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

Posted By admin On July 16, 2011 @ 5:01 am In Money Watch | Comments Disabled

Tyler Durden
Zero Hedge [1]
July 16, 2011

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 [2]:

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.”

Stock up with Fresh Food that lasts with eFoodsDirect (AD) [3]

  • A d v e r t i s e m e n t

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.


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URL to article: http://www.prisonplanet.com/treasury-to-stop-funding-its-market-manipulation-fund-to-delay-us-bankruptcy.html

URLs in this post:

[1] Zero Hedge: http://www.zerohedge.com/article/treasury-stop-funding-its-market-manipulation-fund-delay-us-bankruptcy

[2] Treasury: http://www.treasury.gov/press-center/press-releases/Pages/tg1243.aspx

[3] Stock up with Fresh Food that lasts with eFoodsDirect (AD): http://www.efoodsdirect.com/

[4] Instead of Funding Retirement Accounts As Mandatory, Treasury Proceeds To Plunder The Most Since Debt Ceiling Breach: http://www.prisonplanet.com/instead-of-funding-retirement-accounts-as-mandatory-treasury-proceeds-to-plunder-the-most-since-debt-ceiling-breach.html

[5] As Adjusted Monetary Base Rises By Half A Trillion In 2011, Treasury Runs Out Of Debt Ceiling Delay Measures: http://www.prisonplanet.com/as-adjusted-monetary-base-rises-by-half-a-trillion-in-2011-treasury-runs-out-of-debt-ceiling-delay-measures.html

[6] Stop The Presses: The Fed Can Fund The Treasury With Over Half A Trillion In Emergency Capital: http://www.prisonplanet.com/stop-the-presses-the-fed-can-fund-the-treasury-with-over-half-a-trillion-in-emergency-capital.html

[7] Treasury Confirms Debt Ceiling To Be Breached Today; Will Tap Pension Funds: http://www.prisonplanet.com/treasury-confirms-debt-ceiling-to-be-breached-today-will-tap-pension-funds.html

[8] US to reach debt limit by May 16: Treasury: http://www.prisonplanet.com/us-to-reach-debt-limit-by-may-16-treasury.html

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