Tax and Spend

The US Treasury is down to one day's worth of money.

"Economist John Williams says the Federal bank account at the US Treasury Department is down to just one-day's estimated outlay, a dire situation that can only be papered over for a short time. Williams cites the May 28 Daily Treasury Statement showing the US Treasury has an operating cash balance of ~$16 billion which is roughly one day's average cash outlay of about $17 billion. "

Why isn't this big news?

"Williams says he had expected the US dollar to come "heavy selling pressure in April and May, but manipulated market perceptions of a pending reversal of the Federal Reserve Bank's "quantitative easing" program temporarily averted a looming US fiscal disaster. "

Maybe this is why Bernanke hinted that he wouldn't print money forever which sent stocks tumbling. This shows how Bernanke has painted himself into a corner.