John Boehner Statement On Practically Agreeing To A Debt Ceiling Hike

Tyler Durden's picture

Statement by Speaker Boehner on Debt Limit Discussions

House Speaker John Boehner (R-OH) released the following statement today regarding ongoing debt limit discussions with the White House:

"Despite good-faith efforts to find common ground, the White House will not pursue a bigger debt reduction agreement without tax hikes. I believe the best approach may be to focus on producing a smaller measure, based on the cuts identified in the Biden-led negotiations, that still meets our call for spending reforms and cuts greater than the amount of any debt limit increase."

Zero Hedge translation: in two weeks we get news of no tax hikes, and no deficit reduction, which will be spun by the great diversionary media machine as the great compromise, and, of course, leading to a $2.5 trillion debt ceiling hike. Win, win for everyone. Except America's people of course, but who gives a rat's ass about them: certainly not their "elected" muppets, all of which are for sale to the highest Wall Street bidder.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Seasmoke's picture

its already been written and the ink is already dry

bankonzhongguo's picture

What this really means is that the republicans think Obama and krew will burn through $2.5 trillion between now and the next Special Olymipics - I mean presidential election (if there is one).

So lets call it 1/3 for the Noble Prize winner's Wars - $830MM and the rest for the banksters.

Thats over $150 million a month in burned out taxpayer cash going - where exactly? 

Planet 10?

goldfish1's picture

 "elected" muppets, all of which are for sale to the highest Wall Street corporate bidder.

in other corporate news...BMW layoffs exemplify the evisceration of the middle class

http://www.latimes.com/business/la-fi-hiltzik-20110703,0,1163343.column?...

Lem Motlow's picture

You mean BMW electing to pay workers their actual economic worth instead of inflated union wages?

goldfish1's picture

actual economic worth

 

That's a topic for debate.

High Plains Drifter's picture

and what do we have to thank for this mess?  fiat currency , that's what?  would this happen if we had hard currency?  hell no........the owners of this crap know it too. it is easy to expand money supplies when there is nothing backing it. good for getting countries into debt and subsequently controlling them...

pods's picture

Exactly.  When they cannot extract enough labor (taxes) to pay the interest on the exponential debt, they will settle for dividing up the resources of the nation.  

Oh, they will call it "privatizing", not stealing.  There will be an IMF/World bank loan in between, but that is just a formality.  

pods

High Plains Drifter's picture

before privatization, we had capitalism and free trade and we were told that getting rid of regulation was a good thing. so certain parties(haw haw haw) could steal more from the sheep without repercussions......and when certain parties(haw haw haw) get in trouble, they can run to a certain place in the middle east that was created on stolen land in 1948....hmmmm..........

HungrySeagull's picture

I told ya.

Someone will cave, the debt raised and all is well until the next Election.

 

As speaker, Boehner is third in line for the Presidency. He knows when to back off a little bit and bide his time.

fockewulf190's picture

Another $2.5 trillion on top of the gigantic $14,5 trillion dollar pile of shit.  This just makes me want to stack more Phyzz.  Somebody please do the dirty with Blythe in exchange for getting her to repeat another May 1st like PM rape-raid. 

FEDbuster's picture

The question is how much govt. debt can the FED take on to their balance sheet?  If the answer is unlimited, at what point does the rest of the world (who have dumped 40% of their US bond holdings) deem the US dollar worthless?  If this is the final stages of the Grand Dollar Ponzi, will it end with a sudden bang (year long hyperinflation collapse) or a slow decline over a couple more decades?  I think the unwind will take much longer than most here think.  The debt ceiling will be raised, QE will continue and the can will be kicked towards the cliff once again.

thunderchief's picture

You are correct.   This will give the Chinese and other bond holders breathing room to divest as we slowly let the air out of the USD.   My prediction is some day you will hold up a 100RMB  and a $100 and they will be the same value. 

Janice's picture

If this is the final stages of the Grand Dollar Ponzi, will it end with a sudden bang (year long hyperinflation collapse) or a slow decline over a couple more decades?  I think the unwind will take much longer than most here think.

What if we have already experienced the "slow decline" since the 90's and we are now building up to the final "pop".  We certainly do live in interesting times.

fockewulf190's picture

Timmah was just blabbing on Flee The Press that unless the debt level is raised by August 2nd, our debt ratings will be slashed and an economic catastrophe worldwide will occur.  So that means if there is no deal, potentially the SHTF inside of a month.  If the debt level is raised, the debt continues to rise and rise, China and the rest of the world dumps our bonds faster than a used piece of toliet paper, the Bernank prints and prints, and our ratings go down anyway...probably just before the election.  Obama will be all gray by then.

High Plains Drifter's picture

boehner sold us out. let's face it. he did it.  he bows the knee and kisses the ring. he deserves to be on the business end of a bayonet, like almost all of them , if not all of them.

jerry_theking_lawler's picture

HPD, take it easy bro, someone on here may take your threat as you being serious.....then you know what is next.

 

knock, knock  mr. drifter, (men in black in black SUV's at door), we would like to have a word with you outside, please.

 

last we hear of me HPD....

thunderchief's picture

When the repulicans shut down the government during the clinton adm.  the economy was creating a few hundered thousand real jobs a month, the tech boom was in full swing and the country was producing a surplus. 

Boner and Co. know if they try this stunt this time the economy will collapse, you will have half the government out of work, the military will collapse soviet style and the dollar with it.  IE they will get their ideology of limited small government handed to them.   They are telling everyone that they really are just kidding about all that stuff. 

High Plains Drifter's picture

yeh and when these republicrats, start cutting entitlements, the only thing that keeps the cities from buring these days, then we shall see what happens as the sheep begin getting fewer shekels every month......

ibjamming's picture

Seems we're getting ready to open ANOTHER credit card account...to pay off the other credit cards minimum payments.

HungrySeagull's picture

We actually transferred a 17% onto a introductary 0%

Had 9 months or less to get it paid off. Took alot of PBJ Sandwiches but we got it done in 7. Zero Interest.

rubearish10's picture

DJIA 36,000 and old at 1:1.

High Plains Drifter's picture

dow at 36,000 is fine with me. i know full well what that means. i am heavily diversified and hedged with 25 percent gold and 75 percent silver....

Hedgetard55's picture

What's up with Boner's orange ties?

gall batter's picture

they're really silver and they reflect his Orangina tan.

Juan Wild's picture

Boner's almost as tanned as Obummer

jeff montanye's picture

no speaker of the house has ever advanced to the presidency by succession.  that should make us feel better, right?

HungrySeagull's picture

You won't believe what the future may hold. We have after all already experienced many things that I thought would not come to pass over many decades.

thunderchief's picture

His liver is even more tanned from all that hard liquer.

doesmybuttlookfatinthis's picture

I finally understand why my butt looks so fat. Boehner's boners in it, and his hands are in my back pocket,

tom a taxpayer's picture

It's Angelo Mozilla tan, rubbing off on Boehner.

rubearish10's picture

Re-post:

DJIA 36,000 and GOLD RATIO 1:1.

traderjoe's picture

Until someone replies to your post, you can edit it...

Newtons Lawyer's picture

Boehner knows that Obamer doesn't want this same discussion later in his re-election campaign, not that Hope and Change hasn't been in campaign mode since a few days before the election, but with unemployment climbing, debt climbing and Europe imploding, he'd rather not have this as another issue.

jeff montanye's picture

what about charts of the rates of change in the amount and of the period in time between ceiling hikes?

zorba THE GREEK's picture

 With signs of weak economy and rising unemployment, both sides now fear either raising taxes

 or massive budget cuts could cause another recession. So debt ceiling will be approved without

 cuts or tax increases. Probably the best move at this time.

WestVillageIdiot's picture

Probably the best move for a nation of moronic, spoiled, over indulgent, self-entitled credit junkies that are led by the same. 

zeusman's picture

You must be refering to Bush and his Cronies who ran the country off a cliff from a balanced budget in 8 years, correct?

WestVillageIdiot's picture

Bush and his cronies were d-bags but give me a break if you think we had a balanced budget under Billie Clinton.  Talk about voodoo economics.  But the fact that you regurgitated that bullshit really shows you have an agenda for all the world to see. 

zeusman's picture

Yes we all have agendas.. Look up the definition

Lednbrass's picture

Youre an idiot.  Both parties are neck deep in this and it goes back at least 40 years.  The dems aint Robin Hood, they just fuel your delusions of such.

You just keep bleating for your stupid little team, painting your face and waving your blue styrofoam finger in the air sports fan. Its about as much as your politically binary brain can handle.

TorchFire's picture

Cause ANOTHER recession? You mean after the depression we are in is over? These "signs" you describe ...anything new?  The debt ceiling hike however, was a preordained certainty from the inception.  The symblance of any debate on the matter is merely theatrics staged to keep the public duped.  No small wonder that the poor acting skills of the Washington troupe are sufficient to trick the bleating masses....or more likely they meet with a citizenry which longs to believe in the fantasy of self government, rather than recognize the facts they find so terrifying.

WestVillageIdiot's picture

Does anybody here have a ceiling in there house that rises every year?  "Debt ceiling" is right there with PATRIOT ACT and Homeland Security for bullshit euphemisms.