Treasury To Stop Funding Its Market Manipulation Fund To Delay US Bankruptcy

1 post / 0 new
rjsand
rjsand's picture
Offline
Joined: 06/14/2011
Hat Tips: 824
Posts: 121
Treasury To Stop Funding Its Market Manipulation Fund To Delay US Bankruptcy

Check out this article from Tyler Durden today, then watch the video in the link below.  This could turn out to be big.

After pillaging the G Fund and Civil Service Retirement and Disability Fund (CSRDF), aka the Government retirement funds, Tim Geithner was just forced to resort to the final debt ceiling extension measure: suspending reinvestment in the Exchange Stabilization Fund, better known as the mechanism by which the Treasury manipulates the stock, bond and FX markets, often times indirectly (thank you Brian Sack and Citadel fat pipe) and on occasion with CIA assistance. What this means is that FX vol will likely hit unseen levels in the next several weeks as the Treasury's manipulative ways are strongly curtailed.

From the Treasury:

Update: As Previously Announced, Treasury to Employ Final Extraordinary Measure to Extend U.S. Borrowing Authority Until August 2

WASHINGTON – Today, the U.S. Department of the Treasury released the following statement from Jeffrey Goldstein, Under Secretary for Domestic Finance, regarding the use of the last of the four previously announced measures available to keep our nation under the statutory debt limit, suspension of reinvestment of the Exchange Stabilization Fund.
 
“Today, as previously announced, the Treasury Department will suspend reinvestment of the Exchange Stabilization Fund, the last of the measures available to keep the nation under the statutory debt limit.  In order to prevent a default on the nation’s obligations, Congress must enact a timely increase of the debt ceiling.”
 
The U.S. reached the debt limit on May 16, 2011, but the Treasury Department has employed three previous measures to temporarily extend our ability to meet the nation’s obligations.  Those measures, in order taken, are (1) suspending issuance of State and Local Government Series (SLGS) Treasury securities; (2) declaring a “debt issuance suspension period” of the Civil Service Retirement and Disability Fund (CSRDF); and (3) suspending reinvestment of the Government Securities Investment Fund (G Fund).
 
As previously stated in the May, June, and July monthly updates, taken altogether, these four extraordinary measures allow the Treasury to extend borrowing authority until August 2, 2011. 

http://www.marketskeptics.com/2011/06/the-esf-and-its-history.html

Edited by admin on 11/08/2014 - 06:05

__________________

Gold and silver are to fiat money what sunlight is to a vampire.

Syndicate contentComments for "Treasury To Stop Funding Its Market Manipulation Fund To Delay US Bankruptcy"