Debt Ceiling Talks Collapse

Tyler Durden's picture

5 weeks ahead of the day when the debt ceiling "extend and pretend" plan ends, talks have broken down, and in order to hike Congressional Nielsen ratings, this time seemingly terminally. From Reuters: "U.S. Deficit-reduction talks led by Vice President Joe Biden have reached an "impasse," House of Representatives Majority Leader Eric Cantor said on Thursday, adding that he will not participate in the meeting of the bipartisan group that had been scheduled for later in the day. Cantor, a Republican, said the group has identified trillions of dollars in spending cuts, but had been unable to resolve a disagreement over tax increases Democrats sought. A Senate Democratic aide said the two sides "need to continue talking", and were continuing to talk. But an aide to Senator Jon Kyl, a Republican member of the Biden group, declined to comment on whether the senator would attend Thursday's scheduled meeting."

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baby_BLYTHE's picture

anyone in the stock market now is asking for trouble

Herd Redirection Committee's picture

This is the Bernanke headfake.  Do you really think they are raising interest rates any time soon?  Not saying there are good valuations on the Dow but certainly there are sales  on the TSX on some really promising mining/exploration companies right now. 

Stay away from the darlings, NFLX and AMZN,the financial firms...

The Stock market is priced in USD, after all,so some of the gains are illusory, and just the result of devaluing currency.


Dreadker's picture

There are people in the stock market?  I thought the only volume left was from SkyNet...

fuu's picture

Wow thanks for the penetrating insight!

I think I need to buy a gun's picture

what if the global monetary system is breaking down

China debt jubilee

obama "nation building"

no more oil from middle east

pulling troops out of afgh

pulling oil from strategic reserve


gold revaluation and the end of the current system is close

Hearst's picture

Gold / Silver revaluation is a given.  Still it seems like all we've seen lately are sharp downward plunges in both metals whatever the news is.  The question I'm wondering about is if the debt ceiling gets raised does the US Dollar rise or fall?  Same question if the debt ceiling doesn't get passed?

I think I need to buy a gun's picture

gld has traded 10 million  shares already....capitulation.....i don't own gld but that means its a bottom today...

mayhem_korner's picture

I think I need....  If yer don't own nun, yer better git sum.

mayhem_korner's picture

1) Gold at all time nominal high ~2 days ago.  But for today's orchestrated raid and Greece spillover, it's holding its own fine.

2) Raise debt ceiling = signal to world that we will never get serious about debt = gradual march of DXY to below freezing.

3) Don't raise debt ceiling = "structural" default, dollar falls rapidly for lack of confidence...BUT, the rate of plummet would be pre-orchestrated (test balloon to see if China calls our hand), then, in a panic, debt ceiling raised, all is restored and QExxxx is cemented.

my two cents 

SilverRhino's picture

What the FUCK just happened to the silver market?   That was one huge goddamned RAID.


BanksterSlayer's picture

It is because the EUR/CHF has been dropping like a rock all morning. For some dumb reason, people swap one brand of toilet paper for another (USD going up). But hold on a few more weeks until those morons realize that ALL brands of toilet paper falls apart in your hands and the only real currency left is, well, real currency. (gold and silver.)

Hearst's picture

What do you think the catalyst of global fiat repuditation will be?  The inability of the congress circus show to raise the debt ceiling?  The raising of the debt ceiling?  A Euro zone prefecture showing their ass to the EuroZoned?  


Is it worth wondering if these globalcrats are capable of keeping the fiat system together?  Is there any historical reference we can compare todays monetary system to for guidance?  So many questions..

Herd Redirection Committee's picture

Silver Rhino, if you own silver (which I doubt) then just don't sell.  Wall St is not the physical market, and thats all they accomplish in the end with their market manipulations, is make themselves illegitimate market makers, meaning, the vacuum for a legitimate market will be filled, sooner or later.

If you bought silver call options.... Well... Think of Wall St. as swimming with sharks.  How does that thought make you feel?  It means you tip your toes into the water, and you get out as soon as you have reached (or come close to) your target.

Options aren't investing, they are gambling.  They certainly have their place, but calling it what it is can't hurt.

Herd Redirection Committee's picture

"if these globalcrats are capable of keeping the fiat system together"

They know it is doomed to failure, hence the death spiral of the USD (And EUR, Yen).  They want to kill it off on their watch so as to do a controlled transition, which will increase their odds of remaining in control of the monetary levers at all times, in their estimation.

It is like the death of a King.  Sure, everyone is still paying lip service to the old King, but really, you are scheming and plotting to figure out who the new King will be, and how you can show your loyalty to him, and get the people to accept him.  The dollar is the old king, the lip service is the 'strong dollar policy',  that no one in the MSM mentions the coming death of the USD is the 'loyalty to the old king', then when King Dollar dies they will proclaim "We didn't even know he was sick!  The King is dead, Long live the King (King SDR)".

Andy_Jackson_Jihad's picture

Been watching Game of Thrones?  Bernake and Greenspan are like the incest twins.....

Gold is the chick with the nice titties and baby dragons.


Herd Redirection Committee's picture

No, the idea came to me while reading 'The Baroque Cycle' by Neal Stephenson actually, Quicksilver done, System of the World about 1/3 of the way through! He mentions the death of a king in England, and beginnings of fiat currency are a undercurrent through the whole saga.  But thanks, I will check out 'Game of Thrones'.

SilverRhino's picture

>> Silver Rhino, if you own silver (which I doubt)

Wrong on that one but ok.   I only buy physical, do not use paper, leverage, calls, puts or anything else.  

Silver is wealth preservation at this point.   It just irritates the shit out of me to see the price manipulated so blantantly at this point.



Herd Redirection Committee's picture

Sorry about that.  I was just reminded about a time I was upset about a soccer game at the dentists office, and he asked me 'You lost money?'  Which made me laugh at how trivial some things in life are.  If you don't sell at the current price, it doesn't matter very much, does it?

SilverRhino's picture

I refuse to sell silver for green paper unless I am absolutely starving.   So far, I'm good :)

baby_BLYTHE's picture

I junked myself since I realize many of your entire livelihoods are dependent on the stock market.

Charlie Bravo's picture

I junked myself to prove to others I really don't give a shit about being "junked".

In fact, I just junked YOUR comment just to prove my point.

Have a sunny day!

Charlie Bravo

curbyourrisk's picture

I got your back baby_BLYTHE....


Let the Junk wars begin.

SilverRhino's picture

Her front looks a lot better but fuck it ... you're all junked :)

Momauguin Joe's picture

Try self-immolation and maybe then I'll give a shit. Maybe not..

Charlie Bravo's picture

What the fuck? Self-immolation?

What's wrong with you?

Charlie Bravo

ZakuKommander's picture

Pity is unbecoming on Zero Hedge.

PuppetRepubl1c's picture

so Eric Cantor isn't going to the meeting because they cant agree....


Only in government can this pussy nonsense slide.  I can only imagine how fast i would get fired if i just decided not to show up to work and told my co-workers "we can't agree on how to tackle this project so I'm just going to pout instead of coming into work today!"





Charlie Bravo's picture

Yup, that's how our "elected" officials get things "done" up in Washington.

By doing nothing.

Charlie Bravo

Dr. Richard Head's picture

Shit, I wish they would do nothing. It what they do end up doing that concerns me.

I would be willing to be 300 oz of silver that the debt ceiling will be passed. 

Charlie Bravo's picture

If those fucking bozo's in Washington did nothing, then what's the point of paying them to "represent" We the People?

And albeit you have a point...if they DID something, then we're likely to get nauseum.

Shit...we're screwed either way....since no one has the balls to remove those worthless sacks of shit from Washington...and we are too stupid/clueless/lazy to pay any attention to the sort of shit they debate BEFORE they decide to pass a questionable piece of "legislation"!

Damn....and I was looking forward to having a great day today.....

Charlie Bravo



Dr. Richard Head's picture

You have a point.  It is hard to have a good day anymore when you see this shit for what it is. 

Charlie Bravo's picture

Well I woke up 3 years ago. The anger has since subsided...but every now and then I get all fired up when I read that our "elected" officials have done Washington.

Charlie Bravo


Andy_Jackson_Jihad's picture

You need to invest in peace of mind.  Bullion, some MREs, a gun or two and those army field manuals that tell you how to make explosives out of common chemicals.

Sure that won't make you any richer but it will ease your mind and keep you from making stupid decisions in a panic (like trading).


Things that go bump's picture

We sent a bunch of Republicans to Washington this last election to ensure that nothing gets done and look how well that has worked out.  Everytime the majority in congress has a member of their own party in the White House they go mad with power and we end up with abominations like that Health Care act or the War on Terror.  This way, there is so much infighting very little can actually get accomplished.  They are all so busy sabotaging each other that they forget all about us.  It is so much better that way.  

StychoKiller's picture

When Congress spends time doing stupid things it shouldn't be doing, it is not doing even stupider things it shouldn't be doing.

Stuart's picture

bozos in Washington, yes.  Absolutely, but we get what we elect.   If a single politician ran on a platform saying they ok, they will throw behind bars all those convicted of fraud but we're also going to raise taxes 50%, cut defence spending 50%, cut medicare 50%, cut old age security 75%, raise the retirement age to 75 and institute means testing..... you and I both know not a chance in hell they're getting elected.   We get what we elect.  We're every bit as much responsible.  We too are bozos.   

Charlie Bravo's picture


We the People elected those wily bastards. But that's what we get for putting "American Idol" ahead of important issues.

Greed + entertainment value + good looks + empty promises = a serious problem facing our once great nation

Charlie Bravo

ElvisDog's picture

Agreed. Would Sarah Palin have a following if she weighed 300 lbs and looked like a gorilla? I think not. And when was the last time a short man or a bald man was elected President.

Charlie Bravo's picture

I believe the last time a short man was elected President it was back in the 1950's.

Ditto for the bald man.

Charlie Bravo

Clark Bent's picture

Obama and followers are just absolutely convinced that the rich and productive have seized the "means of production," which, in their minds, appears to be some machines found in the forest that produce wealth. They believe that we are a rich country, and that there are hidden caches of value out there that they will ultimately find and redistribute to everyone. Surrounded as they are by academics and bankers, they cannot fathom that we are really in deep shit. They think producing is just another form of swindling, and even they can do that. This imbecility is becoming a national security issue. 

stirners_ghost's picture

"We the People" -- WTF are you talking about? There's no "we".

You "awoke" three years ago?


When you've realized there is no Society, hence no problems common to its members, and no solutions to the imagined problems of fairy-tale entities--that the entire charade serves the singular purpose of enslaving you to an ideology for the benefit of your rulers--then you'll have awakened.

Until then, your spooks will keep you in line; running from shadows, shouting at the wind--praying to The Founding Fathers of your second-class status.

Charlie Bravo's picture

"Until then, your spooks will keep you in line..."

...said the spook who wants to keep me "in line".

Charlie Bravo