Tim Geithner Releases Latest Mutual Assured Destruction Threat: Says "Debt Ceiling To Be Breached No Later Than May 16"

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Mon, 04/04/2011 - 15:16 | 1133756 Hard1
Hard1's picture

Debt Ceiling…What debt ceiling? asks Timmey?  Ben answers, those idiots at the hill think that there is a limit to the amount of those pieces of paper that you like to print and I happen to buy with other pieces of paper that I like to print…..ahh answers Timmey   there seemed nothing wrong with our pissing contest of who has the fastest printer in the world.  (So far there was a tie between elves and men at around $60 billion per second).  Oh and by the way,  asks the dumb elf.  How can they enforce trying to stop a train running at 250 mph that is 10 inches from crashing against an imaginary wall?  I don’t think they can do that answers Benny.  OK, I'll send them a letter. By the way seems like we tie again this week, I bought everything that you printed with my weekly output. Wanna wager another $20 for next week?

Ego can procer ocius quam vos can repute. I can print faster than you can think.   (Ben S. Bernanke  circa 2011)  

Mon, 04/04/2011 - 15:22 | 1133807 slaughterer
slaughterer's picture

It's like the only game Timmy knows is taken directly from page 1 of the Hank Paulson playbook.  

Mon, 04/04/2011 - 16:05 | 1134038 Highrev
Highrev's picture

President Obama is strongly committed to working with both parties to restore fiscal responsibility, and he looks forward to working with Congress to . . .

. . . keep kicking the can in "the meantime".

Mon, 04/04/2011 - 16:52 | 1134305 zaphod
zaphod's picture

"unless the deficit is eliminated"

 

That's really the only thing that matters and you just said it Timmy.

If we don't raise the debt ceiling the US will not default, it just means that the government will only spend what it takes in. Considering that tax receipts are still well north of $2Tillion, they have real balls to complain.

Tue, 04/05/2011 - 03:50 | 1135890 Popo
Popo's picture

Is there even a difference to America's image between defaulting and "taking on new debt to pay old debts"?    Both actions signify an inability to pay back debt.

One action accepts responsibility for our insolvency now, the other forces our insolvency onto our children.

 

Faced with the option of accepting financial responsibility today, or forcing debt onto our children -- Geithner is choosing to screw over our kids.  How on earth is that a defensible position? 

 

 

Mon, 04/04/2011 - 17:17 | 1134439 whatsinaname
whatsinaname's picture

Will Tim refuse to pay Ben "interest" on his treasury "holdings" ?

Will Tim give Ben an IOU instead ?

Mon, 04/04/2011 - 15:35 | 1133838 Hard1
Hard1's picture

Oh, I almost forgot. This is definitively bullish news for every asset.  BTFD bitchezzz!!

Mon, 04/04/2011 - 16:17 | 1134121 malikai
malikai's picture

What dip? Default is obviously the most bullish thing ever.

Mon, 04/04/2011 - 16:53 | 1134319 myTPisUSD
myTPisUSD's picture

S&P to rally was what I came away with

Mon, 04/04/2011 - 15:37 | 1133887 TradingJoe
TradingJoe's picture

yeah, good old turbo timmah!

Mon, 04/04/2011 - 15:17 | 1133760 tek77blu
tek77blu's picture

Timmy will do nothing more than raise the price ceiling for gold and silver going forward: http://www.youtube.com/watch?v=zk3z-JUKp3k

Mon, 04/04/2011 - 15:27 | 1133803 Hephasteus
Hephasteus's picture

April is going to gang rape the dollar. If it comes out of april over 72 it will be a frikkin miracle.

Yahoo is putting up plenty of Things that won't fly with the IRS stories and crap like that.

Everything that can be learned about horrilbe behavior is learned while slaves are attempting to run away from masters. When people attempt to fire thier government.

"This is a projection based on the expected level of tax receipts, the timing of our commitments and obligations over the next several weeks,"

There's no tax receipts. LOL

Mon, 04/04/2011 - 15:31 | 1133840 CPL
CPL's picture

You got it.

Mon, 04/04/2011 - 16:53 | 1134304 naughtius maximus
naughtius maximus's picture

Wouldn't the government defaulting on debt be massively deflationary? And all those seniors not getting paid.. All that money gone. Prices have to go down until people can afford them. Broke people cannot afford much.

I'm keeping my dollars until CONgress gets the brilliant idea that they can print all the money it needs to fund the monster government we have.

Then all this zimbabwae talk will become relevant and serious actual real life stuff.

Mon, 04/04/2011 - 17:10 | 1134408 fuu
fuu's picture

"I'm keeping my dollars until CONgress gets the brilliant idea that they can print all the money it needs to fund the monster government we have."

 

let's just skip over the part where you are coming late to the party and just embrace the fact you showed up.

Mon, 04/04/2011 - 19:17 | 1134840 Snidley Whipsnae
Snidley Whipsnae's picture

"And all those seniors not getting paid.. All that money gone. Prices have to go down until people can afford them."

Hello, Americans are not the only people on earth. In fact, Americans are a very small per centage of the people on earth. Commodities go to the highest bidder... regardless of their address.

"Actual real life stuff" is whats going to happen to you while you using faulty logic.

Mon, 04/04/2011 - 15:18 | 1133765 Rahm
Rahm's picture

Timmah is the definition of a piece of $h!t

Mon, 04/04/2011 - 16:56 | 1134325 myTPisUSD
myTPisUSD's picture

+1...some people are just shitty people, others are pieces of shit

Mon, 04/04/2011 - 15:20 | 1133771 GOSPLAN HERO
GOSPLAN HERO's picture

Print like four mofos.

Mon, 04/04/2011 - 15:26 | 1133819 Cash_is_Trash
Cash_is_Trash's picture

Well their intention to destroy the currency can't be clearer than that.

This man is real sack of shit, him and the cronies on the Hill which will raise the limit.

Mon, 04/04/2011 - 15:50 | 1133969 The German Chairman
The German Chairman's picture

Projections of Doom serve the Oligarchy! No doubt, a sudden collapse of the global financial system is POSSIBLE. All fiat may be worthless within days/weeks, shops empty, communications and energy off, unprecedented chaos globally. But I think the probability of such a thing to happen is way, WAY lower than most ZH-readers think. Why? Because today's worldwide oligarchy (the FED is its center) is in public crosshairs. Too many people know structures, names and faces of the oligarchy. If 'they' let the system collapse abruptly = erase all monetary assets/savings = leave millions/billions of people starving within months, 'they' would be just dead. DEAD. And their death will be an unpleasant one.

 

But - We are talking about the greatest concentration of power the planet has ever seen. 'They' own decisive pieces of all finance, agriculture, defense, energy, communications, media and last not least, 'they' control most governments and dictatorships. I doubt 'they' are careless enough to let it happen and expose themselves to such a tremendous risk. The most probable outlook for the future is that everything will steadily get worse. Up to which point? There is no such point. For instance food-stamps. Imagine a time when there were 'only' one million US-citizens depending on food stamps. Everybody would have said: If the figure - gasp - doubles, we have a revolution, society will collapse. How many people depend on food-stamps today? Aren't it some tens of millions? If 30 million is possible, then 60million is possible, too. And if 60million is possible, then 1/2 of US population is possible, too. It just depends on the timeframe in which this unfolds and its steadiness.

 

And why shall the population accept such a development and live their lives in such an obvious nightmare? Because from a day-to-day view, almost everything is better than sudden collapse. And the more we project this sudden collapse in our minds, the easier it is for the oligarchy to impose their will on us. Hm, what about us, the small, critical, intellectual crowd; we accumulated considerable quantities of physical PMs because we think this is an über-weapon/shield against 'them'? I think 'they' will have some candy for us which we cannot resist and which makes us accept whatever 'they' intend. They will know how to pull their most serious critics on their side - and the looting of the world can go on.

Mon, 04/04/2011 - 17:05 | 1134389 sschu
sschu's picture

You may be correct, boil the frogs slowly as they say.

When I speak to people about the crisis we face, the invariable response is about the stock market.  How can all this be true and how can the market be up so much given the doomsday scenario you paint?  If you start down the path of market manipulation, then these people tune out, they just do not want to hear it.

As long as the market does not go down, the people will watch their 401Ks and decide that all cannot be that bad.  Bennie etal know this and they will spend a bundle to keep it that way.

sschu 

Mon, 04/04/2011 - 17:38 | 1134526 Crack-up Boom
Crack-up Boom's picture

Even worse - I've tried to explain the potential for inflation, only to be told that, if prices rise, our slaries will have to rise, too, so there won't be any real difference!  It can be really hard to break through the normalcy bias. 

Mon, 04/04/2011 - 18:10 | 1134641 James
James's picture

For the record, 44.5 + MILLION are on food stamps today.

Tue, 04/05/2011 - 03:09 | 1135870 MisterAmbassador
MisterAmbassador's picture

I agree with your premise and logic, but wasn't the system completely collapsing in September 2008?  Wouldn't they have wanted it to be less apparent?  These people have great arrogance.  They believe they can perfectly predict and control everything.  They cannot fathom that computers can quickly collapse the system as things cascade faster than they can possibly think, let alone react.  That arrogance is all it takes for an uncontrolled collapse.  The government was able to guarantee the banks and stop $5.5 trillion from being withdrawn from the system.  Who guarantees the government, though?  Rev up the presses? Sure.  But, sovereign holders of our debt will see through that and SELL!  SELL!  SELL!, if not declare war.

Mon, 04/04/2011 - 15:18 | 1133774 SwingForce
SwingForce's picture

What a liar, worse than I thought.

Mon, 04/04/2011 - 15:18 | 1133778 Homey Da Clown
Homey Da Clown's picture

"President Obama is strongly committed to working with both parties to restore fiscal responsibility"

 

HO  HO HO HA HA HA. Thanks Timmy. I needed that one.  Didn't he send Joe "Stand Up Chuck" Biden to deal with the budget for one day, while he left town for Rio?Hubris indeed.

Mon, 04/04/2011 - 16:11 | 1134071 DosZap
DosZap's picture

I haven't seen him work,or be committed  on anything except his Golf game.

He allows Satans minions to do the dirty work, whilst he's vacationing with the Fam.

Ah...........................the Good Life.

The Chi Town Way.

Mon, 04/04/2011 - 16:22 | 1134141 Anonymouse
Anonymouse's picture

A few statements to this effect placed throughout the media, and voila, all economic problems are the fault of the GOP.  "The recovery was moving along nicely, unemployment coming down, business confidence on the rise.  But then, the extremists in the GOP shutdown the government and the economy went back off the rails."  This is all positioning for 2012.  Problem is, it probably will work.

Mon, 04/04/2011 - 20:35 | 1135101 Founders Keeper
Founders Keeper's picture

[A few statements to this effect placed throughout the media, and voila...]---Anonymouse

Good observations, Anonymouse.

Dems kick the 2011 Budget can down the road for the Reps to wrestle with at about the same time the Debt Ceiling comes due. Then, in the interim, announce ginned up GDP numbers and sub 9% NFP numbers.

Both parties spend countless hours, day and night, plotting and wringing their dirty hands over this kind of non-sense, while the work of the nation waits.

Maniacal brilliance of political monsters.

Dems & Reps alike, shameful. SSDD. We all lose.  

 

Mon, 04/04/2011 - 15:19 | 1133786 Midwest Prepper
Midwest Prepper's picture

Isn't Timothy Geithner the guy who is incapable of doing his own taxes with Turbotax?  Why should we listen to him on this?  There is only one way to find out what would happen.... Let's default and see who gives in first...

Mon, 04/04/2011 - 15:20 | 1133788 Your Mama
Your Mama's picture

Bring it on...need to shake up the markets, to frickin boring these days

Mon, 04/04/2011 - 15:20 | 1133789 bob_dabolina
bob_dabolina's picture

We should all listen to a guy who couldn't properly pay his taxes because turbo tax was too complicated.

Mon, 04/04/2011 - 16:21 | 1134142 malikai
malikai's picture

Hiding all the crooked cash he's got probably is too complicated. He should have banked at Wachovia. They've obviously got experience in these matters.

http://www.guardian.co.uk/world/2011/apr/03/us-bank-mexico-drug-gangs

Mon, 04/04/2011 - 19:09 | 1134810 Natasha Fatale
Natasha Fatale's picture

Seriously.

+13 trillion

Mon, 04/04/2011 - 15:20 | 1133793 Lord Welligton
Lord Welligton's picture

"Defaulting on legal obligations of the United States would lead to sharply higher interest rates and borrowing costs, declining home values and reduced retirement savings for Americans."

Same argument the world over.

Borrow more or we will destroy your country.

I say. Bring it on.

Mon, 04/04/2011 - 16:20 | 1134129 youngman
youngman's picture

"lose confidence in our ability to meet our commitments and our obligations"

Timmy...to me that would be paying your bills with the money you make....NOT MONEY YOU BORROW OR PRINT...what an idiot.......this joke is not longer funny...

How come I have this funny feeling those foreign banks that got all the bailout money...have a lot of Politicians and Timmy´s accounts...well stocked with cash right now...probably changed it over to gold

Mon, 04/04/2011 - 17:43 | 1134545 disabledvet
disabledvet's picture

even better:  "we won't pay the soldiers."  right up with "the white preacher in Florida did it."

Mon, 04/04/2011 - 15:21 | 1133797 hedgeless_horseman
hedgeless_horseman's picture

Defaulting on legal obligations of the United States would lead to ... declining home values and reduced retirement savings for Americans.

I think Turbo Tax Tim has this backwards. 

Here is the truth: 

Incurring excessive obligations of the United States has lead to declining home values and reduced retirement savings for Americans.

 

Mon, 04/04/2011 - 16:14 | 1134084 DosZap
DosZap's picture

Flashbacks have a way of reversing the truth.

Mon, 04/04/2011 - 15:21 | 1133799 Astute Investor
Astute Investor's picture

"The longer Congress fails to act, the more we risk that investors here and around the world will lose confidence in our ability to meet our commitments and our obligations...."

 

Someone should tell TG that the only "investor" that matters these days is BB & Co.

Mon, 04/04/2011 - 15:24 | 1133805 Homey Da Clown
Homey Da Clown's picture

Right out of the Rahm Emanual playbook

http://www.youtube.com/watch?v=1yeA_kHHLow

Mon, 04/04/2011 - 15:29 | 1133810 TruthInSunshine
TruthInSunshine's picture

When Americans divorce themselves from ego & narcissism, embrace true freedom, embrace life as more than just a hobby of collecting shit they don't even really need, and start to love their children more than they hate confronting the desperation of what a famous author & thinker termed " lives of quiet desperation," they'll be prepared to say "I am not afraid of default because I want to be free, and no longer desire to be a shackled debt slave."

Only then, realizing that they can't be controlled and forced to do things they detest for the rest of their lives in exchange for material things, most of which have a token happiness expiration date of 2 days to 2 months from purchase, can Americans be free again.

So, default. Move to Walden. Go Galt.

"I am not Jack's FICO score, Bank Account or Bottom Line. I am Jack's newly born freedom."

 

 

Mon, 04/04/2011 - 15:28 | 1133835 SilverFiend
SilverFiend's picture

Well said.  I'm ready.

Mon, 04/04/2011 - 15:32 | 1133869 Overpowered By Funk
Overpowered By Funk's picture

Bravo!

Mon, 04/04/2011 - 15:37 | 1133896 Bryan
Bryan's picture

I really wonder what would happen if, maybe, 50% of all Americans decided to default on their own personal debt.  Maybe even 20% would do it.  Would it bring down the system and things would settle?  Or would we all just be miserable and get us nowhere?

Mon, 04/04/2011 - 15:50 | 1133959 MachoMan
MachoMan's picture

I'm not sure we're too far from your latter figure.

Mon, 04/04/2011 - 18:16 | 1134656 James
James's picture

Bryon asks - Or would we all just be miserable and get us nowhere?

 

 

We already are miserable and getting nowhere.

Mon, 04/04/2011 - 15:51 | 1133965 LawsofPhysics
LawsofPhysics's picture

Yes,  I am in and prepared.  Let us see the treasury stop payment on the military paychecks first.  I have food and water for patriots, bring it.

Mon, 04/04/2011 - 15:57 | 1133986 tahoebumsmith
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Tyler’s Fifth Rule of Innovation:

“You’re not your job. You’re not how much money you have in the bank. You’re not the car you drive. You’re not the contents of your wallet. You’re not your fucking khakis.”

When we talk about fear, risk, mistakes, and losing it all, what are we really afraid of? Are we defined by the stuff we own, or would we prefer to be defined by what we accomplish and create for the world?

I’m not saying give all your stuff away or take foolish risks that harm your family or yourself. I’m saying don’t let the stuff you own start to own you to the point that you can’t live the life you want to live and do the things you want to do.

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