Sunday, August 18, 2013

Are we past the debt limit?

The total debt outstanding seems to have over run the debt limit, but the treasury daily statement indicates some accounting shifting has kept the debt at just under the limit. One source, the Treasury Direct, has debt exceeding the limit, but that may be a different debt than the one specified by the debt limit law. On the other hand, the Treasury Daily Report shows the debt subject to the limit holding steady. Obviously there is some accounting, valid or not, that has treasury shifting debt from the public to intra government. That is, I am speculating that Treasury has found some government account filled and is able to borrow these. Who is going to dig through the daily balances? Me? I am not a CPA, hey, Zero Hedge, you like charts and accounts, look into this. I found the answer in The Hill. Basically the idea is to lever up on some other non-debt limit program.

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