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Tim Geithner Responds To Druckenmiller With More Fearmongering And "Assured Destruction"
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.
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trijicon is good stuff.. mill spec.. but for nite time.. that big window to look thru as opposed to not a big window.. but that is close up.. for distance maybe a scope is better.. but going back and forth between gear at nite with the allowance for time for your eye to adjust.. from one to another.. unless you go south paw with the head gear full time and shot righty with your scope?? that sounds not comfortable to me.. but you are far tuffer than I sir living in the ice caves. lol
I am hoping like Hell that in the winter is when we can relax a bit. If the SHTF for real, there would be no going any damn place for months on end. People floundering around in six feet of snow would be likely to be eaten by wolves or cats than to get that far back in the woods. (Hope)
The cold is why I sold my Eotechs. I loved them, and they functioned in as cold as -30, (as cold as I ever had them out), but batteries are a bitch.
10 year shelf life for 123's! buy in bulk! no rechargables!
here is a good battery for flash lights! JW approved!! 18650 TrustFire is a good brand!
http://www.youtube.com/watch?v=BlQ7vzXqz4A
maker sure you get the 18650 not the 123 battery options!
http://www.youtube.com/watch?v=IySW7aKQqxU&feature=related
m31 mx3 is the new one.. I have both models.. the M31 is FARRRRRRRRRRRRRR better than the new mx3.
Thanks for the BS session, JW. Gotta go get some shit planted in the garden. Last night was our last call for frost this year. Time to get busy. (Course we did have a killing frost on June 5th a couple of years ago.)
Take care and good luck.
building a garden house (i call it a shade house, to keep things out of the sun).. is just as if not more important.. you could grow all year around if you built a sun room.. type garden house..
you need sliding glass doors... and some wood! and you could have a GREAT all year round grow house!
just food for thought!
What these idiots don't understand is post war the US was a net creditor nation with a manufacturing sector poised to reap the benefits of rebuilding a ravaged world...
Not only that the world reserve currency and had a gold standard.
Bankers gutted this country to live in debt.
Trade deficits, falling dollar, soaring debt.
You'd think with all their fiat shit paper they'd be out of debt by now.
The locusts, aka big finance bankers, having picked this country clean, are moving on to emerging markets to repeat the economic destruction. They don't give a rat's ass what happens to this country or its citizenry.
+100
I even expect this year already that the government will start to air commercials like in Japan to promote government bonds for the tax slaves.
Not necessary. As long as the US has a trade deficit with Asia there will be plenty of buyers for US bonds.
Repudiate the debt. We didn't contract it. They did. They can eat the loss.
Oh for this "Treasuries set the benchmark rate". Treasuries set the benchmark rate because they're considered to be safe. If they're no longer safe, then you change the benchmark to something that is. Very simple. One doesn't even need to have a benchmark rate to lend to someone.
+1 !
Every bit of the debt ceiling crying is to protect investors, not people or jobs. Congress better wake the hell up and stop this crap. They better not raise the debt ceiling. These TBTF business and Wall Street care nothing about the real economy just their fantasy free money Benny has been giving them and their fake stock prices they created through cheating the system.
The ponzi must end!!!!
I don't disagree.
Except that NOT lifting the ceiling will be used by banker-gangsters to demand more austerity from grandmothers and an end to collective bargaining among the handful of working people remaining who use it.
The only way they default is if they choose to do so. They have enough income to pay interest without raising the debt ceiling. What they are saying is really - "If you don't give us everything we want - unlimited dollars - we will punish you for it by deliberately crashing the economy and putting tanks in the streets."
Go ahead.
Pay the interest?? That's the first priority, eh? Shovel more money to the banker-gangsters, and fuck grandma.
Let me get this straight. According to TG, US default would either 1) bring the apocalypse, or 2) "likely push us into a double dip recession." There's a lot of land between those two, no?
http://www.youtube.com/watch?v=4Ht9VZ9RB_w
Just because....
Maybe if Timmy paid his taxes once in a while, we wouldn't be over the debt limit?
I didn't know Timmah could write.
I know he can't add...
just because he signed it doesn't mean he wrote it...
SPEECH to TEXT
lol.
How do you know he really wrote that? He has minions.
But he is the minion... can minions have minions?
Man you Americans are CLEARLY ruled by psychopath madmen.
And I thought Bush, Cheney, Rumsfeld, Rockefeller, Wolfowitz were already worthless genocidal motherfuckers.
Could you please slash that totally overblown defense budget of $680 bn of yours in half ?
What do you need 11 carrier battle groups for ?
Your country is bankrupt, but you afford the luxury of such a behemoth globocop army ?
Is WW3 around the corner, or what ?
Who is threatening you ?
It's there for only one purpose, which is to further the globalists hunger for global imperialism, hegemony and constant warfare around the globe for the sake of a STINKING, FUCKING ASSHOLE BANKER KARTEL.
The U.S. army is nothing but a private mercenary army of the bankers and the corparate oligarchy.
Any American making his son or daughter join that army must be MENTAL.
Period.
Ever seen the movie "Starship Troopers"?
The movie wasn't all that good but the way they portrayed the US government and the US army is exactly where we're heading.
Or how about Kurt Russell's corny 'Escape From LA"? That movie totally nailed the police state, the collapsed greenback and new 'Bluebacks', and a bunch of other good perdictions like 'New America'.
And the videogame Tekken where the world is run by 7 coörporations :)
WORLDDOLLARS or crappy dollars? Make your pick :)
Or that movie dark city where everybody is clueless and doesn't know what is going on and waits for somebody who can tune the city like the bad guys do. Only none of that happens and people just figure ou this is just a game for a few people and everybody rage quits and cancels their account.
That was actually a WORLD government and a WORLD army which they chillingly portrayed so well --- in addition to all the typical statist, jingoistic propaganda supporting both.
WWIII has already started.
You forgot all them weather/scalar manipulation antennas, chemtrails spraying KC-10 & drones, plus floating raddome platforms.
We're on.
I am starting to believe the tornadoes and the Misssissippi floods was part of a Japanese counterattack.
Don't you understand---if we stop spending, we'll go bankrupt!
If we stop policing the world, there might be peace!
If we don't bail out the banks, they might not let us pay them back!
Why can't see?
Why don't you understand!?
You are way off base. 680 Billion "IS" half of our defense budget. The rest is buried in other departments like Energy, Homeland Security, etc. Other than that you are exactly right. I don't know anyone who isn't profiting handsomely from the US Military that holds it any regard. Our Military is deeply resented by many mainstream Americans who rightly fear to speak out publicly.
"Of all the enemies to public liberty war is, perhaps, the most to be dreaded, because it comprises and develops the germ of every other. War is the parent of armies; from these proceed debts and taxes; and armies, and debts, and taxes are the known instruments for bringing the many under the domination of the few. In war, too, the discretionary power of the Executive is extended; its influence in dealing out offices, honors, and emoluments is multiplied; and all the means of seducing the minds, are added to those of subduing the force, of the people. The same malignant aspect in republicanism may be traced in the inequality of fortunes, and the opportunities of fraud, growing out of a state of war, and in the degeneracy of manners and of morals engendered by both. No nation could preserve its freedom in the midst of continual warfare."
James Madison
The US and our corporate overlords have fucked up with so many people in so many situations that we need that army and all those munitions to watch our back. Also, if we cut our defense spending and troops, do you have any idea how bad our unemployment situation would really be?
It won't be long before 'The United Nations Office for Outer Space Affairs' declares that a payload of monies is in route to save the world.
http://www.oosa.unvienna.org/
https://twitter.com/#!/USDayofRage
it will pick up steam... when people start to realize that they are poor and hungry and that the Tax Dollars all went to rich fuckers.
When they realize all the Printing of New Dollars went to the Rich Fuckers...
Mountains of Money given to Rich Fuckers in lieu of Lobby Dollars / Campaign Dollars.
"We the People" will figure it out eventually!
Lobby Whores Ruled by Corporate Lobby Dollars.
Good points, and don't forget the Israel lobby is the most powerful.
Walled Street trumps Israel, and the oil majors and big pharma and military contractors do too, but yes, they are all influenced by Israel and vice versa.
The material difference between Wall St. interests and the interests of Apartheid Israel could fit into a thimble.
http://www.youtube.com/watch?v=mjMRgT5o-Ig&feature=
Rapture Ready: The Christians United for Israel Tour
I HATE! these Baptist FREAKS!!! end of the world! FREAKS! who run our Country during the day and PRAY! for the end of our Country at night! fuck me? that is TREASON!!
but the powers that be control the FBI, NSA and so on.. Lord Forbid those assholes do anything to stop these fucking freaks!
99% of "We the people" doesn't even remember what they ate the day before or what was on TV yesterday.
It will take a entire generation who will grow up in poverty to form a group against the frauds.
We still have to much to lose.
timmah is doin a heck of a job!
he does not want those Treasury checks to bounce.
apparently, the last election has slowed our rock star down.
fuk him. and while you're at it, send some of the goobermint employees home, ok? for g-0-0-d. then, do it again. i think we are just s'posed to have a little recession, here, and enjoy it.
i'm in!
no more free punchbowl for timmah and the banksters.
in the daze to come, the banksters will mobilize every media droll troll in their NWO arsenal.
fun to watch, eh?
Timmy G just doesn't have the aura of a real enforcer.
You know, like a guy named "Vinnie the muscle", who would also say "if you don't keep paying up, I think something 'catastrophic' is going to happen to you."
" the tax-troubled treasury secretary...."
lol, good one, but that's being kind. Wake up Gentiles, all major problems have one thing in common even if you can't mention it without being imprisoned as a "hater".
I hope you're not referring to the Jews?
They are the most persecuted, yet totally innocent, race in history... leave those poor people alone, they have suffered enough.
I have never met a poor jew. They are mostly smart, financially saavy, and they are over represented in many fields.
I suspect all the dumb, poor ones were culled in the early to middle 20rh century.
Nonetheless they wield disproportionate power in this country considering their numbers. America is the big retarded guy that thinks the small nerdy guy is his friend, but the small nerdy guy is just using him for his muscle.
I dont feel sorry for people that have captured our foreign policy apparatus and use it in ways that harm americas interests in the world.
I hope they only raise the debt ceiling if there is no other way to avoid a default. But first and foremost, cut some spending. Maybe reduce the armed forces numbers in the countries without any conflicts to save some cash. Raise taxes if you must but damnit do something......
Raise taxes or cut defense?
Those are the only two choices you came up with?
How about not funding 52 % of residents a work free lifestyle which is provided by the 48% who do the work?
After you join the military and give 100% of your pay to provide for those who refuse to work, then you can raise my taxes. Otherwise come up a few more options other than the two given.
Don't know where in my statement I said cut defence or military numbers. Bring some of the forces home to reduce costs thats all....
The banker-gangsters who sponge off productive working people do not constitute 52% of the population.
They're a tiny minority, and their elimination would liberate the planet.
We share a hatred of 'banker-gangsters', but you lack a full understanding of the cancer in our society. This is a short and outstanding article, but requires recognition of some, perhaps, painful truths:
http://fofoa.blogspot.com/2010/07/debtors-and-savers.html
Great article Shell Game! Thanks for posting it.
"Treasury securities as a coner stone of the financial system..."
Game over...
There are a lot of moving parts here that aren't being appreciated.
1. It is unclear how the repo market will react to a default, "technical" or not. One can repo a treasury with a mouseclick. This may change. Frankly, this is trivial compared to the other effects.
Regarding the other effects, I can only say this is a situation where Treasuries are the things that go special, but here they may not. I think myself that any default will be seen as a technical glitch, and repo will work OK, but if default is perceived as something deeper and longer-lasting, then I wouldn't BTFD.
2. Related to this is the widespread use of treasuries as collateral in transactions that are daily marked. If treasuries take a haircut, then everything else will be decapitated. This will make the dollar literally explode up as settlement in literally trillions daily will go to cash only.
3. There are other things too numerous to mention and I haven't worked them all out. These two could happen in a heart-beat or so.
To Tim, Obama, and Ben and all other jackasses:
The risks are far too great to fuck around here. The United States needs to grow up starting now. 10% cut across the board in all budget items and a 10% cut in entitlement spending. A 10% rise in corporate tax rates. This is simple and credible, which is the needed thing in this situation.
+100
The first thing they need to cut is subsidies to Banks. the list is as follows:
No more of the FED almost immediatly buying back the Bonds they just Auctioned.
No more 0% interest rate at the Discount Window.
No more allowing them to gamble with Depositors Money.
No Investment Banks inside regular Banks. Make them separate.
No more HFT Computers penny by penny stealing America Blind.
No more Derivitaves.
No more Credit Default Swaps.
That should do it. Maybe just then they would have to lend to Americans to make their interest and Money.
+1
10% cut across the board equals a whole... wait for it... $350 billion.
So for this year, if they did an across the board 10% cut... the deficit would be 'only' $1.2 TRILLION instead of $1.6 TRILLION. I.e. we'd still be adding 8% (roughly) to the national debt vs 11%.
Not sure if they've realised yet, but 100% of the national debt ($14 trillion and counting) is absolutely tied to interest rates. Not sure what the effective duration is, but even assuming an average maturity of 15 years (1/2 of max of 30 years), that would imply pretty high duration. 1% increase in interest rates would equate to something like $300-500 billion in EXTRA interest payments.
So even if they cut 10% of everything now, a 1% increase in rates would make that 10% go away instantly.
Greece's rates skyrocketed from < 9% a few months ago to double digits (20%+) now. Imagine if that happened here. Even at 9% we're talking 6% over the 10year. so that's like $1.2 to $3 trillion in extra interest payments alone.
You clearly know the operating budget numbers better than me. I'm open to a different cuts/tax mix based on your information.
The DV01 issues here guarantee that the debt ceiling MUST rise at some point to avert catastrophe. I want to hear about what steps they are going to do right now set a clear signal before it is raised. Implement the same cuts and tax hikes next year if need be.
However, what I expect is a debt ceiling increase that will be HUGE, and the Fed will monetize until inflation really kicks in.
I'm impartial to all these idiots we elect. Bu I'm going to blame Obama for this, as will most if he can't accept that he has to cool his jets. The man's a complete idiot, but even polls will tell him this. I don't want to hear about all the trillions in cuts they plan to do in the next ten years. That is all lies and cop-outs.
@jim
" A 10% rise in corporate tax rates. "
__
Ahhh, to be young and an idealist....
Ahhh...
Thanks again ;-)
Yep: a 10% increase would put it around 0%.
Yep: a 10% increase would put it around 0%.
If what you are saying is true, particularly about (short term) repos, then it will be playing in the Treasury CDS market, either now or very shortly, and certainly if a default becomes a "certainty", it will surface when the players realize that "certainity." This is manifest with Greek debt, and the vast CDS flucuations.
I closely followed the wild run-up on CDS price from about 1.6 bps Sept 2007 to well over 100 bps 2009, but I have not be watching it at all lately. At that time, one of the biggest reasons for the huge increase was not a soley market belief that US debt was riskier, but simply the fact that when AIG went down, it took down one of the biggest underwriters with it, and there was hugh Treasury demand, a huge flood of Treasuries, and not many underwriters who could handle the flow after AIG was out. I did see in Feb that the CDS price moved to a "recent record," and as far as I can tell right now, it appears to be up from 25 bps in Feb to 50 bps after the S&P outlook downgrade. It holders and insurers are really fearful of a default, expect this to rise.
Also, I wonder what the terms of the swaps are: can a holder swap for full payout if an interest payment is late? If so, then it is a great excuse to---you get that face value without waiting; I wonder what the threshold is for the new AIG-wannabes who are insuring these: what % of swaps insured are actually capable of being covered before running to the government for a bailout. That is a whole other puzzle...
If there is no fultuation in CDS price as default (technical default) nears, then I am inclined to say that the players are a lot more "alright" with technical default (that is, having to wait a little longer for the payment) than Geithner is protraying. And I just found this article from this week, which sort of fits in here:
http://www.irishcentral.com/news/CNBC-asks-if-US-Treasury-Secretary-bloc...
From the article:
This weekend Irish economist Morgan Kelly, dubbed Ireland's "Dr Doom" suggested, in an opinion piece in the Irish Times, that Ireland's only means of survival would be walking away from the bail out.
He also suggested that US Treasury Secretary Tim Geithner was to blame for the fact that Ireland did not get a better deal.
Morgan suggested that Geithner acted as a protagonist in talks over the bailout and pushed for Irish bondholders to be spared a haircut fearing the knock-on effects in the credit default swaps (CDS) market.
Now, my first reaction to this would be: hmm, I wonder how much in Irish CDS the real AIG is covering? What is AIG (read: Treasury) looking at shelling out if those bondholders who insured with them are not given face value? Is that Timmay Tres Sec or Timmay CEO of AIG? I do not know the answer. (The same thought, of course, applied to Spain, and Greece, and Portugal debt and....)
As for the fact that Treasuries are widely used collateral based on their face value: yep. And that a haircut would reduce that collateral value by reducing the face value: yep. [What does that sound like? 2007-early 2008: "but if we mark-to-market these RMBS, we'll have to put up more capital!"] But I don't think we are talking about haircuts just yet because we have to have the technical defaults before the big one.
http://noir.bloomberg.com/apps/cbuilder?ticker1=CUST1U5%3AIND
Used to be that UST CDS settled in euros, not dollars. If this is still the case, it would make the payout suck if the contracts triggered. This may explain why nobody seems to give a rat in the CDS market.
The debt limit issue is more about impairing T as a flight to liquidity than as an impairment in quality or credit risk.
Then again I could be totally wrong. If you can anticipate Mrs. Watanabe, you're set.
Here is an interesting story:
Rich Russians Buy Bunkers on Apocalypse Angsthttp://www.bloomberg.com/news/2011-05-12/apocalypse-angst-adds-to-terror...
All this talk of a "debt ceiling" is totally laughable.
Already, all the money we've spent in Iraq the last 10 years has been financed off-balance sheet.
What's to stop the Fed from keeping the Fed balance sheet stable, announce that QE2 has ened, but secretly start QE3, QE4, QE5 behind the scenes and finance even more spenidng, deficits, and Treasury bond purchases offshore in some off-balance sheet, Enron-style accounts?
I mean really, Jim Sinclair, Jim Rogers, et al have been screeching for years how our debts are not sustainable, and say the TIC reports suggest reduced demand for Treasuries, yada, yada, yada...
Yet the daytraders managing the soveriegn wealth funds in China, Japan, Taiwan, etc. are the first F12-punching, electronic digit flippers to panic out of commodities and gold and flee at once into dollars and Treasuries upon the slightest hint that a "Risk Off" trade is now in effect.
After watching the CRB go straight down for 3 months in 2008, virtually every fund manager and wealth fund trader is deathly scared of yet another "Midnight Massacre", and each and every time, they will sell commodities first, buy bonds, and ask questions later.
It will take years for the 2008 commodity crash to be erased from their memory, and years before they figure out that buying bonds may end up being a losing proposition one day.
But old habits are hard to break. And for right now, while we are in a "Risk Off" mode, the China will be buying bonds hand over fist.
Not too many.
In fact, the singular may be more applicable to your argument.
"the singular may be more applicable to your argument."
yeap
So are you saying you don't think resources are finite, or that no one does?
"What's to stop the Fed from keeping the Fed balance sheet stable, announce that QE2 has ened, but secretly start QE3, QE4, QE5 behind the scenes and finance even more spenidng, deficits, and Treasury bond purchases offshore in some off-balance sheet, Enron-style accounts?"
They already have. How else have the creditors been able to hide the loss of income through non payment of mortgages? How else has the equity markets rally, despite QE2 doing nothing but going into reserves?
Enron style financing has been going on at national and local government level in most major western economies for years in order to hide the fact that the cash flows don't match and the balance sheets don't balance. Now, all we have is a mountain of off balance sheet debt which guarantees we either collapse via inflation, or deflation depending on whether the central banks choose to save the currency or the banking system.
What happened in 2008 was a result of the massive pre-planned withdrawal of liquidity by the Fed and the key US banks, in order to create the maelstrom that would allow the bailout of the banks and mono-liners, which they could not push through unless it looked like the end of the world was imminent.
I find it incredible that you think 2008 was planned. Banks and reinsurers needed a bailout because of 2008.
Ok, maybe "planned" is the wrong word, but it was definitely controlled, in the same way as the release of the Mississippi flood waters are today. The system had been brought to the verge of collapse, and I think that the most powerful bank decided to pull the plug in order to force the government (Fed and Treasury) to step in.
I see your point. I also believe that people acting in their own personal interest caused a collective failure. While the failure itself had unintended consequences and got out of hand, QE was an overreaction in the other direction that gave some an unfair advantage in picking up the pieces.
The TPTB were crapping their pants. They were handcuffed because things were moving too fast for the elected idiots to see what was going on. and there was no definite cut they could see for themselves. So when the dumbassification finally morphed to panic, there was a massive overreactive "cure" that will end up being worse than the sickness.
This overreaction created a great opportunity for insiders to gain unfair advantage in picking up the pieces.
You are on the right track - who do you think has the credit worthiness (equity for starters) to enter into 500+ trillion in derivatives? I can't believe they are all "off balance sheet". No one should be able to have this much outstanding.
May 11, 2011 4:43 PM CT
The International Swaps and Derivatives Association selected the Depository Trust & Clearing Corp. to help it record all trades in the $348 trillion interest-rate swap market, the group said in an e-mailed statement.
The selection takes the business from TriOptima, now a unit of ICAP Plc (IAP), which in 2009 was selected by ISDA to record all transactions in the market. After the Dodd-Frank Act was passed in July, ISDA issued a call in March for companies to submit repository proposals based on the increased regulatory demands mandated by the new law.
The rates steering committee of ISDA, the industry and lobbying group for dealers and money managers active in swaps, made the DTCC selection, the statement said.
Dodd-Frank requires that most interest-rate and other swaps be processed by clearinghouses to lower systemic risk. All trades, whether cleared or not, must be reported to repositories so regulators can have a full view of the market at any point in time. The New York-based DTCC also manages the trade repository for the credit-default swap market.
All in the family ;)
Momo, you didn't get the memo from PBoC. They said they don't want anymore bonds. They have enough. Plus they think Timmy is a D-Bag. Seriously, no one can stand him.
They are busy buying stuff. They are going to buy all of our gold and silver, 1/2 price courtesy of the Comex. They are also going to pull gold and silver, right out of the ground from something called a mine.
They are keeping all their oil.
They are keeping all their rare earths.
The war over stuff hasn't ended, it's just getting started.
"Fuck with Syria and you fuck with Beijing." By that, they don't mean fucking with the fine people of Syria, but with the resources they own in Syria.
"Risk Off" in Mandarin translates to "Buy Gold".
Just had a listen to this.... what do you think?
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/5/12_James_Turk.html
I just want to know, when do the assassinations start?
Because justice is otherwise NEVER going to reach these sociopathic bastards.
Just a little bit longer.
We may get to replay roundheads and cavaliers here in america.
If anyone in our government reads the comment board I want you to think of two things.
#1 Tim Geithner couldn't figure out how to use Turbo Tax software, resulting in him not paying taxes. He is now, oddly as it seems, the chief tax collector.
#2 This was the prior regulator overseeing the financial system during the bubble and bust.
It is through his negligence, stupidity, and corruption that we experienced the biggest boom/bust known to history.
Are you really gona' take this guy seriously? Another round of "the sky is falling? Well, maybe it's time we stop supporting the sky with a tent pole and make the tough decisions we elected you to do. The current course is clearly unsustainable.
This is all bullshit.
Business as usual, as usual.
The market will go up and down. The fiat will be printed. American Idol will score huge ratings. The sheeple will go to work and pay their fair share and complain about bruised bananas & tomatoes when it's snowing outside and watch sports and sleep well.
i've had enough of these people. i'm putting my foot down regarding this matter. it is over. let it all fall, we'll be o.k., we'll start over & WE WILL ALL BE THE BETTER OFF WITH THEM GONE from our government........... how they all managed to take control of the U.S. GOVERNMENT & TAXPAYER MONEY is beyond me, but, I know it's all about LOOTING & CORRUPTION & LEAVING ME & MY KIDS PENNILESS .......... I won't stand for it anymore..... these people have me & the other American Citizens to deal with now.
I agree...GAME ON!!!
Nice to see ya lynnybee.
... the revolution starts just after Dancing with Stars finishes, right?
Why don't we try this? We do not raise the debt ceiling. If any of what Geithner and Benanke say will happen does not happen then, both of them resign immediately. If anything they say will happen does happen, we raise the ceiling and give them a free hand at raising the ceiling the next time.
Did you just fall off the truck? Don't you know that if the debt ceiling wasn't raised (of course it will be), the bankers would flip the switch and crash the markets to "prove a point." The only point they will have proven is that they should all be strung up for treason.
Exactly. The free market exists no more. Where the market goes in the shortterm, purely is a decision of the banking cartell. If the market were now to go its natural course, it would immediatelly crash and contract... because, that is where in reality it should be right now.... in other words: the entire market is a big bubble. When you remove the current lifesupport, you basically do get an auto-default.
The question isn't if the market can function naturally at current levels. It cannot. The three options instead are:
1. Do we kick the can, hyperinflate the shit away until we cannot anymore?
2. Do we just unplug the lifesupport, and let everything sort itself out chaotically?
3. Do we do a controlled crash, that may take 2-3 years longer, but will allow to shape the collapse?
Option 2 is just insane - there is no reason to do this unless option 1 and 3 are not available.
Option 3 is political (and quite probably personal) suicide. It is the right and efficient thing to do, but neither the masses nor the megabanks will let this happen without heads rolling. As sad as it is, people judge symptoms, not causes.
Thus, what is left is 1.... make the problem as horrible as it can go, until it cannot work anymore, and everyone is forced to do..... 2.
You guys all sound ridiculous. Obama's health care plan will save us enough money to pay this all back.
All we have to really do, if we want to get serious, is raise an additional 100 billion in income tax and make Exxon pay another 1 billion a year in taxes. PROBLEM SOLVED.
Cordially,
Every liberal in America
As a physician who has studied obamacare extensively i can assure you it will not save any money and will not bend the cost curve.
"Best practices," efficiency, accountable care organizations will have minimal impact. Hard limits and rationing are the only ways to save enough money so that some semblance of medicare and medicaid will be around in 2030. We will ration only when forced to by going greek. Unfortunately that kind of harsh strict rationing could have been avoided by setting strict limits now, which we will never do.
As far as 100 billion increase in taxes solving our problems? Not a chance. Whenever government has more money they develop new programs that add to the cost. If we give.government more money they will simply hire more bureaucrats and develop new programs for giving away money.
Raising the Debt Ceiling will be more devistating that not raising it. It will put Americans into a Debt that will never be able to be repaid. Maybe that is what the Fed wants is for all of us to be Serfs on our own Land.
These events must be so confusing for the people who still think the country is ran by idiots.
Stage one peasant: Thinking everything is ok, terrorists are the problem, wars solve anything, global trade is great, and the Chinese are cheating us by not raising their currency
Stage two peasant: Thinking economists, politicians, and Wall Street are all idiots
Stage three peasant: Finally understanding that economists, politicians, and Wall Street participants are just people getting what they can out of a broken system.
First stage citizen: Sending your kids overseas to start a better life.
The FED has an over Bloated balance sheet. Why do they not just sell all of their holdings instead of raising the Debt ceiling?
Why, has the FED not used all of the Money from the sale of all of the Stock and Warrants in the Banks, Gm, etc. to pay down the debt instead of enlarging their Balance sheet until it is greater that the TBTF (too big to fail banks)?
Go back and look at the things Timmy's trying to scare us into believing might happen if he doesn't get his way: higher mortgage rates, lower household wealth, lower tax revenues, increased gov't debt burden, even the squandering of T bonds' privileged place as the cornerstone of the international financial system. (Gasp!) But these things have already happened, brought on by QE and insane levels of debt. In other words, Timmy has already caused the dire future he is now predicting.
Traitors to America! How can we have defeated the evil Soviet Empire and now be so in debt and weak? It's because the America I love has been replaced by one that fell for the predatory lending by the banksters. Go back and re-read history based on what you know about financial markets, lending, derivatives, etc. You’ll see at least as far back as the French Revolution that it was backroom financial deals that got one party in trouble and enriched another. When the first went to collect and were told to back off it lead to war. Or the indebted party had to cut its standard of living so far that its own people revolted. The vampire squid must be killed or is it too late?
Confidence is only important when image has no substance behind it. Confidence is essential to Ponzi schemes.
Chart of the 6 largest investment banks operating in the US.
The beginning of the unraveling process since the highs were put in early in 2011. http://finance.yahoo.com/q/bc?t=3m&s=GS&l=on&z=l&q=l&c=c,jpm,db,cs,+ms Some investment banks are going to get hit hard and probably not be saved by the US taxpayer, ala Bear Stearns and Lehman. Goldman Sachs' political clout will try to see to that. After all, "always make the most of a crisis", or "how to get rid of the competition." For a look at the complexities of an economic disintegration and all the different possibilities see Wikipedia on Argentina. http://en.wikipedia.org/wiki/Argentine_economic_crisis_(1999â??2002)
D*$cheBag!
It's Timmah's job as TreasSec to resist a technical default. But he shouldn't lie about the consequences.
Only once before in history has the US Treasury technically defaulted (as defined by Rogoff and Reinhardt) -- when it failed to settle gold bonds in gold, after Frank Roosevelt criminalized private gold ownership by executive order. Not that I'm advocating such high-handed rule, but Roosevelt's shocking breach of contract left not even a blip on the T-bond interest chart in the mid-1930s.
Of course, if T-bonds payable in gold still existed, the debt ceiling would be irrelevant. It would only be a question of how many ounces of gold remained in the basement of 33 Liberty Street and at Fort Knox, Kentucky to meet the obligation. That's still a very pertinent question, by the way, even if it isn't needed for debt servicing. Audit the Fed!
We also technically defaulted when nixon closed the gold window, since dollars hence treasurys were convertible to a fixed amount of gold.
That default didnt.do much either.
Default bitch! Cmon timmah. Default!
Yes, Audit the Fed!
Then tie Bernanke, Geithner et al to the pillars of the portico of the Mariner Eccles building, burn the fucker down, piss on its ashes, grind the remains into dust, and send the foul residue by rocket directly into the furnace of the Sun. Then salt the ground on which it stood with the longest-lived isotope of plutonium, purge the completely discredited and tyrannical concept of central banking from every textbook and economic treatise, and let the word "Bernanke'd" become forever synonomous with the worst sort of sociopathic rape and torture.
Off Topic, but those greek astards just cast their max vote in favour of the French
just now in the Eurovision Song Contest.
1. Clearly subtrifuge re upcoming discussion on restructuring Greek debt re
French Bank exposure
2. Where the fuck did they get the money to travel to Dusseldorf for the contest
I thought their gov were implementing austerity measures...
Makes me fucking sick.
keep on stackin
Sorry, have to update on this. Azerbaijan just won the Eurovision song contest.
Thats war in Europe avoided for another year. Azer oil and gas fields and
pipelines will remain turned on until next years round of you scratch my back,
I vote for your song and by the way, keep the fucking oil flowing.
Mybe the US should have a giant song competition with the outcome settling
whether the debt ceiling is raised / QEx / back to basics, spend less than we earn.
bondholders, zero points
feel so sorry for poor, poor Lena, but just listening to Estonias song: we're all down "Rockerfeller St."
I, kinda country,But who the Fuck votes these cheesedicks into office?I,kinda feel like i,m ina goddammed parralllel universe.Am i in need of fuckin physco help? Does Upmean Fuckn Down,Fuck,Lets hang a few of these bastards.Ya,ll Skeerd?
It is amazing that so many are willing to commit economic suicide. Koolaid drinking by leader and followers based on false assumptions. Good rants do not make reality go away.
Tax cuts do not pay for themselves, nor do debts dissappear if not paid. It is essential that wages be paid or work will not be done.
Those that dream of a tax free society can't add nor substract. Even the tooth fairy wants your tooth.
Putting a debt limit was wrong in the first place, not philosophically, but mathematically a lie. It is like allocating x for a car payment when it is 2x. The "ceiling" is the con but here in stupid ville it is defended.
Agreed. The debt limit hasn't limited anything. I'm surprised Congress hasn't outlawed the debt limit or modified it so that it increases every year at the rate of inflation. It would be easy to claim that these negotiations on increasing the limit is time consuming and costly for the American people and by instituting an inflation adjusted limit, they would save money.
"FUCK YOU TIMMY" and by the way The Bernak is the complete opposite of "honorable" as are you and all the other knaves in DC.
D fault, D fault, D fault
I didn't make it past the first paragraph of tiny Tim's response before I wanted to Ralph. How come Turbo Tax never hired this guy for tax tips?
Oh yeah, forgot to mention: END THE FED!
Very Cordially,Fuck All Ya,ll Liberal Mofro,s.I,m so gdmded sick of people,tellin me what the fuck i need 2 do,I am waiting Paitiently,as a Hunter,Gatherer,for u fuckin greenpeacer,s 2 actually Have to work for a living,Bet on this riggd casino mofro,s
Very Cordially,Fuck All Ya,ll Liberal Mofro,s.I,m so gdmded sick of people,tellin me what the fuck i need 2 do,I am waiting Paitiently,as a Hunter,Gatherer,for u fuckin greenpeacer,s 2 actually Have to work for a living,Bet on this riggd casino mofro,s
_
Just BTFDs in silver, is it really that fucking dificult?
_
If you haven't read Jeff Nielson, you should. This is aprapo:
http://www.bullionbullscanada.com/index.php?option=com_content&view=arti...
We are in too deep now, can't default on purpose. This whole website, along with Reggie Middleton, talks of the fact that a tiny country like Greece defaulting would result in the entire banking system of Europe collapsing in domino fashion. Yet, the U.S. defaulting on $9 trillion of debt would not collapse anything? We will deficit spend until we no longer can, just like Greece did.
+1
There is no point in defaulting when you print your own currency. There may be a kind of "3 stooges moment," of us accidentally defaulting. Just because it's painful and idiotic, doesn't mean it can't happen - it's technically a possibility. Made more probable with the clowns trying to score points with their various constituencies, dancing on the (contrived) precipice.
Greece can't print Euros, so a Greek default is more of a possibility.
If we're smart, we'll do the well understood, reliable thing and inflate our currency to zero. We need to hit the [RESET] button anyway because of all the derivative spaghetti that no one understands.
Krugman got it wrong - Deflation is the "monster under the bed," that is, the imaginary boogeyman conjured to keep the sheeple scared and malleable.
Nice...two secretaries of the treasury, in consecutive and politically disparate administrations, handing ransom notes to the public in servitude to their corporate masters. Is anyone else just a little sick of this fucking circus yet?
It's not working.
Third Intifada Launched in Tahrir Square While US Peace Envoy Quits
http://mycatbirdseat.com/2011/05/third-intifada-launched-in-tahrir-squar...
My Catbird Seat, en fuego.
Shock: Paul Krugman Turns on ‘Elites’
http://mycatbirdseat.com/2011/05/shock-paul-krugman-turns-on-elites/
AIPAC 101 — What Every American Should Know
http://mycatbirdseat.com/2011/05/aipac-101-%E2%80%94-what-every-american...
For years the shepherds have been leading the sheeple towards the precipice
As the sheeple reached the edge, they turned on the shepherds and said
We bought the fucking dips so fuck off and threw the shepherds off
I think I should stop drinking now and log off
Keep on stackin
Holy shit those egyptians are inspirational.
Because it is Saturday night and we all need a laugh, apparently Greece isn't the only thing the IMF Chief has been probing:
IMF boss Strauss-Khan pulled off plane, arrested in sodomy probe:A top French politician who heads the International Monetary Fund was hauled off an Air France flight at Kennedy Airport today on suspicion of sodomizing a Manhattan hotel maid, sources told The Post.
Three Port Authority detectives took Dominique Strauss-Khan into custody in the plane’s first-class cabin just two minutes before it was due to depart for Paris, said police sources.
Strauss-Khan, 62, was turned over to NYPD officers from the Midtown South precinct.
http://www.nypost.com/p/news/local/imf_boss_strauss_kahn_arrested_in_Kbd7uAi594vbej3oORXfcJ
From your link to the story... it looks like GW found a new friend in Dominique. Maybe he took one for TEAM USA?
Perhaps the NYPD will allow the Manhatten maid to return the favor. Hope Dominique gets a serious case of SDR's.
GW will get two solid weeks out of this one.
Maid was a second cousin of the pilot who refused to take off on time leading to the IMF's head pooh bah being arrested...see this, this, & this...LOL.
Lol, I thought you were going to link it to 9/11.
I have it on good authority Kahn had his harem inside WT7...it had to go ;-)
http://www.youtube.com/watch?v=xWVxI6XZAuE&feature=related
For the record; the top guys used to get off scott free when they dumped pregnant corpses into rivers. Getting pulled for anal rape? Endgame, bitches.
[and yes, we expect at least 13 (updated) of high end JPM / Gold on this list to get done if this sticks - because, you know it isn't like serial abuses of this type haven't been endemic since the 80's, and we've been keeping lists. Fucking muppets paying for Eastern European teenagers thinking no-one is keeping score? Endgame - or did you miss RT sponsoring Max Keiser?]
I'll spell this out for the too-coked-up-to-realise: useful idiots & the whores that they pay for. Jesus wept, 80% of Wallstreet are fucking pathetic, and don't even realise the puts that people have on them.
Ukranian Whores? Yep, that isn't a freebee you stupid yank.
p.s. No, I don't care if your perfect family life is going to get ruined by this - there's a reason your daughter is an anorexic mess with huge psycho-sexual development issues; no, fucking some teenage eastern european instead of her doesn't count as "good parenting".
Am I correct when Ben bought first dollar of Treasury bond, we have already technically defaulted?
yup, and now no turning back. btfd.
the fiat ponzi math has a life span.
it was baked in the cake, no reason to jump
in front of a train or off a bridge unless
that happens to be your thing?
The US during and after WW2 had tge largest gold reserves, some of IT obtained through war materiel lend lease programs. This time the US is the worlds biggest debtor nation.
Hope that putrid zit pops all over AmeriKKKa!
If this guy Geithner were in the private sector he would have been fired months ago. How can you get yourself or let alone your country in such a predicament and not feel you have screwed up. That is unless this is your plan...get rid of his stupid Keynsian ass.
geithner DOES work for the private sector - the privately owned banks, that own the very privately owned 'Federal' Reserve banking cabal.
his oath of office to "protect & defend the U.S. constitution" was mere puke & mirrors - the career henry kissinger, bob rubin, & larry summers toady WORKS FOR HIS PAYMASTERS (the billionaires behind gs & jpm), and has no more use for the American sheeple, than Netanyahu has for Palestinians, Pakistanis, Afghans, Iraqis (etc.)
Umm ... you understand that Turbotax Timmy is doing EXACTLY what he needs to do in order to get PAID from the banker-gangsters the day he decides to leave, right?
Oh, and newsflash, little economics sheeple.
Bottom line: If you have nukes, the economy means fuck all.
That's why the security council is so important, and why serious players have been urging for a limited exchange nuclear war between India / Pakistan [to a) remove nuclear capacity and b) limit the amount of crap coming out of the region...]
If you have any doubt about this, I urge you to ask why the holy hell the USA government is spending on neutron bombs [instigated by G W Bush jrn] when... drumroll... No-one else is bothering to invest in such a zero sum technology, barring the backwater shitty states that the US spends all day pissing on.
Bottom line - and this is from a top end 'bankster' - "Who gives a shit? If needbe, we'll drop two or three zeros from the currency, and everyone eats austerity for a while; our job is to stop the retards in power nuking each other".
>Hint. Current Banksters are the "good cops". You don't want to see the "bad cops".
is timmy a comedian on crack? he should be arrested
immediately, sent to guantanamo where they have, set up,
a facility for terrorists and other assorted enemies of
sanity. who is advising this moron? oh yea. criminals and
bank robbers set on rapping the treasury till it bleeds
death and dead and y'all now must get off the reservation
cause it has been sold to satisfy the debts of the terrorists
you chose as your "leaders".. that is how democracy works folks.
that is your money system as designed by the fed and the primary
dealers / owners of ...... you. it is entirely un american
america, the shadow america, but also self destructive and
homicidal. i say levitate that building and place it gently
in the river.
or .. btfd and let them destroy themselves as quickly as possible.
post haste.
i never realized till recently how inept and cowardly and stupid
leadership could be, and actually in broad daylight. and it is
hard to believe that these type statements, as per timmy, are
genuine communications composed of blathering bogus bull shit type
content. pure marketing with no substance, we the generation that
was weened on cartoons and commercials, it shows.
and now i wish i was also entirely illiterate, deaf and blind and
an orphan. ... playing pin ball, tommy. / timmy ....
.
The Who-Pinball Wizard
http://www.youtube.com/watch?v=4AKbUm8GrbM&feature=related
.
Tommy- The Who
http://www.youtube.com/watch?v=dyNGQ2wUSVM
i can't believe what amerika has devolved to with this pathetic clown as our Treasury Secretary.
idiot obama PROMISED us "CHANGE!" - in ECONOMIC leadership more than any other possible area... but THE IDIOT selected, as his two most powerful economics officials - TWO of BUSH's economy killing HACKS, who PRESIDED over the economic meltdown of Sept. 2008 !!!!
namely then Bush's Fed Chairman, the insanely stupid, corrupt, & smuggly arrogant ivy league princeton professor Ben Bernak; and little Timmy G, BUSH's selection for NY Fed branch President.
idiot obama RENOMINATED Bernanke - to PRESIDE OVER THE CONTINUED SABOTAGE DESTRUCTION of the US economy - and PROMOTED little hatchet man Timmy G, from billions-dollars check writing NY Fed bank pres,
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a9MTZEgukPLY
to... TREASURY SECRETARY in his, obama's, presidency!
WHAT A DOLT we have for U.S. pres-i-dent! (worse than bush-II!)
well, the above may be my opinion, but here's some classic video: not only is Timmy Geithner a FINANCIAL TERRORIST, not only is he an ECONMIC HIT MAN, but he is THE ECONOMIC DEATH SQUAD LEADER that Wall St. & the US Treasury sent to Indonesia, Thailand, Argentina, other Asian & Latin American countries, (and now the USA) to SABOTAGE those target economies...
(2nd of 3 videos)
http://maxkeiser.com/2010/10/10/ote76-on-the-edge-with-david-degraw/
"Tim Geithner was all over the destruction of Argentina..."
"... 39 TRILLION dollars, STOLEN from the American economy, by the top 1/10th of 1%..."
Why aren't we talking about GUILLOTINES???
I've had friends say to me 'David, it sounds so funny when you swear because you rarely do'
Timothy Geithner, for God's sake, shut the fuck up.
DavidC
The most Honorable the Bernak
This, from a known tax-cheat. Priceless.
Fuck you and your extend and pretend bullshit fearmongering Turbo Timmy. Government debt always defaults in the long-term. Everybody knows that the jig is up.
Yep: time to give the finger to the welfare leeching banker-gangsters.
Time to demand a Jubilee from Jamie and his hedge-fund minions.
but
it only cost
5 billion
to kill bin laden...
"The federal government posted its largest monthly deficit in history in February, a $223 billion shortfall that put a sharp point on the current fight on Capitol Hill about how deeply to cut this year’s spending."
http://www.washingtontimes.com/news/2011/mar/7/government-posts-biggest-monthly-deficit-ever/
You do the math...but it looks like around 8 billion a day for February 2011, alone.
Relativism is bitch on paper.
A tree gets dug out of the ground, then we cut it down, put ink on it, bury it again in the banking system, and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head
Ha ha. Only WB would think someone lives on Mars.