens if and when those interest rates go up?
The US Treasury burned through 81.6 billion dollars in the first four days of March.
It has about 100 billion left on hand. About 5 days of cash, at the current burn rate.
The debt ceiling is only 14.294 trillion. That's trillion, with a 'T'. We've been rolling over Federal gubbmint debt since the early 1930's, from when OS's sainted mother was a pre-schooler. The debt limit has to be raised, the gubbmint sez, in order to stay in business.
The Democrats in the Senate beat their breasts, and declare with much weeping and gnashing of teeth that the House bill, cutting 60 billion of spending out immediately, is just completely, well well well(lip trembling, eyes tearing up) draconian!
HowKoodJoo! HowKoodJoo! HowKoodJoo! YouBrute! YouBrute! YouBrute!
Three days of spending equals 60 billion dollars. Three days. We've got the fleet and the military deployed around the world, five days of cash on hand, and the Democrats won't consider spending a penny less on anything, anywhere, anytime.
The chaos in Africa (and it ain't jest North Africa, ya'll), the Middle East (The House of Saud just may be a house of cards), and tomorrow's deadline for the Spanish cajas to get their act together or else, sent a huge passel of money in the direction of the latest 10yr T-bill auction, so thus far we haven't had a real mess on our hands. Yet. OS also wonders if the recent stock market spikes aren't the assets of the Rich Who Don't Wish To Be Famous parking their cash in a safer clime.
The Treasury’s largest single expenditure in the first four days of March, according to the Daily Treasury Statement, was paying off maturing debt. During those four days, Treasury paid $128.477 billion to redeem old bonds. At the same time, it borrowed $133.196 billion by selling new bonds.
Wonder what happens if and when those interest rates go up?
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