Goldman On The Debt Ceiling Increase : "How, What, And So What?"

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Wed, 02/02/2011 - 14:28 | 928119 The Axe
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No one has to courage to say NO...to expanding the debt ceiling! No one wants to Fed to stop printing money, ( most want increase in the Q baby) They can't or will they turn off the hose......

Wed, 02/02/2011 - 14:32 | 928138 HarryWanger
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You are correct. There will be some posturing and the obligatory blame game but, yes, they are all afraid of saying no to raising the ceiling.

The positive news for equities is that it should remove further obstacles to run the market higher.

Wed, 02/02/2011 - 14:54 | 928216 koaj
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Senator Mike Lee said he will filibuster against a debt ceiling raise

 

although the "ceiling" is bullshit. it could be 100 trillion

Wed, 02/02/2011 - 14:55 | 928218 equity_momo
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When do you think Apples market cap reaches 1 tril Harry? I think it will be around the same time food stamp usage hits 100 mil in the US.  Good times , good times.

Wed, 02/02/2011 - 14:33 | 928143 beastie
beastie's picture

QE3 signed sealed and delivered according to this guy

http://screwtapefiles.blogspot.com/2011/02/qe3-on-cards.html

Wed, 02/02/2011 - 16:43 | 928578 RockyRacoon
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I guess the real question will be what they will call it.  Quantitative Easing is out!

Something lilting and alliterative that makes a good acronym is expected.

Wed, 02/02/2011 - 14:41 | 928162 papaswamp
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Me thinks the debt to GDP in '95-'96 was substantially lower then than now....bit of a difference. Though really I think QE3 through 20 is really about rotating the debt to be domestically held (like Japan). Heck they are off the map with their debt and no one seems to care. I think the Fed is headed in the same direction.

Wed, 02/02/2011 - 14:40 | 928163 cxl9
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Eventually they'll dispense with the one-by-one debt-ceiling rises and simply index it to inflation.

Wed, 02/02/2011 - 15:32 | 928325 LowProfile
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For all practical purposes, I think they are already doing that!  +1

Wed, 02/02/2011 - 14:43 | 928172 The Axe
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I American rather  buy the newest I-phone then a  T-Bill    please.

Wed, 02/02/2011 - 14:46 | 928177 Oh regional Indian
Oh regional Indian's picture

Floor, ceiling, big deal. 

More NUMBers. Meaningless NUMBers.

Theater, parody, kabuki... take your pick.

Distracted with something that has generational impact while the ground under you is sinking.

ORI

http://aadivaahan.wordpress.com/2011/01/31/then-again-people-choose-yoga-over-gurdjieff/

Wed, 02/02/2011 - 15:34 | 928332 EvlTheCat
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I prefer Noh theater ORI.

 

Wed, 02/02/2011 - 14:48 | 928188 Dr. Porkchop
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What was the rhetoric during the Iraq war? "We must stay the course."

 

If Ben stops printing now, then all those dollars that were printed before will have been sacrificed for nothing. Time to make some 'Support The Dollar' ribbon magnets for cars. Stop accelerating the debt? Well that kind of talk is treasonous.

Thu, 02/03/2011 - 02:55 | 930232 Moonrajah
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Yup, I'd probably buy a 'Support the $hmollar' T-shirt with a picture of an inkjet printer.

Wed, 02/02/2011 - 14:49 | 928193 GottaBKiddn
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Won't somebody please raise our taxes?

You know that's what we really want.

 

Wed, 02/02/2011 - 15:09 | 928249 bunkermeatheadp...
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When Ben pokes his head out tomorrow, does it mean 6 more months of QE if he sees his shadow?

Wed, 02/02/2011 - 15:09 | 928250 bunkermeatheadp...
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.

Wed, 02/02/2011 - 15:10 | 928256 Motorhead
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How's that hottie Abby Joe Cohen doing these days?  We haven't heard from her in a while.

Wed, 02/02/2011 - 15:42 | 928365 buzzsaw99
Wed, 02/02/2011 - 15:27 | 928305 Johnny Lawrence
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This sums up our leaders right here (and probably why no one watches MSNBC):

http://www.realclearpolitics.com/video/2011/02/02/ed_schultz_gop_not_bei...

Wed, 02/02/2011 - 15:38 | 928346 brodix
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What gets overlooked is that the Federal spending process is designed to overspend. They put together these enormous bills and tack on more to get enough votes. Then the President can only pass or veto them. This isn't budgeting. This is cramming in as much spending as possible. The result is the creation of enormous amounts of debt that underpin our debt based monetary system. Is this coincidence, poor design, or is it intentional?

To budget is to set priorities and only spend on what can be afforded. One way to do this would be to break the bills into their various "line items," have every legislator assign a percentage value to each item, re-assemble them in order of preference and then have the president draw the line at what gets funded. (The buck stops here.)

The percentage system allows legislators leeway to grant favors to lobbyists and other legislators, without giving a complete yes vote. Since the few items on the line have a smaller constituency than those being asked to pay for them, there is little inclination to overspend. 

 Of course, this collapses the entire government debt based monetary system, but it is falling apart anyway, so this is something to think about, in building a replacement.

 A system of local public banking would help to fund the local services that wouldn't be getting Federal funding.

 No more wars and big defense budgets to spend money on, though.

Wed, 02/02/2011 - 15:45 | 928382 TheGreatPonzi
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Do some people seriously think the debt ceiling will not be raised??? LMAO.

In a Ponzi, when the base of the pyramid is not fed with fresh money, everything collapses.

I'm ready to bet $50,000 that the debt ceiling will be raised on time.

Wed, 02/02/2011 - 16:32 | 928546 Mrmojorisin515
Mrmojorisin515's picture

ah but the base of the pyramid isn't being fed, no jobs=no wages, thus the base is being slowly strangled

Wed, 02/02/2011 - 18:02 | 928855 Rogerwilco
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It's a good thing we managed to elect responsible members to Congress last November, men and women of priciple who understand their important role in a constitutional republic. And how about those Paul boys? They sure are busy reining in abuses by the Fed and other regulatory agencies.

/s

Thu, 02/03/2011 - 08:10 | 930379 DavidC
DavidC's picture

Madness.

DavidC

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