Boehner Issues Interim Statement As Debt Ceiling Talks Continue

Tyler Durden's picture

Following a resumption of the "failed" debt ceiling discussion as of 11 am this morning, John Boehner has just released the following broad statement: “As I said last night, over this weekend Congress will forge a responsible path forward. House and Senate leaders will be working to find a bipartisan solution to significantly reduce Washington spending and preserve the full faith and credit of the United States." So much for the debt talks breaking down. And with so many "deficit-cutting" loose ends, all of which will eventually be resolved, probably by the time Asia opens tomorrow, here is Bloomberg's latest attempt at summarizing what is currently going on and why for Obama getting a solution before the market opens bidless on Monday is the most important thing right now.

Senate Republican Leader Mitch McConnell said congressional leaders are “committed” to preventing a U.S. default following a meeting with President Barack Obama a day after talks on a broader deal to cut the deficit collapsed.

“The president wanted to know that there was a plan for preventing national default,” McConnell of Kentucky said in a statement. “The bipartisan leadership in Congress is committed to working on new legislation that will prevent default while substantially reducing Washington spending.”

After the meeting, which lasted under an hour, House Democratic leader Nancy Pelosi of California said she hopes a framework for an agreement will be worked out this weekend and that congressional leaders must “make every moment count.”

She told reporters there would “absolutely, positively not” be a short-term deal. The president wants an agreement long enough to last through the 2012 elections.

With the Aug. 2 deadline to raise the $14.3 trillion debt ceiling approaching, Obama said at the White House last night that “at minimum” Congress must act to avoid a U.S. default that would roil financial markets and damage the economy. He said he was consulting with Treasury Department officials about a default’s potential consequences.

It’s very important that the leadership understands that Wall Street will be opening on Monday, and we’d better have some answers during the course of the next several days,” Obama said.

Said otherwise, it is very important for America to understand that the only thing this administation cares about is Wall Street.

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Conrad Murray's picture

Why do we pay taxes? Why can't they just print the money they need? 100 trillion in unfunded liabilities means nothing when the presses are rolling. Right Americans? RIGHT?! Have cake and eat it, fuck the peas.

traderjoe's picture

It's true though. The US does not need to tax anyone. Sovereign countries can simple print money - without having to borrow it from private corporations or banking cartels. See the United States Note - http://en.wikipedia.org/wiki/United_States_Note.

A United States Note can come into existence without borrowing. It is not debt-money, though it is still fiat, unbacked paper currency. 

Taxes are simply a form of control, re-distribution, and places in power those that can best manipulate the system. It also creates vast inefficiencies and mal-investments.

In my opinion, the best monetary system would have multiple alternatives, including sound money (gold and silver) and a government scrip (United States Note) so people would have the freedom to chose the best money for a particular need. 

The Federal Reserve Note is simply the Scam of the Century. 

TruthInSunshine's picture

Does a single person here believe that they would not, and in fact have not already (via an already pocketed agreement, waiting to be pulled out at the appropriate time), come to a consensus, and kick the can?

It's all posturing. That the Democrats want a deal shows you how little their constituents know or care about economic cancer.

That the Republicans are willing to agree on a deal shows you how little their constituents know or care about economic cancer.

But make no mistake, the Ponzi will go on, there will be no actual cuts to the deficit (just voodoo ecomometrics), and they'll fix everything the same way Trichet, Merkel & Sarkozy fixed the intractable math making anything but their Ponzi just as bad, if not worse.

Apparently, one doesn't have to actually do anything to resolve systemic economic crises, anymore. One only has to jawbone and bullshit and spin long enough, and voila, problems solved.

And Main Street will continue to get pummeled with the costs of the increasing debt, deficits, and recklessness, with higher taxes and regulations and fees of all kinds, making their businesses suffer even more, while the Honey Sweet Nectar Transfer Teet keeps feeding the engorged Wall Street/Financial/Banking sector with that taxpayer sugar.

 

DosZap's picture

TJ,

JFK did just that,(had US Notes Printed),with plans to do just what you said. Months later he was DEAD...................

 You don't mess wid da Fed.....................was the message recieved?.

dark pools of soros's picture

put Ron Paul in a bunker on mars, elect him for prez and try again?

jmc8888's picture

There is no such thing as a 'best' monetary system.

Monetary systems are inhernetly fucked up.

(no this isn't saying...no money. monetarism is an ideology...thus monetary system is an ideologically based system)

The BEST system (yet devised) is the American Credit System.  Hamiltonian Credit System it is sometimes called, because that's who created it.

What we have is the worst of Greek/Roman/Venetian/London system rolled up into a global clusterfuck of oligarchism. Monetary systems = Oligarchy.

Glass-Steagall

 

traderjoe's picture

And what does G-S do to stop the counterfeiting of fractional reserve banking and the scourge of our country having to borrow its own currency from private banks?

lovejoy's picture

Finally it is becoming understood. We are no longer on the gold standard. The government does not have to borrow to print money. It can print all that it wants. The only downside is that too much printing could result in inflation. Why the taxes ..... because it gives the fiat currency legitimacy. Does the Government allow you to pay your taxes in gold or cattle. No! You need US dollars. This is how the government creates demand for the currency. Also taxes should be to simply to control the economy. If the economy is heating up, increase taxes and if if it is cooling too much, cut taxes. 

rajat_bhatia's picture

So glad i shorted gold friday

kito's picture

you cant short gold unless you break off a piece of it. and if you did that, kindly forward me the discarded portion. ill be happy to take your gold shorts.

JimS's picture

"happy to take your gold shorts", he's got gold shorts? I wonder if it's boxers , or briefs? (I don't really want to find out, though)

traderjoe's picture

As day trade? And how does a debt ceiling raise solve any of the issues surrounding the insolvency of the fiat system?

nmewn's picture

"So glad i shorted gold friday"

I gotta say, you're terminally stupid.

Id fight Gandhi's picture

Dollars have lost 97-98% since 71. Any debt increase means it's worth even less.

I'll stick with "tradition", thank you.

Squid Pro Row's picture

In all seriousness, I have pondered this question.  With the Fed buying almost 100% of new debt and maintaining its commitment of low rates for an extended period, the market's opinion matters very little.  The Fed will print new money to buy bonds and maintain its interest rate target.  Under these circumstances, why even bother collecting any taxes?

Also, until an alternative to the dollar emerges, the world is forced to use it for international trade.  Perhaps something else will come about in the future (electronic gold/silver/etc/etc), but today, there is no credible alternative.

So, why bother with taxes?

ThirdCoastSurfer's picture

Require the Fed to forgive the $2.5 trillion on it's books and, wallah!, the current debt limit ceiling through 2012 is assured!

kito's picture

ive often thought of it as well. zerohedge should do a piece on the ramifications of the fed going hard core jubilee on the treasury. what does that do to the markets?

nmewn's picture

"So, why bother with taxes?"

To keep the middle and lower classes off the golf courses.

GeorgeHayduke's picture

Naw, they have to tax the sheep to keep the psychological sense of peasantry upon them. Plus, it gives them yet one more law to imprison any peasant who see through the veil and decides they are not paying any more taxes to the oligarchs.

In this corporate colonial/feudal oligarchy the peasantry will always pay tribute to their owners just to keep them well conditioned.

angmikey's picture

I hate peas! I like printing presses making more money. Oh if I only had one.

Re-Discovery's picture

american fascism on full display

Zero Govt's picture

Marxists to the left, fascists to the right, but when it comes feeding time on the carcass of America they're all vultures at the end of the day

Spastica Rex's picture

My momma always said, "tyranny is as tyranny does."

kito's picture

you didnt strike me as a backwoods southerna.

lolmao500's picture

And Boehner will become hard and stiff and shaft the american people once again.

Boehner is ONE GUY... what about the other republican make up their damn minds and tell Boehner to go to hell?

snowball777's picture

Shortest path back to a Dem majority.

DosZap's picture

We are already dead Fred,another Dem majority, and I vote real americans purchase land somewhere else, and Migrate, start over,and leave this to the fascists.

SRV - ES339's picture

Right you are... back to the GOP, after all they did such a great job under Bush!

GeorgeHayduke's picture

You say that as if it matters which party is "in control." Both sub-parties belong the to the fascist over-party. So, it doesn't matter which sub-party has the majority as the fascist party always wins. Now, the Dems might favor some corporations over other corporations the Rethugs favor, but both serve their fascist masters.

I know some folks like to claim one party is Marxist and the other Fascist, but show me one single law passed since Reagan that gave even the slightest bit of real power or wealth to the peasants (the supposed Marxist way) while not giving windfall profits to corporations who's lobbyists and lawyers likely wrote any such legislation. Anyone? Anyone?

Calmyourself's picture

HA, name me one single law i nthe USSR that ever gave any power to the peasants.  Marxism is simply power for powers sake.  But much difference between these two sets of losers in Washignton no, not too much at least in the upper levels..

Long-John-Silver's picture

and with a dem majority the total destruction of the American economy is assured. I hope you enjoy watching States leave the Union to forge ahead in a new country of their own making. This is the inevitable outcome as foretold in Sal Alinsky's book "Rules for Radicals". Even he admitted that they alone could never rule over 50 states and were planing to have China, Russia, and Cuba take over and rule parts of the nation.

Ray1968's picture

.... disregard.... (I erased my post)

Ident 7777 economy's picture

I. Doubt. It.

 

But we shall see (he hasn't caved to this point).

yabyum's picture

Boehner will do all in his power to protect the elite and uber wealthy, you can take that to the bailed out bank.

DosZap's picture

yab,

You not read the POTUS words?.

Repeat until sinks in, Wall Street..............W_A_L_L _S_T_R_E_E_T.

Now, Boner is protecting WHO again?.

GeorgeHayduke's picture

It's all theater. It's good cop/bad cop. They both are there to protect the upper 5%. They just put on the show to make it look like one of them is fighting for you.

fishface's picture

Said otherwise, it is very important for America to understand that the only thing this administation cares about is Wall Street.

honest words at last

 

GlassHammer's picture

It would have been more honest to say "the only thing any administation cares about is Wall Street."


 

ViewfromUndertheBridge's picture

Not entirely true:

-She told reporters there would “absolutely, positively not” be a short-term deal. The president wants an agreement long enough to last through the 2012 elections.

I thought this was Tyler's commentary...but, apparently in the rush to avoid default all sense of irony has been lost. Short term irresponsibilty got the world into this mess and I, for one, am backing it to get us out.

macholatte's picture

Said otherwise, it is very important for America to understand that the only thing this administation cares about is Wall Street.

 

Foul Ball !!!!

 

Getting re-elected is priority 1.

Getting money to be re-elected is priority 1-A. 

 

If the present Congress errs in too much talking, how can it be otherwise in a body to which the people send one hundred and fifty lawyers, whose trade it is to question everything, yield nothing, and talk by the hour?
Thomas Jefferson

The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money.
Alexis de Tocqueville

The only difference between death and taxes is that death doesn't get worse every time Congress meets.
Will Rogers

 

Suppose you were an idiot, and suppose you were a member of Congress; but I repeat myself.
Mark Twain

 

You can lead a man to Congress, but you can't make him think.
Milton Berle

 During my service in the United States Congress, I took the initiative in creating the Internet.
Al Gore

Mongo's picture

FRB Q&A

I don't have any money

If you are the Federal Reserve just push "Print" button.

 

nmewn's picture

I vote we run our household budgets the same way ;-)

Ray1968's picture

If the market opens bidless, the NYSE will just cancel all trades until back to normal.....

They've got BHO's back.

Zero Govt's picture

I'm very impressed how politcians drive head long into a financial train wreck then go into clown show and spitting dummies out of the pram mode while posturing like you've got the moral high ground... i'm really looking forward to the final stage, the 'solution' where the debt hole they're in is dug even deeper ...very impressive place Govt