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The Medicare hospital insurance fund will face a revenue shortfall this year and potential insolvency by 2019 barring changes in the program, seven years earlier than projected in last year's report. The deteriorating outlook for the Medicare program stemmed from rising health-care costs, said Treasury Secretary John Snow, one of the trustees.

 

- CBS Markethype

 

A clue for anal cysts here. They can make inflation disappear from GDP, CPI and PPI data by a wave of the hedonic wand.

 

But in programs that pay out cash such as Medicare, inflation is eating their ass alive.

 

It just re-emphasizes the old auditor slogan, "follow the cash," not the 'pro forma' econ stats.

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J US Treasury 4-Wk: 0.945%; 2.20% At High

 

 

WASHINGTON (Dow Jones)--The U.S. Treasury awarded $19.00 billion in four-week bills at Tuesday's auction at a high rate of 0.945%.

 

The Treasury received bids totaling $63.47 billion and accepted $19.00 billion, including $41.87 million of noncompetitive tenders. The dollar price was 99.927 and the investment rate, or bond-equivalent return, was 0.952%.

 

There were no tenders from foreign and international monetary authority accounts on a noncompetitive bidding basis.

 

The bid-to-cover ratio, an indication of demand, was 3.34, Treasury said.

 

Tenders submitted at the high yield were allotted 2.20%.

 

The Federal Reserve purchased $2.40 billion in bills for its own account. When the auction was announced, the Fed held $13.70 billion of maturing bills, and in Monday's auction the Fed purchased $11.57 billion in three- and six-month bills.

 

The bills awarded to the Federal Reserve are in addition to the public offering amount.

 

The median rate was 0.935%; that is, 50% of the amount of accepted competitive bids were tendered at or below that rate.

 

Dow Jones Newswires

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