Obama's Novel Spin On M.A.D. - "Assured Self-Destruction"; President Tells Congress Not Passing Tax Deal Would End His Presidency

Tyler Durden's picture

By now America has grown to expect that every failed negotiation by the politico-financial oligarchy always ends up with some version of the "Mutual Assured Destruction" card. And while the bankers of the world at least threaten others with total annihilation if their "much more erudite" suggestions are not adopted up by the great unwashed plebs, the president has come up with a unique spin on this worn out tactic. The Hill reports that the president has been telling members of Congress that failure to pass the tax-cut legislation could result in the end of his presidency. This begs the question: with the domestic (and global) economy in shambles, and not foundering only due to $4+ trillion in fiscal and monetary stimuli, and near-double digit unemployment, (there is, however, a silver lining - Reuters reports 2010 may be the second highest bonus payout season on Wall Street ever), whether Obama's departure would even be considered 'bad thing'...

From The Hill:

"The White House is putting on tremendous pressure making phone calls, the president is making phone calls saying this is the end of his presidency if he doesn't get this bad deal," he told CNN's Eliot Spitzer.

Obama's push shows that the president is going to the mat in order to push through Congress the compromise brokered with Republicans.

During the end of the healthcare debate, Obama reportedly told Democrats upset that the bill did not contain a public healthcare option that not passing it could put his presidency on the line and stall the liberal agenda for decades.

The White House has been aggressively selling the deal, which includes a two-year extension of all the expiring Bush tax cuts in exchange for a 13-month extension of unemployment benefits, to skeptical lawmakers and the public.

The Senate passed the $853 billion legislation by an overwhelming 81-19 margin, sending it to the House.

Though House liberals and a some conservatives have voiced opposition to the deal, some opponents have conceded that the likelihood of the deal failing at this juncture is very low.

Still, DeFazio has not been sold.

"I don't feel that way, I think this is potentially the end of his possibility of being reelected if he gets this deal and it's a trap," he said.

So here is the math: marginally higher taxes, and the potential for actual economic improvement in the future, or we keep Obama, and get $5 trillion more in cumulative deficits over the next 10 years. It sure sounds like a toss up.


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
DaveyJones's picture

is that a promise?

Bob's picture

That was my thought: Is that it?  Does Barry just go home and forget the whole thing?  That's gotta be too easy. 

sunny's picture

Cool, now that would be change I could believe in!


I Am The Unknown Comic's picture

Yep, he can leave town and I'll keep the change...

financeguru500's picture

Lol, Immediately after Obama's statement there is a unanimous vote against the bill.

israhole's picture

" Reuters reports 2010 may be the second highest bonus payout season on Wall Street ever"-ZH

It was a Happy Hannukah indeed!

spudboy's picture

Rascism has no place in a reasoned discussion, and detracts rather than adds to the content therein.

financeguru500's picture

And what race celebrates Hanukkah? Last I checked, it was a celebration of a religion, not a race.

spudboy's picture

Opinions differ on that count, with the Supreme Court ruling in 1980 that Jews are in fact a race, which angered many Jews.

You deliberately miss the point financeguru: judging people primarily based on their ethnicity, religion, or race is both ignorant and inflammatory, and I'm sorry you lack the discernment to recognize that.

financeguru500's picture

Look, I can agree that there is no reason to start making claims against certain races or religions. It doesn't support the topic at hand.

But I also am completely against people who pull out the race card immediatly even when it is in the wrong context. Despite what the Supreme Court ruled in 1980, people who follow a certain religion will never be a race. Just like several hundred years ago when the world was considered flat. Just because people say it is so doesn't mean it is true. If the Supreme court came out tomorrow and ruled that circus clowns were considered a race, would you suddenly believe it?

The guy who stated something about being a "happy Hanukka" didn't make any judgments about any people. He could have said its going to be a "merry christmas" and people would not have jumped on him for it. Did he incenuate that the bankers who got bonuses were jewish? Maybe, but he did not make a direct statement and definately does not deserve to get bashed as a racist when he clearly (from that statement) is not being racist.

spudboy's picture

So, with "Israhole" as his moniker, and "Israel" with a circle and a slash through it as his avatar, this is just his own unique and special way of saying "Have a happy day!"???

You stretch credulity. Stop parsing words and stand up for what is right.

Midwest Prepper's picture

I agree.  Israel is a great land - a democracy of 5 million Jews that allows its 1 million Arab citizens all the rights that they could never enjoy in any other Arab country.  Where but Israel can Arabs vote or hold a meaningful elective office?  Saudi Arabia? No.  Syria? No. Forget it.  Arabs in Israel are better off than any others, yet morons want to trash the democracy that has earned more patents per capita than any other country on earth. Jesus was Jewish and the New Testament makes it very clear that God is not done with His people (although He made it very clear He did NOT choose them because they were anything special - it was just His grace).  Align yourself against Israel at your own peril.

TonyV's picture

From Wikipedia: Racism is the belief that the genetic factors which constitute race are a primary determinant of human traits and capacities and that racial differences produce an inherent superiority of a particular race

I do not see any of that in his post.

tamboo's picture

synagogue of satan babe.


any of you goyim cattle interested in the talmud?

such curiosity is punishable by death.


obongo's a self-chosenite too believe it or not.


Ratscam's picture

if it were i'd agree for his resignation, then again who could take take the lead except Ron Paul?

Red Neck Repugnicant's picture

Ron Paul is a good choice, but what about these two guys:


(pay particular attention at 1:23)




tmosley's picture

lol, you like Ron Paul, but you called me a hypocrite for doing the same thing he does.

Earmarks are remarkably similar to grants, in that an earmark is money that would otherwise be spent by a bureaucrat, same as grant money.

All the cognative dissonance!  Better leave before your head expoldes.

I Am The Unknown Comic's picture

I say we go with these two instead:  Moose and Squirrel - oh wait, I think we have that now?



Quixotic_Not's picture

What a narcissistic drama queen!

Rider's picture

More fearmongering and threats, we are done with that after Paulson held this country hostage.

IQ 145's picture

 Yes. agree. Also, "stall the liberal agenda--" they live in cloud cucoo land; there is no liberal agenda; it's over, done. As Margaret Thatcher said, "the trouble with Socialism is you run out of other peoples money to spend"; and this is a fait acompli.

MeTarzanUjane's picture

"What a narcissistic drama queen!"

Hey, we're not talking about Glenn Beck here...

Misean's picture

After the pasting the Dumborats took in November, Obumble thinks this is a GOOD argument with the idiots of his party?!?!?!  And IF the passage is in some way due to this argument...the mind boggles.

Encroaching Darkness's picture

Now THERE'S a hope for a change!

buzzsaw99's picture

His presidency is already over he just doesn't know it yet. Bush III is history.

tmosley's picture


No-one seems to understand that Obama is Bush III.  McCain would have been as well.  The next guy will be the same, absent the possibility of a Ron Paul election (not outside the realm of possibility).

doolittlegeorge's picture

Even Kudlow called it that!  Rather odd for Obama to agree, yes, yes?  Now "onto the impossibility of the simplicity of a total and sudden collapse."  Finance NEVER get's carried away with a singular thesis....

nmewn's picture

I was thinking Carter II...but no sense splitting hairs ;-)

Meanwhile, the Senate, not the House has released a gargantuan 1.1 trillion spending bill chock full of pork. The House & Senate had all year to pass a budget bill...now at the eleventh hour we find this "thing" being presented by Senator Inouye for consideration.

Eight Billion dollars worth of pork!...and I don't give a damn about 8 billion as a percentage of a trillion...it's all the crap defeated politicians wanted who won't be there for the 112th. Congress...it's ass rape!

The Food Safety Bill is stuffed in there as well for all you Farmer's Market types...the cost of this particular peice of legislation?...1.4 billion over four years.

It's kinda like the issue of taxing in this ZH post...in order to deal with 170 billion in tax cuts and however many billions in unemployment insurance extension they turn it into a trillion dollar debt bomb.

I say no on both.

Pass a continuing resolution and wait for the next Congress. 

doolittlegeorge's picture

"God help me but I do love it so....

nmewn's picture

They are rapists...all of them that are in there now.

Grassley, Harkin, all the midwest cornholes put in their stupid ethanol subsidies...excellent!...let's jack up food prices & burn up some car valves in one fell swoop.

Friggin idiots.

Don Birnam's picture

”L’audace, l’audace, toujours l’audace !"

chubbar's picture

It's not just the cost of s-510 but the onerous record keeping and compliance for small farmers. It's  meant to drive them out of business so that Monsanto, et al, controls our food source. Who do you think wrote the language?

The punishment for non-compliance is a raid, confiscation of the farm and seizure/freezing of bank accounts. This is normally done in cases where the gov't is afraid of losing public opinion. It doesn't want bad publicity so it freezes bank accounts so no defense can be mounted.

Just wait to see what this does to farmers markets, et al, it shuts them down unless they have filed 3 years of financials, a hazard mitigation plan and several other bullshit (read time consuming) plans. Totally fucked for the local farmer.

I hope everyone who sits back without even a token call to their representatives just fucking starves, fuck em.

karzai_luver's picture

correct, it's a one banker-partay with two wings.


the dimo-rat-banker-cocksuckers


the repub-rat-banker-cocksuckers.


The selections are a farce and we should stop them and just admit it.

Although it does give the sheeple something to obsess about.

I suppose it is no worse than the xmas farce.

tmosley's picture

Why not?  Pretty much the same game the central banks have been playing for quite a while.

Of course, since I am a terrible racist, I immediately thought of this clip: http://www.youtube.com/watch?v=Z_JOGmXpe5I

pods's picture

Somehow I knew this vid would be posted.  It was actually the first thing I thought of.




Stock-Paper-Silver's picture

Hindenburg Omen, 2nd day in a row. Confirmed according the old definition!


erik's picture

Bulls are writing this off as a non-event because August signals didn't come through (thanks to QE2) and because it is a result of bond ETFs hitting lows.

Doesn't the bond market usually know better than the stock market?

pamriallc's picture

the only cuts should be to government itself.  there's no glory in taxing the people more, only reducing government by 30-40% in line with their ability to collect taxes.  this is what private industry does all the time.  only in government as there perennial increases in all form of spending.  the classic scenario such as in greece where the citizens of greece are actually in great shape but the country is bankrupt.  in the usa we're seeing a re-run but with the central bank ensuring BOTH citizens and the state become bankrupt.  no one wants it to end this way, but we know that there is still no substitute for physical or cash-flow equity assets vs government paper or bonds.

Bearster's picture

A 30-40% reduction in the scope, intrusiveness, damage, distortion, abuse, and of course cost of government ... would be a good start.


Lord Koos's picture

Of course, but they won't cut back fairly... the military industrial complex will remain fully funded.

Live_Free's picture

"Thoughtcrime, they called it. Thoughtcrime was not a thing that could be concealed forever. You might dodge successfully for a while, even for years, but sooner or later they were bound to get you."

ReallySparky's picture

Tyler, Thank you for showing up every day.  Each day, you bring me to the brink of tears and then back again for a good laugh.  Round of Applause, folks.

MeTarzanUjane's picture

"bring me to the brink of tears"!

Your wrist is as limp as Cog Dis'es. Give me a fucking break. Maybe you can go share your emotions with your Facebook fag friends. Don't do that shit here.

LeBalance's picture

May the next vine you grasp for be a viper.