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It's Official: Congress Passes Debt Ceiling 231-195; All Republicans, 20 Democrats Vote Against Raise
Congress Democrats have just signed off on the US hitting 100% debt/GDP. About 140% if one adds GSE liabilities which also should be on the budget.
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See you in six months when they have to do it again.
That's just plain crazytalk. Raising it again in 6 months? We'd be talking about exponentially increasing US sovereign debt load. No reasonable person would contemplate such a financial doomsday move.
That's so irresponsible an act that only thieves and CONgressmen would consider it.
Ohh wait... Shit.
$1.9 trillion increase in debt ceiling to 100% of GDP. Gold down $50. Makes perfect sense to me.
a Costanza market
Yep. Positively dollar positive. Makes perfect sense to me too.
http://news.goldseek.com/GoldenJackass/1265248800.php
Good read! Thanks for the link.
Jackass is back! Boo-yah!
Makes perfect sense to Trader Dan Noricini too:
"I find it ironic on the very same day that the USDX surmounts the 80 level that the headline across one of my favorite website reads,
“Pennsylvania State Capital Mulls Bankruptcy as a Budget Option”.
Let’s see – that now makes California, New York, Michigan, Illinois and Pennsylvania in the headlines within the last few weeks. But little ol’ Greece has debt problems so the Dollar is a safe haven. Yep –makes perfect sense to me."
http://jsmineset.com/2010/02/04/hourly-action-in-gold-from-trader-dan-211/
Trader Dan is great
Ahh, such is the beauty of paper gold and massive short positions. That is, if you're a bankster.
You yanks are so screwed.
The Limeys are not in the best of shape either :-)
good thing i am a canuck :)
Have fun when "city of the future" Vancouver's housing bubble pops. There is no way a 2BR mediocre house in a city where it rains 24/7 can cost $750k.
Just wait until you have illegal immigration on your southern border. Noticed how much trouble we've had getting a fence built across our little southern border? Good luck to you.
Oh, and last I checked the Canadian housing market wasn't much better than ours. At least you have a somewhat softer form of corruption than ours.
In that case, would you guys mind smuggling some of your firearms up here? The market here sucks.
"good thing i am a canuck :) !
only out by 28 years then :-)
you know what they say:
on a long enough timeline......
if your gun laws didn't suck I'd emigrate up there. Say, could you use a Ph.D in engineering?
Lizzy, they've been screwed -- they were just blinded by their own arrogance to realize it. Focus yourself, 2010 will give us some great opportunities. Good luck Gal...
Hey. Be nice. 2010 will become a race to the bottom.
One hangs all hang.
Proshares baby! Proshares!
DXD, SDS, SKF. Ride the slide right to the bottom.
As Bobby Knight said: If you're gonna get screwed, might as well lay back and enjoy it.
That is what Bobby Knignt said to his players AS he was screwing them...
That is sort of like Jamie and Lloyd telling the Amerikan public it is all their fault they got screwed...
Technically it is the Amerikans fault they got screwed. When you are a pussy... well you get the picture...
yup, and our friggin "leaders" are strutting around after crap like this vote, saying "I bailed out *my* part of the titanic..."
as mogambo says... "we're friggin doomed..."
good time to buy more gold, i guess...
I don't think Canucks in Ontario are going to be all that much better. Now, if you were to move to Saskatchewan and become a farmer, then you can relax.
The key difference is that, for now at least, Ontario has a solvent federal government to back it up. Ontario was a "have" province in Canada for a long time, and now that much of the rest of the country is awash in commodity revenues we could use some help transitioning our economy away from dependence on the soon-to-be-third-world upper midwestern states.
Game, set, match. See you in Nov, Dems.
Or Not.
Heh. 2010 might be remembered (in addition to the year the wheels came off) as the year of the strategic retirement from office.
We've gone "all-in".
Do ya think they will stay standing on their feet until the final call?
On their feet or on their knees -- I won't speculate of the position they'll (err, we'll) be in when the collective cognitive realization of what just happened arrives.
And this doesn't do much to stoke my patriotism, which is a damn shame. I'm reading an excellent history of the civil war battles right now -- there were moments of great leadership as well as plenty of examples where leaders were too drunk, cowardly, or self-absorbed to make a decision. Their lack of accountability and engagement caused people under their command to die. I view some of our existing "leaders" in congress the same way in these circumstances -- they are killing the promise and future we all hoped our kids would enjoy. They suffocate hope with debt. Murderers!
our US Treasury "O'hare trade."
All in with a pair of fours ... chances?
We need to list the Dems who voted against this. They are the ones who respect the power of individual voters.
The rest can go rot. The day is fast approaching when these elitists will get sent to /dev/null , with the main-man socialist, developer of the supreme welfare state, Obama. Tax and spend. Reggie Miltons hope and change man.
If you want the Roll call vote breakdown by Rep....
Go HERE
http://clerk.house.gov/evs/2010/roll045.xml
Never mind.. :)
Doesn't look like gold is working today.
We all knew this would happen. Why wouldn't they? The people are happy to be boiled alive one degree at a time. Rest assured that spending will not be reigned in, and when the Red team takes over we will same the same exact plays get ran.
They will loot us till either:
1. We run out of wealth for the criminals to steal. AKA they turn us into exotic, scenic Zimbabwe.
2. American's wake up out of their American Idol, junk food, pop culture fog and stop the criminal class.
Sadly #1 is more likely than #2. After all they will simply lead the despair of the masses back into voting in the morally bankrupt and spendthrift Red team to stop the morally bankrupt spendthrift Blue team.
I vote for #1 followed by a totally perverted #2 in which the thieves manage to portray themselves as beneficent caretakers and direct public anger towards those who had actually been trying to prevent or at least warn of the crisis.
Ah. You mean like this nutty bit of acrobatics:
http://en.wikipedia.org/wiki/Barmat_Scandal
... and the wheel goes round and round ...
cougar
how can you get enough drones to stand up? everyone has been conditioned to only be responsible for a small part of any workload and to be content if their project fails as long as it wasn't directly their fault... so the fault just gets spun around to a point that no one can pinpoint so no one feels a need to rise up since everyone feels they are 'doing a good job'
#1 is not "more likely" than #2: #2 isn't going to happen at all.
The Republicans are fiscal heroes!!1!
But on a serious note, we're fucked.
lol, +100
Yes Republicans were CHOSEN to understand proper economics. Why? Because from the beginning the plan is for them to inherit the US.
1) Create an economic WMD of easy money.
2) Hand out said WMD to every man, woman and child.
3) Obfuscate and road block all attempts to defuse WMD.
4) ...
5) 100 years of corporatist one-party rule!
actually, the dems are doing the right thing imo. Just go ahead and lever up until you can't anymore, then devalue the currency by 50-75% and voila - debt problem solved.
Seems this is exactly what they are going to do.
They vote on these things like it matters, and they have choices. The Repubs vote "no" now because it won't stop a process that began 12 years ago. Everyone knows how it ends. Nobody really cares anymore. Nobody will remember any of this.
cougar
The process began a lot longer than 12 years ago. And, speaking as a person who has only voted once for a Democrat for ANY office at the federal or state level, it sure would have been nice if the Republicans had manned up during either Reagan, Bush I, or Bush II.
thats what lyndsay williams is saying on utube
OT: Any word on a GS revised estimate for tomorrow's NFP?
Hey, what about the IOUs owed to Social Security and Medicare? I 'invested' in them securities through forced expropriations on my paycheck and I expect full returns on them.
And in nominal terms, I'm sure you'll get such returns.
Perhaps, one day, you'll be allowed to cash in your entire social security balance as a lump sum, and trade it for lunch, or a used shirt.
This is the LAUGH OF THE DAY. What a way to divert attention from the problems at hand, PIIGS pay attention:
http://au.news.yahoo.com/thewest/business/a/-/world/6762828/debt-laden-d...
I can see the Irish one: "Irish Government Discovers Leprechaun, Uses Three Wishes to Launch Country Back to Prosperity"
"I can see the Irish one: "Irish Government Discovers Leprechaun, Uses Three Wishes to Launch Country Back to Prosperity""
ROFLMAO!!!!!
Can someone please pass me a shovel and direct me to the neareast sandbox, I have a head to burry.
"Zeus Meets Almunia on Mount Olympus, Provides Blanket Guarantee to Greek Debt"
"US holds garage sale to pay off national debt."
SteveNYC : "Debt-laden Dubai finds new oil field"
This is a novice question:
Can't Duabi book reserves as an assets on their balance sheet? Is the "green shoot" timing of this what you are laughing at?
We're all PIIGS now.
TD, don't forget to add the state budgets in as well. Go Team!
Its not so much a debt ceiling as it is Jacob's Ladder.
Building our way to that big poorhouse in the sky.
Your only alternative is R
Your only alternative is R
Viva el Presidento!
Viva el Congresso!
Viva el Republico Americano del Banana!
seriously, people: start borrowing money. borrow all you can, the longer term the better. you'll be paying it back in pennies.
you're phucked as a consumer, but if you borrow like mad you can even it out a bit.
Good advice in principle, but you have to make a bet on timing. And Japan's unending deflationary depression shows that timing is iffy.
<careful>
the only way inflation works for us, is if we get a raise too. i don't see many raises in *my* immediate future... but any of my collateralized debt goes to the note holder if i can't pay...
the more we owe right now, the stronger their grip on the *real* wealth/stuff.
yes, we will see inflation, but only *after* we've been forced to hand over our real stuff. don't ever bet against the guys closest to the printing presses. you are conceptually correct, but timing is *everything*. regardless of the timing, i prefer NOT to owe anybody anything. only then am i really as free as can reasonably be expected when part of a community.
</careful>
its all trade offs and freedom is relative. I am free, having few needs and less wants. But its sure cold under this bridge!
Living in tent cities across our country is the future of our nation.
Sigh; once again for the record: Scott Brown was sworn in today. The MA election proved that the era of open-ended bailouts is over ie the super-majority is dead. Without the ability for Ben to print unlimited amounts of Benjamins at the behest and use by fed.gov (and then to the respective states), this party is finally coming to an end.
The deflationary tsunami has been waiting patiently for almost a year now. She is about to take everything with her - both on the way in, and the way out.
More like the Tower of Babel IMO
I don't know why they didn't just double the ceiling. Hell, why not make it $100 Trillion? What's the difference now? It's mathematically impossible for it to be repaid. We all know that.........
How long are we going to play this stupid game?
Quite a bit longer.
The "we" who knows how fucked the country is is such a small percent of the population as to be almost irrelevant. And various foreign countries that know how fucked we are have their own problems, often even worse (Japan, China, UK) and know that they all need to keep extending and pretending.
I gotta disagree. Look at the Z1 report - money/credit is still contracting. I'm convinced MA was the tell. Without a super-majority, we're not gonna get anymore crazy-ass bailout bills ("jobs" or otherwise).
No more spending bills, no more Benjamins fresh off Ben's printing press. No more Benjamins, hello debt-deflation tornado.
I think the shit we're starting to see now on an almost hourly basis is an indication that things are going to come to a head a lot sooner than many people were expecting. The PTB better hope their jets are fueled & ready - the mob ain't gonna be far behind.
One more month. We play this game one more month.
one more month. Oregon is still waiting for winter, most zero hedge readers are waiting for the fall. Everything is in a state of suspension.
I think we fall from here on and i dont see a bottom, oh There it is!!
I was afraid it might be water and i cant swim...concrete! yikes.!!!!
The current bump will get the Treasury through the end of the year. By then the wheels come off.
I wonder if they'll actually burn the $1.9T they just "gave" themselves. Someone will need to buy that debt.
Who will? Who can? Who will be left?
cougar
Oh c'mon, that's easy... the Fed will buy it all. With money they magically created. Maybe it will shuffle through the caribbean, maybe it won't, but you know who will be "buying" it.
Someone needs a Grand Unified Monetary Theory... involving dark matter/money, vacuum energy, etc...
Max, giant blackhole... wait i ve seen that
Cougar, just because Congress raised the debt ceiling doesn't mean they have the legislative ability to spend the increased limit.
Think about this way: imagine your credit card limit was bumped by $10k, but your wife warns you that if you try and spend it (putting your family in further debt), she will literally cut off your balls. So, do you tempt fate by buying your girl-friend that new necklace she's been clamoring for (or "else" ie she walks), or do you suck it up and stick to screwing your wife?
MA was in essence telling Congress that they're going to get their balls cut off come Nov. if they engage in any more cockamamie spending bills. Without spending bills signed, sealed & delivered, Timmy can't phone up Ben to order up a new batch of freshly printed Benjamins in which to hand over to the MIC & welfare leeches.
Our Willy E Coyote moment is awaiting.
B9K9, you are very optimistic about the effect of the MA election. I hope you are right, but I don't expect you will be.
It is important to bear in mind that this may not matter quite so much as one might presume. $12T. $14T. Inflate a number of your choosing. If there is simply not enough global capital to eventually support the global debt, it all implodes.
The path to recovery lies in reducing the size of government and decentralizing incompetence.
Leadership. Morals. What's my cut?
http://wideeyecinema.com/?p=7208
Israeli director Yoav Shamir embarks on a provocative – and at times irreverent – quest to answer the question, “What is anti-Semitism today?” Does it remain a dangerous and immediate threat? Or is it a scare tactic used by right-wing Zionists to discredit their critics? Speaking with an array of people from across the political spectrum (including the head of the Anti-Defamation League and its fiercest critic, author Norman Finkelstein) and traveling to places like Auschwitz (alongside Israeli school kids) and Brooklyn (to explore reports of violence against Jews), Shamir discovers the realities of anti-Semitism today. His findings are shocking, enlightening and – surprisingly – often wryly funny.
the future thought police break it down for you in simple terms. watch this intersting video and you will see the future of amerika, unless we stop it. many people in this world want one simple thing. world peace. we are sick of war. we want peace. is that such a awful thing?
Everybody is doing it. Hit that crack pipe and pass it! I need me some crack!
I failed @ trying to be surprised.
lol +10
All the credit and all the blame. You'd think that the dumb ole Democrats would have learned a lesson or two from stupid ole Bush and company.
They now own it. Can they fix it? Wait ... no wonder they wanted Bernanke ... he's the only guy with experience at hiding that much money from prying public eyes.
History repeats itself ... which will lead to another history repeating event -- throwing the bums out.
It's hard having to put up with stupid people all the time. Jerking a knot in their hair semi-regularly is enough to tick off anybody and everybody.
Remember: Vote … it’s the preferred method of throwing the bums out.
Worrying about who is in office doing what is SOOOO 1950's.
Politics is dead. Everything is now reaction mode. Doesn't matter who is in the seat reacting, their play was made for them from the dugout.
You will see. All that's left of politics is demagoguery.
cougar
Never mind.. :)
100% GDP just the tip of the Titanic iceberg:
http://www.kitco.com/ind/Dougherty/jan222010.html
You know, just last night, I was clicking through my 1,000 channels of Soma when I saw a program on The Military Channel, of all places, on pre-world war II Germany. It was chilling to note the similarities between Germany then and the USA today. The annexation of land, the loss of personal freedoms, persecution of a peoples, the propaganda machines, and best of all the smiling faces on the political party leaders. I guess now the only thing left for people to be surprised about is ..... the evil that awaits us. Get ready to put your surprise faces on.
It was inevitable with the Dems running everything.
The Dems are fiscally irresponsible.
I long for the days of Bush and fiscal accountability and budget surpluses.
I see what you did there.
I hope some of you are doing a little more in preparation than waiting for the next election? Down here in Australia I'm putting a cabin on rural land, stocking the cellar with dry food and silver and gold. Good luck to all.
The Fools in Washington D. C. might have authoized this but I did not... They just made the U S Dollar weaker ...
This is just reason number 27 to buy more Gold and Silver..
It is cheap today.... by April there won't be any left on the shelf.
Had a hard time finding even 20-oz of AG at my usual source today (had to settle for the South of the Border variety - in coin form, of course). Said source had precise 1-oz bar of AU he was selling and his stocks of AG were about 15% of what he usually has.
The point? Supply of physical PM is drying-up. Fast.
Since the debt ceiling is no longer relevant, Why Bother?
Not to be outdone by Bush and his merry band of drunken sailors, Il Douchè and the Dems are reclaiming the title of ‘Biggest Spenders’ in a big way. But, saying that either party (read: bunch of tards) is the more “fiscally responsible", is like saying that Moe is the smart one of the Three Stooges.
The lesser of two evils…is still evil.