Just The Tip: Republicans Considering Transitory Debt Ceiling Hike

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.

Comments

[dcb]

if the greek thing hasn't gone through, open lower, go higher, then afternoon sell off. we ned one more up day on the euro before we cab have a sell off at least (trend line).

also we are/were at the bobbom of multiple trend lines, so you should have expected a jump. Tlt seems to cover this well.

[digalert]

Will transitory debt require kinetic boost?

[Alea Iacta Est]

MARKETS WILL SOAR TOMMOROW....

Translating the days events courtesy of the SHEEPLE TRANSLATOR:

Debt Ceiling Raised! Crisis Averted!

Greece Gets Loan! No Default Next Month!

Shorts gonna get roasted.....which means me....

[dwdollar]

I'm wondering the same thing.  It makes too much sense for them to go down tomorrow.  Which means they probably won't.

[dcb]

well, you saw my call, correct.

1) am I the only person in the world who uses speed lines? we have it a bottom for a while (I think). potential short close to 12 85 on s and P

[digalert]

Will transitory debt require kinetic boost?

[IdioTsincracY]

And speaking of Debts Of Our Lives ... just one more Stockman quote:

“It is not surprising, then,” Stockman concludes, “that during the last bubble (from 2002 to 2006) the top 1 percent of Americans — paid mainly from the Wall Street casino — received two-thirds of the gain in national income, while the bottom 90 percent — mainly dependent on Main Street’s shrinking economy — got only 12 percent. This growing wealth gap is not the market’s fault. It’s the decaying fruit of bad economic policy.”

[Caviar Emptor]

Accurate. Stockman correctly perceives the Wall Street / Main Street dichotomy which lies deep within the heart of darkness of the Ponzi economy, which was stoked up and fortified by Reaganomics

[Bicycle Repairman]

Hero stance, everybody!!!!

[Bicycle Repairman]

.

[Ajaxromeo]

Well, I know the debt ceiling raise thingey is disapointing but at least by banning paupers from trading gold on forex we've finally done something about the cause of the financial crisis.

USA USA

[mist929292]

Nailed it.

[bob_dabolina]

I will stick my fist down your throat, grab your dick from the inside, and rip it out through your mouth. 

-The ghost of Andrew Jackson speaking on Ben Bernanke.

[IdioTsincracY]

Alert the Anger Management Unit!

[bob_dabolina]

Andrew Jackson was a man with balls and he ripped apart the CB. We need a canidate like that to save this country.

[IdioTsincracY]

There will not be a candidate like that ...

but an angry mob ... stay tuned!

[Caviar Emptor]

"None but such as Hartford Feds oppose the poor and Jackson" -Andrew Jackson campaign song, 1834

[Theta_Burn]

And who's surprized? elections are far enough off, plenty of distraction around the globe, poor NATO in deep shit now with their blitzkreig.

The chaos is gaining speed thats for sure.

Hate to go off topic but.. Japan, the next scapegoat patsy when their ready of course

http://www.msnbc.msn.com/id/43454729/ns/world_news-asia_pacific/?gt1=43001

Those poor bastards

[Caviar Emptor]

I am shocked, shocked to find out that can kicking is going on in this Ponzi

[DoChenRollingBearing]

I am dismayed...

Now more than ever: Gold Bitchez!

[Caviar Emptor]

The only way to insure against can kicking or the lack of can kicking at the same time

[topcallingtroll]

I am so fucking depressed now.

Whatever their other faults I had high hopes the tea party, elected on the anger of the bailouts, would slash the size and cost of federal government and end bailouts permanently.

I should have known better.

[Orly]

Try to relax, doc.

Like everything else, the "tea party" has been usurped by the banksters.  Sarah Palin belongs to Henry Kissinger.  Try not to buy into the "party" nonsense in the US.  It really doesn't exist...

[Bolweevil]

We need more stringent reform.

[Ben Dover]

Your winnings, sir.

Oh, thank you very much. 

Everybody out at once.

[Founders Keeper]

[...and guarantee that the next US civil/class war begins in under 3 years.]---TD

Hi Tyler. Thanks for the news coverage today. (Happy Father's Day, if you be one. I can't imagine you have the time.)

Regarding the "next US civil/class war." Yeah, I've been wrestling with a proper name for such an event. Civil wars and Revolutionary wars often look the same, particularly in the early stages.

I'm thinking Restorationary War. Given that I expect the focal point of such a conflict would be the US Constitution and our founding principles.

[IdioTsincracY]

What are the two sides of this war?

[topcallingtroll]

You and the freeloaders against the productive classes.

[Founders Keeper]

[What are the two sides of this war?]---IdioTsincracy

At first, I considered your Reply thoughtless. But, on second thought, I considered how many people will ask the same question.  

Those who don't know the answer to your question, sadly, will find themselves on the wrong side of the conflict.

[Tuco Benedicto ...]

Well put T. D.!

"Every day the bucket goes to the well.  One day the bottom will fall out."  --Unkkkkkkkk......

Tuco Benedicto Pacifico

[Caviar Emptor]

You see, in this world there's two kinds of people, my friend: Those with loaded guns and those who dig. You dig. 

[Hulk]

Maynard, is that you?

[gwar5]

+10

The Banker War

And yes, to restore self determination and Constitutional rule of law without the usurpation by unaccountable central bankers who are the real drivers of all foreign and domestic policy.

A remarkable English historian, John Twells:

“It was the monetary system under which America’s Colonies flourished to such an extent that Edmund Burke was able to write about them: ‘Nothing in the history of the world resembles their progress. It was a sound and beneficial system, and its effects led to the happiness of the people.’”

“In a bad hour, the British Parliament took away from America its representative money, forbade any further issue of bills of credit, .... Ruin took place in these once flourishing Colonies; most rigorous distress visited every family and every business, discontent became desperation, and reached a point, to use the words of Dr. Johnson, when human nature rises up and asserts its rights.”

The following is taken from a radio address given by Congressman Charles G. Binderup of Nebraska, some 70 years ago and was reprinted in Unrobing the Ghosts of Wall Street:

"Today, in America as well as in Europe, we are under the regime of the Scrip of the Bankers instead of the scrip of the nation. Hence the public debts, everlasting interest charges, taxes that plunder purchasing power, with the only result being a consolidation of the financial dictatorship."

"There is only one cure for America’s ultimate financial collapse and that is for Congress to exercise Clause 30 of the “Federal” Reserve Act, buy the outstanding shares of stock, shut down this unconstitutional system and sell off their assets to reimburse the people of this nation for this unspeakable theft of their wealth."

--Charles G. Binderup, US congressman, Nebraska

(Sounds like Binderup was the Ron Paul of his day)

[Founders Keeper]

[And yes, to restore self determination and Constitutional rule of law without the usurpation by unaccountable central bankers...]---gwar5

A Reply that broadens and deepens the conversation. Many thanks gwar5.

[baby_BLYTHE]

Indeed, the Federal Reserve System is a cancer unless removed will terminally damn America to everlasting plunder and loot

[Prometheus418]

Cute.

How about we call it a giant, senseless bloody catastrofuck that should never have been necessary instead, and let the historians decide on a pithy name for it later?

[Founders Keeper]

"...should never have been necessary..."---Prometheus418

Agreed.

[lindaamick]

Government is pure theatre.

The Transnational Corporations rule the world now. They can spray us, rob us,

poison us, and infect us with impunity. 

There's no stopping them now.

[sabra1]

great, now they could replace all the pension money they took out! right?

[Stuck on Zero]

Go long on cans.

[XRAYD]

This should take care of the "uncertainty".

All systems go through September!

[slewie the pi-rat]

things are a wee bit delicate, right now, econom-wiZe.  even the Tbuggerz seem unwilling to upstage greece  and the EU for the bizarro spotlight.  just move along.  this is no longer a big deal...

frankly, i think this is way too intelligent for these moronic mofo's, but we shall see...

[topcallingtroll]

Why cant republicans walk the walk and slash everything 15 percent in a bill including a temporary debt limit extension?

I am disillusioned, but will support any primary challenger against anyone voting a no strings attached debt limit increase.

I can at least try to kick them out. There should be a huge cost to betraying tea party principles of severely limited government.

[CompassionateFascist]

TP members are holding to principle. Aren't enough of them: majority coalition of corporate Republicrats + socialist Demicans will raise debt limit. All good: we don't want "reform". True Fight Clubbers want this System to Crash altogether.

[SheepDog-One]

I dont lend any relevance to what was said on the Sunday morning talking heads nonsense shows, all just navel gazing bullshit.

[GOSPLAN HERO]

Silver is having an erection.

[Libertarians fo...]

With a scathing article like this, I wonder if Rush Limbaugh will retract his endorsement of ZH. 

[CompassionateFascist]

I wouldn't think so...almost daily, along with his usual attacks on the Left, he calls out Crony Capitalism.

[Goldtoothchimp09]

Delay = FAILURE

[JustACitizen]

ROTFLMAO - The politicians sold out the citizenry - again. Shocking result!

Some of the people that comment keep saying that the American citizen on the whole are complicit in this. Many of them are not. They pay their taxes - they vote for the best individual presented to them - in good faith. If those candidates get elected - they quickly find themselves in the money and influence game.

[topcallingtroll]

I am disillusioned.

I should have known better than to hope the tea party would keep their word and slash the size and cost of the federal government.

[Clay Hill]

Forget the debt, man... too late anyway IMO.

This batch of so called tea party Repubs lost my support when more than 50 of them voted to renew the Patriot act.

[JustACitizen]

+ 1,000,000,000,000

[cranky-old-geezer]

I am disillusioned.

I should have known better ...

Pretty humorous.  Some shrink you are. 

I'll be happy to explain some realities to you  ...$400 / hr of course.

[topcallingtroll]

I cant believe the republicans think the democrats would bargain in good faith.

Simply attach a temporary debt ceiling extension to a bill zeroing out npr, pbs, nea, and take 15 percent reduction on all other programs. Send it to the president one or two weeks after the deadline has passed because it looks like timmah lied again about the true deadline to give democrats some negotiating leverage.

I am about to be disillusioned about the tea party and in my area will support a challenger in the primary against our senator and house representative should they vote for even a temporary increase in debt limit without drastic budget cuts.

The era of freeloaders has to end. It is corrosive and harmful to good moral character to incentivize idleness and nonproductivity.

[JustACitizen]

Don't forget to vote out those who cannot bring themselves to end oil subsidies, farm subsidies, etc. My current favorites are the Republicans who tie themselves in knots claimsing that a removal of a subsidy (whether it is a grant or tax deduction) is a "tax increase". I also love our citizen farmer politicians that have never worked a day in their lives - least of all on a farm - but it doesn't stop them from collecting a check - from - you guessed it - the gubmint.

These people are a frickin' disgrace.

[topcallingtroll]

I agree.

End all rent seeking and all subsidy.
We need a new party, the gillotine party.

[Bansters-in-my-...]

Maybe the "Turbo Timmy" could spend some of that Exchange Stabilization Fund that he gets to play around with...on Debt.....

Not on the stock markets....

[topcallingtroll]

I am sure it makes a socialist like you happy thst those elected who promised to slash the size of the federal government have caved.

Congratulations. The oligarchy and the status quo win again.

[ebworthen]

The Washington/Wall Street bullshit train squeezes out another offal laden car.

[Jens Densen]

Captain, I believe what we're dealing with here can be best described as an energy cloud. It seems to take energy from whatever happens to be with in it's reach and uses that energy to it's tactical advantage, to expand and gain access to more resources. This implies it has an intelligence. However, according to my findings the outer layers are in loose contact with the rest and therefore do not contribute much to the overal mental capacity. They do however consume energy, and thus, the cloud seems to have reached it's natural limit. The question now is, is it capabele of reversing it development and reduce it's scope, or will it exhaust itself and simply desintergrate?

[Orly]

No.  The question now is...

are there...

any

blue chicks

in the cloud, Mr. Spock?

[Saxxon]

Interesting Jens; is this an early description of the Borg?  I call the money cloud that circles the earth at the speed of light 'The Swarm'; it lands wherever it can exploit and work energy from the host.  Thus, it is International although it will adapt the customs of its host nation to remain concealed.

I watch about one hour of TV a month.  Today I was watching the U.S. Open and the Giants/A's simultaneously.  The commercials were most interesting.  No more strutting around in bars or gliding through shimmering Manhattan in a new car.  NO more big new houses and bar b ques.

Instead we got one after another depictions of 'regular', lumpy folk 'just like you and me', just 'doing their best' to grind it out and keep their chin up; and all of them emitting this high-pitched, wordless vibe that everything would be all right and somehow xyz Inc. understood and was going to help.

The corporations have shifted their face again to suit the times.  Impressive, like a jellyfish.

[JustACitizen]

Oh and don't forget to qeue a social issue battle like sex changes paid for by taxpayers in Federal Prison or something really meaningful like that - just about the same time as the vote on the debt ceiling.

[plocequ1]

Well, There it is.

[Seymour Butt]

I remember these idiots saying: "Deficits don't matter."

[JustACitizen]

+ several trillion

But those guys are safely out of office - living well too - thank you very much.

[JustACitizen]

Just in case anyone thinks this was going to turn out different in any way - based upon the citizenry voting...

Did anyone catch the article in which John McCain was complaining that the current crop of Republican presidential candidates are too isolationist? Geez fellas - we are broke...and all you can think about is sticking our noses into more hornets nests? Right now - if you really are fiscally conservative - more adventures are not - repeat not a good idea. Let's let some other idealistic competitor of ours step up...

[erschiessen]

Don't forget - John McSame suspended his 2008 presidential campaign because of the 'economic (manufactured) crisis'... only to vote exactly like Obamessiah and give the banksters the first of many bailouts of taxpayer burden and crippling uber-generational debt.

I do believe that the banksters are playing both options.

A) Get while the gettin's good

B) Intentional crushing of the USD to foment the One World Currency.

http://bbs.chinadaily.com.cn/attachments/month_0801/jesus_sitting_nra_GYLGjBroxY3c.jpg

[Madhouse]

One of the reasons that Ron Paul won the recent Republican polling is because he is in alignment with Barron's in terms of the budget: i.e., it is absurd to not be cutting the insane military and foreign affairs budgets.  A month ago Barron's had the balls, despite being a Murdoch controlled entity, to come out with their own balanced budget by mostly by cutting the insane fat off the military budget. So, the absurdity of the Ryan budget was laid bare.  So 3 points from the wealthiest, getting back to 2002 rates, cut the defense budget back to 2002 levels, cut 20% of the beltway fat, start cutting back on current entitlements, cut 99% of foreign aid (aka bribery), stop the medical industry rape of healthcare (new hips for deathbead patients, c sections for everyone having a baby, etc,etc.)...

 ..blah blah blah,,, none of it will ever happen... its all wishful thinking similar to that of the family of a drug addict... it will never happen... we are going down...the Repubs, with little else to use as a weapon for 2012, will force the Heisenberg principle and the current naked parade will will end badly... 

[Problem Is]

"until the current batch of Oscar winners is voted out en masse yet again..."

I think only 14% of Congress did not retain their seats after the 2010 elections... Most due to retirement...

Now that is up significantly from the usual 5% turnover, but Tyler... hardly "en masse"...

You show me 50% booted with significant numbers of non worthless corporate whore party members... e.g. not Republican or Democrat...

Then I will agree with "en masse"...

[Glasater55]

Reuters is still calling Weiner a republican so what do they know...

[Evlana]

This is likely exactly why precious metals trading is now being severely restricted. I wonder what they will do to control inflation "speculation" in agricultural commodities.  Rationing?