Here Comes The Push To Repeal Obamacare, As Goolsbee Starts The Mutual Asured Destruction Charade On Raising The Debt Ceiling

Tyler Durden's picture

The new year is finally here, which means the new composition of Congress and the Senate is now in play and tickets to another year of political theater are rapdily selling out. In the meantime,  republicans are not wasting a single minute. Michigan Rep Fred Upton, who will lead the House Energy and Commerce committee, said today that he expects "significant" bipartisan support for a proposed repeal of the health care overhaul -- a vote he said would be held before President Obama's State of the Union address, reports Fox News. Politico chimes in: "We have 242 Republicans. There will be a significant number of Democrats, I think, that will join us. You will remember when that vote passed in the House last March, it only passed by seven votes." Of course, this is just more of the same theatrical BS that has made all of America sick and tired with the charade that is "democratic" governance. "Republicans reason that the voters who gave them the House majority in November expect them to at least go on record against the health law in the next session, though congressional rules make it highly unlikely that they'll be able to overturn it while a Democratic president is in office." So more theater. But in the meantime, both parties will conveniently ignore the one thing that Americans really voted against: fiscal stupidity and endless printing of money. After all, without excess spending and ridiculous debt issuance now that the securitization spigot is (luckily still) slammed shut, just how will Wall Street award it corrupt servants in Congress and the Senate? In other words, look for a lot of pomp and circumstance ahead of the only vote that matters: the raising of the debt ceiling, which will stunningly end up passing with a near unanimous vote.

More from Fox News:

Though it would be a steep climb for Congress to override a presidential veto in any climate, House Republicans bent on unraveling the bill face a more immediate challenge in getting the repeal to the president's desk in the first place. To get the ball rolling, they would have to convince the Senate, where Democrats hold a narrow majority, to follow their lead.

Upton said on "Fox News Sunday" that he expects those Democrats who voted against the bill last year -- those who are still in office, anyway -- to help build a strong majority in favor of the repeal, which could help on the Senate side.

"If we pass this bill with a sizable vote, and I think that we will, it'll put enormous pressure on the Senate to do perhaps the same thing," he said.

But Upton seemed to acknowledge the obvious roadblocks and explained the Republican game plan should the repeal fall through. As other GOP lawmakers have promised, he said Congress will comb through the law "piece by piece" to try to challenge provisions with questionable merit -- such as the individual mandate that's already being challenged in the courts and a controversial provision that would require businesses to issue 1099 tax forms for purchases that exceed $600. Obama has said he's willing to give the latter provision a second look as well, though his administration is vigorously defending the requirement that Americans buy health insurance

Somehow the feedback loops will interpret this development as positive for stocks. We also expect Cramer to come out with a note that diamterically contradicts his previous one, when he said a bear market would commence as soon as Obamacare passed.

And just to confirm that America's banana republic status will be cemented in under three months, when Congress passes the debt ceiling to well over $15.5 trillion, Austan Goolsbee was heard advising America not to play chicken with the debt ceiling (i.e., to pass it to an arbitrary number with preferably one hundred zeroes). The alternative to not increasing the ceiling is per Goolsbee, in true kleptocrat fashion, untold misery and destruction. From the AP:

The top White House economic adviser is warning against what he calls "playing chicken" with the need to raise the nation's debt ceiling.

For some conservatives, refusing to raise the limit on the federal debt would be a tactic to force the government into cutting spending.

Last February, Congress raised the debt ceiling to $14.3 trillion. The debt is now at nearly $13.9 trillion and growing each day. A move to raise the ceiling again is expected this spring.

The chairman of the White House Council of Economic Advisers, Austan Goolsbee, says that refusing to raise the debt ceiling would push the country into default - and a far greater economic crisis than Americans saw in 2008.

There is no news as to whether America is also not supposed to play chicken with the same bond vigilantes that have made a mockery out of the European sovereign debt market.

 

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Almost Solvent's picture

Death panels reinstated?

Id fight Gandhi's picture

Goolsbee scares me. He could easily be a vampire. How apropos,

cossack55's picture

I think that would be Ghoulsbe

Harbourcity's picture

I thought it was Gooseme - that seemed more apropo

the rookie cynic's picture

In all my future correspondence I'm going with Autsan "chicken-shit" Goolsbee.

CrashisOptimistic's picture

Failure to raise the debt ceiling limits expenditures to tax revenue, which is 2 Trillion / yr.  

Interest on the national debt is "only" $440 billion.  How does this equate to default?  All interest could be paid.  No default occurs.

What doesn't get paid is salaries to a lot of unionized Federal civil servants.  THAT is not default.  That is just layoffs.  What doesn't get paid is some already approved contracts and spending.  That is not default.  That is just contract cancellation.  The cancellation fees could be paid and done.

goodrich4bk's picture

Where do you get $440 B for annual interest?  Here is the budget number for 2010 --- $187B.

http://www.usgovernmentspending.com/year2010_US.html

CrashisOptimistic's picture

http://treasurydirect.gov/govt/reports/ir/ir_expense.htm

You link looks legit, but it's hard to see anything wrong with mine, too.

2010 was 413B.  2011 will be about 440B with the added trillion.

Regardless, if you are right somehow, it strengthens my point that refusing a debt ceiling increase does not generate default.

The Navigator's picture

Generally I don't trust numbers coming from the government - www.USdebtClock.org may or may not be correct but I take their numbers more seriously.

An interesting side note - what will be the cost of interest on the debt when the Fed has to raise interest rates to defend the USD in the money markets or attract buyers at bond sales? Or, by that time, will it be too late (hyperInflation where no one wants to hold USD)?

Either way, PM's are our safety net - Ag, Au, Pb.

jeff montanye's picture

barring alchemical breakthroughs, pb is still lead.  pt (platinum) or pd (palladium)?

theXman's picture

Normally Goolsbee has a dry sense of humor, but during today's appearance on Meet the Press, he looked to be in a very dark mood. I wonder what is going on inside WH.

jeff montanye's picture

from his c.v. he doesn't seem a dummy.  perhaps what has occupied this blog for two years is beginning to wear on a.g. as well.  he may also have additional concerns. 

ron paul isn't going to make the ben mcbank's life any easier (nor should he) and getting further stimulus through the house doesn't promise to be as easy as last time (which was hard given b.o.'s proclivity for negotiating with himself and general gutless wimping out).

then there are all those investigations the republican controlled house will launch against obama, as were launched against clinton.  this time however there will likely not be an economy expanding vigorously and one of history's great equity bull markets a'roaring.  on the other hand obama may actually be faithful to his wife.

palmereldritch's picture

 

"Goolsbee scares me."

He should...

http://www.rense.com/general80/web.htm

Article by Webster Tarpley

[snip]:

"Barack Obama's top economics adviser is a member of the super-secret Skull & Bones society of Yale University, of which George H.W. Bush, George W. Bush, and John Kerry are also members, reliable sources confirmed tonight. Goolsbee is widely reported to have told Obama not to back a compulsory freeze on home mortgage foreclosures to help the struggling middle class in the current depression crisis..."

 

http://en.wikipedia.org/wiki/Austan_Goolsbee

[snip]:

"At Yale, Goolsbee was a member of the Yale Political Union, the improv comedy troupe Just Add Water, Skull and Bones, and the Yale Debate Association

 

jeff montanye's picture

no, no, not the debate association!!!!!  

Bob Sacamano's picture

Won't survive BHO veto, but probably worth trying to draw some lines in the sand on the limits of government take over.  Unfortunately, the regulatory morass that the left seems to embrace is sand in the economic gears and will prove very difficult to extract absent full repeal of the legislation.

knukles's picture

Somebody ought stick an ammendment on the Debt Ceiling bill to raise Congressional salaries by 5000%.  Watch that get voted on!  535 "Present".

Don'tcha just love it; "ought at least go on record being against" or some such rotten twiff stuff. 
And as soon as having gone on record with "T'is a bad day when we must do that which we might not otherwise in good conscience, laddie."....

"I'll take the envelope for $1,000,000, Alex."

jeff montanye's picture

seems to me the economic gears (credit default swap, securitized mortgage obligation, derivatives thereon...) could have used a little more regulatory sand from say 1999 (gramm leach) through the utterly cynical takedowns of bear stearns and morgan stanley to at least the current iteration of trashing the fed's balance sheet, refusing to require accurate financial sector financial statements and paying off bondholders of insolvent banks with taxpayer funds.

Motorhead's picture

Cramer can stick his BOO-YAH up his arse.

High Plains Drifter's picture

The NWO crowd are not going to like hearing this.

robobbob's picture

What? grid lock, empty gestures, dissapation and fragmenting of citizen discontent while hidden amendments advance unseen and undebated while the real problems go unsolved and deteriorating.

Sounds like the NWO planning is going perfect.

hound dog vigilante's picture

Debt limit vote(s) is the litmus test for 2012 (& possibly 2014).

 

Those who vote to raise the debt ceiling will face primary and GE challenges, and many will lose. Which means the debt ceiling vote(s) is also an intelligence test... a vote to raise the debt ceiling is both morally corrupt and politically stupid. 

Debt ceiling vote = tea party fuel.

 

 

 

 

Oh regional Indian's picture

Freaky. i was just reading this article via yahoo mail check and thinking, I've got to post this link somewhere on ZH.

The full court press is already on. Smart timing, in a couple of months, trillion will be common-phrase. After 760 Billion, 20 trillion does not sound so bad, if repeated enough.

It's just 20 of the latest illion.

ORI

http://aadivaahan.wordpress.com/2011/01/01/2011/

alexwest's picture

yep, end is near.. and i guess so called elite knows that..

 

it's  just matter when this year or next... it's quite clear as soon as

DEBT hits some kind of round figure 16,18 20 trln $ that's  it

they gonna lose it.. all those scanners, etc etc point to clear

path ..

 

only way to survive leave country NOW,, SELL HOUSE ,,

MOVE  MONEY  TO stable country north europe/ germany/ swiz

we are fucked...  sad :((((((((

alx

Founders Keeper's picture

[...only way to survive leave country NOW,, SELL HOUSE ,,MOVE  MONEY  TO stable country north europe/ germany/ swiz...]---alexwest

Not sure I read your post clearly. Sounds like you are saying: to survive, a US citizen should relocate to a presumably "stable" country, e.g. Germany, Switzerland. (Or, perhaps you mean only move one's assets to said countries.)

I hear and read of many people who share your sentiment to leave the U.S.

You and I are cut from different cloth. I could no more flee my country than could I abandon my family.

I understand many folks do not feel nationalism. They are foreigners to patriotism. Indifferent to history and cultures bound by colored lines on a map.

You are surely cut from different cloth than I. Nevertheless, I respect your apathy as a human condition. It would seem to be in your God-given nature. You may return my respect please by staying the hell out of the way when those of us who love this country are called to restore it.

 

cranky-old-geezer's picture

"when those of us who love this country are called to restore it" ?????

This has got to be one of the most idiotic insane comments I've ever seen on ZH. 

What are you waiting for Mr. (alledged) Patriot?  What call?

Do taxes have to reach 100% of income for that call to go out?

Do the Constitution and Bill of Rights have to be completely shredded and thrown in the trash can for that call to go out?

Does America have to morph into total police-state tyranny for that call to go out ...when it will be way too late to do anything about it?

Does Wall Street have to steal ALL the weath from the middle class, reducing Americans to homeless peasants rummaging through trash cans for something to eat for that call to go out?

People like you are the MOST DELUSIONAL of all, waiting for some "call" to go out to get off your lazy asses and set about "restoring" America.   What complete utter bullshit.

America is not going to be "restored". No nation in human history beset with this much top-level criminality and depravity has EVER been "restored".

ColonelCooper's picture

Good post, but it would be a little more effective if you didn't beat around the bush.  Just come on out and tell us how you really feel.......

Milestones's picture

Hahahaha--good post. Both.     Milestones

Founders Keeper's picture

[People like you are the MOST DELUSIONAL of all, waiting for some "call" to go out to get off your lazy asses and set about "restoring" America.   What complete utter bullshit.

America is not going to be "restored". No nation in human history beset with this much top-level criminality and depravity has EVER been "restored".]---cranky-old-geezer

Hat tip to you, cranky-old-geezer.

When I read your post, and hear passion like yours, I am moved to tears.

I can't describe the sadness I feel for our beloved country---where we stand today so very far from our founding.

I cannot presume to know when and in what capacity God will call me. I am not reluctant to be called, I am reluctant only for patience. Timing is important, your years will tell you so.

The economic storm, now quietly gathering, will soon come crashing on our shores. The storm will lay bare important lies. Sides will be taken.  

The "calling" is coming for many of us. Perhaps for you too, kind sir. For the young, the old, men, women, poor, rich, the sick, the strong, some armed to the hilt, some armed with only a full heart, Patriots All.

 

cranky-old-geezer's picture

Your response is quite confusing.  You hat-tip what I said about a "call" that will never come, then turn right around and fantasize about that "call" coming.  Sorry, I don't understand.

God will issue that call?  To do what?  Restore America?  God doesn't care about America.  He turned his back on Israel, his "chosen nation" at that time, due to rampant top-level criminality and depravity, allowing Israel to be conquered and occupied with many taken into foreign slavery, and he's going to prevent such a thing happening to America?  No way.

Patriots? 

Patriots I read about went into action when British taxation was less than 5%.  You self-styled "patriots" today haven't lifted a finger when taxes are 50%+ ...except to fill out your tax returns and write the checks.

Patrots I read about wouldn't have tolerated their wives and children being sexually groped at airports by power-crazed moronic minimum-wage government thugs.  I quite believe they would have refused to fly, boycotting the airlines as a minimum, when you self-styled "patriots" today stand there letting them have their way with you ...and your wives and children.

Patriots?  I don't think so.

Delusional?  Very much so.

jeff montanye's picture

i think it was more the taxation without representation (still a valid complaint in today's crony corporatist state) than the absolute level of taxes.  the ease with which the elites support and the masses tolerate the police state aborning is deeply sad.

Founders Keeper's picture

[Your response is quite confusing.  You hat-tip what I said about a "call" that will never come, then turn right around and fantasize about that "call" coming.  Sorry, I don't understand.]---cranky-old-geezer

Where I come from, a hat tip is a gesture of respect to women and elders.  (Even cranky ones.)

 

trav7777's picture

there will have to be some sort of compromise on bamacare; the tidal wave in 2010 was too large to ignore and there's another election in just a couple of years.

if the main street economy continues to be this bad, there will be some hell to pay even though the electorate hasn't yet figured out that they are just the jane in a gangbang.

That said, all this kvetching over the debt ceiling is laughable and only illustrates how pathetic the average cognitive ability is now that we're talking about chunks of trillions in raises.  It's a simple geometric growth pattern with actually a relatively linear log plot, mathematically unexceptional.  Yet we hear all this braying when the doubling is "4" instead of "2."  The ceiling needs to be doubled on the growth interval, whether that be 1, 2, 4, or 128T

unwashedmass's picture

actually, i think the entire exercise is going to be chalked up as mission accomplished for Wellpoint. They rammed thru truly massive premium increases due to what they said would be increased costs to them under the  new health laws. Now, they get a repeal before they actually have to provide any services, so its all good.

The medical structure in my state in now collapsing with doctors being laid off and hospitals closing....which is the norm in banana republics. Thing is, our politicians are just too damn dumb to see how they got skinned alive.

So nothing is changing here.

uno's picture

politicians have their own health insurance, so their families will not be inconvenienced.

Rusty Shorts's picture

Corporations do not pay taxes, they are tax collectors for the State.

http://www.youtube.com/watch?v=kBt8xEWP7RU

jeff montanye's picture

some of the politicians are dumb, more are smart.  too many are corrupt.  it is the latter that is the problem.  they must be corrupt to survive.  the supreme court says so (political contributions from corporations cannot be restricted -- it's their constitutional right).

Rick Masters's picture

"Just the Jane in a gangbang"...classic. We should compile a list of classic ZH sayings. Lists, bitchez!

TruthInSunshine's picture

That said, all this kvetching over the debt ceiling is laughable and only illustrates how pathetic the average cognitive ability is now that we're talking about chunks of trillions in raises.  It's a simple geometric growth pattern with actually a relatively linear log plot, mathematically unexceptional.

With due respect, it's not linear; it's begun to reflect near exponential qualities, especially when taking into account the magic of compound interest.

America's debt, like some other 'advanced nations,' is now parabolic.

Look at a debt chart of the U.S. in the last decade, and compare it with any decade prior.

Better yet, compare the last decade of U.S. debt, on a chart, with the prior 5 decades.

 

digitalhermit's picture

With due respect he said "linear log plot". Of course you'd expect a linear log plot for exponential growth.

cosmictrainwreck's picture

I've forgot my logarithms.... does it stay linear if exponent is a 3 instead of a measley 2? I'm guess yes. Ergo...if we use that metric YEE-HAW, let's make it the 4th power, or the 5th, eh?

liberal sodomy's picture

Worse is better from where I stand.  I want this jewish and brown america to collapse.

The last 50 years has been fucking hell here.

Let's see it come to it's logical conclusion for once.

 

Mr. Majestic's picture

I see the Aryan Nation contingent is in the house.

 

liberal sodomy's picture

The silent majority is not going to be silent now that we have reached critical mass.

Mr. Majestic's picture

If you mean  listening to rich white assholes complain

about how bad they've got it, you can save it. Go on being silent

 

liberal sodomy's picture

You're in for a world of hurt.

The facts are in and no one believes the Fifth Columnists on the electric synagogue or the jewspapers anymore.

 

Mr. Majestic's picture

Dude, you need to switch to decaf.

 

Mr. Majestic's picture

And what's with your obsession with anal anyway?

 

liberal sodomy's picture

I've been inundated with scatological "humor" via jews like adam sandler for 30 years.

Mr. Majestic's picture

I'm going to fire a Christian at work tomorrow, just for you.