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As Obama Says He Will Veto Any Republican "Cut, Cap" Deficit Bill, Long Bond "Dragged To Slaughter House"

Tyler Durden's picture




 

Just because someone is dead set on making Apple the only flight to safety in the world (and Gold of course, but unlike the iPad one can't really eat this particular tradition), around the time (10 minutes ago) Obama threatened he would veto the Republican proposed vote to raise the debt ceiling coupled with a cap on spending and balanced budget amendment to the constitution, the selling off spilled over to Treasurys, which as the chart below demonstrates are broadly lower across the curve, but most emphasized at the 30 Year spot, which as Russ Certo says (see below) is being "dragged to the slaughter house." Alas, judging by bank trading today the 2s30s steepening is completely irrelevant for bank stocks, for the simple reason that i) nobody needs any new mortgages and ii) nobody actually pays their mortgages. This is the second day since last week in which there is coordinated selling in stocks and bonds. Expect much more bond weakness with each day there is no bond deal.

Commenting on the move, Gleacher's Russ Certo told Bloomberg that “vigilantes make a symbolic statement” about debt ceiling negotiations. "It’s the issue most sensitive to government ineptitude” Certo says of 30-yr bond "It’s all about the long bond as the 10-yr is being dragged to the slaughter house." We couldn't have said it better.

 

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Mon, 07/18/2011 - 12:39 | 1466768 Mongo
Mongo's picture

"and Gold of course, but unlike the iPad one can't really eat this particular tradition"

LOL

 

 

Mon, 07/18/2011 - 12:43 | 1466783 francis_sawyer
francis_sawyer's picture

solid gold I-Pads bitchez!

Mon, 07/18/2011 - 12:46 | 1466803 camaro68ss
camaro68ss's picture

Eat your Peas Bitchez!

Mon, 07/18/2011 - 12:51 | 1466823 DoChenRollingBearing
DoChenRollingBearing's picture

Every time Obama and Michelle open their yaps, things just get worse.

I like peas (and brocolli too, Mr. Bush), so I will eat what I want, even if Michelle likes her greasy food and hectoring us...

$1600 gold, bitchez!

Mon, 07/18/2011 - 13:07 | 1466897 camaro68ss
camaro68ss's picture

you mean her 1,700 cal burger and frys with her diet coke for good mesure.

 

Fat Ass

Mon, 07/18/2011 - 13:41 | 1467044 j0nx
j0nx's picture

Hectoring: nice word. Haven't heard that before. Sums up the first wookie pretty well. Let them eat cake. What's so sad about these two is that it took a black man sooo many years to reach the highest political office and this guy will ruin it for decades for any others that want to follow. Where is a David Palmer?...

Mon, 07/18/2011 - 13:55 | 1467097 trav7777
trav7777's picture

that seems to be a recurring theme with diversity...they fuck up everything they come into contact with.  Free homes, cities, states, turnkey countries...nothing is built strong enough to withstand their corrosion.

Mon, 07/18/2011 - 14:14 | 1467186 SilverRhino
SilverRhino's picture

You forgot continents. 

Amoral tribalism; not a successful species perpetuating strategy.

Mon, 07/18/2011 - 13:06 | 1466891 cat2
cat2's picture

"and Gold of course, but unlike the iPad one can't really eat this particular tradition"

Agree, that is poetry.  I also think the republicans have to pass something then let the chips fall where they may.

Mon, 07/18/2011 - 20:26 | 1468536 sun tzu
sun tzu's picture

Bitch Mcconnel would probably vote to dissolve Congress and declare 0bama Der Fuhrer

Mon, 07/18/2011 - 20:53 | 1468622 StychoKiller
StychoKiller's picture

"So, this is how democracy ends...with thunderous applause!" -- Senator Amidala

Mon, 07/18/2011 - 13:07 | 1466896 slaughterer
slaughterer's picture

"It’s all about the long bond as the 10-yr is being dragged to the slaughter house."

Initiate operation TWIST, long bond comes out as nicely-cellophaned chopped meat for the banksters to throw on the QE grill.

Mon, 07/18/2011 - 12:42 | 1466778 Atomizer
Atomizer's picture

Push the bill to his desk, let him veto. Checkmate!

 

Mon, 07/18/2011 - 12:44 | 1466790 Conrad Murray
Conrad Murray's picture

That's racist.

Mon, 07/18/2011 - 12:52 | 1466828 DoChenRollingBearing
DoChenRollingBearing's picture

Hah!

+ $1.6 trillion

Mon, 07/18/2011 - 13:00 | 1466862 Freddie
Freddie's picture

Where are all the Dem Hope & Change types posting here saying both parties are the same?  The GOP is no prize but the Dems are pure evil.

Mon, 07/18/2011 - 13:10 | 1466907 GoinFawr
GoinFawr's picture

So you voted for Ralph Nader in 2008?

Mon, 07/18/2011 - 13:22 | 1466952 takinthehighway
takinthehighway's picture

Perhaps it was Chuck Baldwin (Constitution Party)...

Mon, 07/18/2011 - 13:44 | 1467041 GoinFawr
GoinFawr's picture

Perhaps. Well Freddie?

Mon, 07/18/2011 - 14:29 | 1467272 JW n FL
JW n FL's picture

Freddie does not use Facts.. he is hooked on a feeling!

Evangelicals like Freddie have kept the lie going!

Hang ALL of the Lobby Whores!

maybe we should consider Hanging their ignorant supporters? it would not hurt America in the Long Term to be less a few million idiots!

Mon, 07/18/2011 - 13:13 | 1466918 Cognitive Dissonance
Cognitive Dissonance's picture

Dude, it's all just professional wrestling. Who's the bad guy this week and who's turn is next?

Mon, 07/18/2011 - 13:17 | 1466934 MachoMan
MachoMan's picture

Sometimes they even have royal rumbles!  Again, though, with the winner determined beforehand...

Mon, 07/18/2011 - 14:04 | 1467135 CrimsonAvenger
CrimsonAvenger's picture

The winner rotates between the two; the loser, however, consistently remains the same.

Mon, 07/18/2011 - 13:52 | 1467087 QQQBall
QQQBall's picture

No kidding; lucha libre perras!

Mon, 07/18/2011 - 13:19 | 1466939 karzai_luver
karzai_luver's picture

useless save it for the hacks................

Mon, 07/18/2011 - 14:40 | 1467323 grey7beard
grey7beard's picture

>> The GOP is no prize but the Dems are pure evil.

So you give a pass on the whole Grahm-Leach-Blailey Bill and the tax cuts for the rich and the two unnecessary wars that are squarely on the Republicans?  Any chance these three things are very foundations for our financial situation today?  I'd be more inclined to rate the Dems as bumbling criminals and the Repubs as professional sociopaths bent on the destruction of our country for the benefit of the wealthy.  But that's just me.

Mon, 07/18/2011 - 13:23 | 1466959 Freddie
Freddie's picture

+1

Seems a lot of pro-hussein c*** s****ers are still on ZH.

Mon, 07/18/2011 - 13:37 | 1467030 GoinFawr
GoinFawr's picture

And GOPsuckers too, apparently.

Mon, 07/18/2011 - 14:32 | 1467277 JW n FL
JW n FL's picture

Bro.. he is a waste of time. No amount of facts.. no amount of information has in any way awakened him to the Fact that both parties are out to get "We the People".

Dog and Pony Show is above his head, it is most likely genetic.. you can fix stupid so save yourself the grief.

 

Or use him for a punching bag? but picking on the mentally handicap is not a nice thing to do.

Mon, 07/18/2011 - 12:43 | 1466782 Fred Hayek
Fred Hayek's picture

"If you give me something I don't want, I'll veto it!  And then, um, well, I'll be forced to cut more then you were saying I should cut.  Um . . just a minute, I didn't let go of my chips yet."

Mon, 07/18/2011 - 13:11 | 1466894 foofoojin
foofoojin's picture

Timmy is the ultimate chip he has.  The president can blow this shit right open and have the new treasury guy destroy the opposing party and TPTB through "open" government.  Timmy little whisper on the fifth that he was gonna be out after the deal was classic double speak to signal that the president had a bargaining chip so the elites better shape up or they don't get to pick the new guy.

In essence if things don't go as Mr. Presidents want then the next 18 months will be framed with the treasury department sending out wave after wave of propaganda as the new guy discovers terrible financial atrocities.

Mon, 07/18/2011 - 13:24 | 1466958 i-dog
i-dog's picture

"the president can blow this shit right open and have the new treasury guy destroy the opposing party and TPTB "

You don't seem to be paying attention! This is WWE...it's not "real"!!

The "opposing party" is controlled opposition and part of the charade...both parties are fully paid for by TPTB; Obomber is TPTB's Manchurian Candidate and is working to a script; the budget "negotiations" are a shadow boxing show for the masses and designed solely to achieve handing budgetary power from the "intractable" Congress to the "decisive" POTUS. Then, game over.

Mon, 07/18/2011 - 13:53 | 1467088 foofoojin
foofoojin's picture

I want you to know I didn't junk you.

You are correct that both sides are bought. But this is the Presidents chip that he will bring to the table. reverse the idea. what if the new guy is decided together as part of the "deal" this lets both parties appear to be working together-also know as both sides claiming victory.

Mon, 07/18/2011 - 14:37 | 1467303 JW n FL
JW n FL's picture

What EVER! the Republicans are offering SUCKS!! for "We the People"!!

What EVER! the Democrats are offering SUCKS!! for "WE the People"!!

 

They ALL need to be HUNG! for Treason! "We the People" need REAL! PEOPLE!! to stand up and lead this Country!

 

No matter what they (BOTH PARTIES) come up with, it will HURT NOT HELP AMERICA!

 

"We the People" are being robbed Blind! Raped!! and You Fuckers are discussing which Party has the littlest dick? so it will hurt the least!

 

If you like dick in your ass thats your business! but dont try to talk everyone else into enjoying it with YOU!!

 

NO! MEANS!! NO!!!

RAPE IS BAD!! there is no good Rape of the American People!!

Mon, 07/18/2011 - 15:31 | 1467617 foofoojin
foofoojin's picture

obligatory "rape can be funny" by the late great George Carlin

nsfw

http://ryking.tumblr.com/post/3276486949  (( youtube removed their copy))

Mon, 07/18/2011 - 15:59 | 1467741 TheGameIsRigged
TheGameIsRigged's picture

You said it man.  We need to raise up and fight the machine.

Mon, 07/18/2011 - 12:43 | 1466786 baby_BLYTHE
baby_BLYTHE's picture

I guess this means we will never have a balanced budget amendment.

No way this country can repay its debt.

Looks like we are pretty much guaranteed an run-away inflationary depression

Mon, 07/18/2011 - 12:51 | 1466825 jtmo3
jtmo3's picture

Don't need a balanced budget amendment. Just don't raise the ceiling. Done.

Mon, 07/18/2011 - 13:15 | 1466930 sbenard
sbenard's picture

I like it! I like it! Bam!

Priorities forced overnight!

Best one-word one-liner:

"DONE!"

Mon, 07/18/2011 - 12:54 | 1466842 victor82
victor82's picture

Thunderdome, bitchez!

I do like the whole Mad Max thing. Mel Gibson's Finest Hour.

Mon, 07/18/2011 - 13:10 | 1466906 Mad Max
Mad Max's picture

If we used Thunderdome here - a great idea I might add - would it be Barack carried on Michelle's back, or Michelle carried on Barack's back?

Mon, 07/18/2011 - 13:20 | 1466943 DoChenRollingBearing
DoChenRollingBearing's picture

Hmm, kind of an ugly image there.

Best not to over think that.

Mon, 07/18/2011 - 13:46 | 1467065 goldsaver
goldsaver's picture

I dont think President Urkell could carry MaBell for long.

Mon, 07/18/2011 - 13:48 | 1467068 j0nx
j0nx's picture

I'd sure as shit hate to carry her around on my back. She's an easy deuce+. Her thighs and ass alone weigh 100 pounds.

Mon, 07/18/2011 - 12:54 | 1466843 WonderDawg
WonderDawg's picture

"Looks like we are pretty much guaranteed an run-away inflationary depression"

I would take the opposite stance and say we're well into the initial stages deflationary depression, but we all have our opinions. The danger comes in being so certain of any particular outcome that you fail to remain objective. I believe deflation is inevitable, prior to hyperinflation, and I've positioned myself accordingly, but I've learned a lot in the last few years, and the one thing I know for certain is that I can't be certain of anything under current conditions, and neither can anyone else.

Mon, 07/18/2011 - 13:11 | 1466908 francis_sawyer
francis_sawyer's picture

Much of it probably hangs on if, whether, & when they decide to actually PRINT dollars to match the debt that has been conjured into existence...

& that will depend on whether the CB's are granted enough time to siphon off & warehouse enough hard goods (the 'productivity' of labor) to make the REBOOT have to go thru them again... Until then, it's just a game of keeping the monthly nut going long enough to be able to print the debt to steal the loot...

When they decide they have enough in the bag... They'll print the bejezzus out of notes an han them over to J6P & co... Whereby they can be redeemed for exactly SQUAT...

 

Mon, 07/18/2011 - 14:15 | 1467199 GiantWang
GiantWang's picture

I am trying really hard to understand this position, as a few very smart people have suggested to me that we're going to face a deflationary depression.  How is that possible?  The price of everything (other than real estate) seems to be rising.  Higher end car manufacturers, for example, just raised prices across the board.  I'm just trying to understand the argument that we're facing such a depression.

Tue, 07/19/2011 - 02:26 | 1469324 FlyPaper
FlyPaper's picture

Answer to GiantWang's query - IMHO: 

The global economy was operating for an extended period fueled by debt.  Raised GDP; created economic activity - all is well.   But when you remove the long-term debt-produced stimulus (govt and private debt) the economy falters.   Its my opinion that this debt-driven economy covered up the loss of US manufacturing - and created a period with a false economy.   We are now seeing the results, and it isn't pretty.

The debt is creating an economic drag, and because people don't have as much credit or money, they can't spend it on houses and the like; hence the value of those assets goes down.  Interest rate increases (inevitable) will continue to reduce affordability for housing - but right now we're de-leveraging.   Houses will come back down until they are affordable.

The inflationary forces can come from shortages.  We see that in commodities, but not in labor.  Not a lot of raises - too many people for too few jobs.  Inflation can also be abetted by it's cousin "Currency debasement" meaning your dollars buy fewer goods/services; and/or cost more.   We are missing "velocity" right now - a key component of inflation.

If the govt continues to spend and 'monetize' the debt they dilute the dollar.  This can result increase prices for imported goods.  If they do this for too long and the prices start heading up, people start to notice; and start buying goods "now" because it'll cost more tomorrow.  That creates the velocity (money changes hands faster and starts to chase hard goods/assets).

If you look at the Latin countries in the 1980s (Argentina, Brazil, Mexico) - all had borrowed money, but the credit dried up.  In order to not 'default' the started printing money to 'pay off' their obligations.  This created incredible inflation.  Brazil kept issuing new currencies with zeros...  In Argentina their currency was devalued - losing about 75% of its value in 2-3 days.  The result: kicked the economic rug out from under the people; created incredible poverty; and simultaneously they had a worthless hyper-inflating currency.  

Depending on your definitions, this is a circumstance where both deflation can occur while having your fiat currency evaporate before your eyes (inflationary in terms of fiat).

The US is heading straight down the same path.

As people become more and more concerned, they look to exchange their fiat currency for other assets.  Stocks, gold/silver, other people's fiat (Swiss franc on a tear), artwork.  Common folks will buy anything they think they can barter with.

This scenario was described by Marx.  If you are a marxist, you destroy the rule of law, and the middle-class (typically small business or professionals politically resist as the rich can simply dance around the problem).  You wipe out middle-class wealth via fiat destruction; more people become dependent on govt; 'emergency' powers are vested in the executive, who suspends civil rights, information flow, etc.  Need look no further than Hugo Chavez or the President of Argentina; or the Bolsheviks; or FDR for that matter (not kidding).  You can look at this and draw your own conclusion about the current US administration. 

So plan for asset depreciation, commodity price acceleration; higher interest rates; declining dollar value; and with uncertainty, increasing gold/silver prices.

Also plan to have long-term stored food.  You can't eat silver.

 

 

Mon, 07/18/2011 - 13:57 | 1467105 baby_BLYTHE
baby_BLYTHE's picture

ya, that post made me look dumb.

Mon, 07/18/2011 - 14:03 | 1467131 trav7777
trav7777's picture

why should we repay bankers money they conjured from thin air plus interest?

Mon, 07/18/2011 - 14:14 | 1467194 Uncle Remus
Uncle Remus's picture

Ding.

Ding.

Ding.

Mon, 07/18/2011 - 14:39 | 1467297 malikai
malikai's picture

One reason is that it prevents armed men in black suits from kicking your door in.

Mon, 07/18/2011 - 14:43 | 1467350 Mad Max
Mad Max's picture

Because they can't keep the scam running if they don't make us repay them with REAL money for the money "borrowed" from them as whiff-of-nothing fake money.

If you had control of the greatest scam in human history, providing you endless wealth for no effort, you'd be reluctant to give it up!

Mon, 07/18/2011 - 12:44 | 1466792 PulauHantu29
PulauHantu29's picture

Slaughter House Ten....a new movie by FED Cinemas, Inc.

Mon, 07/18/2011 - 12:46 | 1466793 docj
docj's picture

If they had any integrity and credibility at all S&P should downgrade the US immediately on those comments today by The Teleprompter, alone.

Unless anyone is deluded enough to believe there's a veto-proof majority in CONgress (which hasn't even bothered to pass a budget since April 2009) for anything remotely resembling "a credible solution to the rising U.S. government debt burden" as demanded by them to keep the US at (laughably) AAA rated, that is.

Mon, 07/18/2011 - 12:46 | 1466794 hedgeless_horseman
hedgeless_horseman's picture

Europe closing shop for the night, so time for the Teleprompter to bang on the dollar to ease the equity pain?

Mon, 07/18/2011 - 12:47 | 1466810 SheepDog-One
SheepDog-One's picture

Unless the plan is to rape longs for a while.

Mon, 07/18/2011 - 12:59 | 1466858 DoChenRollingBearing
DoChenRollingBearing's picture

Well they sure are doing a hit job on us now!  

Glad I have both lube and gold to ease the pain...

I am so glad I am not living in Europe now.

Mon, 07/18/2011 - 12:45 | 1466796 DNB-sore
DNB-sore's picture

5 days? nuclear

Mon, 07/18/2011 - 12:46 | 1466799 digalert
digalert's picture

The ZH ability to simplify the complex is profound.

i) nobody needs any new mortgages and

ii) nobody actually pays their mortgages.

Mon, 07/18/2011 - 12:47 | 1466808 RobotTrader
RobotTrader's picture

They are deliberately hyping up the drama about the debt ceiling, and pumping up the fear in order incite a "Hell Squeeze" once Obama announces his stimulus plan.

Mon, 07/18/2011 - 12:48 | 1466815 SheepDog-One
SheepDog-One's picture

'Obamas stimulus plan' AHH HA HA HAAAAA!!

Mon, 07/18/2011 - 12:53 | 1466837 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The only STIMULUS that the status quo would dig at this point is a helicopter drop of cold hard, stinkin' cash.

Mon, 07/18/2011 - 12:59 | 1466849 francis_sawyer
francis_sawyer's picture

It's coming...

It'll be just in time for the 2012 elections... They'll be crisp new $10,000 notes with Obama's portrait...

"In God We Trust" will be replaced with "4 more years"

It'll take 5 of them to buy a "(yes we) CAN of catfood (which you can kick own the road for entertainment after eating it with a side of peas)...

 

Mon, 07/18/2011 - 13:02 | 1466870 DoChenRollingBearing
DoChenRollingBearing's picture

Mr Lennon, francis,

That's what I see too.  Obama will try to buy the election by dumping cash into the hands of the 50% (+/-) who don't pay income tax.

"We're saved!  Barack Obama saved us!"

And then four more years...  Peas and catfood...

Mon, 07/18/2011 - 13:13 | 1466921 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Bush did it.  Why wouldn't Obama?

Mon, 07/18/2011 - 13:17 | 1466935 DoChenRollingBearing
DoChenRollingBearing's picture

Indeed, why not?

$1000 FRNs, bitchez!

Mon, 07/18/2011 - 13:24 | 1466965 MachoMan
MachoMan's picture

And it did nothing to spur economic productivity...  but yet the FED/administration/congress decided to try test after test...  each failing the same...

Mon, 07/18/2011 - 13:55 | 1467096 j0nx
j0nx's picture

Yeah at least Bush gave some of the money back to the people in the form of stimulus. Obama has just been bailing out the banks, both foreign and domestic, behind closed doors for his whole term. The first wookie has been living it up as well on our dime much more so than Laura ever did. She is without a doubt the 21st century Marie Antoinette. I would not be surprised to see him send out crumbs to the masses as a last ditch effort for reelection.

Mon, 07/18/2011 - 13:15 | 1466928 Cash_is_Trash
Cash_is_Trash's picture

4 Year Plans!

Take-it from the Chinese bitchez

Mon, 07/18/2011 - 12:55 | 1466832 malikai
malikai's picture

...while simultaneously pounding down PMs and oil. I can't wait.

You know, Robo, troll or not you say things I don't want to hear.

But I really do want to hear them.

Mon, 07/18/2011 - 12:58 | 1466854 lieutenantjohnchard
lieutenantjohnchard's picture

must be a slow day at "my bank" / "our bank" given the freedom you have to surf the internet and make posts at zh and other sites. you must have a loser boss that can't think of anything for you to do other than surf the internet.

Mon, 07/18/2011 - 13:09 | 1466902 slaughterer
slaughterer's picture

Obama might pay lip service to that infrastructure stimulus he has been talking about for the last 4 years, but where will he find the money to support any meaningful stimulus?  --Oh, I forgot ..

Mon, 07/18/2011 - 12:49 | 1466816 PulauHantu29
PulauHantu29's picture

BTW, maybe Barry asked the Dalai Lama for advice ...

Mon, 07/18/2011 - 12:53 | 1466839 francis_sawyer
Mon, 07/18/2011 - 12:57 | 1466853 Fred Hayek
Fred Hayek's picture

Big hitter the Dalai.  But he wouldn't give Barry a tip.   Though he did promise him that on his death bed he'd have *total* consciousness.  So he's got that working for him, too.

Mon, 07/18/2011 - 12:51 | 1466817 km4
km4's picture

 

Ron Paul Conviction Ad http://www.youtube.com/watch?v=UUNIeOB0whI

money quote esp for Obama .... “We have drifted because we had so much prosperity, but we can’t drift forever. We can’t live on borrowed money and printed money forever "?

 

 

Mon, 07/18/2011 - 13:00 | 1466831 hedgeless_horseman
hedgeless_horseman's picture

"We can’t live on borrowed money [from our children's future] and printed money forever."

Now shut up and eat your peas, kids!

Mon, 07/18/2011 - 13:05 | 1466884 DoChenRollingBearing
DoChenRollingBearing's picture

Obama: "Hope and Change"

Obama: "Yes we can!"

Reality says not much change, no hope and we're so screwed.

 

Do your preparations a little faster now...

Mon, 07/18/2011 - 13:57 | 1466926 hedgeless_horseman
hedgeless_horseman's picture

"You know, the public is not paying close attention to the ins and outs of how a treasury auction goes. They shouldn't."

                            -Barack Hussein Obama, II

"Pay no attention to the man behind the curtain."

                                -The Wizard of Oz

Both have a last name starting with the letter O.  Coincidence?  I think not.

Mon, 07/18/2011 - 14:12 | 1467174 foofoojin
foofoojin's picture

+1

Mon, 07/18/2011 - 12:50 | 1466819 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Shit, we need a new pop crisis to detour the status quo from seeing the fiat ponzi for what it is!  Frame Roger Rabbit, stat!

Mon, 07/18/2011 - 13:14 | 1466924 francis_sawyer
francis_sawyer's picture

New murder trial to commence captivating America in 5...4...3...2...

Mon, 07/18/2011 - 12:50 | 1466820 the not so migh...
the not so mighty maximiza's picture

Kick ass leadership with kick ass policies.

Mon, 07/18/2011 - 12:50 | 1466821 Cassandra Syndrome
Cassandra Syndrome's picture

Sell off in both equities and bonds? Now there's one for Cramer to spin

Mon, 07/18/2011 - 12:53 | 1466838 hedgeless_horseman
hedgeless_horseman's picture

"Bank of America is fine."

Mon, 07/18/2011 - 13:51 | 1467083 goldsaver
goldsaver's picture

These are not the droids you are looking for...

Mon, 07/18/2011 - 14:04 | 1467138 j0nx
j0nx's picture

I was thinking more along the lines of Baghdad Bob.

Mon, 07/18/2011 - 12:59 | 1466859 Dick Darlington
Dick Darlington's picture

He'll go back to his "housing market has bottomed out!!!" call.

Mon, 07/18/2011 - 12:51 | 1466824 Clay Hill
Clay Hill's picture

A brief love note to the Federal Government of the United States...

 

The time, my darling, it has come

Your race is finished , under the sun

Now die, bitch, die.

Mon, 07/18/2011 - 12:52 | 1466833 Cdad
Cdad's picture

Again, no one seems to be considering that our president wants a US default.  With so little time left on the ticking time bomb clock, it would be very easy to achieve this outcome.  

 

Mon, 07/18/2011 - 12:55 | 1466846 Everybodys All ...
Everybodys All American's picture

As long as he can blame it on someone else and gain politically from it I think you might just be right.

Mon, 07/18/2011 - 14:07 | 1467147 j0nx
j0nx's picture

That's where he is wrong. The American people are firm believers in the term "The buck stops here". If we default then he owns it and will be unable to spin it off as anyone else's fault lest he look impotent and weak as a leader. In fact he would look downright childish if he tried.

Mon, 07/18/2011 - 12:59 | 1466847 SheepDog-One
SheepDog-One's picture

RIGHT Cdad, in this here WWE show everyones following Vince McMahons script, watching the 2 buxom blonds throw each other on the limos hood and pull each others hair, while ignoring the other scene where a default is whats really being planned, as the N.W.O. tag team steps into the ring.

Pretty insane that was actually the name of pro wrestlers?

Mon, 07/18/2011 - 13:04 | 1466866 Cdad
Cdad's picture

In the coming days, we will hear it in his voice and in his words.  Expect his tongue to become very sharp, and his rhetoric to become one of "preparing" for the possibility of "transitory liquidity" problems in funding markets, vague talk of prioritizing of spending, possible last ditch Treasury plans that "could" be deployed...basically talking options while shifting of political blame to the Republicans.

And those Rs in the House...they damn well better pass that balanced budget amendment tomorrow...or the blame will indeed fall to them.

This is going to get very ugly very quickly in my opinion.

 

Mon, 07/18/2011 - 13:08 | 1466898 DoChenRollingBearing
DoChenRollingBearing's picture

Everybodys, SheepDog, Cdad,

Very good comments.

YES, it is going to get very ugly soon.  Europe shows us what's coming in the macro.  Obama will show us his fangs again real soon.

Mon, 07/18/2011 - 13:13 | 1466904 SheepDog-One
SheepDog-One's picture

Cdad as you know Im well beyond any political WWE show, I think suddenly none of it will matter any longer as people are directed to their local Walmart law enforcement center for processing and food ration micro chipping, depending of course on how much they 'contributed' according to the value of their 401K, which was just seized and is now 'annuitized' by the Treasury-here.  The Treasury Is Soliciting Your Feedback Regarding The Proposed Annuitization Of 401(k) | zero hedge

BTW thats not a joke, I found it weird theres a new police station operations center behind the Walmart here.

Mon, 07/18/2011 - 13:15 | 1466927 DoChenRollingBearing
DoChenRollingBearing's picture

I never had a 401(k), but I did have an IRA.  Until I cashed it in (late 2008, right after Obama won the election), paid my taxes and penalties, and now sleep better at night for it.

A lot of that money went into physical gold.

Mon, 07/18/2011 - 13:15 | 1466929 Cdad
Cdad's picture

That is weird, Dog.  But there is SO MUCH weird stuff going on these days...hard to sort them out.

The banker chatter on the BlowHorn [CNBC] just now was entirely absurd, with some banker named Castellini suggesting that the only reason we are struggling with the debt issue is that "we have chosen to focus on it now."  Umm...seriously?  You mean it is not the inevitability that tens of trillions cannot and will not ever be paid back...because it is impossible.

Of course, some other banker twat chimed in with...wait for it...equity "valuations at ALL TIME lows."  Uh huh.

Banker denial is running very high right now, which should only heighten the fear when Obama's rhetoric continues to be unproductive.

Mon, 07/18/2011 - 13:39 | 1466865 Bob
Bob's picture

The quarrelling politicians go down with the ship while the oligarchs and prized minions party at 30,000 feet en route to their overseas compounds.  The ship was bound to go down--why not now?

Sure, they leave some money on the table at this point . . . but might that not be just for the sake of plausible deniability?  Most if it is, after all, OPM.  Look at insider sell/buy stats for the last two years.

Hell, if it goes down now, democracy could take the blame.  Or the poor.  If this thing played out long and slow, on the other hand, that just wouldn't fly.  The rich would be roasting on spits.

Mon, 07/18/2011 - 13:09 | 1466901 dracos_ghost
dracos_ghost's picture

Again, no one seems to be considering that our president wants a US default.  With so little time left on the ticking time bomb clock, it would be very easy to achieve this outcome. 

 

If it's going to happen anyway, why not frame the discussion that "the evil GOP" did it. Re-election 2012 assured. He is a Cloward-Pivens acolyte isn't he?

Mon, 07/18/2011 - 12:53 | 1466840 rrbluefin
rrbluefin's picture

obama is the one who should be dragged to the slaughter house.  Oh wait, they have standards and don't want diseased meat....

Mon, 07/18/2011 - 14:41 | 1467336 JW n FL
JW n FL's picture

with a name like Blue Fin! you need to get your shit together!

 

ALL LOBBY WHORES MUST BE TRIED FOR TREASON AND PROSECUTED!

 

not just 1 of them.. that doesnt help even a little bit!

Mon, 07/18/2011 - 12:53 | 1466841 SheepDog-One
SheepDog-One's picture

Didnt S&P say $4 trillion in cuts minimum must be made? Somethings insane here....OH RIGHT its the whole damn world.

Mon, 07/18/2011 - 13:02 | 1466872 Fred Hayek
Fred Hayek's picture

What a joke. 

We're running an annual deficit of $1.7 Trillion.  Even if the $4 Trillion of cuts OVER 10 YEARS were credible, which they wouldn't be no matter what because no congressman in 2021 will care what was promised in 2011.  Even if those spending cuts were credible, that's "only" $400 billion a year.  The annual deficit is 4.25 times that much!

Mon, 07/18/2011 - 13:05 | 1466883 the not so migh...
the not so mighty maximiza's picture

All these good feeings and you wreck them with math,  this stinks.

Mon, 07/18/2011 - 13:04 | 1466880 victor82
victor82's picture

Boskin has a pretty good article this morning about the coming of effective 70% Marginal rates. Of course, Boskin was a Bush stooge, so there you have it.

The Eisenhower tax regime without the presence of Ike. Sounds like a plan!

 

"http://online.wsj.com/article/SB1000142405270230491110457644389335215377..."

Mon, 07/18/2011 - 12:55 | 1466844 lieutenantjohnchard
lieutenantjohnchard's picture

increasing the debt limit or not the economy is still in the ditch. employment is weak. demand is weak.

Mon, 07/18/2011 - 12:58 | 1466856 cougar_w
cougar_w's picture

And even this is all about QE3.

They need a serious crisis so they can trot out the QE donkey for another round of rides. Without a crisis QE is a bad decision. With a crisis QE is our only hope.

S&P down for three more days, Debt Ceiling vote (in favor) on Wednesday, QE3 out of the bag on Thursday.

Then a 10% ramp on the market for 4 weeks.

And then -- BOOM.

And I don't even have a newletter to flog.

Mon, 07/18/2011 - 13:04 | 1466879 slaughterer
slaughterer's picture

cougar w, do not forget AAPL earnings tomorrow after close.  How does that fit in with the newsletter prediction?  Seeing that AAPL is the new safe haven, along with PMs, the Swiss Franc, and Treasuries--I hope AAPL beats otherwise...

Mon, 07/18/2011 - 13:06 | 1466893 SoNH80
SoNH80's picture

QE3 is coming, one way or another.  And it's going to be one smelly donkey, with the runs.

Mon, 07/18/2011 - 14:17 | 1467211 j0nx
j0nx's picture

Heee Hawwww!

Mon, 07/18/2011 - 13:12 | 1466911 DoChenRollingBearing
DoChenRollingBearing's picture

@ cougar,

Yes, I see a QE3 coming along pretty swiftly.

---

But, I DO have a blog to flog, anyone interested send me a gmail at my name promising you will behave for the link (I write under my own name).  I wirte about gold, Peru and stuff like that.  170 people from ZH have come to take a look.

Mon, 07/18/2011 - 13:14 | 1466925 Greenhead
Greenhead's picture

Cougar, you could be right.  Everyone is focused on the horrors of default and the debt ceiling but the real question is about the ongoing deficit and the size of fedgov.  Debt creates an obligation (lien) on future income.  We act like it is no big deal but what we are really doing is obligating future taxpayers to come up with enough income to offset our expenses and consumption today.  It is our children and their children who will have to pay the bill.  Now ain't that responsible on our part!!!

Mon, 07/18/2011 - 13:17 | 1466936 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Sheeeeit.......

Cuz I do and we're on the same page.

Mon, 07/18/2011 - 13:18 | 1466937 francis_sawyer
francis_sawyer's picture

I still say that QE3 comes out 5 days after you get the "dark cross" (50ma over 200ma SPX) & the 2nd Hindenburg Omen in the same week)...

But it's just a hunch...

Mon, 07/18/2011 - 13:02 | 1466871 Phaethon
Phaethon's picture

Military predictive software, Senturion, predicts Greek default.

http://business.financialpost.com/2011/07/18/computer-program-predicts-g...

Mon, 07/18/2011 - 13:04 | 1466881 Sandy15
Sandy15's picture

Obummer on Soros command is working to put America in a difficult situation.  He could vote for a short term proposal/increase, but he refuses to have a debt increase vote just before the elections.  Further more, with Sept 2011 just a mere 6 weeks away, Obummers team is looking to destroy America so they can create a Palestinian state...... Obummer said last Sept that it would be a state in a year.  Only way to do that is go after Israel and US.  They must weaken US first.  MAD - mutually assured destruction!!!!

Mon, 07/18/2011 - 13:29 | 1466984 karzai_luver
karzai_luver's picture

Mad was very effective.

 

Thx for playing. Have a nice minute.

 

Mon, 07/18/2011 - 13:05 | 1466885 Tense INDIAN
Mon, 07/18/2011 - 13:05 | 1466886 Piranhanoia
Piranhanoia's picture

everything is scripted, there is no improv. They write the text at 10, news maks it obsolete by 10:10.  I think we are getting a real demonstration of how common sense is absent.  We are dealing with people that haven't ever dealt with real world situations. Supply and demand means nothing to them because they have always manipulated it.

This could become quite ugly with the players unable to think on their feet.  The algos are going to start churning and we all know they can destroy anything in milliseconds.  Print button,  3, 2, 1

Mon, 07/18/2011 - 13:05 | 1466887 SheepDog-One
SheepDog-One's picture

Nevermind global thermonuclear war kicking off in the mid east next month.

CVN 77 G.H.W. Bush Enters Persian Gulf As CIA Veteran Robert Baer Predicts September Israel-Iran War | zero hedge

Mon, 07/18/2011 - 13:21 | 1466946 SoNH80
SoNH80's picture

The U.S., Israel, Saudi Arabia, Iran, Turkey, Pakistan, India, Russia, and China in a Mexican standoff aka the Great Game.  July 1913..... but this time, the planes can carry quite a few more bombs, conventional and otherwise....

Mon, 07/18/2011 - 13:59 | 1467117 depression
depression's picture

I see a bright light at the end of the tunnel !

Mon, 07/18/2011 - 14:32 | 1467278 SilverRhino
SilverRhino's picture

That's the train.

Mon, 07/18/2011 - 14:46 | 1467368 JW n FL
Mon, 07/18/2011 - 14:47 | 1467369 cosmictrainwreck
cosmictrainwreck's picture

SHIT....not one, but two, beat me

Mon, 07/18/2011 - 13:05 | 1466889 lolmao500
lolmao500's picture

106h54 left till kabooooooooooooooooom!

Mon, 07/18/2011 - 13:09 | 1466899 azengrcat
azengrcat's picture

The show must go on!

Mon, 07/18/2011 - 13:14 | 1466923 slewie the pi-rat
slewie the pi-rat's picture

"...a day like all days, except you are here":  The Big Whatever

Mon, 07/18/2011 - 13:19 | 1466940 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Is that a quote from the Bible, or the Matrix, I forget.

Mon, 07/18/2011 - 13:16 | 1466931 YesWeKahn
YesWeKahn's picture

When does the printer increases the interest rate?

Mon, 07/18/2011 - 13:21 | 1466944 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Never!   Muahahahahaaa!

Mon, 07/18/2011 - 13:21 | 1466945 gwar5
gwar5's picture

The debt impass really sucks, but the struggles in DC are an ideological proxy for the presidential and congressional election outcomes for 2012 and the long term effects will be even more profound.   

We're screwed if Obamao is still in charge when the global collapse occurs. If the GOP prevails at least there's a chance we can retain many more of our freedoms and can get 2-3 more originalists on the SCOTUS. 

Mon, 07/18/2011 - 13:22 | 1466955 SoNH80
SoNH80's picture

At least the GOP is consistent about the 2nd Amendment, and the right to enjoy red meat and potatoes in peace.

Mon, 07/18/2011 - 13:30 | 1466988 sbenard
sbenard's picture

Ditto!

But it may still get worse. I just watched the movie "Iranium" on Youtube last night. If Iran gets its nukes soon, and it appears almost certain to, the world will soon be a very UGLY place! Thanks for an insightful comment!

Mon, 07/18/2011 - 13:22 | 1466949 Little John
Little John's picture

  Just like a disaster flic - but real. Isn't this neat.  They're gonna be writing books about all this for 100 years and we're gettin to see it all live.  Pass the fiat popcorn.

Mon, 07/18/2011 - 13:27 | 1466972 sbenard
sbenard's picture

Another (mis)statement from the Teleprompter Tyrant?

That's Barack INSANE Obama to you!

Mon, 07/18/2011 - 13:27 | 1466975 sabra1
sabra1's picture

oBLAHma was intentionally setup as a one termer. Perry had just met with these bastard globalists last month, and will announce he'll be running within a couple weeks. all hell will break loose with oBLAHma, and perry will ride in on his white horse to save us all. IT'S ALL AN ILLUSION PEOPLE! WAKE UP!!!!!!

Mon, 07/18/2011 - 14:29 | 1467271 Uncle Remus
Uncle Remus's picture

The pucker factor meter has been pegged for months now. The situation probably can't get any worse, but the affects sure as hell can.

Mon, 07/18/2011 - 13:28 | 1466979 monopoly
monopoly's picture

I wish Obama would grow up and act like an adult. You can't always get the candy you want. I assure you he wants the 2 trillion now so it is not an issue for 2012 and the republicans want much less, so the "brilliant one" Geithner has to come back again and again to ask for more. That will keep it in the public focus. Not what Obama wants.

And the children continue to steal each others toys.

Mon, 07/18/2011 - 13:31 | 1466996 twotraps
twotraps's picture

We cannot be shocked with any of this, its totally explainable....

 

1.There are no real consequences for the players.

2. The Govt. has always operated a Pretend Account.

3.  Absolutely no understanding of the mkts and value.

4.  Assumption that the dollar and mkt strength/values will always be there.

 

Making drugs legal would at least take away the profit motive of drug dealers...it destroys the game for them.  We need to take away or modify how we VOTE and give the govt MONEY, the only two things they give a fuck about.  

Mon, 07/18/2011 - 13:32 | 1466999 bugs_
bugs_'s picture

Who run barter town???

Mon, 07/18/2011 - 13:48 | 1467073 Cognitive Dissonance
Cognitive Dissonance's picture

Mon, 07/18/2011 - 14:08 | 1467153 Ying-Yang
Ying-Yang's picture

Little dude ontop looks kinda like Cheney conducting a Haliburton board meeting.

Mon, 07/18/2011 - 14:22 | 1467228 Cognitive Dissonance
Cognitive Dissonance's picture

I think you might be on to something.

Mon, 07/18/2011 - 14:50 | 1467396 CrashisOptimistic
CrashisOptimistic's picture

Master Blaster understood that hydrocarbons rule everything.

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