Senate Republican Leader McConnell Folds On The Debt Ceiling

Tyler Durden's picture

Something troubling happened in D.C. today, where it seems that the Senate Republican leader basically just folded like a cheap suit in the ongoing farscial standoff on the debt ceiling (which luckily should bring the whole comedy to an end and the nation can progress with its previously scheduled ponzi collapse). In essence, as Bloomberg says, according to McConnell's proposed 3-Stage plan, "The debt-ceiling increase could occur without the companion spending cuts, McConnell said." Ironically, when we observing comparable posturing by Boehner from two days ago we said "in two weeks we get news of no tax hikes, and no deficit reduction, which will be spun by the great diversionary media machine as the great compromise, and, of course, leading to a $2.5 trillion debt ceiling hike. Win, win for everyone." It seems precisely this is on the agenda. Details on McConnell's plan to basically let the President do whatever he chooses: "Senate Republican Leader Mitch McConnell proposed a “last choice option” for increasing the U.S. debt limit in three stages in case President Barack Obama and Congress can’t agree on a deficit-reduction plan. McConnell’s plan would let the president raise the limit, while accompanying it with offsetting spending cuts, unless Congress struck down his plan with a two-thirds majority. Don Stewart, a spokesman for McConnell, said the plan would allow Obama to raise the debt limit while putting the onus on him and congressional Democrats for any failure to cut spending." Surely the president would be shaking in his boots knowing that if he were to cut spending the "onus" would be on him. Here is how the Republican justifies this betrayal: "The proposal is “not my first choice,” McConnell said, adding that he wanted to show the financial markets that the U.S. will not default on its debts. He said he continues to seek a broader deal to raise the $14.3 trillion debt limit with congressional Democrats and the White House." Funny: this is the same logic that Jean-Claude Juncker used when validating outright lying to the media, and general public. It appears there are little if any differences between politicians in Europe and the US when it comes to lies.

Some more:

The increases would come in three amounts: by $700 billion, $900 billion and $900 billion, McConnell said. They would occur over the remainder of Obama’s presidential term, in keeping with the president’s call for an increase in the debt limit that would carry through the 2012 elections.

McConnell’s proposal would need approval in both chambers to become the method used to address the debt-limit increases.

Mike Steel, a spokesman for House Speaker John Boehner, said the Ohio Republican shares McConnell’s “frustration” with the protracted debt-reduction negotiations, but didn’t say he would support the proposal.

“The speaker shares the leader’s frustration,” Steel said. “Republicans are unified in our commitment to ensuring that the debt limit is not used as leverage to saddle small businesses with increased taxes that destroy jobs.”

Senate Majority Leader Harry Reid said he is willing to consider McConnell’s proposal, which he said he didn’t fully understand.

“I’m not about to trash his proposal -- it’s something that I will look at,” he said. Reid, a Nevada Democrat, said he had only spoken briefly with McConnell about the idea.

Of course nobody will trash the proposal: it almost certainly represents what the final outcome on the debt ceiling will be: a grand compromise of muppetry, in which nothing is achieved on either spending cuts, or tax hikes, yet $2.5 trillion in additional debt is added, bringing total US 2012 debt/GDP to about 120%... or about where Italy is today. And that's not counting the $6 trillion in government-guaranteed GSE debt.

 

 

 

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Sudden Debt's picture

Like they where ever going to cut spending :)

 

treemagnet's picture

Haven't you heard, this is the new plan to solve America's obesity problem - just make food reeeeaaaaallllly expensive.

Dr. Richard Head's picture

Actually, if we take a page out of the government playbook Federal Government should be encouraging obese people to eat more. If we fight debt with debt, then the same  rational would make sense for fighting obesity.  Fight fat with more fat.  Mmmmmmmmmmm.

magis00's picture

THAT'S why McDonald's hired so many patty-flippers - - imagine how lengthy the lines would get with ONLY obese people in them, brandishing SNAP cards for BigMacs galore.  Got to move 'em in & move 'em out quick! Not so spacious, the "dining" areas at the MacDo...

Cheesy Bastard's picture

Any Repub who votes for this will have to eat his P's.  P is for primary challenge.

Dolar in a vortex's picture

Why do you think they call it the Stupid Party?

Cheesy Bastard's picture

Stupid, party of one.  Your table is ready.

narapoiddyslexia's picture

The debt limit brouhaha is a side-show. The debt limit is about past spending decisions, not the future creation of, or payment of, debt. Debating the debt limit is a way for politicians to look like they're doing something without the risk of actually doing it. Getting involved in it, or even thinking about it, serves the interests of the pols. Fuck the pols. Buy physical pm and ditch fiat wherever you can. Exchange. Barter for equivalent values. Screw the government.

AldousHuxley's picture

PMs have higher taxes as "collectables" and bartering is taxable transaction by IRS.

 

Government cannot be screwed. But you can leave it for a better one or just go ape shit and starting doing what that norweigian did to get some attention.

max2205's picture

What a fucking cock sucker this guy is

Dr. Richard Head's picture

Cock suckers at least provide a valuable resource to the world, while this guy simple takes resources.  I'll take a good cock sucking over the ass raping I have had from this guy, and the other guys, any day. 

Zero Govt's picture

they've sorted out how to spend it: check

they've sorted out raising the debt ceiling: check

now here comes the non-existent part of this 'plan'...

who is going to buy this toxic debt: Oopps!

has Benny got enough beans: Ummm!!

who the fuck are they expecting to pay this mountain of crap back: Oh Shit!!!

The most indebted and stretched consumers and businesses in the world backed by property assets in meltdown Part.II and a public sector about to meet their maker on their debt forced to add Govt workers (cough!) to the food stamps chart already in near vertical ascent??? 

whstlblwr's picture

Mountain of crap. Now looting starts, use Grand Canyon for uranium mine. This is where GOP always go to, why is pillage part of platform?

http://thehill.com/blogs/on-the-money/appropriations/171039-appropriator...

LudwigVon's picture

Perhaps you should stay in and read a book?

Translational Lift's picture

Take the fucker out and hang him from the nearest lamp post!!

Zero Govt's picture

it takes 500 senators, Congressmen and 1 President to tango ...

...got plenty of roap?

Long-John-Silver's picture

This is the reason the French invented the Guillotine.

It's fast and efficient as can be seen here.

http://www.youtube.com/watch?v=ZaVe65LWDCI

Zero Govt's picture

it's right at that (French) inflection point, fattened pigs still stuffing their snouts, country up against the wall... somethings gotta 'snap' soon

Piranhanoia's picture

but zie barber is so messy. If you hang them, the flies will swarm around them and remind their friends.

FlyPaper's picture

Perhaps this sentiment could be directed to individuals higher up the political pecking order?

Fukushima Sam's picture

It won't work, they'll just eat cellulose and corn syrup shaped like something edible.

eureka's picture

Exactly! And as if US sheeple would ever notice increasing national debt - hahahahahaha hahahahahaha hahahahaha hahahahaha - they sheeple will lie headless on the gutters yapping WTF WTF WTF JUST HAPPENED.

cossack55's picture

Still my favorite clip of all time: Bankers explained in 0:57

                                          

www.youtube.com/watch?v=4KvzuDbG-TQ

Uncle Remus's picture

Exactafuckingmundo.

McConnell, you pathetic fucking wanker.

AldousHuxley's picture

School House Rocks - Tyrannosaurus Debt (from SchoolHouse Rock makers of How a Bill becomes a law)

 

http://www.youtube.com/watch?v=_mfMG66LtVU&feature=related

 

Pirates and Emperors (from SchoolHouse Rock makers of How a Bill becomes a law)

http://www.youtube.com/watch?v=mEO3RWnHb4E&feature=related

jus_lite_reading's picture

A LITTLE OFF TOPIC BUT...

NEW WORTHY!!!

MONSANTO OFFICIALS HAD THEIR ASSES BEATEN IN INDIA!!

http://www.salem-news.com/articles/july122011/india-monsanto-beaten-tk.php

YAY! GO INDIA!!!

cossack55's picture

Would have been even better news if they had thrown the Monsanto scum into the Ganges.

Bastiat's picture

Hey, the Ganges is sacred!

cossack55's picture

Oops. Sorry. Just hang em.

francis_sawyer's picture

Yeah... That's why they all jump in there to wash their dicks off in it...

eureka's picture

If US Teaparty citizens were worth half an oz of revolutionary spirit they would blow up all MonSatan offices and hang all MonSatan execs.

1100-TACTICAL-12's picture

Do you know MONSANTO ? This is a very known and most disputed company which emerged as one of the greatest pushers of genetically manipulated food. This company persues also a lot of other weird stuff.
Just calculate the name MONSANTO with help of the 6-system shown above.
Yes you got it, MONSANTO = 666.
And we will do something else with this name, a method which we will later use again.
We look at the meaning of the name (you should know that these people never do something accidentally).
You know what MONSANTO means, it means "my saint". (They often use latin or latin derived expressions to get to this number 666.) Why "my saint" ? Who is their saint ? I know who it is and you should also know by now.

http://my.opera.com/therealanodyne/blog/666-an-overview-no-ii

AldousHuxley's picture

US gave indians IT jobs.

Indians must now give up agriculture to US corporate agriculture machine like Monsanto and Cargill.

 

Indian farmers are screwed. They will need to import ingredients for curry.

macholatte's picture

In my view the president has presented us with three choices," said Senate Minority Leader Mitch McConnell, R-Ky., referring to efforts to raise the $14.3 trillion debt ceiling. "Smoke and mirrors, tax hikes, or default."

"Republicans choose none of the above," McConnell said. "I had hoped to do good; but I refuse to do harm."

 

McConnell, Boehner blast Obama over debt talks

http://content.usatoday.com/communities/theoval/post/2011/07/mcconnell-blasts-obama-over-debt-talks/1

 

waylon153's picture

The only thing I'm hearing is Gomer Pyle, "Sur-Prize, sur-prize, sur-prize!!!!"

Seriously folks, why stand in front of the avalanche?  Accept it and embrace it, and profit from it when the REAL redistribution comes at the end of The Great Ponzi Age.

masterinchancery's picture

McConnell can play with himself all he wants.  There are not enough votes to pass his delusion.

Mr Kurtz's picture

...or usher in any tax reform. The "repukes" caved to their donors.

rumblefish's picture

and so they fold...

 

hedgeless_horseman's picture

Of course the senate folds.  Why?  Because a nation cannot vote or donate, but a trust-funder can vote and donate.  One country's debt is many a trust-funders' principal. We must keep growing that debt principal!

In 2008, the average net worth across the Senate was $13,989,022.98.

Apart from interest payments, it is not important what the new debt is spent on (NASA, Medicare, Wars, etc.).  It is only necessary that the debt/principal continues to grow, and thus does its associated income stream, which is required by the masters. 

Who are these masters?  Those that do not produce anything, but exist solely off the effforts of the slave class. For them, the nation's debt is their wealth in a literal and real sense.  Just ask Congressman Pete Stark...

http://www.youtube.com/watch?v=UjbPZAMked0

Debt slavery will always be the winning hand, at least as long as we give the banks free rein, allow them to self-regulate, and to legally bribe our elected representatives under the guise of campaign contributions. 

CompassionateFascist's picture

Campaign contributions? The mechanism of control is even more direct: the Pelosi's, Boner's, McConnell's and all the rest are heavily and personally invested in the debt Ponzi and all its attendant speculations. They'll keep it going to the bitter end. Only then will we have our vengeance.

Goldilocks's picture

Hmmm. Perhaps certain trustees need to step aside.

YouTube - Change is on the Horizon Part 1 of 3 Dawn of the Golden Age
http://www.youtube.com/watch?v=9k4Egwc1_DM

YouTube - Change is on the Horizon Part 2 of 3 The American Federal Empire
http://www.youtube.com/watch?v=ImefSYpySwA

YouTube - Change is on the Horizon Part 3 of 3 The Farmer Claims Program
http://www.youtube.com/watch?v=gOPIgNB-hGY

Mr Kurtz's picture

That's a big +10 and spot on hedgeless_ horseman.

Sudden Debt's picture

Debt ceiling hike IS NOT THE SAME as QE3

So markets will go up tomorrow, the penny will drop, and markets will go down again.

 

 

Dr. Richard Head's picture

So debt ceiling increase means more public spending, on top of Federal Reserve asset purchases resulting in more public spending in order to offset banking debt and load it onto the public's backs (aka more public spending).  This is bullish for the dollar, no? 

All we need now is to expand some more entitlements, send out some tax rebate checks to everyone in Amerika, and start a few more wars.  This way everyone is happy and the dollar is saved. 

Based on the past 11 years, this is the path that will contnue until it can't. The question I have is, when can it can't?

cossack55's picture

THAT is the BIG question. That is the ZH Golden Fleece (wow, hidden meaning in Golden Fleece?).

Dr. Richard Head's picture

So many damn fuses have been lit and have run right up to the same powder keg for three years now.  It is astonishing, yet the people continue on and suicide themselves (attempted in yesterday's case) for a fucking baseball.  I'm coming unglued here.  I need to go finger my gold and silver pile to settle me down.