The Petulant Teleprompter: Obama "Abruptly" Walks Out Of Debt Negotiations

Tyler Durden's picture

Update: OBAMA: "THIS MAY BRING MY PRESIDENCY DOWN BUT I WILL NOT YIELD ON THIS" -- REPUBLICAN AIDE; Perhaps Obama may want to put the country ahead of his own interests this one time...

Here is the relevant section in the 14th Amendment that the Constitutional scholar is likely about to invoke. The bolded section is what is largely being ignored.

The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.

Odd how the debt inccured for payment of pensions is being nicely trampled to make way for debt incurred for payment of Federal worker bonuses...


So far the Moody's threat is having precisely zero impact on the debt ceiling farce, with just 8 days left until July 22. But the latest development is certain to jar both S&P and Fitch, not to mention Dagong, out of hibernation. Reuters reports that President Barack Obama abruptly ended a tense budget meeting on Wednesday with Republican leaders by walking out of the room, a Republican aide familiar with the talks said. The aide said the session, the fourth in a row,
was the most tense of the week as House of Representatives Speaker John
Boehner, the top Republican in Congress, dismissed spending cuts offered
by the White House as "gimmicks and accounting tricks." Either Congress has become the best orchestrated reality TV show in history or, and this is a big or, the market should really consider panicking soon.

Some additional color:

  • Cantor relayed this quote: "Eric, don't call my bluff," Obama said. "I'm going to take this to the American people."
  • More Cantor: Obama said that the group has until Friday to figure out "which way we're going." They'll meet tomorrow.

Odd. Last time we checked far more Americans didn't want a debt ceiling hike than did:

Overall, voters oppose raising the debt ceiling by a strong 45 percent to 32 percent margin, with the remainder undecided.

But the real eye-opener in the poll is the stiff Republican and swing-voter opposition to a deal. Sixty-seven percent of GOP voters and 51 percent of independents think raising the debt ceiling is a bad idea.

Democratic voters, by comparison favored raising the debt ceiling by a 44 to 21 percent margin. Interestingly, 35 percent of Democrats say they are either undecided on the question, or don’t know enough to have an opinion.

Perhaps Obama believes GM union members are a representative segment of the broad US population...

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goldencross10's picture

Obama was going to be late to tee time

camaro68ss's picture

he prob fogot to bring his telepromter and had to run out and get it.

MiguelitoRaton's picture

Does the market punish the action, we'll find out in 14 hours...

rocker's picture

CNBC reported that the market turn around today was after Boehner said raising the ceiling was a crap shoot. The comment was on the trading floor too. 

I guess ZH missed this one.   

oldmanagain's picture

Methinks someone only hears out of one ear.

Dolar in a vortex's picture

"I'm going to take this to the American People."

You will notice that he didn't say taxpayers. Don't want those evil rich getting in the way of a good snit!

jeff montanye's picture

my take on the farce is the only thing they can agree on is giving the imperial presidency yet more power:  now he (will it be ever thus?) can raise the debt ceiling on his own.  

in my youth if you had asked me which would happen first, the president would claim the power to raise the debt ceiling without congressional approval or to kill u.s. citizens without trial or appeal, i would have missed the question.

markmotive's picture

Meanwhile, China (in addition to Moodys) puts US on ratings downgrade watch:

The world is watching these politicians with dismay.

Mr Lennon Hendrix's picture


Greenlight must have scared the crap out of Moodys.

hound dog vigilante's picture

agreed. mcconnell's move to drop the potato in the president's lap was as poorly judged/measured as obama's hissy fit.

these asshats are still playing politics. apparently they don't realize that every one of them will likely be voted out or forced to retire in the next election cycle.


things will get worse before they get better.


El Oregonian's picture

Was that the beginning of the "Domino Effect" of the collapsing markets?

Michael's picture

The market will love 1 million government employee layoffs if the debt ceiling is not raised, and so will I.

Too bad they are all Obama democrat voters that will be laid off. At least they can collect 99 weeks of unemployment compensation.

Michael's picture

A better title for this thread I personally could not have conceived.


Barak Obama is a made man . He is now one of the untouchables just like his predecessors by virtue of achieving the status of being the President of the United States of America.

The person occupying that office could be Elmer Fudd. It doesn't matter who the hell that person is.

But because he has been made, no one for the rest of his life on the planet can touch him and do harm to him or his family.

It's one of the perks of the office.

It's as simple as that.

Bugs Bunny and Elmer Fudd battle-cartoon(Un-censored)


Michael's picture

I will elaborate later.


DosZap's picture

But because he has been made, no one for the rest of his life on the planet can touch him and do harm to him or his family.


Michael, this is the dumbest statement I have read.

Tell it to JFK's relatives...............

Anyone can be gotten to, anyone,anytime, anywhere.

The fact your a POTUS does not make you invincible.



I wish the GOP would walk the next meeting, and show that Mr.Big is not the only one who can say kiss our ass.


Sick of these thugs that think they OWN us.

You work for us, not the other way around.


Popo's picture

The Spender in Chief is powerless without his credit card.  

Ultimately that's all the president does:  Allocate resources that we don't have.

Take away his plastic and he has a tantrum.



Escapeclaws's picture

However, the market may not love it if Obama does not get his way. If the debt ceiling is not raised, I'm afraid the government will need to raid our IRA's and 401k's to make up the difference. Does anyone know the total value of these funds? At least the 1,000,000 jobs will be saved that way!

MikeyrInFL's picture

Nice! Maybe instead of POTUS, Obama should be PPOTUS...Pissy President Of The United States?

darkstar7646's picture

He is.

With a gun to the head of about 20-40% of the population.

Basically, he is either going to stop the checks, threaten to turn the people loose (believing the fear on the streets of Sh*t-cago is good for this entire country!), or both!

MonsterBox's picture

Chill.  It's the "W's" fault, somehow.  Give his minions a day or two to figure out how.....

darkstar7646's picture

Personally, I don't give a rat's rear end whose "fault" it is.

The fact is now that either it blows up when the market can't sustain it or it blows up when they try to sustain it.

One of the reasons I've told people that I am dead before the year is out -- because I don't think they're going to get it that far.

Then, either I die trying to rob somebody or I die for somebody robbing me for what little I still would have.

MikeyrInFL's picture

Agreed. After all, he is a community organizer.

SpiritBlade's picture

Prediction says...


Ceiling raised, and... no balanced budget.




Mr Lennon Hendrix's picture

Lindsay WIlliams said they would fail to raise it, which is interesting because he is usualy right.  The Senate seems bent on raising it while the House does not.  It will start in the House, so it may just wither there.  Zodiac, bitchez.

Michael's picture

The market will love 1 million government employee layoffs if the debt ceiling is not raised, and so will I.

Too bad they are all Obama democrat voters that will be laid off. At least they can collect 99 weeks of unemployment compensation.

darkstar7646's picture

From whom? Certainly not the Feds. They'd probably get maybe 13 weeks from the state and that'd be about it.

Gavrikon's picture

I wouldn't worry about the ex-government workers.  They will just join the other democrat flash-mobbers.

darkstar7646's picture

And you'd better be real worried about that one.

Unless you plan to start shooting first, the Republican upper-middle class might end up sitting ducks (quite literally!) in all of this.

MonsterBox's picture

furlough, not lay-off.  it's like unpaid leave. 

it'd be nice to have a 3-4 week vacation just before the SHTF.  You know, time to load up on the lesser metals for the "friends" coming to visit: steel, brass, lead.... .

darkstar7646's picture

The problem is that it wouldn't be a 3-4 week vacation _just before_ TSHTF...

it'd be a 3-4 week "vacation" _for the first 3-4 weeks WHEN_ TSHTF!

Republi-Ken's picture

Boys, Boys, A little TRUTH...Eric Kantor put out that Press Release...

Presidents DON'T walk out of a meeting...

The President starts and ends any and every meeting...when he decides! DUH!

Calmyourself's picture

That must be why Carney felt the need to defend the teleprompter in chief.  Cannot wait to meet your ilk on the other side..

narapoiddyslexia's picture

Why anyone around here would believe anything Cantor says surprises me. He represents everything this virtual community appears to despise; a paid-for political hack with dual citizenship. A neocon saint.

I'm not carryin' water for the Nigerian, mind you, but the Israeli doesn't interest me either. They deserve each other.


Mr Lennon Hendrix's picture

He ended the meeting and walked out, however you want to call it.  Canter?  Yeah, he is a bitchh, but whatever, should the POTUS get all uppity and end one of the most important meetings of his career?  To what?  Golf?  Come on.

Popo's picture

If you tell a spoiled 17 year old girl that her credit card is being confiscated,  she'll behave exactly the same way.


MikeyrInFL's picture

I read this article which is old news. What's the problem? "Traitor?" Really? In what reality is Eric Cantor a traitor for meeting with Bibi? Also, what the heck is the "anti-Americanism" in this? Get a grip!

A.W.E.S.O.M.-O 4000's picture

The last president to be re-elected with unemployment above 7.2% was Franklin Delano Roosevelt.

Hard1's picture

It was actually shootin' hoops, not tee time.

dlmaniac's picture

OweBummer probably received a tweet from Wiener.

max2205's picture

I read that MacArthur stomped out WW I Vets who stormed capital hill because the Govt reneggerd on bonus payments. Doesn't that action negate the law stated above?!

jeff montanye's picture

i'm not sure the 14th means the gov has to make good on its promises to, say, vets, as much as whatever promises it chooses to actually pay, the debt to pay it cannot be questioned.  questioned by whom is a bit unclear.  but clearly some (gross, durden) are in violation, if not in the letter then in the spirit. 

knowless's picture

the full text of section 4 of the 14th amendment shows that it was a way to negate all confederate debt. I don't see how it's applicable besides a one time action. unless some debts are suddenly those of "insurrectionaries". The intent seems obvious, so to cut out the rest of it and just say "the validty of the debt of the united states shall not be questioned." seems like a sham..



the validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.

Calmyourself's picture

Patton was there also and contributed to the stomping of the "bonus Army"  who were there to demand the bonuses they were promised post WWI, very interesting history.