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Tim Geithner Responds To Druckenmiller With More Fearmongering And "Assured Destruction"

Tyler Durden's picture




 

Not even 24 hours after Stanley Druckenmiller said to ignore all threats by the kleptocratic kartel [sic] of a world collapse should the debt ceiling not be hiked, as if on cue the tax-troubled treasury secretary has released another letter, this time to Michael Bennet, D-Colo, in which he rehashes all the usual threats that Hank Paulson pulled out of his sleeve when he presented his 3 page term sheet demanding congress give him unlimited powers to do anything Goldman, er, he saw fit to preserve the banker status quo. Nothing new in the letter, just more of the same: “A default would inflict catastrophic far-reaching damage on our
nation’s economy, significantly reducing growth and increasing
unemployment...Even a short-term default could cause irrevocable damage to
the economy. A default on Treasury debt could lead to concerns about the solvency of
the investment and financial institutions that hold Treasury
securities in their portfolios, which could cause a run on money market
mutual funds and the broader financial system. A default would call into question the status of Treasury securities as
a cornerstone of the financial system, potentially squandering this
unique role and the economic benefits that come with it." It is sad that the Treasury has succumbed to another bout of fearmongering because as Zero Hedge has been claiming since late 2009, and as Gross and Druckenmiller have recently reaffirmed, the only threat to the "confidence" of the US is if (or more correctly "when") the legislative bodies of the US succumb to this latest round of completely flawed, irresponsible and wrong mutual assured destruction rhetoric, and once again hike the debt target, this time to a total that is about 115% of US GDP.

05.14.11GeithnerLetterToBennet

 

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Sat, 05/14/2011 - 15:30 | 1274523 FOC 1183
FOC 1183's picture

Will tiny Tim please respond to the fact that his auctions have pushed us over the debt ceiling? It almost seems like the 30 year settlements on Monday should fail.

And Tyler....that last sentance is north of 80 words. Even for you, that may be a record

Sat, 05/14/2011 - 15:52 | 1274571 lolmao500
lolmao500's picture

So what, raise the debt ceiling, the US was 122% in debt post WW2! The US can take lots of debt! (that's what most people believe)

Sat, 05/14/2011 - 15:56 | 1274580 Cleanclog
Cleanclog's picture

Cuz debt = wealth!   

Except that it doesn't.  

Or it DOES if we spend and then repudiate.  Depends on which angle you look from.  Plenty of people maxed out the cards, have beautiful bangles, foreign travel, and a McMansion they're still enjoying.  Still living in the McMansion, especially in NJ and NY where the foreclosure process now takes more than 900 days.  Still living the good life, unless they have student loan debt.  That's the one thing they can't flush away in bankruptcy.  Okay to pork out on fashion designer clothing and big screen TVs (that's consumption after all) but god forbid an investment in education.  

Well, that's America 2011.  That's all folks. Thanks Bugs Bunny.  

Sat, 05/14/2011 - 16:28 | 1274625 TheFourthStooge-ing
TheFourthStooge-ing's picture

This all makes sense in the context of America's principal religion: believing that you can get something for nothing.

 

Sun, 05/15/2011 - 05:14 | 1275258 Quixotic_Not
Quixotic_Not's picture

Money for nuthin', chicks for free!

Perhaps MTV was the beginning of the end after all?

P.S.  I knew it was over when the crackheads, led by Tranny Queen Oprah, S-Elected Obama Bin Lyin' to take the crackers down...

Like a progressive cancer, malignant to the bone.

Sat, 05/14/2011 - 22:22 | 1275350 sun tzu
sun tzu's picture

Is that principle religion called socialism?

Sun, 05/15/2011 - 00:30 | 1275539 StychoKiller
StychoKiller's picture

Even worse is the "Cult" of Progressivism, wherein believers "think" that problems/disasters caused by a Govt program can be fixed by even more Govt programs -- the very definition of insanity!

 

Sun, 05/15/2011 - 06:45 | 1275768 i-dog
i-dog's picture

Indeed ... and there are those who also think that problems caused by hundreds of thousands of pages of laws being broken and not enforced will be fixed by more 3,000-page laws that will be broken and not enforced. Sheer geniuses!

Sat, 05/14/2011 - 17:00 | 1274668 tired1
tired1's picture

Nationalize the Fed!

Sat, 05/14/2011 - 17:16 | 1274685 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Naw, just burn it down.

Sat, 05/14/2011 - 18:07 | 1274765 holdbuysell
holdbuysell's picture

Make sure to load up on Fed-related CDO's before you burn it down.

Sat, 05/14/2011 - 19:34 | 1274924 TheTmfreak
TheTmfreak's picture

*Yawn*

Timmy go fuck yourself.

Sat, 05/14/2011 - 21:42 | 1275265 Quixotic_Not
Quixotic_Not's picture

Timmy go fuck yourself.

Truth is, Timmy is fuckin' everyone that has NOT converted paper to PHYSICAL PMs.

The day of the Paper Tiger is almost over...

Sun, 05/15/2011 - 09:58 | 1275892 TheTmfreak
TheTmfreak's picture

Well there is more to it than that. You're still paid (as a worker) usually a finite amount of dollars. So therefore he is fucking how much you make not just one's cash savings.

Obviously if you have your own business you can adjust prices to the Timmy fuck schemes so you're not so easily screwed over. (that is of course unless people stop wanting to buy your products because they're too expensive.)

Sat, 05/14/2011 - 19:09 | 1274691 akak
akak's picture

Do I detect another misinformed acolyte of the Dynamic Duplicitous Duo, Bill Still the Fiat Shill and Ellen Brown the Money Clown?

Sat, 05/14/2011 - 21:51 | 1275290 downwiththebanks
downwiththebanks's picture

Do I detect another Ron "JOHN BIRCH SOCIETY" Paul acolyte who doesn't understand that the Fed is privately owned and privately managed?

Sat, 05/14/2011 - 22:25 | 1275353 akak
akak's picture

Do I detect another clueless Marxist asshole who can't recognize a champion of liberty, personal freedom and limited government from a teleprompter-reading monkey, and who despises the concept of freedom within the monetary sphere, instead preferring a coercive statist money monopoly? 

Yes I do.

Sat, 05/14/2011 - 22:29 | 1275366 sun tzu
sun tzu's picture

downsyndrome is just a mouthpiece for the stupid and insane

Sat, 05/14/2011 - 22:34 | 1275373 downwiththebanks
downwiththebanks's picture

Go GOP!

Sun, 05/15/2011 - 00:01 | 1275494 Manthong
Manthong's picture

Full faith and credit?

More like total smoke and mirrors.

Sun, 05/15/2011 - 10:02 | 1275893 TheTmfreak
TheTmfreak's picture

Yeah no kidding!

 

Sat, 05/14/2011 - 22:25 | 1275356 sun tzu
sun tzu's picture

You're a dunce if you truly believe that. The Fed chariman is appointed by the president and confirmed by the senate. They have a .gov domain. They are hand in hand with the government. I suppose you believe FDIC, Fannie and Freddie are also private companies. 

Sat, 05/14/2011 - 22:33 | 1275374 downwiththebanks
downwiththebanks's picture

Wow:  people owned by the banks confirm other people who are owned by the banks to do the bidding of the banks.

Real astute analysis, clown.

http://land.netonecom.net/tlp/ref/federal_reserve.shtml

GOP in 2012!

Sat, 05/14/2011 - 22:42 | 1275378 akak
akak's picture

So you criticize Sun Tzu, after essentially agreeing with him.

You're a sharp one all right.

Sat, 05/14/2011 - 22:41 | 1275390 downwiththebanks
downwiththebanks's picture

Wow:  you're dumb.  

I thought you were ignoring what I wrote from here on out.  In the future, please do.  Your poor saliency isn't something I care about.

Sat, 05/14/2011 - 22:58 | 1275414 NidStyles
NidStyles's picture

Pot meet Kettle.

Sat, 05/14/2011 - 22:57 | 1275421 downwiththebanks
downwiththebanks's picture

Another GOP voter?

Sun, 05/15/2011 - 12:26 | 1276290 riley martini
riley martini's picture

 The GOP are nothing but lap dogs for the Banksters . GOP prosecution =0 Banksters = $trillions. They don't call you a dittohead without reason .

Sun, 05/15/2011 - 01:49 | 1275616 baby_BLYTHE
baby_BLYTHE's picture

It is actually worse than that. The president doesn't really "select" the Fed Chairman, he appoints one from a pre-select list approved by the Rothschilds and TBTF banksters.

We truly are a 'comquered' nation...

Sun, 05/15/2011 - 08:38 | 1275843 CoolClo
CoolClo's picture

But the "Chairman" cannot be removed by the president or the senate after confirmation is completed. And don't forget the 6% taxfree dividend the "Fed" pays to its private shareholders on profits.

Sat, 05/14/2011 - 22:29 | 1275359 akak
akak's picture

Do I detect another clueless Marxist asshole who can't recognize a champion of liberty, personal freedom and limited government from a teleprompter-reading monkey, and who despises the concept of freedom within the monetary sphere, instead preferring a coercive statist money monopoly? 

Yes I do.

Sat, 05/14/2011 - 22:41 | 1275383 downwiththebanks
downwiththebanks's picture

Here's how you ask questions:

http://www.youtube.com/watch?v=9RvLL--vSsA

Perhaps your favorite REPUBLICAN party/John Birch Society apparatchik should take a lesson or two.

Sat, 05/14/2011 - 22:44 | 1275393 akak
akak's picture

I support Ron Paul because he is a principled, highly intelligent, and wise champion of liberty and limited government, and despite the fact that he is nominally a member of the GOP.  But that is far too nuanced and thought-provoking for the limited mentality of a mentally-enslaved party hack such as yourself who is still stuck in the blinkered, meaningless, and destructive left-right political paradigm.

Sat, 05/14/2011 - 22:48 | 1275398 downwiththebanks
downwiththebanks's picture

Real wise guy:  after 80 years of life he's still part of the duopoly.  In fact, he used to NOT be, right?  Perhaps nepotism plays a role?

Sat, 05/14/2011 - 22:50 | 1275401 akak
akak's picture

Clearly you are not in any way open to honest, sincere, intelligent discourse, but are obviously here simply to antagonize, attack and troll in the most shallow and puerile manner.  You are beneath contempt.

Sat, 05/14/2011 - 22:53 | 1275410 downwiththebanks
downwiththebanks's picture

I will henceforth ignore everything you have to say in this forum

Who wrote this, GOP boy?  

Sun, 05/15/2011 - 00:10 | 1275517 tmosley
tmosley's picture

Herp a durp, I judge people solely on the letter behind their name, and pay no attention to their voting record.

DURP!

Sun, 05/15/2011 - 12:31 | 1276309 riley martini
riley martini's picture

Those who think (4 terms)Ron Paul is doing something =0 Banksters = $trillions .

Sat, 05/14/2011 - 17:43 | 1274724 willien1derland
willien1derland's picture

Debt = Wealth*

*This equation requires that the Federal Government is complicit with the 'capital formation' sector ensuring that existing regulations are nominally applied, SEC has open access to PORN & that any material losses are socialized -

Great Post CC -

Sat, 05/14/2011 - 18:59 | 1274835 Calmyourself
Calmyourself's picture

Just tell me where the full size rendition of your avatar is hiding, okay?

Sat, 05/14/2011 - 21:41 | 1275261 downwiththebanks
downwiththebanks's picture

I love these posts:  all about how working people are horrible and awful for living beyond their means.

Nothing about the bailed-out banker-gangsters who destroyed the US economy and now rely on welfare from THOSE SAME WORKING PEOPLE to fund their parasitical speculation.

The arrogance is alarming.  When the summary executions begin, "but I bought silver" won't be enough to save the lives of those who defend Jamie Dimon's UNCONDITIONAL right to rape and pillage.

Sat, 05/14/2011 - 22:31 | 1275371 sun tzu
sun tzu's picture

I think there were a few hundred thousand posts about the bankers and their henchmen at the Fed and Treasury. Are you throwing a hissy fit because your boy Tiny Tim is in the crosshairs? Tiny Tim gave the banksters the UNCONDITIONAL right to rape and plunder. 

Sat, 05/14/2011 - 22:43 | 1275394 downwiththebanks
downwiththebanks's picture

Yeah, because they lacked it before.

"My boy" Tiny Tim is a wholly owned subsidiary of the folks who pay your salary to sponge of working people for a living, sun tzu.

Sun, 05/15/2011 - 18:16 | 1277280 naughtius maximus
naughtius maximus's picture

Which is better, going into a million dollars into debt to pay for a small factory? Or going into a million dollars into debt to pay off your other creditors and pay yourself big bonuses?

 

Guess it depends on what kind of person you are.

Sat, 05/14/2011 - 16:17 | 1274605 Sudden Debt
Sudden Debt's picture

Yes. And in that time there where 2 billion people and EVERY economy in the world had their industry DESTROYED.

The US had 170 million citizens and produced stuff for the rest of the world.

There wasn't any competition in those days.

Now the US doesn't have a real industry anymore. Everything is outside the US.

There are 7 billion people.

Everybody has 50 times more stuff than they had in the 50's.

Technical developpement in those days was just mindblowing.

What needs to be invented these days to make our lives even more easy?

Robots that can whipe our ass? No thanks, I'll do that myself.

 

Sat, 05/14/2011 - 16:39 | 1274639 Id fight Gandhi
Id fight Gandhi's picture

But but we have s surplus in the service industry. We export more services than import.... I'm sure that is overlooked and will soon be outsourced to your nearest third world to "compete" better.

Sat, 05/14/2011 - 17:42 | 1274728 wisefool
wisefool's picture

<sarc>come on dude. actually knock on our door. Put vietnam and other stuff behind you.

America is the last frontier for state subsidized fat girls going childless. </sarc>

The 4chan, anonymous types, and you rich people on ZH got it wrong. If timmy cheated on his taxes either directly or indireclty, Bill Murray would say it just does not matter in a keyseanian framework.

Me love the service industry long time after the millboard plow and day after stuff.

Sat, 05/14/2011 - 18:59 | 1274841 WmMcK
WmMcK's picture

Wipe or whip?  I'm into self-reliance but not self-flaggelation.

Sat, 05/14/2011 - 19:59 | 1275015 wisefool
wisefool's picture

lets see how self reliant you are when I got 30B POMO money to short the silver market.

Go pan for silver sheep. if you find something, do a 1099. I (peronally) dont have to fill out tax forms.

 

Sat, 05/14/2011 - 22:33 | 1275375 sun tzu
sun tzu's picture

When they find a cure for retardation, you should be first in line

Sat, 05/14/2011 - 22:59 | 1275425 NidStyles
NidStyles's picture

Not a quick one are ya? Filing a 1099, for what?

Sat, 05/14/2011 - 21:00 | 1275157 robertocarlos
robertocarlos's picture

Is it whip or wipe? We could all use a whipping. Some of us need a wipe.

Sun, 05/15/2011 - 00:40 | 1275549 Al Gorerhythm
Al Gorerhythm's picture

"I greatly appreciate your leadership on this issue and your strong commitment to the full faith and credit of the United States"

Summarizing this letter: "As you are our "go-to" guy, we at treasury would really appreciate it if you authorized another 2 or so $Trillion, (that is not a typo, old pal) and that should encourage the rest of the world into believing that, because they are getting paid, all's good. We hope that you don't mind us spending beyond our current limit. We promise to balance it up when we get that extra credit added to our overdraft account."

"See you for cocktails after work?  They're on me. Can't beat the old plastic!"

Cheers!

Timmah.

 

Sun, 05/15/2011 - 12:37 | 1276336 riley martini
riley martini's picture

 Debt ceiling debate # 75 all the world is at stake just like the last 74 debt ceiling raises . It gives the ditto heads and minions a chance to think they are winning, horay for our side.

Sat, 05/14/2011 - 16:43 | 1274653 willien1derland
willien1derland's picture

Excellent Point FOC - For the record, the longest "sentence" in English literature is 4,391 words expressed by Molly Bloom in James Joyces epic novel "Ulysses" - Plenty of cushion, Mr. Durden, however, I believe that Geithner & Bernanke can provide the muse to best such a rant! Great article - Great post!

Sat, 05/14/2011 - 17:40 | 1274721 dark pools of soros
dark pools of soros's picture

4000 words, expressed by a woman no less, is definitely a sentence. Some would opt for the death penalty instead...  What was the crime to get such a long punishment?

Sat, 05/14/2011 - 17:55 | 1274743 Hugh G Rection
Hugh G Rection's picture

A message to Timmy from MetalHead Nation.

 

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

Sun, 05/15/2011 - 00:11 | 1275511 JLee2027
JLee2027's picture

And Tyler....that last sentance is north of 80 words. Even for you, that may be a record

Tyler is obviously parroting the endless raising of the debt ceiling with his sentences. Get with the program...sheesh.

Sat, 05/14/2011 - 15:32 | 1274527 Captain Benny
Captain Benny's picture

Dear Senator Bennet,

The Treasury Department has written you a letter claiming future events will unfold.  Fortunately Timmy cannot predict the future and thus his claims are not assertions, but in fact made up in order to scare you and the proletariat into thinking it is the end of the world if a default occurs.

Treasury investors have known for decades that the US has been on a path of self destruction and that there must be either a default in some form or another or the debt would be paid through massive inflation and possibly leading to hyper inflation.  As the investors in treasuries knew this when they made their investment decisions, they took on that risk.  When a party cannot pays its debt, a default occurs and the investor assumes the loss.  The US cannot pay its debt and the investors in US debt must take a loss.

Regards,

Capt. Benny

Sat, 05/14/2011 - 18:31 | 1274783 Dejean Splicer
Dejean Splicer's picture

Dear Lloyd,

Please tell us what the real US debt is? If Goldielox will do this for Greaze what are they doing for the US of Amerika?

~D'jean Splicer

 

New Disclosures on Currency Swaps with Goldman to Hide Greek Debt; Tip of the Iceberg says Former Bond Trader "Dr. Evil"

http://globaleconomicanalysis.blogspot.com/2011/05/new-disclosures-on-currency-swaps-with.html

 

 

Sat, 05/14/2011 - 19:08 | 1274853 rufusbird
rufusbird's picture

They are already telling and practicing one lie. They have no problem telling another. I guess that old saying about once you tell a lie you have to keep lying. The people who believe the first lie will believe the second one.

I think people belive lies because it is convenient.

Sat, 05/14/2011 - 15:26 | 1274531 Traianus Augustus
Traianus Augustus's picture

The Honorable Ben S. Bernanke - Only in this upside-down world do the criminals get to call themselves honorable!!!

Sat, 05/14/2011 - 15:59 | 1274583 lolmao500
lolmao500's picture

Yep. I long for the day Bernanke's corpse will be hanging from a 50ft pole that will have been installed, among others, on the White House lawn to hang traitors of America. By his sides will be Geithner and Krugman, that hack.

Sat, 05/14/2011 - 16:30 | 1274624 gianakt
gianakt's picture

Don't think it will get to that point. Bernanke will probably commit suicide once the markets start opening limit down day after day. Remember during the 60 minutes interview he was shaking in his pants from being asked a few simple questions.

Sat, 05/14/2011 - 16:34 | 1274629 TheFourthStooge-ing
TheFourthStooge-ing's picture

I'm long rope, torches, pitchforks, tar, and feathers.

 

Sat, 05/14/2011 - 18:49 | 1274821 DeadFred
DeadFred's picture

Especially pitchforks.

Sun, 05/15/2011 - 01:13 | 1275588 A_MacLaren
A_MacLaren's picture

+4 or 5 tines

Sat, 05/14/2011 - 21:58 | 1275301 downwiththebanks
downwiththebanks's picture

And Dimon and Pandit, and all the banker-gangster hedge fund welfare queens who have spent their lives stealing from people who work for a living.

Waiting in line:  all their defenders, when the shit hits the fan in Egypt/Wisconsin, etc.

Sat, 05/14/2011 - 16:06 | 1274595 velobabe
velobabe's picture

no shit for sherlock. god of course, he wrote to a colorado senator. they are all just worthless pieces of fucked up shit, in every damn american state.

Sat, 05/14/2011 - 16:49 | 1274659 akak
akak's picture

Timmy Beavis Geithner just when I thought my contempt and loathing for you could not possibly be greater, you have managed to summon up within me new reserves of desire to strangle you and silence your nonstop and desperate pro-Establishment propaganda and lies.

Sat, 05/14/2011 - 17:32 | 1274706 Zero Govt
Zero Govt's picture

yes you'd think Timmay couldn't possibly get any lower than the underbelly of a snake but he's managed it ....what a crock of oily hysterical shit... nothing could actually be worse than raising the debt ceiling, it shows the complete incompetence of the morons in Washington for starters in how they got in this deep debt hole, shows they have no planning whatsoever and when they arrive at 2mins to midnight both sides of the aisle throw their toys out of the pram and couldn't organise a piss-up in a brewery to deliver real spending cuts

..politicians are beyond pitiful, they're shambolic retards and have all earnt a bullet

Sat, 05/14/2011 - 18:32 | 1274794 Abitdodgie
Abitdodgie's picture

They have earned a bullet ,but their family should have to pay for after their execution

Sat, 05/14/2011 - 15:24 | 1274532 LongSoupLine
LongSoupLine's picture

Gimme an "S"!

Gimme an "I"

Gimme an "L"

Gimme a "V"

Gimme an "E"

Gimme an "R"

 

What's that Spell?!?

FU FU FU Timmy!!  Rah Rahh!

Sat, 05/14/2011 - 16:08 | 1274602 velobabe
velobabe's picture

i asked my nut people at the farmers market this morning if they have been buying silver coins. the girl shouts, i just sold all my silver coins my grandparents gave me for $46. why? because it was so high in price. jes, i got upset with her. she sold her silver for $46 bucks of worthless paper, that is going down by the day. then the other kid told me he had mucho student debt, but it was ok cause he has an engineering degree. amerika hiring engineers to blow up amerika's infrastructure.

Sat, 05/14/2011 - 16:34 | 1274636 slewie the pi-rat
slewie the pi-rat's picture

thank you for the fine report from the nut people, velo_be! 

does our indebted young engineer have a job?

i hope you are ok.  i'll bet those were nice old coins, too, but, when people talk about markets, you are our person in the streets!

Sat, 05/14/2011 - 16:40 | 1274645 Id fight Gandhi
Id fight Gandhi's picture

Sorry, engineering degrees are nit what they were. Theres no security as they will outsource it as soon as possible or have you train the 22 year old graduate to replace you at a fraction of your pay.

Sat, 05/14/2011 - 20:14 | 1275052 Dejean Splicer
Dejean Splicer's picture

"thank you for the fine report from the nut people, velo_be!"

What Happens When Matter and Antimatter Meet?

Sat, 05/14/2011 - 18:35 | 1274801 Abitdodgie
Abitdodgie's picture

You cannot fix stupid

Sat, 05/14/2011 - 18:37 | 1274803 Abitdodgie
Abitdodgie's picture

.

Sat, 05/14/2011 - 19:34 | 1274920 Keri at Bankste...
Keri at Bankster Report's picture

This seems like an appropriate spot to mention, to anyone interested, that there is a big coin expo in Denver, CO continuing through to Sunday afternoon:

http://www.denvercoinexposhows.com/consumer/index.htm

I haven't had time to check it out yet, but I'm going over to investigate it tomorrow (unless, of course, the Moon explodes on rumors of a possible Treasury default); I'll be very interested to talk with some dealers and get a more local pulse on the market.  I understand it has been a hot spot.

Sat, 05/14/2011 - 15:27 | 1274533 cossack55
cossack55's picture

But....but that still leaves us way behind Japan. I mean we got the 2000 year flood and all, some droughts, wild fires, scumbag politicians, commies in the White House, but they got the nukes frying. We're trumped (no pun intended, well, maybe).

Sat, 05/14/2011 - 16:33 | 1274632 TheFourthStooge-ing
TheFourthStooge-ing's picture

We're not behind anyone! The United States is the world's leading submerging market economy.

 

Sat, 05/14/2011 - 15:25 | 1274535 Prof Gulliver
Prof Gulliver's picture

All smoke and mirrors. The government will spend what it wants to, and Bernanke will turn the print-O-meter dial to 11. No matter what the "limit" is, it's a mythical amount. This reminds of what Washington Redskins owner Edward Bennett Williams said about coach George Allen: "George was given an unlimited budget and he exceeded it."  

Sat, 05/14/2011 - 19:11 | 1274858 WmMcK
WmMcK's picture

I think George was once quoted saying something like "We didn't lose, we just ran out of time".  Ben B. may have occasion soon to use that one himself.

Sat, 05/14/2011 - 20:01 | 1275019 Sancho Ponzi
Sancho Ponzi's picture

If he did, he stole the line from Bobby Layne.

Sat, 05/14/2011 - 17:41 | 1274537 Bay of Pigs
Bay of Pigs's picture

"protect the full faith and credit of the US gov't"?

Market bullish right? "Uncertainty" is removed? Ha ha...

Sat, 05/14/2011 - 19:20 | 1274889 Keri at Bankste...
Keri at Bankster Report's picture

Yeah, I don't know why he'd even bring that up other than because Bennett and so many other people don't know true history, which is that the US Treasury has defaulted---twice.

1.) The US defaulted in 1933 by refusing to redeem domestically held gold certificates for the terms of settlement listed on the certificates, which was, of course, gold; Treasury also defaulted by stimulatenously revaluing the underlying asset, to which the certs were tied, by 75% from $20 to $35 without compensating cert holders.

2.) The US defaulted in 1971 by refusing to redeem internationally held gold-backed obligations for gold.

The same people who are, right now, telling us that a default would be "so catastrophic" are the very people who hold these two previous defaults as just about the "best" things the US could possibly have done!  Bernanke thinks the '33 confiscation/revaluation and the corresponding '71 dollar-break were just super-de-duper.  They were DEFAULTS,Bernanke!  Even Greenspan admitted this.  And now Bernanke's saying that a default with kill all endangered animals in the world, destabilize the gravitational pull of the Moon, cause Reactors 1-4 to enter full-meltdown, and destroy confidences in the US.

This is just insulting.  Who else is actually wanting a default, besides me?  I just want to smash to bits this insane and non-free-market based idea that lending money to anyone, and particularlly lending money to irresponsible entities, is a risk-free venture, and that you'll "always" get your money back!

People and nations need to start thinking, "Holy smokes, yo, I know they're promising me 105% of this in five years if I just let them use it now, but if I give them this money, I might not get it back--they might default."  When people start shouldering risk, the game changes; get rid of the FDIC and let's see how many people leave their money in an uninsured bank account....uh, are you going to leave money in an insured account?  Hell no, certainly not me; it'll be back under the mattress, where it is safe.  Lenders need to start taking losses; creditors need to start feeling how risk burns.  The US government with its "full faith and credit" nonsense and the lenders/creditors/buyers who believe such STUPID lines both deserve to get hit.  And hit hard.  And I think the fact is that they know someone's going to take it, but they are just hoping to push it down the line, and we see this is Ireland and Greece, and here, of course.

To any Icelanders out there: maybe one day we'll be like you.  We'd better, or it is total curtains for us.

Sun, 05/15/2011 - 06:25 | 1275770 hamurobby
hamurobby's picture

What will they default against this time? paper, hahaha

Sat, 05/14/2011 - 15:29 | 1274539 Sudden Debt
Sudden Debt's picture

So... creative accounting won't do the trick?

 

I... AM... STUNNED!

 

Oké, let's print some more money than! A SMALL PRICE TO PAY FOR EVERYTHING YOU GET IN RETURN!

 

Sat, 05/14/2011 - 19:45 | 1274717 Zero Govt
Zero Govt's picture

i'm sure the creative accounting is at 'Max' already.. this scum have now run out of all options and need more credit

in Britain the Labour Govt having gobbed off about "shadow banking" and lost the election it was revealed the huge debt they left was not £1 Trillion but £2 Trillion in one week and the following week actually £4 Trillion!!!! ...talk about shadow Govt accountancy, crooked books and hiding the suicidal socialist spending under a deep pile carpet

Please note not one Labour official has been arrested, tried or convicted for this national deceipt 

Sat, 05/14/2011 - 15:30 | 1274540 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

History will look back at the USA during this time period and laugh in utter hysterics at the total farce and joke the country has become. The future 'prosperity' or 'destruction' of the country basically comes down to whether one bald jew* decides to print another $trillion or not...

What this period of history has shown conclusively, is that the U.S. citizenry are docile, apathetic and acquiescent beyond all imagination and the only time they will get angry at the way they are treated is when Wendy's puts it's cheese burger prices up.

 

* Yes, i know the Bernank is just a front man puppet for his 'elite' family masters, and doesn't actually make any decisions.

Sat, 05/14/2011 - 15:33 | 1274542 I am Jobe
I am Jobe's picture

Wow, a rook making statements like these. Love it. hang the bastard. Enough of this crap. Game over folks.

Sat, 05/14/2011 - 15:34 | 1274544 Sudden Debt
Sudden Debt's picture

AND HERE COMES THE GOOD NEWS!!!

 

US DEBT ISN'T AT 200% OF GDP YET!!

 

Sat, 05/14/2011 - 16:39 | 1274641 TheFourthStooge-ing
TheFourthStooge-ing's picture

...unless you count unfunded obligations, in which case a debt of 200% of GDP is a distant memory.

 

Sat, 05/14/2011 - 15:32 | 1274545 apberusdisvet
apberusdisvet's picture

The Big Reset Button is now going to have to  be pushed sooner rather than later, especially now that Herr Timmah of the new Fascist Disorder has issued his ultimatum.

Sat, 05/14/2011 - 22:07 | 1275314 downwiththebanks
downwiththebanks's picture

Make Dimon push it:  it's called Jubilee, and it might be the only thing that saves his life.

Sat, 05/14/2011 - 15:33 | 1274548 Sudden Debt
Sudden Debt's picture

AND HERE COMES THE GOOD NEWS!!!

 

US DEBT ISN'T AT 200% OF GDP YET!!

 

Sat, 05/14/2011 - 15:39 | 1274553 Sudden Debt
Sudden Debt's picture

This should put silver at 109$ when QE3 is over.

with margins at 100% by than, it might also be 108$

 

 

Sat, 05/14/2011 - 15:40 | 1274556 Hearst
Hearst's picture

Speaking of defaults and bubbles, Jeff Berwick wrote a great article here http://news.silverseek.com/SilverSeek/1305294114.php

 

Pay special attention to the last bar graph put together by The Dollar Vigilante.  It pretty much sums up which 'asset' bubble is due to pop, one way or another. 

Sat, 05/14/2011 - 16:42 | 1274651 HastyP
HastyP's picture

Hearst

 

There is a lot of truth in that article.  Thanks for posting!

Sat, 05/14/2011 - 15:41 | 1274557 FoieGras
FoieGras's picture

What Gross and Druckenmiller claim is completely irrelevant. 10y yield is @ 3.2%, close to historic lows. The market has spoken and that's all you need to know.

Sat, 05/14/2011 - 16:40 | 1274646 hack3434
hack3434's picture

Management of Perception Ecominics has failed. In short, STFU.

Sun, 05/15/2011 - 02:03 | 1275624 baby_BLYTHE
baby_BLYTHE's picture

Management of PLANNED economics*

Sat, 05/14/2011 - 16:56 | 1274649 Quintus
Quintus's picture

"The market has spoken..."

When it comes to the Bond market, the Fed IS the market these days, or most of it, at least.

So it is, in fact, only the Fed that has spoken, and they were never going to say anything else, now were they?  Let's see what happens when Sugar Daddy Bernanke lets the market try to get along without his $19B/day POMO.  Then we'll see what it really thinks.  I'll bet you won't like it.

Sat, 05/14/2011 - 17:07 | 1274679 FoieGras
FoieGras's picture

If your theory was correct, then why are Norwegian 10y bonds @ 3.61%, close to record lows with central bank rates set @ 2.25%.

Same for Switzerland and pretty much every other G10 economy.

The entire "bond yields are only low thanks to the Fed buying" doens't hold once you look at other international bond markets without central bank purchases.

Sat, 05/14/2011 - 18:43 | 1274810 SilverIsKing
SilverIsKing's picture

You make good point...just not the one you are trying to make. The FED buying treasuries is fact so without this "demand", yields on USTs would be much higher than those of other G10 countries. What it means then is that these other G10s are more credit worthy than the US. What would the UST yields be without the FED sopping them up with freshly printed greenbacks? I actually thought you were smarter than a 5th grader.

Sat, 05/14/2011 - 23:25 | 1275453 Dejean Splicer
Dejean Splicer's picture

The liver of that fowl has been cooked.

Sat, 05/14/2011 - 22:09 | 1275316 downwiththebanks
downwiththebanks's picture

"The market has spoken..."

Ha ha ha.  Never existed, never will.  Just an excuse to steal.

Sat, 05/14/2011 - 22:29 | 1275365 akak
akak's picture

Goo goo, gah gah, bllllb nmffff grmpttt

Gibber on, marxist baboon.

Sat, 05/14/2011 - 23:01 | 1275428 downwiththebanks
downwiththebanks's picture

When did it exist, GOP boy?

Sat, 05/14/2011 - 15:39 | 1274559 Piranhanoia
Piranhanoia's picture

"squandering"   Woah Nellie.  He seems to have said bail or fail. Is he implying someone (corporation or state) is going to step up and take over to provide the currency if we can't??  Or is it the impartial metal he can't manipulate that takes over?

I particularly like the feary tale about "bad for us" or in English, "good for him" part. Read it again daddy!

Sat, 05/14/2011 - 15:44 | 1274560 Hearst
Hearst's picture

..

Sat, 05/14/2011 - 16:14 | 1274561 FoieGras
FoieGras's picture

edit: duplicate post

Sat, 05/14/2011 - 15:45 | 1274563 nmewn
nmewn's picture

To The Honorable Senator Bennet,

Would you please ask the Treasury Secretary to expound on this statement. Specifically, the unique role of limitless public debt issuance and what economic benefits are derived from it;

"A default would call into question the status of Treasury securities as a cornerstone of the financial system, potentially squandering this unique role and the economic benefits that come with it."

This information needs to be in the public domain as many are beginning to make travel plans with less than reputable travel agents ;-)

Thank you,

nmewn

Sat, 05/14/2011 - 16:56 | 1274664 Manthong
Manthong's picture

"A default would call into question, for the first time, the full faith and credit of the U.S. government.”

Not the first time, not by a long shot.

The United States government and its finances as it is presently unconstitutionally constituded lost the faith of the honest citizenry long ago.

Sat, 05/14/2011 - 17:07 | 1274674 willien1derland
willien1derland's picture

nmewn, ABSOLUTELY, I am FIXATED on that particular statement - It is absolutely ORWELLIAN in nature...the doublespeak is SO EXTREME, SO RIDICULOUS & SO ILLOGICAL that it warrants the abdication of all crtitical thinking to maintain one's blood pressure!!! - 

Sat, 05/14/2011 - 18:21 | 1274778 nmewn
nmewn's picture

Its quite the "inside baseball" statement isn't it?...it assumes the senator knows what Timmy is talking about...I doubt seriously the senator does, but if he does, he should have no problem explaining what the Secretary means to his constituents, the voters.

To me it means, the Treasury must be given the authority to issue limitless quantities of currency debasing debt, that the working man is under some moral or contractual obligation to pay off...even as the working man sees the purchasing power of his currency decline. 

As a citizen, I don't see it that way. You live within your means or you go without one thing in order to afford some other thing you desire more.

Deeper down the rabbit hole we find what this really is, it is a source of funding for both war & welfare because we, the taxpayer, cannot sustain either at current levels.

If Timmy would have said, we need to able to count on your vote to place even more future generations into "bondage" it would have made much more sense...at least to me.

I wonder when they just come out and say, we need a bill passed to say the government doesn't need to comply with the same common accounting practices it imposes on the nations people and be done with it, no more government ledgers, no more votes on raising meaningless debt ceilings, but we will still use it for IRS compliance...then we'll know what it has become with complete certainty.

Sat, 05/14/2011 - 18:53 | 1274814 willien1derland
willien1derland's picture

INSIDE BASEBALL indeed ala Yogi Berra as Tim Gethner!

I am happy to read your assessment as I completely concur with your assessment. I, too, would feel some awkward relief if they would simply admit that the U.S. Treasury has no regard for enslaving future generations.

However, I cannot help think that it may be actually WORSE than we can conceive as we are unaware of the true assessment of the U.S.'s current financial position - To your point - HOW COULD ANY INTELLIGENT individual write such a letter without regard or concern for the ultimate end game?!

I struggle to understand the Treasury's position & I believe that the lack of concern for the future impact of this request calls into consideration this government's 'sovereign' legitimacy

Could the amount of taxation required to support the level of Federal Debt be construed as "Cruel & Unusual Punishment"? 

 

Sat, 05/14/2011 - 15:42 | 1274565 Atomizer
Atomizer's picture

It's all about taking out 195 countries with one stone. Long ago, I posted that it would take one event to consolidate a new global currency. The more crisis's they manufacture, the easier it will be sold to sheepville.

Just take a deep breath and call the bluff. It's that easy.

 

Sat, 05/14/2011 - 15:45 | 1274568 Steroid
Steroid's picture

Next step is a warning crash in the stockmarket to the tune of 3-5% to remind the congresscritters who is calling the shots. It will soften them for QE3, too.

Sat, 05/14/2011 - 15:51 | 1274573 Bansters-in-my-...
Bansters-in-my- feces's picture

Fuck You Little Timmy.

Doesn't he have the kind of face you would love to punch...a few times....and then a few more....and a few more......well you get the picture.........

 

Sat, 05/14/2011 - 16:15 | 1274606 velobabe
velobabe's picture

his nose probably lo_oks a lot like his prick. little and bleaky.

Sat, 05/14/2011 - 18:49 | 1274819 SilverIsKing
SilverIsKing's picture

Timmy's prick hasn't been seen for a long time since it's been jammed up the ass of the American public for several years now.

Sat, 05/14/2011 - 16:14 | 1274608 angmikey
angmikey's picture

He does have a face, one of evil and deceit. Punching it may be too good for him, burning it at the stake may be better.

Sat, 05/14/2011 - 16:46 | 1274652 Dapper Dan
Dapper Dan's picture

Just for grins let see how many " FUCK YOU TIMMY"  we can post today.

No sarcasm.

 

Sat, 05/14/2011 - 17:08 | 1274677 Shylockracy
Shylockracy's picture

Timmah has an uncanny resemblance with my avatar.

Sat, 05/14/2011 - 15:52 | 1274574 Dan The Man
Dan The Man's picture

 

sounds bullish

Sat, 05/14/2011 - 15:51 | 1274575 Hephasteus
Hephasteus's picture

Blah blah blah you're going to get soros and rothchilds fucked anyway. Might as well put up a fight.

Sat, 05/14/2011 - 16:11 | 1274576 Urban Redneck
Urban Redneck's picture

The farce of a melodrama continues... why not add to it?

As a result, a default would channel a larger share of our national wealth toward paying our creditors rather than reducing our debt or making productive investments in education, infrastructure, or other areas that will help drive economic expansion and create new jobs.

 

There are no plans to reduce our debt, the US does not have a balanced budget.

 

Recent history has demonstrated that the President and the Congress are incapable of making productive investments which drive economic expansion and create new jobs.

 

If the United States were forced to stop, limit, or delay payment on obligations to which the Nation has already committed - such as for military salaries, Social Security and Medicare, tax refunds, contractual payments to businesses for goods and services, and payments to out investors

 

If the debt ceiling is reached, and adhered to, there arises a basic question as to prioritization of scarce resources.  If the choice is made to pay “investors”, who inherently accept some risk in investing, before other creditors, the both the Secretary of the Treasury and the President of the United States should be tried for Treason, and punished accordingly.

 

By the way Timmy: you forgot to include CC: THE WHOLE DAMN WORLD! in your little rant.

Sat, 05/14/2011 - 15:53 | 1274577 Atomizer
Atomizer's picture

Timmah has taken the streets with a tin cup, organ grinder and Obama on his shoulder. Sorry, I meant a monkey.

Sat, 05/14/2011 - 16:03 | 1274596 mayhem_korner
mayhem_korner's picture

You just brought me back to a Bugs Bunny classic.

Brilliant!

Sat, 05/14/2011 - 16:42 | 1274650 Id fight Gandhi
Id fight Gandhi's picture

Hail to the chimp

Sat, 05/14/2011 - 17:06 | 1274673 akak
akak's picture

 

Timmah has taken the streets with a tin cup, organ grinder and Obama on his shoulder. Sorry, I meant a monkey.

Brought to you by the Department of Redundancy Department.

And not even a particulary well-trained monkey, at that.

Sat, 05/14/2011 - 15:53 | 1274578 Bansters-in-my-...
Bansters-in-my- feces's picture

)

by lolmao500
on Sat, 05/14/2011 - 15:47
#1274571

 

So what, raise the debt ceiling, the US was 140% in debt post WW2! The US can take lots of debt! (that's what most people believe

Fuck you Troll

Who is most people???

Sat, 05/14/2011 - 15:58 | 1274585 jomama
jomama's picture

angry much?

Sat, 05/14/2011 - 16:31 | 1274630 JW n FL
JW n FL's picture

I would say something but I am the last person here that should judge someone for being angry.

 

other than that Much Love Jo! I hope all is well with you and yours Brother!

Sun, 05/15/2011 - 08:12 | 1275822 ColonelCooper
ColonelCooper's picture

JW - You got any recommends on IR filters for NVG's?

Sun, 05/15/2011 - 09:41 | 1275878 JW n FL
JW n FL's picture

you are opening a huge!!! subject!

 

Sun, 05/15/2011 - 09:56 | 1275885 ColonelCooper
ColonelCooper's picture

Yeah.. I know.  That's why I'm looking to sort some wheat from chaff.

Sun, 05/15/2011 - 10:09 | 1275902 JW n FL
JW n FL's picture

I just typed 500 words with links and it fucking kicked me out!

 

find the thermal images link on this page http://www.ghillie.com/gallery.htm

 

being unseen is more important that seeing.. most of the time!

 

as well http://www.lasergenetics.com/nd3-laser-designator.aspx

just the meat and potatos..

Sun, 05/15/2011 - 10:17 | 1275909 JW n FL
JW n FL's picture

scroll down to the used list.. sometimes good stuff pops up.. the higher the price the more of a discount you can expect on "The List"

 

The Sample List is a listing of salesmen's samples, store display models, factory blemished, refurbished, trade-ins, products with damaged packaging, discontinued products and close-outs. Below are a few examples of goods that are currently on The SampleList.com web site.

Sun, 05/15/2011 - 10:28 | 1275913 JW n FL
JW n FL's picture

if you want something handy.. that you can use to hunt with and.. if you need it outside of hunting... that would work.. that is tuff nuff to with stand the cold.. and is fire proven and tested already..

http://goo.gl/wN8dY

if it is good enough for my / our guys fighting! then it is damn sure good enough for me!

although the elcan (civilian) day time / night time with playback video.. is REALLY! KOOL!!

http://goo.gl/Ghm4B

 

fuck it get all of them!

Sun, 05/15/2011 - 10:27 | 1275920 ColonelCooper
ColonelCooper's picture

"being unseen is more important that seeing.. most of the time!"

Agreed.  100%.  What I'm looking for is a way to block the visible spectrum of an IR illuminator on Gen 1 and 2 NV goggles and rifle scopes.  I do not mind losing upwards of 50% of my illumination, as this is for a small radius, perimeter defense.

Sun, 05/15/2011 - 10:31 | 1275931 JW n FL
JW n FL's picture

up close, light discipline..

the eotech with head gear.. its mobil and you dont lose your eye sight becuase its on your head not the gun.. if you had to go to a secondary for any reason.. or if you had to look left on the fly.. or be on the move, quick fast and in a hurry..

head gear.. thats my opinion... I have been wrong before, I should let you know that up front.. lol

Sun, 05/15/2011 - 10:39 | 1275958 JW n FL
JW n FL's picture

you will need or want IR emitters..

you need white light.. led will not work for you..

and you could create some firing lanes.. and light those up with soft IR to give you the advantage..

as well if you are covering a good amount of land.. with lots of ways into your position.. then a radio net.. with movement sensors.. cheap and works real good..

but the firing lanes that you can control.. bottle necks.. and soft IR for you and super bright for them maybe if you are already rigging IR white light for you.. its nothing to add anther wire where you are already going for bright light strobe!

just sayin?

this is not what I wanted to show you.. but it gives you an idea and direction..

http://www.youtube.com/watch?v=ZxGCe9iD1yE&feature=related

Sun, 05/15/2011 - 10:52 | 1275993 JW n FL
JW n FL's picture

the other thing to consider is if, whomever is appraoching you.. is using gen 5 or 6 nite gear.. then you can cause a reset.. which can be minutes before they are up and running again.. with a bright enough light.

 

with a bright light.. pointed down a firing lane.. you could cause a window of time to be opened for you.. by just making them re-start thier gear. think 800 watts per 30 - 40 foot. so in close to you.. is where you can stop them. which works all kinds of ways.. and with the radio alert.. you will know they are coming long before they get there.

 

like I said before, if you are riggin white light IR for you.. might as well pull one more wire.. and have bright light for them! lol

Sun, 05/15/2011 - 10:56 | 1276021 ColonelCooper
ColonelCooper's picture

If anyone coming after me has that good of shit, I'm probably fucked anyway, cause even if I somehow managed to kick their ass, they'd just call in a strike on my whole damn farm.  :)

That's a really good pointer though.  Thanks for that one.

 

Sun, 05/15/2011 - 11:35 | 1276122 JW n FL
JW n FL's picture

the problem I see if things get out of hand... you can not tell who is good or bad.. and if you have something worth taking.. then best to be prepared for the worst, thusly anything else is as well planned for.

 

If the Marines want my shit.. they will get my shit.. whether I like it or not.. but if it is just a bunch of idiots with toys trying to take my stuff.. then I will dispatch them to davey jones locker!

 

the most improtant part of what I shared.. or what I think is.. is that it is cheap, not a lot of money to get rigged.. and stay rigged.

 

for the price of one, single, nite time set up.. divided by half.. you can rig your house with lights and have radio motion sensors.. plus, plus, plus!

 

so low expense and covers lots of ground.

 

IMHO!

Sun, 05/15/2011 - 10:54 | 1275987 ColonelCooper
ColonelCooper's picture

Edited.  Back in a bit. 

Do NOT follow this link or you will be banned from the site!