Just The Tip: Republicans Considering Transitory Debt Ceiling Hike

Tyler Durden's picture

So much for the engrossing "Debts of our lives" soap opera. In the most expected outcome possible, the "best hypocritical actor" Oscar winners known as Republicans have caved and according to chief Senate republican sock puppet Mitch McConnell "Congress and the White House could raise the debt limit for a few months while they seek a comprehensive, long-term budget deal." Of course, when the $300 billion or so "temporary" hike which will last the US government for just under two months, we will get another temporary extension, and then another, and so forth, until the current batch of Oscar winners is voted out en masse yet again, only to be replaced with another set of sock puppets, and the posturing and the drama, not to mention the comedy, can begin anew. Luckily the G-Fund will at least get a temporary reprieve until its is plundered again, some time in late August, early September, when the debt ceiling is breached again, and an unmanageable debt load has been resolved through... the issuance of more debt. Don't be surprised to see the net notional US CDS outstanding to continue its torrid pace of sequential increase.

From Reuters:

Congressional Republicans, particularly in the House of Representatives, have balked at raising the debt ceiling unless it is accompanied by significant spending cuts.

McConnell said on Sunday the ceiling could be raised enough to last a few months so that negotiations can continue on a larger deal that would include changes to so-called entitlement programs like Medicare.

"The president and the vice president, everybody knows you have to tackle entitlement reform," McConnell said on CBS's "Face the Nation."

"If we can't do that, then we'll probably end up with a very short-term proposal over, you know, a few months. And we'll be back having the same discussion again in the fall," McConnell said.

Elsewhere, Biden continued to baffle everyone with recordsetting stupidity, as he aims to "reduce the country's stubborn budget deficits by $4 trillion over the next 10 years in order to give lawmakers the political cover to raise the debt ceiling." So let's get this straight: these morons can't cut $1 today, but they can cut about 30% of US GDP in deficit spending over the next decade?

Of course, topping it all off will be the quid pro quo, which we predicted when we discussed the imminent extension of the payroll tax cut, namely that Democrats will get their infinitely extendable debt ceiling, republicans get more tax cuts, and Wall Street gets QE3, because with China, Japan, Russia and American households selling US paper, and the ECB insolvent courtesy of a freshly redefaulted Greece, there will be nobody else left to monetize the upcoming barrage of new issuance, absent a 300+ bps rise in prevailing rates, which will send home prices lower by about 25% and guarantee that the next US civil/class war begins in under 3 years.

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djsmps's picture

Well, that was unexpected.

Founders Keeper's picture

...on the heals of uncertainty coming out of Greece today no less.



Votewithabullet's picture

Out of my ass comes two squirts of piss. I am not long for this earth. The Christian freaks will get their "knashing of teeth" in spades.

Hulk's picture

Kind of an internal Bidet?

Founders Keeper's picture

I think it's a Note to Self.



Ahmeexnal's picture

Silver trading opened and price movement is reminiscent of the "fractal" dance observed in some stocks. Is this reaction to the coming july 15 clampdown on PM trading? Or is it just the unstable equilibrium brownian movement before a major price swing?

Manthong's picture

Maybe the Skunk Works traders in the basement of the FRBNY lost the handle on their algos.

johansen's picture

Palladium is doing the same thing.

Manthong's picture

What chart are you looking at?

max2205's picture

Tyler, don't sugar coat it.

MarketTruth's picture

Tyler is excellent, yet perhaps he may want to remind us what Turbo Timmy needs to pay back the 'borrowed' money to the retirement fund he is now stealing from. In other words, are the Republicans simply raising the debt ceiling to pay themselves back from the funds Timmy is stealing to keep the charade going.

DoChenRollingBearing's picture

Republican cowards.  How far they are from their talk is their WALK?

The Rs are not listening to what put them into the majority in the House.

Ron Paul 2012.


EDIT: Now would be a good time to buy gold if you do not own any or enough.

Stuck on Zero's picture

Q: What's a Republican?

A: 95% of a Democrat.


Problem Is's picture

Answer: A politician (born liar) that faces you from his right side...

Boop's picture

A: 105.3% of a Republican?

Talcott's picture

The other wing of the War party?

Problem Is's picture

Answer: The same politician (born liar) that faces you from his left side...

HungrySeagull's picture

Actually I will hover like vulture and watch. It sank 24 cents down below spot price a half hour ago.

JW n FL's picture


JW n FL's picture


Deacon Frost's picture

last official act of any Government is to loot the Treasury."<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />


Landrew's picture

I loved the subtle yet not so subtle "Just the tip" reference!

Tyler, there could be no other title ha!

Just the tip honey, I promise ha!


euclidean's picture

hahahaha .. engrossing. gross. bill. pimco. elerian hammed up a storm in a new normal teacup

A new piece by Mohamed El-Erian, "America’s Dangerous Debt Ceiling Debate," is now available on PIMCO.com. - followed soon after by -

El-Erian: A debt ceiling compromise, like many last-minute agreements, would likely have little durable impact.

Everyone new it was going to rise. Like everything else spewing froth out of the US, it first has to be milked for maximum impact.

Lionhead's picture

The die is cast to the biggest failure of all, the USA. With the failure will come the death of socialism/marxism globally. Expect a long campaign to the bitter end.

DoChenRollingBearing's picture

1)  Biggest failure ever the USA.  I agree.

2)  Death of Socialism/Marxism.  No, they will always be trying to take from the productive and give to the parasites.  It's the nature of the beast.

Orly's picture

Let's not confuse the real ideal of America with the globalist kleptocrats that have ruined the world for everybody, shall we?

Once we get a do-over, the true American light will shine once again.


DoChenRollingBearing's picture

I hope you are right Orly, I really do.

Maybe after the wreckage, we will go back to Liberty and once again be the best place to live in the world.

Vampyroteuthis infernalis's picture

Orly, I wonder what happened to our society of hard working individuals who would save and prepare for the future not the trash that spends way beyond their means bitching and complaining all the way.

Orly's picture

I am afraid that it is those very people you mention, with their nose to the grindstone every day, who are called uninformed or disinformed, "stupid Americans" by others on this board, mostly the "sophisticated" Europeans, I would presume.

It is ironic that the banksters have utilised the very essence of this great country to prey on it.  It was in their interest to keep the masses misinformed, for obvious reasons, while we all worked so hard for so long.  Now, I think They will be surprised to find that people are starting to look up from their toil; starting to listen to something besides the machines; beginning to understand that they have been fleeced and not just a little bit.

As Americans, we can apologise to the world for having worked so hard and paid attention to our own families- at the expense of "worldly" matters.  We tried all our best to "hold what we got," as my good friend used to say.  Sorry we were hood-winked for so long.  Sorry that our privacy spawned weapons that were unimaginable 50 years ago.  Sorry that it is Americans, mostly, who have ushered in debt-slavery to a great part of the world.

Believe when I say, however, that once this sleeping giant has been awakened, you will find no more diligent and enduring beast than the honesty and righteousness of average Americans.

I can't wait for the day when those sumbitches is hanging from light poles.  Far from taking pride in the fact that Americans have ripped off the world, the vast, vast majority of Americans would find it shameful...and shame is something we don't deal with too pleasantly.

It's coming.  It's coming.  Keep telling everyone you know and soon we will rid the planet of this diseased cabal of sick, greedy little men.

Lionhead's picture

Well said Orly!  Amen!

Orly's picture


If Amen means, "let it be so," it is definitely in the top three of my prayers.  Let's stick together, not get discouraged and get the word out as best we can.  Together, they don't stand a chance against the truth!

Lionhead's picture

Amen to me means "I believe."  And I believe in the truth. Then, let it be so for all to see & understand. I stand with you.

Orly's picture

And I with you, Lionhead.

In your posts, you mention that the only real way to save the world (my opinion, not necessarily yours...) is for the US of A to return to the Founding principles upon which she was built so that she may shine the true light of freedom for all the world to see.

I know you didn't and I know I didn't sign up for this.  This is nothing short of the most criminal conspiracy the world will ever know.

Return to the Constitution of the United States!  Hold all the criminals accountable.  It's the only way.

Thanks for being a true patriot.  If you're like me, then it feels better to know you're not alone.


Quixotic_Not's picture

As a patriot with families listed on the Sons of the Revolution charter, I truly wish it was so...

Unfortunately, as a bi-coastal business owner that has traveled this once mighty nation extensively, I don't see enough Americans to even vote a Son of Liberty into a governorship of one of the fifty hoods.

All I see is (D) & (R) Free Shit Empire™ from sea to house flipping' sea, and huddled mongrels itching for their chance to loot the system.

Donk-Fraud Act indeed!




dark pools of soros's picture

yes - dems and repubs are bitching at the kiddie table eating hotdogs and mac&cheese while the banksters calmly share the filet and wine

if the slaves learn to barter amongst themselves, they may still be poor but will be free for their chains are only made from debt

Bolweevil's picture

John Conner VA Militia says so on my membership card. The looters just need a little focus. One man's ceiling...

Founders Keeper's picture

[I am afraid that it is those very people you mention, with their nose to the grindstone every day...]---Orly

That is a fine post, Orly. Thanks.

Guess we won't be seeing you at Camp FEMA.


Orly's picture

I'm on the blue list already.


CompassionateFascist's picture

Your Fema camp will be baited with blu cheese.

HungrySeagull's picture

I weep in joy of such words that show exactly what I think and feel.

There are those like you who can use words as a means to a end and rally the Sleeping Giant.

Alas, what will it take? A few Insomniacs on a net blog does not make a giant.

euclidean's picture

Umm, you make it sound like this is a modern phenomenon? The abuse of privelidge and the wanton greed of finance has pervaded the upper echelons of USA society since it's inception. It first started when money first started. I would dare to suggest you idolise the JPM and Rockefellors of the world? Patriotism of any nationality is not measured by how long you can suck on ideals - for that is simply stupidity and serfdom in the presence of a lack of collective action.

The USA has a distinct lack of collective action, and capacity for action. With those two characteristics, any society is subject to ongoing ridicule. Try experiencing being the subject of the scorn and ridicule from a hypocritical USA for a while - this little sojourn for you poor little critters is poetry to watch. You are being fucked over by your own kind - no-one else.

edit: Exhibit1: The fact that just 20% of you lazy slobs bothers to represent yourself at an election. Abstaining is not representation, nor is it making any other statement except apathy! What a pathetic excuse - you say you have popularly elected representation? I say you have pigs flying out your lazy arses. By design, you have been set up to fail. Happy dining on your own pathetic misery.