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Good News: It's Almost Over After Pelosi Says Congress Looking At "Two-Tiered" Deal

Tyler Durden's picture




 

With 23 hours left until the Asian open (or, more importantly, 19 hours until FX trading resumes) and with today's round of talks now official over after a one hour meeting in Boehner's office with congressional leaders achieved nothing, it is becoming clear that the final debt ceiling outcome will be "no change" in spending or taxing habits and a temporary hike in the debt ceiling, so that the soap opera can be repeated again every three months... and again... and again... and so forth for an "extended period of time" as "transitory solutions' become the new grand consensus. At least we now know the phrase for complete, impotent incompetence in the Hill is: "Two tiered approach" which is how Nancy Pelosi called the last minute attempt at compromise. Per The Hill: "House Minority Leader Nancy Pelosi (D-Calif.) said Saturday night that congressional leaders are considering a two-tiered approach to raising the debt ceiling and reducing the nation’s long-term budget deficit. Pelosi reiterated that she backs “a long-term extension” of the $14.3 trillion debt limit, putting her in line with the demands of President Obama and Senate Majority Leader Harry Reid (D-Nev.)." Alas this now appears to be a mirage: at best the Republicans will agree to a $200-300 billion extension to get the Treasury through for another 2 months (although at the delayed run rate, Geithner needs to issue $350 billion in debt right now just to catch up with where bond issuance should be). And then again until the general public gets so tired of this charade that they vote Obama out. Or so the republicans think. Or who the hell knows what they think. Or anyone else for that matter. It does appear however, that unless there is a definitive and consensual proposal on the table by 4 pm tomorrow when FX opens, the market will no longer be able to ignore what is happening in DC. Which brings us to the best news of the day: this whole farcical spectacle is almost over.

From The Hill:

Boehner told House Republicans earlier in the day that he wanted to present a plan by Sunday afternoon to avoid rattling the Asian markets.

Aides have said the Speaker continues to insist that the size of spending cuts exceed the size of any increase in the debt limit, meaning that lawmakers would need to agree on more than $2.4 trillion in cuts to extend federal borrowing beyond 2012.

Pelosi said the leaders are looking at a two-tiered approach, which would likely combine immediate spending cuts while creating a process for Congress to enact entitlement and tax reforms over the next several months. She hinted, however, that the revenue would come in the second “tier” of the process.

“One option is to do something in two tiers, and I don’t think we can accomplish what we need to do in deficit reduction without revenues,” Pelosi said.

Asked if the revenues would come in the second tier, she replied: “It would have to be if we are going to go into … what we need to do is to greatly reduce the deficit. But it is not over yet.”

Pelosi said congressional leaders are still working but that no further meetings were scheduled as of Saturday night.

Elsewhere, in a desperate attempt to prolong the drama, Harry Reid said that he was "deeply disappointed" in debt
talks with Republicans, saying a lack of progress was bringing the
United States closer to default.

From Reuters:

Reid issued the statement following a meeting of congressional leaders. Reid insisted that a deficit reduction deal should also raise U.S. borrowing authority through 2012 so that the U.S. credit rating would not be downgraded.

To be honest, we have had enough with ridiculous diversions. Just pass the damn "deal" already so that we can all resume observing the global economy collapse in on itself first slowly, and then very very fast.

 

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Sat, 07/23/2011 - 21:02 | 1485939 Arius
Arius's picture

definetely bullish!

guaranteed more soap opera ... thank God!

Sat, 07/23/2011 - 21:05 | 1485943 brew
brew's picture

since "all my children" got cancelled gotta have something to watch...

Sat, 07/23/2011 - 21:06 | 1485947 Arius
Arius's picture

yeap... i was thinking of american idol .... bread and circus all over again...

Sat, 07/23/2011 - 21:26 | 1485997 hedgeless_horseman
hedgeless_horseman's picture

Just like porn.  Everyone gets fucked in the end.

Sat, 07/23/2011 - 21:32 | 1486020 Cheesy Bastard
Cheesy Bastard's picture

Which end?

Sat, 07/23/2011 - 21:35 | 1486026 Arius
Arius's picture

the happy ending ... i guess ... or should i say i hope ....

Sat, 07/23/2011 - 21:38 | 1486032 Cheesy Bastard
Cheesy Bastard's picture

Lol.  The happy ending, otherwise known as the money shot.

Sat, 07/23/2011 - 23:36 | 1486134 hardcleareye
hardcleareye's picture

groan....

Sun, 07/24/2011 - 04:41 | 1486635 falak pema
falak pema's picture

Don't groan when you can sigh! Its more in line with enjoying inevitable rape.

Sun, 07/24/2011 - 02:15 | 1486500 camoes
camoes's picture

GOLDEN SHOWER, BITCHEZ!

Sat, 07/23/2011 - 21:44 | 1486044 Rodent Freikorps
Rodent Freikorps's picture

Both.

Sun, 07/24/2011 - 01:06 | 1486372 redpill
redpill's picture

Well, his name is Boner afterall.  Since when did he give a shit about rattling Asian markets, and when did that become a priority for the timeline upon which we enact legislation that would impact entire generations of future Americans/Chinese Indentured Servants?

 

Sun, 07/24/2011 - 07:39 | 1486762 Bob
Bob's picture

Mr. Market has been installed as our new Dictator, with the elected officials merely executives catering to his needs.  Obama warned on Friday that "Wall Street will be watching on Monday," so Boner one-upped him with "the Asian markets on Sunday" bullshit. 

When are people going to confront this new face of the coup by the financial industry? 

Mr. Market has become Big Brother. 

Sun, 07/24/2011 - 10:46 | 1487076 jesus_quintana
jesus_quintana's picture

Middle Eastern markets already open. Won't somebody think of the poor Arabs?

Sun, 07/24/2011 - 01:35 | 1486428 Mariposa de Oro
Mariposa de Oro's picture

Just like porn.  Everyone gets fucked in the end

ROTFLMAO!!!  I'm using that!

:-)

 

Sun, 07/24/2011 - 00:00 | 1486208 Threeggg
Threeggg's picture

Watching it right now on Nick@nite

Still as funny as it was way back !!

Oh it's married with children.

Sat, 07/23/2011 - 21:06 | 1485945 HungrySeagull
HungrySeagull's picture

Oh shit.

 

QE 3 for sure and despite the Nausea in my tummy I better grow a pair and get ready to trade.

Sat, 07/23/2011 - 21:09 | 1485955 lizzy36
lizzy36's picture

The problem is w/o timmy issuing debt, what the hell is ben going to monetize?

Sat, 07/23/2011 - 21:21 | 1485990 sasebo
sasebo's picture

MBS. AAA of course. Yeah, right. Toilet paper.

Sun, 07/24/2011 - 00:12 | 1486231 cranky-old-geezer
cranky-old-geezer's picture

The problem is w/o timmy issuing debt, what the hell is ben going to monetize?

All kinds of stuff, but (worthless) secirities from Wall Street banks mostly.

Bernokio can keep TARP going forever, buying up all kinds of worthless paper ...at full mark-to-myth value of course.

Debt ceiling merely stops Bernokio monetizing more treasury debt. He can keep printing and buying all kinds of other (worthless trash) paper out there.

I fully expect seeing Fed's balance sheet baloon to $100 trillion ...then $200 trillion ...and keep going.

Sun, 07/24/2011 - 01:28 | 1486419 TruthInSunshine
TruthInSunshine's picture

Ben monetized Red Roof Inn, that fantastic chain of well run motels, last go around, as just one example of his flexibility, so I imagine he's already got a good, solid plan together, Lizzy.

Sat, 07/23/2011 - 21:06 | 1485946 InvalidID
InvalidID's picture

I'm long bullshit, been making a killing!

Sun, 07/24/2011 - 00:14 | 1486258 Captain Planet
Captain Planet's picture

and you get great fertilizer, without paying/selling your soul to monsanto

Sat, 07/23/2011 - 21:07 | 1485949 sabra1
sabra1's picture

at least now, they can replace the pensions they stole!

OT:

Ireland Trying To Hide A Bank Default?
Sat, 07/23/2011 - 21:08 | 1485951 gangland
gangland's picture

 

bhahahaha of course! icant wait till ski season.

 

Sat, 07/23/2011 - 21:10 | 1485960 buzzsaw99
buzzsaw99's picture

Basking in it, reveling in it, positively buried in the part. Lights, camera, action!

Sat, 07/23/2011 - 21:11 | 1485962 Global Hunter
Global Hunter's picture

 "Just pass the damn "deal" already so that we can all resume observing the global economy collapse in on itself first slowly, and then very very fast".

I keep re-reading this and chuckling.

Sat, 07/23/2011 - 21:16 | 1485970 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

So, at what time do the rating agencies' announce a downgrade of this self-centered, parasitic piece of s**t that is known at the good ol' US of A?

Sat, 07/23/2011 - 21:15 | 1485973 Atomizer
Atomizer's picture

Thank you Nancy.. Listen to how double talk works.

Pelosi Unemployment

http://www.youtube.com/watch?v=WUAG3Fqz56s

Sat, 07/23/2011 - 21:18 | 1485983 A Nanny Moose
A Nanny Moose's picture

Leave poor Nancy "We gotta pass it to find out what's in it" Pelosi alone. Somebody dropped a house on her sister.

Sat, 07/23/2011 - 21:26 | 1485999 lolmao500
lolmao500's picture

Boehner should tell Obama and the democrats they have to pass the debt ceiling bill to know what's in it... during a press conference. It would be epic.

Sat, 07/23/2011 - 21:44 | 1486043 brew
brew's picture

lets commission another commission...

Sat, 07/23/2011 - 21:51 | 1486064 Rodent Freikorps
Rodent Freikorps's picture

...and then ignore their recommendations.

Sun, 07/24/2011 - 04:28 | 1486622 francis_sawyer
francis_sawyer's picture

yeah... Howz about a 'debt ceiling raising' czar...

Sun, 07/24/2011 - 12:59 | 1487463 cranky-old-geezer
cranky-old-geezer's picture

I just drpped in to see what condition my commission is in.

Yea ... yea ... ohhhhhhhhhhh yeeeeeeeeeaaaaaaa ....

Sat, 07/23/2011 - 23:49 | 1486165 Samual Adams
Samual Adams's picture

 

"Boehner should tell Obama and the democrats they have to pass the debt ceiling bill to know what's in it... during a press conference. It would be epic."

Pure Brilliance!    That would go Viral in a heartbeat/Flash Crash.   I wonder if anyone has found out which is faster?

Sun, 07/24/2011 - 06:54 | 1486716 Husk-Erzulie
Husk-Erzulie's picture

Somebody dropped a house on her sister.

Ha, never heard that one before....usin' it :-)

Sat, 07/23/2011 - 21:18 | 1485980 JLee2027
JLee2027's picture

Can you believe anything Pelosi or an un-named aide claim?

I can't. Just the NY Times story 3 days ago that a deal was being struck. Or the Wash Post story about progress this past week. Both false. I'll wait for Boehner to announce something.

Sat, 07/23/2011 - 21:20 | 1485986 baby_BLYTHE
baby_BLYTHE's picture

we have to pass the bill so you can find out what is in it

No, pretty sure these people are certifiably insane

Sat, 07/23/2011 - 21:27 | 1486003 nmewn
nmewn's picture

She is criminally insane.

Reporter: “Madam Speaker, where specifically does the Constitution grant Congress the authority to enact an individual health insurance mandate?”

Pelosi: “Are you serious? Are you serious?”

Sun, 07/24/2011 - 08:45 | 1486850 disabledvet
disabledvet's picture

Is there a difference?

Sun, 07/24/2011 - 11:03 | 1487106 nmewn
nmewn's picture

Well, its not a crime for her to return to her corner and rock back & forth while babbling to herself...its just distracting ;-)

Sat, 07/23/2011 - 21:18 | 1485981 I am Jobe
I am Jobe's picture

F the bitch is still in Congress. Send her to Palestine will ya. Get this opera over with . F I am tired and have to continue drinking.

Sat, 07/23/2011 - 21:19 | 1485985 RobotTrader
RobotTrader's picture

Looks like yet another crisis was averted.

Same old games, kick it down the road for a few more miles.

Sat, 07/23/2011 - 21:29 | 1486004 sasebo
sasebo's picture

Are you sure? USA still bankrupt. Kick their dumb asses down the road. Still borrowing 40% of what we spend. Nothing has changed & won't till dollar collapses, hopefully soon. DXY down 7% since Jan. even with all those reserves.

Sat, 07/23/2011 - 23:55 | 1486197 Ying-Yang
Ying-Yang's picture

Nope Robot Trader... game changer is just beginning. Buckle up for what's coming. It will blow your mind and your trades.

Sun, 07/24/2011 - 10:57 | 1487094 Spastica Rex
Spastica Rex's picture

Looks like you're still boring.

Same old comment.

Sat, 07/23/2011 - 21:22 | 1485992 nmewn
nmewn's picture

Oh yes...no circus would be complete without the clown Pelosi. 

Sat, 07/23/2011 - 21:24 | 1485995 Atomizer
Atomizer's picture

“We’ll go through the gate. If the gate’s closed, we’ll go over the fence. If the fence is too high, we’ll pole vault in. If that doesn’t work, we’ll parachute in but we're going to get health care (Debt Ceiling raised) passed for the America people."

Sat, 07/23/2011 - 21:28 | 1486009 10044
10044's picture

it's all about crashing gold on sunday-monday coz it's option ex on tuesday... get it??

Sat, 07/23/2011 - 21:51 | 1486065 Gordon Freeman
Gordon Freeman's picture

That must mean you're short, right?  You really will put your money where your mouth is, won't you?

Sat, 07/23/2011 - 21:29 | 1486012 lolmao500
lolmao500's picture

Hopefully, if they pull that ``delay the real deal`` crap, I hope SP downgrades the US. Enough with the BS.

Sat, 07/23/2011 - 21:30 | 1486014 TheGoodDoctor
TheGoodDoctor's picture

Collapse? You mean like this?

http://www.youtube.com/watch?v=LD06SAf0p9A

Sat, 07/23/2011 - 21:36 | 1486030 bob_dabolina
bob_dabolina's picture

NO MORE TAXs!!!!!!

Sat, 07/23/2011 - 21:42 | 1486038 I am Jobe
I am Jobe's picture

Does Pelosi get her Nobel Prize then or can we just drop her in Afganistan with some granola bars? I hope Afganistan or Pakistan.

Sun, 07/24/2011 - 00:01 | 1486212 OldPhart
OldPhart's picture

Screw that.  Have the USAF drop the bitch on her district in San Francisco... from 30,000 feet, without a parachute.

Maybe one of her loving constituents will catch her.

Sat, 07/23/2011 - 21:46 | 1486050 km4
km4's picture

"Two-Tiered" Deal

Like Pelosi's face 

Sat, 07/23/2011 - 21:47 | 1486051 tom a taxpayer
tom a taxpayer's picture

Famous last words:

Boehner: “Over this weekend Congress will forge a responsible path forward.”

Pelosi: “The only thing is that it has to happen, ...We cannot default, and I want a long-term extension.”

Sat, 07/23/2011 - 21:48 | 1486055 Inibo E. Exibo
Inibo E. Exibo's picture

So, I'm sitting here about to pull the trigger on 20 oz of gold.  I'm already thinking all hell is going to break loose overnight Sunday and that Monday morning is going to be gut wrenching entertainment.  Then I read this post.

 

Infinity and beyond, biazitchechs.

Sat, 07/23/2011 - 21:51 | 1486061 HungrySeagull
HungrySeagull's picture

I tell you this, the trigger pulling has started. Now I wait and see what happens.

I am glad the "Tape" is not moving because it's a weekend and it will overly complicate things.

Sat, 07/23/2011 - 23:26 | 1486107 JLee2027
JLee2027's picture

Gold is an excellent choice, but Silver will you filthy rich. 

Sat, 07/23/2011 - 23:52 | 1486182 Hulk
Sat, 07/23/2011 - 23:26 | 1486108 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

test

Sat, 07/23/2011 - 23:39 | 1486139 Dr. Engali
Dr. Engali's picture

I am in the same boat. I was going to buy more gold on Friday and I didn't. I figured there would be a deal and a temporary sell off in gold. So I decided to wait. Now I don't know what's going to happen with these clowns.

Sat, 07/23/2011 - 23:53 | 1486179 Samual Adams
Samual Adams's picture

I can't get enough of this Congressional/Presidential Debt Dilemma Bruhahahaa.    It's so much better than any 'programming' on the Idiot Box. 

It's almost like Curb Your Enthusiasm, except Political Version and a lot more sad/infuriating/addicting/Doomy

---Can't find spellcheck... :(

Sun, 07/24/2011 - 02:33 | 1486522 Inibo E. Exibo
Inibo E. Exibo's picture

Well, in my case, the trigger is now pulled.  I wait.

Sun, 07/24/2011 - 10:11 | 1487004 snowball777
snowball777's picture

Top...tick.

Sat, 07/23/2011 - 21:53 | 1486071 Glasgow Gary
Glasgow Gary's picture

Awesome. Great for gold. Bad for USD. With luck we even get a downgrade.

GG

Sat, 07/23/2011 - 23:23 | 1486098 Lmo Mutton
Lmo Mutton's picture

Where is sanity when you need it?

Sat, 07/23/2011 - 23:25 | 1486102 JLee2027
JLee2027's picture

4400 FAA employees to receive Furlough notice

Congressional authorization for several FAA programs expired at 12:01 a.m. on July 23. As a result, nearly 4,000 FAA employees are now furloughed without pay. Those employees affected by the lapse in authorization have been notified by their managers and will receive a furlough notice via FAA email.

http://www.faa.gov/news/updates/?newsId=64216

Sun, 07/24/2011 - 00:06 | 1486228 Capitalist Sooner
Capitalist Sooner's picture

And yet, the flights will go on, and the taxes paid on your ticket will go down.  A nice first batch of "former" federal employees.  I think more will be joining them, shortly.

 

Hold the line!

Sat, 07/23/2011 - 23:38 | 1486142 hardcleareye
hardcleareye's picture

Ok anyone understand how this "total score" thingy works....  do we get to "vote" on it, if so how?

Sun, 07/24/2011 - 01:58 | 1486477 PY-129-20
PY-129-20's picture

The winner will have to pay the 14 Trillion - and America is suddenly debt-free.

Sun, 07/24/2011 - 08:48 | 1486857 disabledvet
disabledvet's picture

I have no idea. I feel like I'm winning though because i already have a "one" by my name. How 'bout you?

Sat, 07/23/2011 - 23:45 | 1486145 Ying-Yang
Ying-Yang's picture

A debt agreement will NOT be reached by the deadline. This has been the PLAN from the beginning.

The US will follow the same track as Greece. IMF and Central Banks will demand AUSTERITY measures. Three ratings agencies have already downgraded the US to C minus, A+ and AA+.

http://money.usnews.com/money/business-economy/articles/2011/07/22/meet-3-ratings-agencies-that-have-already-downgraded-the-us

The Central Banks and hedge funds begin the task of negotiating the bailout of the US to "SAVE" the debt holders large hair cuts only if the US will bow to austerity measures.

The New World Order wishes to control the mighty US military and contain the local elites that dare challenge central control. The banksters will decide who wins and loses, further culling the herd.

The DEFAULT is the means to restructure the US into a global police force headed up by the United Nations. Within the cloud of financial chaos the NWO and the oligarchy which directs it will move country by country to force compliance through defaults and restructuring as they see fit.

This has been the PLAN from the beginning, we are now at this time and place.

The fight club has served ZH readers well to this point in time. My question to the brethren is what is PLAN B?

Sat, 07/23/2011 - 23:54 | 1486185 HungrySeagull
HungrySeagull's picture

Plan B?

Let's see. Congress Leaders choke down a plan that includes a temporary raise of the ceiling in exchange for Republican agreement. Obama wants everything to last until next Election. The Republicans don't want to spend a dime.

We raise the deficit and get downgraded, markets throw the paper out of the pram and Congress will fall over themselves when the special interests pile em like Amazon Piranha fish.

Plan B.... Pentagon Warning Order to prepare for a Israeli-Iran war.

That is my bet.

In the mean time I am well positioned to enjoy one of the greatest trades ever in the metals should it come to fruition.

Sun, 07/24/2011 - 00:04 | 1486223 Ying-Yang
Ying-Yang's picture

Plan B will be gold, food and energy. Anything people need to survive. Black market skills worth more than MBAs.

What do you do that other need? The new normal. What did the Roman plebs do as the empire crumbled?

Sun, 07/24/2011 - 00:17 | 1486265 JLee2027
JLee2027's picture

This is America son, not some third world hell hole. We have guns and ammo and will hunt down and kill the banksters fucking dead if need be.

Any questions?

Sun, 07/24/2011 - 00:27 | 1486289 Ying-Yang
Ying-Yang's picture

I agree with your anger. When is the last time you got close to Soros? My hope is things don't get that bad. I like you, will defend our families and friends to the bitter end. I just hate to go there.

Sun, 07/24/2011 - 10:12 | 1487009 snowball777
snowball777's picture

And after?

Sun, 07/24/2011 - 10:30 | 1487042 MachoMan
MachoMan's picture

Repeat our mistakes...  the length until the next collapse purely being a function of the rigidity of our next system...  but, it will probably seccumb in ~80 years naturally...  with an unknown extension period via financial/monetary wrangling.  If we really, really understand how we got here and act to prohibit such conduct in the future, we might get a couple hundred years...

Sun, 07/24/2011 - 12:50 | 1487436 snowball777
snowball777's picture

Maybe I'm just too cynical, but I think government would be re-captured within a couple decades...too much incentive to not.

Sat, 07/23/2011 - 23:39 | 1486146 dumpster
dumpster's picture

test a test

Sat, 07/23/2011 - 23:40 | 1486148 dumpster
dumpster's picture

test a test

Sun, 07/24/2011 - 00:17 | 1486263 DoChenRollingBearing
DoChenRollingBearing's picture

Good seeing you around dumpster!

Sun, 07/24/2011 - 00:34 | 1486305 StychoKiller
StychoKiller's picture

Let's do a more complete test:

 

 

Bold

Italic

Underlined

Struck-Through

Block-Quote

Special Characters...

?Dangle = Heatmeat * Hair²

Now, for a test image linked in...

Sun, 07/24/2011 - 01:02 | 1486363 samsara
samsara's picture

Now edit it please,  and delete some of that clutter.

 

Sun, 07/24/2011 - 00:02 | 1486216 All_In
All_In's picture

It's all good.  I am sure Obummer will get another opportunity to get in front of the camera to blame everything on everyone else but himself.

Sun, 07/24/2011 - 00:03 | 1486219 lolmao500
lolmao500's picture

I don't like the new design...

Congress has outdone itself !!!!!!! The constitution? SCREW IT!

http://www.huffingtonpost.com/2011/07/23/super-congress-debt-ceiling_n_9...

Super Congress': Debt Ceiling Negotiators Aim To Create New Legislative Body

Debt ceiling negotiators think they've hit on a solution to address the debt ceiling impasse and the public's unwillingness to let go of benefits such as Medicare and Social Security that have been earned over a lifetime of work: Create a new Congress.

This "Super Congress," composed of members of both chambers and both parties, isn't mentioned anywhere in the Constitution, but would be granted extraordinary new powers.

Under a plan put forth by Senate Minority Leader Mitch McConnell (R-Ky.) and his counterpart Majority Leader Harry Reid (D-Nev.),

Legislation approved by the Super Congress -- which some on Capitol Hill are calling the "super committee" -- would then be fast-tracked through both chambers, where it couldn't be amended by simple, regular lawmakers, who'd have the ability only to cast an up or down vote.

Sun, 07/24/2011 - 00:08 | 1486241 Ying-Yang
Ying-Yang's picture

Yes we no longer have a representative government that follows our Constitution. Will citizens be alarmed enough to protest and take back control?

My guess things will have to get much worse before they do. It is not much fun to sit and watch the empire implode.

Sun, 07/24/2011 - 00:19 | 1486268 JLee2027
JLee2027's picture

Super Congress, lol.  Unconstitutional, done. Won't ever happen.

Ever notice that all these magical ideas come only from Liberals who want to spend, spend, spend?

Sun, 07/24/2011 - 00:41 | 1486325 StychoKiller
StychoKiller's picture

Where's "The Amazing Colossal President" when we need him?

How about this instead:  Create a Super-Progressive Congress that PHYSICALLY works 24/7/365 TO PAY OFF THE DEBT??

Sun, 07/24/2011 - 07:08 | 1486732 papaswamp
papaswamp's picture

Might want to read the article...this was a dual idea from repbs and dems.....there is no difference between the 2. It is a duocracy. The only people allowed to legally insider trade are members of congress (and their staff). Corruption is on both sides of the isle.

Sun, 07/24/2011 - 11:22 | 1487164 wisefool
wisefool's picture

 

Squawk had Buddy Romer from lousiana who joined the presidential race. He said, (para) lets make crap from china non-deductable in the tax code. he cited chapter and verse where he was going to do it. After the segment, Joe K, Michelle C^2, the other regular host and some guest host D-Bag who talked about his vacation ranch in wyoming mocked Romer for trying to sophmorically flex his faux Harvard MBA credentials.

I know that we bash the banks alot here on ZH, but more than anything, the banks want to be paid back. They are hurting pretty bad too. Do you know who is not hurting? Tax code junkies of all shapes and sizes, and thier dealers, such as PWC, BDO, G.E., google, Mr Softy, etc. Where all the legitimate harvard MBAs work, when those folks aren't doing Demopublican stints in D.C.

 

Sun, 07/24/2011 - 19:19 | 1489033 JLee2027
JLee2027's picture

 

Might want to read the article...this was a dual idea from repbs and dems.

 

Sir...bullshit.  No dual idea, and no it's not happening. How stupid do you think people are? No more replies, this is not a serious subject.

Sun, 07/24/2011 - 01:01 | 1486359 papaswamp
papaswamp's picture

W T F !!!???

Please tell me this is a story from the Onion or something....not real.

Sun, 07/24/2011 - 01:28 | 1486418 lolmao500
lolmao500's picture

It is for real.

Sun, 07/24/2011 - 10:13 | 1487010 snowball777
snowball777's picture

Were they unaware that we already have a Senate?

Sun, 07/24/2011 - 00:04 | 1486224 monopoly
monopoly's picture

For me I buy gold when we have dips. I do not buy on rumors, what ifs, or guess work. Debt ceiling, no debt ceiling. It does not matter. We are going to do this until it blows up half the planet and then, and only then, they will be forced to make changes. Until that moment in time, just carry on. Forget headlines and continue on your course.

Sun, 07/24/2011 - 00:18 | 1486267 DoChenRollingBearing
DoChenRollingBearing's picture

I buy gold as money comes in, just like I have for decades.  I hardly look at the price (other than to make sure I am not getting ripped off by a high premium).

Sun, 07/24/2011 - 00:28 | 1486295 Dr. Engali
Dr. Engali's picture

I wish I could say I have been buying for decades. I am trying to rebuild my wealth that was lost in the market , divorce , and finally bankruptcy. I have to wait for those pull backs to accumulate as much as I can. I just hope the wheels don't fall off the wagon too soon on me.

Sun, 07/24/2011 - 01:18 | 1486398 Hulk
Hulk's picture

DCRB, listen to the Andrew Maguire interview on KWN

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/7/11_Andrew_Maguire.html

time for more silver...

Sun, 07/24/2011 - 03:18 | 1486564 DoChenRollingBearing
DoChenRollingBearing's picture

Hulk my friend!  I have twice as many ounces of silvr as (Au + Pt combined)!  Of course the arithmetic means that my Au is worth much more than than my Ag, but if silver makes a huge move, I am OK with that!

Sun, 07/24/2011 - 00:08 | 1486238 nonplused
nonplused's picture

This is just silly.  The debt is going up exponentially, has been for years, and will never do anything else.  They should just pass a new law that says: "The debt ceiling is equal to the debt" and leave it at that.  Treasury can issue bonds, debt ceiling goes up, all good.  There is no way to stop it, only unfund the government prior to an election but only temporarily as the new president borrows his ass off to make everything good again.

One way or another, the ceiling should be scapped because it means nothing.

Sun, 07/24/2011 - 00:25 | 1486286 Bananamerican
Bananamerican's picture

Krugman? Is that you?

...i don't like the new design either...it's too bright and "pretty"

ZH in summer 2011 should be edged with black borders

Sun, 07/24/2011 - 00:08 | 1486240 clagr
clagr's picture

Small deal won't even get enough to replace the borrowings from the Public Employees pension trust funds. Need at least 2.4 T to even kick the can down the road.

Any debt ceiling increase is going to have to have a bunch of Dems in the house vote for it to make it--even with $2.4 T in cuts with no tax revenue increases.

I.e.; no deals, short or long, small or grande.

Sun, 07/24/2011 - 00:14 | 1486255 Ying-Yang
Ying-Yang's picture

The oligarchy does not wish anarchy among the plebs. Extreme care is being taken to lower our standard of living without inciting riots. This is the art of the PLAN.

Sun, 07/24/2011 - 00:22 | 1486273 JLee2027
JLee2027's picture

Oh stop. There is no master "plan". That's propoganda for the foolish.

Sun, 07/24/2011 - 00:34 | 1486310 Ying-Yang
Ying-Yang's picture

Oh really? Do you believe in republicans and democrats? How has that been working for you?

Do you ever express your opinions to your representatives at any level of government? Do they vote as you would like them to? Do they respond to your concerns?

 

Sun, 07/24/2011 - 00:57 | 1486349 JLee2027
JLee2027's picture

I don't have to prove anything or answer questions. Time will prove it.

Sun, 07/24/2011 - 04:47 | 1486641 John_Coltrane
John_Coltrane's picture

Indeed why invoke complex conspiracy when the simple explanation is incompetance?  Conspiracy requires both secrecy and intelligence. 

Sun, 07/24/2011 - 07:44 | 1486768 Ying-Yang
Ying-Yang's picture

"Conspiracy requires both secrecy and intelligence. "

Hmmmm John_Coltrane... and the debt plan is being discussed and debated in open congress? Geeeeeez I am sorry, I heard they were structuring the PLAN behind closed door. (Secrecy)

Most congressional leaders and the president have BA degrees and most have law degrees. (Intelligence by common standards)

Lastly "complex conspiracy", to join in a secret agreement to do an unlawful or wrongful act or to use such means to accomplish a lawful end.

Sun, 07/24/2011 - 11:07 | 1487119 Spastica Rex
Spastica Rex's picture

I'm with you. It's comforting to believe that we've just elected a bunch of losers, and with voter education and renewed "civic pride" etc., we can have something better; something functional. It may be comforting to believe, but it doesn't explain what I see. I don't have to believe in HAARP caused earthquakes, chemtrails, JFK multiple-assasins, and UFOs to believe that our global masters have an agenda that goes beyond what is explicitly communicated by CNN/Fox.

Sun, 07/24/2011 - 10:14 | 1487012 snowball777
snowball777's picture

Spoken like Sarah Palin.

Sun, 07/24/2011 - 09:10 | 1486888 the tower
the tower's picture

stop all the conspiracy crap already... the debt crisis is just one of the many issues facing humanity... when the smoke clears things will be massively different... whatever you think will be of value will be worthless... you can't eat gold...

 

Sun, 07/24/2011 - 00:27 | 1486281 PulauHantu29
PulauHantu29's picture

<<"no change" in spending or taxing habits and a temporary hike in the debt ceiling>>

You have to love this "plan" to continue massive spending in Tier 1 and only later, in so-called, "tier II" increase revenues to pay for the massive increase in deficits.

How brillaint is that?! But isn;t what both parties have been doing for the past ten years?

In any case, very very bullish for PMs.

Sun, 07/24/2011 - 08:44 | 1486849 papaswamp
papaswamp's picture

Worked for Japan so far. Debt +200% to GDP and the rating agencies haven't done anything to them. Demographically they will never be able to pay down....the world ignores it. I can see where the
Mentality comes from....I think they are wrong but I can understand it.

Sun, 07/24/2011 - 10:15 | 1487016 snowball777
snowball777's picture

But 90+% of their public debt is held by Japanese...US: 12%.

Sun, 07/24/2011 - 00:29 | 1486298 gwar5
gwar5's picture

Krauthammer suggested $500 B temp raise inn ceiling and buy time. Works against Bamm.  He just wants anything that will put it to bed until after the election. No mention about what is best for the country.

Sun, 07/24/2011 - 00:54 | 1486340 StychoKiller
StychoKiller's picture

To Obamatron:  "People in Hell want ice-water!"

 

I posted this to cbs.com over a year ago (before the 2010 elections):

 

 

Unfortunately for you and I sir/madam, leaving the Decepticrats in charge is
like giving a 13-year old your American Express card and ignoring what they're doing with it.  Here's whats gonna happen:

The Republicons get a slim majority in the House and whittle the Senate down close to parity.  ALL legislation proposed by Obamatron gets stuffed into a toilet somewhere and Obamatron returns the favor by vetoing anything for the next two years, good or bad, it won't matter, it will be vetoed.  So much for having adults in GOVT.  The system spins merrily along until bad earnings numbers start showing up in the large corporations that cater to the US market(s) [no one can spend due to the ever-increasing unemployment numbers].  At that point, the Republicons will cave in and try to co-opt the game plan of the Decepticrats, namely, trying to "Stimulate" the Economy with MORE Govt spending!  So, what was the point of electing the Republicons again?  The market(s) continue exploring subterranean landscapes until the rest of the World goes up in flames as well.  None of this will end well.  If, by some miracle, the Decepticrats hold onto the House, THEY will continue to try to "stimulate" the Economy with MORE Govt spending, and again, we end up burnt to a cinder. 

Take your "Progressive" social justice outrage somewhere else, elementary school ideas of what's fair and just cannot face the real world of the jungle and survive -- congratulations, your poorly thought out ideas of Socialism have/will kill millions, if not billions -- thanks for playing, game over!

 

 

Don'tcha hate it when thinking through the insane "Progressive" proposals to their logical conclusions start coming true?  :>(

 

Sun, 07/24/2011 - 00:55 | 1486345 XRAYD
XRAYD's picture

Gosh, they just need to outsource the debt problem to the ECB and the IMF. Since they have fixed Greece already, the USA should be a piece of cake.

Sun, 07/24/2011 - 01:15 | 1486389 Ying-Yang
Ying-Yang's picture

Sad but true.... that is the PLAN.

Sun, 07/24/2011 - 01:04 | 1486367 anonnn
anonnn's picture

test post

Sun, 07/24/2011 - 01:24 | 1486405 Threeggg
Threeggg's picture

Don't worry they will "whip" something up for Op-ex or just paper it to death.

Book it !

Buy the Dip !

Sun, 07/24/2011 - 01:46 | 1486448 Buck Johnson
Buck Johnson's picture

It's pretty fague and we don't know what he second teir  taxes will be or won't happen.  It could be that Obama is tying to get this passed with the cuts, but then when the democrats ask or demand (we don't know if this will be written in law or it's a pledge to revisit) tax increases and such.  They are done pure and simple, they want this done before 4 pm sunday because as El-Arian of PIMCO made comment that the US had to have something in 2 days and with nothing and a little over a week until August 2 the markets would bleed red fast.

Sun, 07/24/2011 - 02:12 | 1486473 TruthInSunshine
TruthInSunshine's picture

Sun, 07/24/2011 - 03:21 | 1486568 DoChenRollingBearing
DoChenRollingBearing's picture

Now that is nasty, log scale or no!

Sun, 07/24/2011 - 03:36 | 1486576 css1971
css1971's picture

What it really says though is that since 1970, they stopped taxing people and started just issuing money instead.

 

Sun, 07/24/2011 - 06:41 | 1486706 A Man without Q...
A Man without Qualities's picture

Compound interest forces the exponential growth in debt.  Once the shackles of the gold standard was finally cast off in the 70s, the government was free to stimulate the economy to prosperity, but it became impossible to reduce spending, and deficits soon got out of control.  They know they are screwed - cannot increase debt  or raise taxes and cannot cut spending - but they are making a good show of pretence, in order to placate the voters.  The rest is noise, we are already well past the point of no return.

Sun, 07/24/2011 - 08:53 | 1486862 disabledvet
disabledvet's picture

We had surpluses in the 90's. Huge one's actually. How did we end up from there to here anyways? Does anyone really know? My buddy says "it's like looking into a woman's soul now."

Sun, 07/24/2011 - 10:08 | 1486992 A Man without Q...
A Man without Qualities's picture

The surpluses weren't quite what they seem.  A big factor was the tax revenues that came from the equities boom, especially tech stocks.  After the markets collapsed at the end of the decade, equity losses mean the tax surplus went, and even was repaid as people offset losses vs historic gains and got rebates.  There were also some fun and games done with Social Security, playing around with inflation rates.

Sun, 07/24/2011 - 01:56 | 1486474 BaBaBouy
BaBaBouy's picture

Money Changers, Stop It, Stop It Now ...

 

Theres enough Fiats Paper for all of ya's .

 

Don't kill the paper Golden Goose ...

Sun, 07/24/2011 - 02:04 | 1486484 BaBaBouy
BaBaBouy's picture

Ooops, forgot, its not even paper.

 

Just Virtual Digits somewhere on a couple of hard-drives.

 

Thats fiat.

Sun, 07/24/2011 - 02:09 | 1486491 BaBaBouy
BaBaBouy's picture

Worry Worry Worry ... I can't sleep anymore...

 

Who's gonna pay for all our Wars?

 

This is a disaster, we want, we need our Wars!!!

Sun, 07/24/2011 - 02:13 | 1486493 BaBaBouy
BaBaBouy's picture

.

Sun, 07/24/2011 - 02:13 | 1486498 Flatchestynerdette
Flatchestynerdette's picture

.... and the golden calf was being polished as Moses came down from the mountain....

Sun, 07/24/2011 - 02:16 | 1486501 caerus
caerus's picture

i was just thinking...what we need is another tier...

Sun, 07/24/2011 - 02:33 | 1486518 BaBaBouy
BaBaBouy's picture

 

Mmmmmm, More Trillions $$$ on the way soon...

 

 

 

Sun, 07/24/2011 - 02:47 | 1486536 Arch Duke Ferdinand
Sun, 07/24/2011 - 03:08 | 1486555 GiantWang
GiantWang's picture

I'm not a trader and am new to all this and still trying to understand it fully. When TD says the FX markets will no longer be able to ignore the lack of a deal, is he talking about a decrease in the dollar or just a ton of volatility? Doesn't it seem that raising the debt ceiling would be worse for the dollar long-term? If anyone could help explain the correlation, I'd really appreciate it.

Sun, 07/24/2011 - 04:44 | 1486638 slewie the pi-rat
slewie the pi-rat's picture

personally, i don't share tyler's sense of the dramatic;  or prez0's.  it's early, yet.  give it another week?  protect your head.  L0L

of course, the USD just bounced off 74 on the way down.  people were raving abt it going below 70.  then it cleared 76.  v recently.  legislation?  we don't need no stinkin legislation! 

clowns & more popcorn!

Sun, 07/24/2011 - 06:26 | 1486682 falak pema
falak pema's picture

I'm short on popcorn. Haven't been to see a movie in a movie house in ages! Damn these DVDs. Pop corn is not ON says my other half when watching DVDs as its all fat food. Damn those slim witches. 

Sun, 07/24/2011 - 06:49 | 1486683 falak pema
falak pema's picture

dltd. double trouble.

Sun, 07/24/2011 - 04:20 | 1486618 Escapeclaws
Escapeclaws's picture

All this last minute debating is over how big of a chomp the shark will take out of the side of the middle class. They're trying to finetune the toothmarks.

Sun, 07/24/2011 - 04:36 | 1486629 falak pema
falak pema's picture

what about taxes and defense spending...is this being discussed?

Sun, 07/24/2011 - 05:27 | 1486649 Escapeclaws
Escapeclaws's picture

Well, you see, extending the Bush tax cuts is not really spending, now is it? As for defense spending, "Shut up," he explained.

By the time they get our 401K's and other savings, do you realize that all of the interest paid on the national debt will go straight to the top 0.1%. Thus, it behooves the Fed to monetize until there is no tomorrow, which means that we will literally be supporting billionaires with half of the taxes we pay (the other half going to the military and their contractors, and some minor odds and ends). Pretty clever, no?  Just like in the middle ages, most of what you produced went to the feudal lord and you got to keep the dregs of what was left. All of this QEing and raising taxes leads to that result and that result alone. The NMA--the New Middle Ages aka NWO.

Sie streiten von Berge zu Berge hinueber--Goethe, referring to the gods.

Sun, 07/24/2011 - 05:59 | 1486673 falak pema
falak pema's picture

Claws : 

Couldn't agree more! Talking about feudal lords and middle ages : In the context of the tragic events of Oslo where religious/race intolerance becomes a BIG issue now in modern societies both sides of the pond, read my book about the Viking pagan adventurer who fought all religious zealots during the Crusades. It's based on a real character in history, and tells about the birth of the Chardonnay grape in Palestine. So its not all blood n guts. There is then as now the dream of this pursuit of happiness...

http://www2.xlibris.com/books/webimages/wd/uk/301941/

Sun, 07/24/2011 - 06:27 | 1486685 Escapeclaws
Escapeclaws's picture

I'll have to look that up when my internet reception is better. Incidently, I should have written "schreiten" in place of streiten in my Goethe quote. "They stride from mountaintop to mountaintop." The name of this poem is "Was unterscheidet Menschen von Goettern (I don't know how to make an umlaut in this editor.)--that is, "What distinguishes men from gods". This type of poetry, in which Goethe is sui generis seems prescient, given that the apex of the social pyramid can only grow narrower and narrower until...the Antichrist? At any rate, it reflects how the top 0.1% see themselves. Now they can begin the process of recursive cannabalism and digestion until there is only one left, presumably a freemason!

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