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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Mongo's picture

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




francis_sawyer's picture

solid gold I-Pads bitchez!

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!

camaro68ss's picture

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


Fat Ass

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?...

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.

SilverRhino's picture

You forgot continents. 

Amoral tribalism; not a successful species perpetuating strategy.

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.

sun tzu's picture

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

StychoKiller's picture

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

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.

Atomizer's picture

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


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.

GoinFawr's picture

So you voted for Ralph Nader in 2008?

takinthehighway's picture

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

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!

Cognitive Dissonance's picture

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

MachoMan's picture

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

CrimsonAvenger's picture

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

QQQBall's picture

No kidding; lucha libre perras!

karzai_luver's picture

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

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.

Freddie's picture


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

GoinFawr's picture

And GOPsuckers too, apparently.

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.

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."

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.

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'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.

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.

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!!



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

foofoojin's picture

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

nsfw  (( youtube removed their copy))

TheGameIsRigged's picture

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

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

jtmo3's picture

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

sbenard's picture

I like it! I like it! Bam!

Priorities forced overnight!

Best one-word one-liner:


victor82's picture

Thunderdome, bitchez!

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

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?

DoChenRollingBearing's picture

Hmm, kind of an ugly image there.

Best not to over think that.

goldsaver's picture

I dont think President Urkell could carry MaBell for long.

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.

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.

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...


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.

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.



baby_BLYTHE's picture

ya, that post made me look dumb.

trav7777's picture

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