Bonds

[1Admin]

http://www.bloomberg.com/news/2011-03-09/gross-drops-government-debt-from-pimco-s-flagship-fund-zero-hedge-reports.html

Just a fluke or a sign of things to come?

[LizardKing]

I think that PIMCO has lost faith in the koolaid. The largest bond holder in the world doesn't bail out unless there's a reason.

[monkeybird]

While the Country burns - Congress is playing the violin.

When major investment companies no longer buy government debt - it speaks louder than words.

[2682nscovell]

While the Country burns - Congress is playing the violin.

When major investment companies no longer buy government debt - it speaks louder than words.

Agreed, its the writing on the wall and we're in the midst of the sinful Babylon. Yet it's funny, in the midst of everything people are still blaming the crumbling dollar on wall street? Debt means nothing to people.

[RRRRDC]

I agree. The dollars days are numbered guys...its only a matter of time until it crashes. Im talking within the year. Get ready because its sure as heck coming.

[Patriotic Sheepdog]

Here's another dot.....Make sure you read the last paragraph as it will make you scratch your head I mean beat your head :mad:

http://www.cnsnews.com/news/article/...cash-balance-8

U.S. Treasury Drew Down Its Cash Balance by $81.6 Billion in Just First 4 Days of March
Monday, March 07, 2011
By Terence P. Jeffrey


A view of the U.S. Treasury Department in Washington. (AP File Photo/Evan Vucci)

(CNSNews.com) - The U.S. Treasury is depleting its cash at an accelerating pace, drawing down its cash balance by $81.6 billion in the just the first four days of March, leaving the federal government with only $108.9 billion on hand, according to the Daily Treasury Statement released Monday afternoon.

At the beginning of February, the Treasury had $349.1 billion in cash on hand, but spent that down by $158.5 billion during the month, ending February with only $190.6 billion on hand.

Were the government to continue to draw down its cash balance at the $20.4 billion-per-day rate that prevailed in the first four days of March, it would spend its way through its final $108.9 billion in little more than five days.

Under current law, the U.S. Treasury may only run the national debt up to $14.294 trillion. At the end of February, according to the Treasury

[2682nscovell]

Here's another dot.....Make sure you read the last paragraph as it will make you scratch your head I mean beat your head :mad:

http://www.cnsnews.com/news/article/...cash-balance-8

U.S. Treasury Drew Down Its Cash Balance by $81.6 Billion in Just First 4 Days of March
Monday, March 07, 2011
By Terence P. Jeffrey


A view of the U.S. Treasury Department in Washington. (AP File Photo/Evan Vucci)

(CNSNews.com) - The U.S. Treasury is depleting its cash at an accelerating pace, drawing down its cash balance by $81.6 billion in the just the first four days of March, leaving the federal government with only $108.9 billion on hand, according to the Daily Treasury Statement released Monday afternoon.

At the beginning of February, the Treasury had $349.1 billion in cash on hand, but spent that down by $158.5 billion during the month, ending February with only $190.6 billion on hand.

Were the government to continue to draw down its cash balance at the $20.4 billion-per-day rate that prevailed in the first four days of March, it would spend its way through its final $108.9 billion in little more than five days.

Under current law, the U.S. Treasury may only run the national debt up to $14.294 trillion. At the end of February, according to the Treasury’s Monthly Statement of the Public Debt, the total debt subject to this legal limit was $14.142331 trillion—just $151.669 billion short of the limit.

Had the Treasury not spent down the $81.6 billion in its cash balance in the first four days of this month and borrowed that money instead, it would have significantly reduced its remaining legal borrowing authority.

For the Treasury to borrow more than the current $14.294-trillion limit, Congress and President Barack Obama will need to enact new legislation authorizing the Treasury to increase the national debt up to whatever new limit they find agreeable.

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.

Can you go further more into what this means. I'm just not good at putting it into picture.

[Patriotic Sheepdog]

Well the government only has the authority from congress to borrow money up to $14.294 Trillion. If they need more money than that, congress has to vote to raise the borrowing limit. This will not be very popular to the common person as that will put the gov in more debt (like congress cares). Now the article says,

At the beginning of February, the Treasury had $349.1 billion in cash on hand, but spent that down by $158.5 billion during the month, ending February with only $190.6 billion on hand.

Were the government to continue to draw down its cash balance at the $20.4 billion-per-day rate that prevailed in the first four days of March, it would spend its way through its final $108.9 billion in little more than five days.

So basically if the gov had continued to use/spend the cash on hand at that pace, they would have used all available cash in five days and would need to borrow more money. This reduces the amount they have left in their borrowing limit before going to Congress and asking for a higher debt limit.

The last paragraph shows that they bought back $128 billion in bonds (debt), but borrowed an additional $133 billion by selling new bonds (debt).

I may be reading this all wrong, but it sure looks like a ponzi scheme to me.

[Klayton]

Ponzi scheme, hah! what in the government isnt a ponzi scheme?

They sold Americans the biggest ponzi scheme in history when they sold them social security, only problem was, the idiots screwed that up to.

Social Security was suppose to start paying out at 55, at a time the average lifespan was 58. Problem was someone screwed up the math and people were easily outliving their contributions from the start: Ida May Fuller, the first recipient, she paid in a whopping $24.75 (yes you read that right) and yet she still sucked out of the government (read other taxpayers) $22,888.92. So once again, the government thought they were creating a get rich scheme, people will die before they get all they put into it, but in reality they screwed up AGAIN and it is nothing more than another failed government program people have turned to depend on, and now nobody wants to get rid of it, even though it is CRUSHING America financially.

[Patriotic Sheepdog]

Klayton, you are right! Preach it brother.....