Obama Confirms Leadership Failure, Pulls Out Mother Of All Mutual Assured Nukes: "Raise Debt Ceiling Or Risk Global Recession"

Tyler Durden's picture

And people made fun of Hank Paulson for threatening with eternal damnation if congress didn't stamp his multi-trillion blank check to bail out his former co-workers from Goldman. In a step that makes the Kashkari-Paulson threat seem like amateur hour, the teleprompter just received its latest high frequency directive from the Wall Street superiors, promptly delivering the latest MAD message to what continues to be perceived as an idiot audience: "Failure by Congress to raise the U.S. debt limit "could plunge the world economy back into recession," President Barack Obama declared Friday, and he acknowledged that he must compromise on spending with Republicans who control the House to avoid such a crisis. Obama urged swift action, saying he doesn't want the United States to get close to a deadline that would destabilize financial markets. He said he was confident Congress ultimately would raise the limit. "We always have. We will do it again," said Obama, who voted against raising the debt limit as a freshman senator from Illinois."

For those keeping score of the President's numerous accolades, this merely underscores that the president is now in contention for the Nobel Prize in hypocrisy: after all compare this statement to Obama's now supremely ironic remark from March 20, 2006: "The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. … Increasing America’s debt weakens us domestically and internationally. Leadership means that ‘the buck stops here. Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better." They sure do. And in order to replace the current failed leadership, they will gladly start with a new president.

From AP:

"I'm the person who is best prepared for us to finish the job so that we're on track to succeed in the 21st century," Obama said. That's the heart of his argument for voters to give him a second term over more than a half dozen Republicans seeking the White House.

As the 2012 campaign gets under way, it's being shaped by a deep disagreement over federal spending in Washington between Republicans who control the House and Democrats in power in the Senate and White House. Obama and Republicans compromised a week ago on a spending bill to avert a government shutdown, a preview of the debate that's certain to dominate the coming months on deficits and the ceiling on money the nation can borrow.

The president said that he doesn't expect either side to get everything it wants in negotiations and that he's pushing for "a smart compromise that's serious."

He warned of dire consequences if the debt ceiling is not raised before it hits its limit of $14.3 trillion; the administration says the latest Congress could possibly act is by early July. But Obama said some longer-term questions about where the government trims its operations will have to be left until after the 2012 presidential election.

"I'm confident that the withdrawal will be significant," he said. "People will say this is a real process of transition, this is not just a token gesture."

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Pants McPants's picture

Summer is too early for widespread riots in the US, IMO.

But agree re: immateriality of puppet master.  If I had my druthers I'd rather have Minka Kelly.

SheepDog-One's picture

Could happen any day far as Im concerned. 

Calmyourself's picture

Some may wish it too, it will not for years, too much soma.

Spastica Rex's picture

If it gets real hot this summer and no HVAC... maybe.

chunkylover42's picture

totally agree with having Minka Kelly.  Oh, you mean as president?  Yeah, I guess that's fine too, whatever.

Ident 7777 economy's picture

Summer is too early for widespread riots in the US, IMO.

- - - - - - - - - - - - - - - - - - - - - - - - - - - -

Pestilence and disease of biblical proportions; crop failures ... we're working on all that right now with some nice drought conditions down in Texas - look at the fires they've got!

Should crops fail for any reason: planting, growing or something prior to harvest - who we gonna call?

Goldman?

cossack55's picture

You forgot the liberal dusting of the plants you do get in with a lovely mixture of cesium, strontium and plutonium.

serotonindumptruck's picture

Michael Ruppert gives us until July, perhaps sooner.

http://www.shtfplan.com/emergency-preparedness/collapse-countdown-clock-...

OTOH, Ron Paul predicted a USD collapse by April of 2010, when he was interviewed by Glenn Beck in the Fall of '09.

WonderDawg's picture

There's still a year and a half before the election, anything can happen. In early 2007, Hopey the Clown was barely on the radar, everyone in the world thought it would be Hillary. We've a long way to go, and many crisis to get there.

drink or die's picture

Does it matter who replaces him?

 

Hint:  Ron Paul sure as hell won't win  (unfortunately, I might add).

redpill's picture

You're right, he won't.  Still I can't help but fantasize that he has some chance if shit gets crazy enough that people start actually listening to him.

drink or die's picture

The people can't listen to him if he isn't put on TV.  Networks won't put him on for more than a sound bite.

Raynja's picture

Wsj hasn't mentioned his name in months

serotonindumptruck's picture

That's because he became irrelevant about 18 months ago.

Oh regional Indian's picture

Actually he was irrelevant long before that. But he was given the Anti-fed strawman role and somehow the free market capitalists had their go to professor, who spoke their language. Of course, all he ever did was speak their language, but in these times, somehow that was enough for many. If he wanted to educate, I can think of far more effective ways to have done so.

What I fail to understand is that in a supposed free country, a sitting congressman (10 terms, more???) cannot outright demand and GET either a Fed cudit or a Knox audit? Whut? Why? Why is that not his single, daily demand? In the convoluted politics of the US though, anything is possible, or so I've come to learn.

Then, Paul-Son gets to be Tea Party Head man.... change this change that crap. Votes for Homeland Security extension... not a whimper from supposed libertarians who put him in office?

Please, America is such a huge lie and th epeople so blinded it is beyond funny.

Of course it is the same here in India, in Oz, in Thailand, in japan... everywhere.

Mouth to the system's teat makes fro weak or garbled protestations at best. Even then, the system can look down at you and say, thou dost protest too much.

ORI

http://aadivaahan.wordpress.com/2010/09/28/of-tipping-points-and-shape-shifting-redux/

palmereldritch's picture

Then, Paul-Son gets to be Tea Party Head man.... change this change that crap. Votes for Homeland Security extension... not a whimper from supposed libertarians who put him in office?

 

I'm not clear ORI,  Is there a distinction that you are making between another DHS vote and the Patriot Act vote by Rand Paul (documented below) that you are inferring? Please clarify.

http://thehill.com/blogs/floor-action/senate/144309-senate-to-take-up-th...

Senate extends the Patriot Act for three months in 86-12 vote By Josiah Ryan - 02/15/11 06:42 PM ET
The bill is H.R. 514, which would let the government access business records, conduct roving wiretaps, and monitor individual terrorists until Dec. 8 of this year.

But Sen. Rand Paul (R-Ky.) argued that the bill could represent a violation of Americans' constitutional rights.


http://www.govtrack.us/congress/vote.xpd?vote=s2011-19

Senate Vote On Passage: H.R. 514: FISA Sunsets Extension Act of 2011 Number: Senate Vote #19 in 2011 [primary source: senate.gov] Date: Feb 15, 2011 6:08PM Result: Bill Passed Bill: H.R. 514: FISA Sunsets Extension Act of 2011 Kentucky

 

Yea

KY McConnell, Mitch [R]

 

Nay

KY

Paul, Rand [R]

 

faustian bargain's picture

ouch. sounds like ORI's got some kind of axe to grind, damn the facts.

Oh regional Indian's picture

Whoops. I'll take that back then. Was sure I had read that he voted for.

In fact, he spoke quite vehemently against it, apparently.

Thanks for that palmer.

ORI

Lets_Eat_Ben's picture

I can't say if Ron Paul will be elected, but I can say he has a better chance now than ever before. I can also say that you fucking nay-sayers make me tired. And I can finally say that if Donald gets elected im moving out!

Northeaster's picture

He's up in my neck of the woods tonight at St. Anslem speaking, thought about going, but the people that need to be there won't be.

AchtungAffen's picture

While Ron Paul is probably the best of the lot, I wouldn't count too much on him. Not because he probably won't get elected. But because if he does, it'll be hell. With him too. Don't forget RP is an ideologue. Most of the things I heard him say were very much through the lens of a die hard ideologue. The answer to most problems according to him is "less government". And while that might work in some cases, it won't work in all cases. And I bet those cases where it wouldn't work are those RP talks about.

Lets_Eat_Ben's picture

"The answer to most problems according to him is "less government"."

I'd say his most prevalent solution is follow the constitution, you know that thing that Bushy says is, "Just a goddamn piece of paper".

Max Cynical's picture

"The report that Bush "screamed" those words at Republican congressional leaders in November 2005 is unsubstantiated, to put it charitably.


We judge that the odds that the report is accurate hover near zero. It comes from Capitol Hill Blue, a Web site that has a history of relying on phony sources, retracting stories and apologizing to its readers."

http://www.factcheck.org/2007/12/bush-the-constitution-a-goddamned-piece...

redpill's picture

I'm struggling to think of an instance where less government wouldn't help.  Do you have any examples?

serotonindumptruck's picture

It's entirely possible that we have reached the point-of-no-return. It may be a political and financial case of entropy, where increasing input costs are resulting in exponentially decreasing returns.

Oh regional Indian's picture

Indeed seratonin, it's called the negative velocity of money. Money makes the world go round, and in 2008, the world stopped and is now spinning the other way.

Most are too seratonnined out to notice. ;-)

ORI

Diogenes's picture

How about the repeal of Glass Steagal and the complete lack of regulation and law enforcement in the financial industry?

redpill's picture

Right, so no BS Wall Street shenigans took place before Glass Steagal?  We have plenty of regulations and government oversight organizations in place.  God knows Sarbanes-Oxley was a real fucking savior, right? 

It's not a problem of law, we have plenty of those.  It's a problem of corruption.  The regulators don't do their jobs because they are buddies with the people they are supposed to be regulating.  Most of them probably get promised cushy Wall St jobs after their government gig is done as long as they don't rock the boat.  Instead of selling the false premise that our government will protect us from criminals, we should instead tell people the government CAN'T effectively protect them from criminals and they should be CAREFUL who they give their money to. 

We've got everything from the FDIC and SEC shoved up everyone's ass so far it's amazing that any small time brokers are even left.  Meanwhile the big boys just hire a whole legion of lawyers for a compliance department that not only keeps them legal but finds ways around the regs and bribe the regulators.  You think more of the same is going to help?  Sounds like something the Bernank would say.

 

Diogenes's picture

You got it exactly. What we need is better enforcement of the law to clean out the crooks and make the financial markets an asset to the country and a place where ordinary people can invest their money without getting ripped off. The cure is more government not less. And I don't necessarily mean more laws and more people. If the people in power took their feet down off their desks and enforced the laws that are now on the books 90% of the scams would end overnight and if they had done their jobs in the first place the country would not be in the mess it is now.

In other words, more government not more laws and people.

redpill's picture

What's the definition of insanity?  Repeating the same thing over and over and expecting a different result?

Not only will what you suggest not work, but it will have the inverse effect, the more power and influence the government regulators have, the greater the incentive will be to bribe them.  The result is all the small time players get crushed, and all the big criminals get to continue business as normal.  THIS IS WHAT IS HAPPENING TODAY.  WAKE UP.

More government would only make it worse.

buzzard's picture

We've tried government now and it didn't work. So how about us trying no govenment for a while and see how that works. It couldn't be any worse.

Diogenes's picture

Well right now you have big government for those who like big government, and no government for those with enough pull. How is it working so far>

Dadburnitpa's picture

@Pants:

I'd love to see an unscripted, non-teleprompter, non-read ahead debate between Obama and the fat man from Jersey.

Weaseldog's picture

Michelle Bachman will be our next president.

Agent P's picture

Look me in the eyes and say that.

Votewithabullet's picture

piss....piss coming from my ass.

redpill's picture

A little humor for a Friday, I like it!

Confuchius's picture

His replacement is obvious:

Hillary!

 

osama or is it obama the Indonesian was caught fuckin' Sarkozy, so now the French socialisten want to outlaw prostitution!

 

 

Al Gorerhythm's picture

If Hillary was successful, we'd still be waiting to elect the first female president. Would Bill be First Lady?

nmewn's picture

"His replacement is obvious:

Hillary!"

Excellent!...great qualifications!...carpetbagger, coat tail rider, perfected listening tours to a fine art, cattle futures trader extraordinaire, ex-first lady, ex-NY senator...a perfect resume'...LOL.

I wonder whatever happened to Norman Hsu? ;-) 

Debtless's picture

This time when equities crash, everyone and their mothers will be shorting the piziss out of it so it'll be a good, deep and quick collapse. 

superman07's picture

China will step in with thier 3 trillion on the way down and say surprise round eye, All your stocks are belong to me.

Meet your new board of directors.

sethstorm's picture

Which will find themselves locked out, even with their Western faces.

MonsterZero's picture

sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies.

 

You're missing the point, he was upset about foreign coutnries financing our debt, he did fix that....  Now we finance our own debt.

get nothing and like it's picture

To Infinity and Beyond! - Ben Lightyear stars in QE Story 3

Racer's picture

Wah, wah, I want my dummy, I want my toys, wah wah.... or I will kick and I will skweam and skweam the house down... wah..

Long-John-Silver's picture

There was a recovery?

andybev01's picture

More like when Robert Downey Jr. went into re-hab-type of recovery...