Wednesday, November 03, 2004

It appears that capital is gleeful at the re-election of the Shrub. And why wouldn't it?!

What I want to know is whether capital is going to be gleeful next week when the Treasury Department tries to begin raising $51 billion. Let's see what global capital's appetite is for infinite US debt. I suspect the Bank of Japan will again be a major buyer.
The Bush administration announced Wednesday that it will run out of maneuvering room to manage the government's massive borrowing needs in two weeks, putting more pressure on Congress to raise the debt ceiling when it convenes for a special post-election session.

Treasury Department officials announced that they will be able to conduct a scheduled series of debt auctions next week to raise $51 billion. However, an auction of four-week Treasury bills due to be completed on Nov. 18 will have to be postponed unless Congress acts before then to raise the debt ceiling. . . .

In its announcement Wednesday, Treasury said it will sell $51 billion in new securities next week including $22 billion in three-year notes on Monday, $15 billion in five-year notes on Tuesday and $14 billion in 10-year bonds on Wednesday.


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