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Lee Adler is the editor and publisher of the Wall Street Examiner, and the Wall Street Examiner Professional Edition, a membership based newsletter for sophisticated traders and investors. He also runs the world renowned Stool Pigeons Wire message board at Capitalstool.com, where his alter ego, Dr. Stepan N. Stool the stock proctologist, informs, entertains, and annoys readers.

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Government Heads For Budget Collapse

Originally posted on June 6th at The Wall Street Examiner.

The US Treasury, running short of cash, announced a $15 billion, 6 day cash management bill to carry it through to June 15 tax collections and settlement of new notes and bonds. The government is massively overshooting Treasury Borrowing Advisory Committee (TBAC) borrowing estimates issued in May. As I pointed out in the Treasury update at at the time, the government’s and the TBAC’s economic assumptions have been way too optimistic. This week, the government is $24 billion over the TBAC estimate for what it would need this week. Debt ceiling issues notwithstanding, revenue is way behind projections. The US government is headed for a budgetary collapse. Buyers of long term Treasuries are whistling in the graveyard.

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