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Treasury Says Anything But A Debt Ceiling Hike Would Lead To Default, As M.A.D. Escalates A Notch
After in the past week, the blogosphere had been hobbled by one after another mindless oped claiming that the US can easily avoid default by just paying the interest on its obligations, and thus does not have to worry about the debt ceiling, we decided to put some sense to this debate when we pointed out that the "US Debt-to-Deficit Difference Hits Fresh Record, As Treasury Continues To Issue 50% More Debt Than Needed To Fund Deficit" meaning that i) it is not a debt ceiling, it is a debt target (© Lizzie363), and ii) the hundreds of billions of monthly obligations that are funded through debt, are "legal" obligations of the US government that have to be paid in full every month or a default will occur regardless. Neal Wolin, Deputy Secretary of the Treasury, has just released a statement on the Treasury's blog saying pretty much just that. Which, however is certainly not a good thing, as it merely confirms just how totally screwed this country is, and that absent a hike in the ceiling to $15.5 trillion (which we believe is where the debt ceiling will be through March of 2012 when it will be raised to $17 trillion), the dollar will be backed by several trillion in insolvent Federal Reserve Notes, er, assets (that should quickly end all debate about EUR-USD parity). It also confirms that Bernanke has no choice but to continue monetizing debt, through QE and to do that, he needs to make it palatable to the general public, which in turn will mean either a material economic deterioration, or, as the two are apparently identical in the Chairbeast's mind, the Russell 2000.
Just issued by the Department of Turbo Tax Failure:
Treasury: Proposals to “Prioritize” Payments on U.S. Debt Not Workable; Would Not Prevent Default
By:
Neal Wolin
Neal Wolin
1/21/2011
In
his January 6, 2011 letter urging that Congress act to protect
America’s creditworthiness by increasing the statutory debt limit,
Secretary Geithner made clear that any default on legal debt obligations
of the U.S. would be unthinkable. In response, Members of Congress of
both parties have indicated agreement that the United States must honor
its obligations. However, Treasury disagrees with
suggestions by some that Congress could somehow evade this
responsibility by passing legislation to “prioritize” payments on the
national debt above other legal obligations of the United States.
While well-intentioned, this idea is unworkable. It
would not actually prevent default, since it would seek to protect only
principal and interest payments, and not other legal obligations of the
U.S., from non-payment. Adopting a policy that payments
to investors should take precedence over other U.S. legal obligations
would merely be default by another name, since the world would recognize
it as a failure by the U.S. to stand behind its commitments. It would
therefore bring about the same catastrophic economic consequences
Secretary Geithner has warned against, including sharp rises in mortgage
interest rates and other borrowing costs for families; reductions in
the value of homes, 401(k)s and other retirement savings; and negative
effects on the dollar and the safe haven status of Treasury bonds and
other Treasury securities. Such a policy
would also be unacceptable to American servicemen and women, retirees,
and all other Americans, who would rightly reject the notion that their payment has been deemed a lower priority by their government. For these reasons, the
Department of Treasury has always emphasized – regardless of which
party has held the White House or either house of Congress – that the
only way to prevent default and protect America’s creditworthiness is to
enact a timely increase in the debt limit.
Neal Wolin is Deputy Secretary of the Treasury.
»
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I love how these bureaucrats never address the long term implications of these policies. It's as if tomorrow never comes. Spending cuts of the same size of the debt ceiling raise must be made along side or no way will it ever happen. The 1 for 1 would be acceptable by all knowing it is tied to the debt ceiling itself.
Right idea, but if they're raising the debt ceiling by about $1.2 trillion, how can they cut that much now? From where? Cuts of that size mean you have to take a huge whack, right now, out of Social Security, Medicare or Defense. No other line item will allow you to reduce the budget by the amount of the ceiling raise. The Kongressional Klown Kollege would rather go down with the ship than do that.
How about instead of the prejudicial "value of homes" try "cost of homes". I hope the average cost of a 2.5br falls to $100.
Starve the beast and repudiate the debt now. Lets face it ourselves now rather than shame our memory to future generations as greedy fucking pigs willing to run up their debt just because the children cant vote yet. There is nothing more shameful than selfishly spending money now and sticking the.children with the bill.
"By this means government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft.” -- British Lord John Maynard Keynes (the father of 'Keynesian Economics' which our nation now endures) in his book "THE ECONOMIC CONSEQUENCES OF THE PEACE" (1920).
"The financial system has been turned over to the Federal Reserve Board. That Board administers the finance system by authority of a purely profiteering group. The system is Private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money" -- Charles A. Lindbergh Sr., 1923
"To expose a 15 Trillion dollar ripoff of the American people by the stockholders of the 1000 largest corporations over the last 100 years will be a tall order of business." -- Buckminster Fuller (July 12, 1895 – July 1, 1983) was an American engineer, author, designer, inventor, and futurist.
And so, topcallingtroll, tell the wee ones that the bankers have their money.
Tyler. 129 words in your first sentence! WOW! Just sayin'.
I am not paying for this shit. And neither are the kids.
The end of the moral hazard road is when the educated, clever, and ruthless let go of the limiting ethical concerns and get creative on maxing their stash for exit from the system.
"I am not paying for this shit. And neither are the kids."
You make it sound like we have a choice. If we don't pay "our share" in taxes, we get thrown in jail.
We all know how this ends; congress passes the debt ceiling, the markets celebrate and we start the charade again next year. Extend and pretend......
"You make it sound as if we have a choice."
Some do not have a choice; I do.
Its called hard work, thusly you have freedom...
Once in a great while.
I'm going to start a chain of homes for un-wed mothers. Only girls of negotiable virtue will be allowed in.
Non-profit for tax purposes.
Can't sleep, which is surprising since I run a home for incurable nymphomaniac teenage girls. Tired though. Non profit all the way.
But it is a good kind of tired.
Quality control is important.
You need some big guns on the walls... in the living room.. invite the boys in... yada yada yada... I can recomend some if you would like?
I have been in the process of contemplating that very scenario for several weeks now, say you have AU, AG and other attendant appurtenances to survive a 6-12 month, shall we say, dislocation. Without expatriation, dumb in my mind, what to do , what to do.. Bueller, Bueller anyones thoughts are welcome as long as they are clever, educated, utterly ruthless and free of limiting ethical concerns. Stainless Steel Rats may apply..
How's your Pb supply?
That might be an important factor.
Good, trapped inside a layer of copper though..
being able to go offshore...
being able to store PM's off shore...
being able to store guns and ammo offshore...
being able to be back in 30 minutes by fast boat or 15 minutes in the US... Priceless.
Dig a hole... not at your house... and then put stuff in a hole...
Gun control is a second term issue for the democrat's... fucking quote me.
I predict the smuggling of military grade weapons is going to be a growth industry.
And, what are you going to do for food, gnaw on your arm?
How this mindset differs from the folks that we're lambasting is lost on me. Seems all is the same: grab and run...
I am sorry Seer, you are of course correct...
1. Guns
2. Ammo
3. Ammo
4. Ammo
5. Food
6. Medicine
7. Power source?
8. Water source?
9. PM's
If it's true for the government it's true for me. I'm going to tell the bank that either I get more money to pay off my mortgage or I default!
well no proposal can be floated that doesn't preserve the holy sanctity of the military budget and all the wars
Default on all this shit debt hurts the elites, who have stockpiled all the senior claim tickets
The rich stay rich by being in bonds that have always paid out, rather than equities which are akin to gambling. When you have a massive net worth, even 4 or 5% YoY is an enormous gain
I wish that we could force everyone to sit there and read what you wrote! Missing in this world are voices of wisdom/reason...
6% is the magic tax number...
I get it now....
The US has to keep borrowing money to remain creditworthy.
LOL That's priceless.
LOL...precisely, the companion paradox being, in my view, the government won't survive but the people will.
Neutron debt bombs bitchez ;-)
Yeah, that's the sum of it.
There is one other teeny little detail....
No one seems to be able to explain who lent the US the last 4 Trillion. If anyone was actually interest in lending us money, I'd be less concerned. But to raise the debt ceiling so the Treserve can continue to run fraudulent auctions? It boggles the mind.
Now that's what I call a subversive notion. Never thought of that. Who the hell did lend us the last $4 trillion?
I have absolutely no idea, and I spent 100+ hours trying to figure it out. The folks here at ZH helped me put a list of questions together for Geithner. I sent three copies (two registered) and never received any reply.
http://acrossthestreetnet.wordpress.com/2010/08/22/a-letter-to-tim-geithner-cause-this-is-no-ordinary-bubble/
http://acrossthestreetnet.wordpress.com/2010/08/27/update-turbo-doesnt-pick-up-his-mail/
http://acrossthestreetnet.wordpress.com/2010/09/16/treasury-is-re-writing-history-literally/
So at this point, I am completely comfortable with the idea that the US Treasury auctions are the greatest fraud in the history of the world. I've spent all the time I can afford to on this. I'm done. (paging Dr Paul).
Welcome to club Mark. As a member of club Mark, you are entitled to 15 minutes of senate testimony, after the next and biggest financial collapse, along with 10 minutes on the John Stewart show...your Senate testimony will initially be quite gratifying, but you will soon find yourself in a deep, dark mental depression after realizing it changes nothing! Once again, welcome to club Mark!
http://www.youtube.com/watch?v=uw_Tgu0txS0
http://www.thedailyshow.com/watch/mon-march-8-2010/harry-markopolos
edit: The system is fraudulent and 100% corrupt. Accountability has left the country. There will be no answers...
"No one seems to be able to explain who lent the US the last 4 Trillion."
Far as I can tell no one did...Benny farts...LOL.
They're "buying" just issued bonds with just issued paper money (digitized of course)...Congress is in the debt issuance business and the Fed is in the debt buying business, which the Fed of course, has no power to tax for the issuance of it's money to give it worth, but does so anyways, in order to buy the debt.
What could possibly go wrong?
There is no there, there.
Yep, but remember QE is just the tip of the iceberg. There's "currency liquidity swaps," the "household sector" myth, free money to the Primary Dealers, the leveraged ETF hostage crisis (they hold their cash as government debt) and God knows what else.
In my opinion, at least $4 Trillion has already been monetized. The money wasn't real, but the debt is.
No there, there indeed.
Agreed...it makes the common currency worth less.
I refuse to be held accountable for incompetence...I think most here (of all nationalities and political stripes) agree.
It makes my head hurt to debase logic down to the granular level in order to garner the stupidity of it all.
Ouch!...more meds ;-)
SeeYa
What the fed is doing I believe is referred to as kyting.
de·fault –verb
...
8. to fail to meet financial obligations or to account properly for money in one's care
http://dictionary.reference.com/browse/default
I think requiring more debt to avoid defaulting is the very definition of default.
Point taken. It's also the operative definition of a Ponzi scheme.
A trillion dollars doesn't go as far as it used to:
$8T to $9T - 677 days
$9T to $10T - 385 days
$10T to $11T - 156 days
$11T to $12T - 250 days
$12T to $13T - 195 days
$13T to $14T - 210 days
You and your crazy ideals, Tyler. How could we possibly survive 420 days on just $1.5 Trillion?
How will you survive without it... 1/2 your police force is leaving... you will see what could be, a taste laid at your feet.. so that you may cower, in fear... of Freedom!
Check the rising balance sheet of the federal reserve for your answer about who's buying the debt.
I wish I could have just one credit card that would let me raise my limit anytime I "voted" to increase it. Life would be good. I would definitely write letters to anyone who had any doubts of increasing my limits, also.
Ahh, to be a sovereign with the reserve currency.
America’s banker-occupied government is wrapping up its try for world government :
"We are grateful to the Washington Post, the New York Times, Time magazine and other great publications whose directors have attended our meetings and respected the promises of discretion for almost forty years. It would have been impossible for us to develop our plan for the world if we had been subject to the bright lights of publicity during those years. But, the world is now more sophisticated and prepared to march towards a world-government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the National auto-determination practiced in past centuries"
- David Rockefeller, Member CFR, in an address to a Trilateral Commission meeting in June of 1991
Why do people bothered being paranoid about this? The probability of a one-world-govt occurring is nearly nill, so close as to BE nill!
Anyone can state whatever they want, but in the end it's a matter for Mother Nature to vote on...
I'd argue that this is a repackaging of "The Communist Threat," whereby a horrendus system was somehow going to take over the world. Wake the fuck up people! BAD SYSTEMS DO NOT, AND WILL NOT, WORK/SURVIVE! Don't waste your time on this crap: doing so is working for the rich elites, allowing them to use the excuse of your bondage for the sake of fighting the "evil regimes." You are, in effect, walking right into the trap!
The USSR lasted 73 years. So, yes, bad, counter-natural systems do not last eternally, but they last.
73 years out of how many that mankind has existed? A blip to be sure. The problem is that it helped perpetuate the BS that has manifested itself in the US. In a way, I guess, the BAD didn't get removed, it just got shifted, kind of like the discovery that we couldn't make risk go away by slicing it up and sticking it in all sorts of nooks and crannies.
I just hope that people pay attention to the real reasons for the failures (believing that concentrated power is OK, and that we can have endless growth on a finite planet). Sadly, this won't happen, we've been too well programmed by TPTB to self-distruct, to lash out at the "welfare" people, the "dark-skinned" people, "illegals," the Dems, the Republicans, the libertarians, the <insert whatever knee-jerk buzz phrase here> (all except the rich, because, you know, we ALL want to be them [but we cannot because it's a closed club]).
Well, you ARE living up to your name. Well said.
http://www.youtube.com/watch?v=i5dBZDSSky0
Preach Seer!!!!
Thanks. I actually forgot how much I liked that guy thru the years. He will be missed. The question is, how did so many people who saw/heard his work not get a clue?
Brother cossack55,
The people, broadly... can NOT understand... how they get screwed all day every fucking day while watching jerry springer all day... or porn, whatever.
We enjoyed being better than them for so long... and now them and our pride, will eat our combined lunches 100 Trillion dollars over...
Over US$ 100 Trillion Additional Credit Needed to Support Global Growth 18 January 2011New York, USA, 18 January 2011 – Credit levels will need to double over the next 10 years, growing by US$ 103 trillion, to support consensus-projected economic growth. This doubling of credit could be achieved without increasing the risk of major crisis, finds More Credit with Fewer Crises: Responsibly Meeting the World’s Growing Demand for Credit, a report released by the World Economic Forum in collaboration with McKinsey & Company. The study develops a detailed global credit model using historical credit volumes and forecasting potential credit demand to 2020 across 79 countries, representing 99% of world credit volume. The study applies a sustainability methodology to the projected credit demand, using newly developed metrics to answer the following two questions: Will credit growth be sufficient to meet demand? Is there a risk of future credit crises and, if so, where?
The report finds that meeting credit demand will be challenging. Globally, financial protectionism may constrain cross-border financing, a key to the provision of sufficient credit in the next decade, as global imbalances persist. In addition, the regions will experience varying issues: Asia will face the challenge of meeting the high credit demand growth of US$ 40 trillion with less developed financial systems and capital markets. In the European Union, a further US$ 13 trillion of credit in the form of bank lending will be needed. To supply this, banks will require additional capital that, after retained earnings, could lead to a capital shortfall of US$ 2 trillion. Analysis shows that the US would continue to need to draw on global savings, potentially by up to US$ 3.8 trillion in 2020, in order to fund its credit needs, unless there is a marked increase in US domestic savings rates.
“Leaders in the private and public sectors must take decisive actions to avoid contributing to credit hotspots and coldspots, while still meeting the US$ 100 trillion of credit demanded to sustain economic growth over the next 10 years,” said GianCarlo Bruno, Director, Financial Services Industries, World Economic Forum.
Despite widespread deleveraging, a number of “hotspots” – i.e. segments where credit levels grow in excess of sustainable levels – will persist, while new ones emerge. By 2020, these will include retail credit segments in countries representing almost half of the global GDP. By contrast, government credit hotspots are projected for a much smaller set of countries, between them representing 13-14% of world GDP. In wholesale credit, Asia and Western Europe will be the main drivers of hotspots in 2020.
The report finds that the large projection in credit demand can be safely met, but financial institutions, regulators and policy-makers need more robust indicators of unsustainable lending, contagion risk and credit shortages – and better mechanisms to ensure credit promotes development.
“This report is a timely contribution to the discussion of what’s needed to secure stable and sustainable credit for the world economy in the years ahead. Given the huge financing needs of both developed and developing markets, it’s a crucial issue for policy-makers and the financial industry to tackle globally,” said Deven Sharma, President, Standard & Poor’s.
“The banking system has a critical role in supporting future economic growth and this report highlights ways in which it can do so with reduced risk of crises. In particular, there is a pressing need for continued development of capital markets in developing economies to support their continued economic success,” said Charles Roxburgh, Director of McKinsey Global Institute.
The report concludes with eight recommendations that financial institutions, regulators and policy-makers can follow today to ensure sustainable credit levels for the future:
1. Integrate the concepts of sustainable credit into the regulatory agenda
2. Create standardized government accounting practices to increase transparency and accurately assess sovereign finances
3. Encourage responsible borrowing through financial education
4. Encourage financing of local “coldspots” through targeted mechanisms
5. Task a single agency with monitoring global credit levels and system-wide credit sustainability
6. Align banks’ risk appetite with sustainable credit criteria
7. Drive innovation by financial institutions, developing new mechanisms that can safely meet future global credit needs
8. Establish goals for efficient and deep capital markets by 2020 in developing economies
The findings and recommendations of the report will be discussed by experts from the industry, policy-makers, regulators and academics at the World Economic Forum Annual Meeting 2011 in Davos-Klosters, Switzerland.
This report was developed by the World Economic Forum in collaboration with McKinsey & Company.
Notes to Editors
For more information about the Annual Meeting 2011 http://wef.ch/Davos2011
View the best pictures from the Annual Meeting on Flickr at http://wef.ch/pix
Watch live webcasts of the sessions on Livestream http://wef.ch/live
Watch the sessions on demand on YouTube http://wef.ch/youtube or http://wef.ch/youku
Ask a world leader on YouTube http://wef.ch/davosdebates
Become a fan of the Forum on Facebook at http://wef.ch/facebook
Follow the Forum on Twitter at http://wef.ch/twitter and http://wef.ch/livetweet
Read the Forum Blog at http://wef.ch/blog
Read Forum reports on Scribd at http://wef.ch/scribd
Follow the meeting on the iPhone http://wef.ch/iPhone
Upcoming Forum events at http://wef.ch/events
Subscribe to Forum News Releases at http://wef.ch/news
For more information about the Annual Meeting, please visit our website at http://www.weforum.org
“What happened to the world Communist threat was that the American taxpayer, looted and betrayed by the minions of the World Order, could no longer afford to pay for Communism in Russia.” – Eustace Mullins
You present a pretty sophisticated side step to lull the sheeple back to sleep; I question your motives. Not to “waste your time on this crap,” as you put it, means we’ll have an additional 73 years of these people before we overthrow them.
It’s people with this view who would have us wait, not fight for freedom.
But the battle has to be fought before the consequences; these are dangerous men. If it’s not fought, these men will institute their insidious financial sytem of globalism and centralization – "harmonization" -- (which won’t work) while they smash the middle classes and everything else, until islands of freedom once again break out and spread. We don’t want to do that; we want it stopped, now. Already they are holding their power by holding it all to themselves—they won’t share the greed; they only appoint each other like they’re members of a club. Worse, they aren’t competent; they're crazed savages; we’ll all be dirt-poor nations.
But they misunderstand Americans and the American adherence to the Jefferson ideal.
The faulty arguments of so many people is that we go through cycles, that history has us in a pattern, that what happened in Russia or the Keynesian Thirties will be repeated, that what is going to happen is predictable. I don’t buy it. The current forces in the world are new; the motives may be the same but the money is different. The amount of money we are talking here, the effect of the Internet, did not find their place in the 1930s. We are at a new threshold; the ambitions of these dangerous financial terrorists are different. They are not J. Pierpont Morgans—ambitious and ruthless, but patriots of civilization.
In “Economic Consequences of the ‘New World Order,’” Brandon Smith, aka Giordano Bruno of Neithercorp Press, wrote recently:
“[E}litist spokesman George Soros (who for some reason reminds me of the bloated floating Baron Harkonnen from the movie ‘Dune’) recently let spill all kinds of NWO gossip in a candid interview with the Financial Times. If you have not seen it yet, or you believe only kooks talk about the New World Order, I suggest you watch the below interview twice for good measure:
http://www.youtube.com/watch?v=Ki4cqqMZ7JE&feature=player_embedded
“What is most interesting about this interview is Soros’ focus on the fate of the dollar in the NWO. He openly confirms nearly everything I and many others have been warning about for the past three to four years in the span of only ten minutes! Why would Soros make such admissions? Well, I suspect that some elites believe that they should not have to hide their pet project for a ‘new order’ from us lowly serfs, while others perhaps have been given the green light to start selling the masses on the supposed benefits of greater centralization. Soros literally tries to paint the collapse of America as ‘necessary’, and the devolution of the dollar as ‘healthy’, though I doubt that many people will be swayed by his charms. It’s hard to trust a guy that leaves a slime trail…
“If we are to take anything from the recent Soros interview, it would be that the globalists are closing in on their target for the implementation of their new world order, or 'new economic order', or whatever interchangeable label they happen to be using at the moment. But what does this mean for the rest of us? When George Bush Sr., Bill Clinton, Barack Obama, Henry Kissinger, Nicolas Sarkozy, Vladimir Putin, Gordon Brown, and so many others mention their desire for a 'New World Order', what exactly are they referring to?”
Bruno ends his “review of where the elites have led us up until now, and where they have expressly proclaimed they would like to take us in the future” with this summation: “We must determine our own destinies. There is precious little left to lose, and everything to gain.”
http://neithercorp.us/npress/2011/01/economic-consequences-of-the-%e2%80...
Thanks JR, but they scrubbed that youtube link, can it be found elsewhere?
Lately, I've noticed subtle changes around the interwebs, especially search terms, "sky obfuscation" for instance has dissappeared, re-routes to some Java script code.
Rusty… A blogger on Neithercorp Press gives a current link to the FT interview below. I didn’t realize the old link was scrubbed because the quote was picked up from my files. Thanks for the heads up!
Just a word on the interview. As discredited and disreputable as George Soros has become, his analysis of what is being and will be done to the nation’s economy by the central bankers is almost exactly the path Bernanke is following. The frightening aspects are the bankers’ planned decline of the dollar and the American economy and the adoption of a new financial system based on IMF Special Drawing Rights. Soros suggests an increase in the use of the SDRs and a pullback in the dollar, including moving away from the use of dollars as the world reserve currency. In general, Soros talks like a Communist; but he and the Fed are dead serious. For anyone who wants to know what the Fed has in mind for America, here it is. The main missing ingredients, of course, are freedom, hope, and individual destiny. As Soros puts it: “China will emerge as the mortar replacing the American consumer… China will be the engine driving the world economy forward (although it will be much slower) and the U.S. will be actually a drag that is being pulled along through a gradual decline of the dollar.” These statements were made by Soros October 23, 2009; incredibly, as far as Fed policy, they are dead on…
You can find the interview here:
http://www.youtube.com/watch?v=YlG_zYgG05o
Enjoy!
a few of my links have disappeared recently, the tag too. http://www.youtube.com/watch?v=2gm9q8uabTs
US fiscal expenditures were $2T prox in 2008 and we expanded quickly to $3.5T expenditures in 2009 and 2010 where did the extra $1.5T per year get spent?
Hold on...
This post by Treasury is bullshit...
In response, Members of Congress of both parties have indicated agreement that the United States must honor its obligations. However, Treasury disagrees with suggestions by some that Congress could somehow evade this responsibility by passing legislation to “prioritize” payments on the national debt above other legal obligations of the United States.
I'm missing something. Who is suggesting that we pay back Treasury debt first and not pay the rest of the bills? I'm curious: which individuals suggested this? Name names, Treasury Department.
This is a not-so-elaborate strawman staring you right in the face. Or perhaps Treasury is misinterpreting something: namely you "prioritize" Treasury debt by paying it back after the government pays its immediate cash obligations. They're attempting to frame an argument that no one is making and then denying that as a non-starter.
Bullshit-o-meter should have hit 9 on this one.
Wise to use a heavy filter when interpreting the news today isn't it?
It pegged the needle and bent it a little.
Rookies. Always use the highest setting when testing an unknown value. Or, RTFM.
These go to 11
http://www.youtube.com/watch?v=EbVKWCpNFhY&feature=related
These don't.
http://www.impamp.com/
iCANTBELIEVEIT
Back to the future...
Wonder when the vacuum tube ipods and ipads will be released?
I wonder if RTFM isn't part of the amplitude problem?
Long hemp attenuators.
No RTFM is FM. Frequency Modulation. If RTFM=0 modulation does not insue becasue frequency=0.
RTFM: Read The Fucking Manual.
Yes I know. Now re-read it knowing that I know.
My implication is that maybe the manual IS the problem.
As long as the magic smoke does not escape, it is all good.
Crank it to max. If it is too loud, you are too old.
Posted on Drudge, link: http://www.cnbc.com/id/41198789
Default problem solved </sarc>
Wonderful. Fed just ruled steadily rotting values of toxic assets held will be formally transferred to Treasury hence taxpayers.
Not to worry, it's all a big numbers game, the debt will never be paid.
This must truly be the essence of a Faustian bargain or a catch-22. I mean, I'm trying to understand, but someone help me please. It goes something like this: If, on the one hand, we slow or fail to make payments on some obligations to "prioritize" debt payments this is, agreed, a default. But this is being done in recognition of the fact that in order to extract ourselves from this ongoing clusterfuck we must suffer some of the consequences of our own profligacy...ergo: some citizens take a "hit". Given our gross fiscal and budgetary malfeasance this does not seem unreasonable.
But, if, on the other hand, we do not raise the debt ceiling (something everybody with cognitive faculties recognizes is just part of the extend and pretend farce that everyone is willfully blind to) this is a catastrophe BUT raising the debt ceiling again (for the nth time) and again and again and again (ad infinitum) just serves to boost the confidence of the people we owe the money to and that they will some how get paid back...in time if we just keep raising the debt ceiling!?!?
WTF...HELP...PLEASE
we will have a $17T debt cap, there is $20T in offshore un-taxed jurisdictions... thats a $3T profit?
Hey you found my $3 Trillion. Thanks!
+23 & bonus +6 from proper use of "ergo".
Repudiate the debt would be best long term solution, bond holders take the losses (about damn time), but would cause sudden collapse of confidence in FRNs, so a replacement currency (gold backed) would have to be ready to go.
I know it well, this situation is almost designed to drive those of us with tingling gray matter to the brink of schizophrenia. The paradox splits our minds, it doesn't make any sense. All I can offer is that you withdraw from the issue and self-medicate with alcohol, MJ, or meditation. Read anthologies of literature from all the countries of the world. Buy yourself some PMs, guns, ammo and food. Study the culture of the original monotheists.
stock market up today, ya'll should have bought the dip! (me too, hee hee)
Default? Bring it!
Iceland came through it. We can. It will royally eff the Chicoms :)
how? can we owe them, when they owe us?
About no one in power wants to face reality.
If they did so it would upset the cart... no telling how things would evolve then.
So they keep giving the "there'll be tanks in the streets" argument to deflect addressing our pressing problems.
And why wouldn't they?
After all, incumbent congress members enjoy a 94% re-election rate.
They are exempt from sanctions against insider trading and as a fall back cushion they have full retirement after a measly 5 years in office. (5 years employment gets them retirement & medical for the rest of their life ... if that isn't one of the biggest scams going then I'd be shocked).
Thus it will be up to the rank & file to force the confronting of the situation.
Yep... the 'cure' is likely to be painfull.
There is no getting around that.
Yet the longer it is avoided ... the worse the eventuality will be.
That's why I want to see the reset button hit ASAP.
Since they won't be paying the military, who, exactly, will be operating the tanks. I'm guessing they will continue payments to Blackwater or XE or whatever name the mercs are using now.
They fail to understand the term "six degrees of separation." At some point the mercs, no matter how much they're being paid, won't be able to knock off enough people before running into the face of one of their own family members. There's a reason the tribes in Afghanistan haven't been defeated, and why the future is that of tribalism (the good and the bad thereof- but, one thing it's not, and that's a Ponzi).
Remove the bullshit ROE, and the tribes in Afghanistan are nothing but fertilizer.
A perfect example of hubris. Same small-minded thinking has costs many an empire to bite the dust... and for all those who dislike the US govt, Afghanistan is a blessing...
We fail because of corruption on the home front. Not because we are kicking the shit out of neanderthals.
We fail because we're operating on the bases of endless growth on a finite planet! Yeah, you can pick sub-plots, but those sub-plots are all just that, subordinate to the main issue.
As far as Afghans being neanderthals, well... I guess evolution will decide who is right about that one. Note: don't confuse subsistence living with being stupid (we're not at that level yet because we can still exploit others, but when that no longer is possible, Then we'll see just how smart we all are).
affirmative on the seer.
rodent dangling like a dingleberry....(i love name calling....sometimes)
i have friends serving in afpak, im former .gov....
that said, i fully agree with your sentiment concerning the afghan people. neutron/small tactical would seriously dent the nation, but 2months after detonation they'd pop outta the mt.s with enfields. i love it.
rodent-boy believes "we're" kicking the shit out of neanderthals?.....who is "we"? i'd hafta take my shoes off to do the math on how much us.gov gets in tax money from me, so i dont contribute extensively, you?
yer obviously not in the service.....
is "we" the u.s. citizenry?
as seer says, we fail because of a false paradigm. it is in the current human nature TO fail. until we decide to not fail. that could happen soon, could happen in 100yr. the evolvement of human consciouness into a higher state. collectively. that involves "waking up" from the spectacle we call industrial society/civilization, yes, but in involves awareness of our physical state<nature>...how we live in it/respond to it. everything you/we do is based on our surroundings/planet.....our individual egos have us so hijacked.....civilization is quite psychopathic by textbook definition, yes? suicidal. infinte growth of any kind is suicidal.
rodent-boy, is your middle name maya?
All power does, in fact, come from the muzzle of a weapon.
nice. quoting the bible, too.
The Dali Lamer is very spiritual. He is also a moron.
Look up "Samsara" on wikipedia.
Sounds lame. Don't like this life? Just wait for a better one. Make this one count.
Kicking the shit out of Neanderthals? Who, us?
Afganistan is the graveyard of invading imperialist forces. Always has been.
Afghanistan, didn't Alexander the Great throw it up in reverse there?
He killed a significant portion of the population before giving up, as did the Russians. I believe Ivan killed somewhere around a million people before leaving. 'Course, we don't keep those records at the Pentagon, do we?
Ya but he didn't have a bunch of retarded soliders who can barely fly helicopters and fixed wing craft there without smashing their ass into a rock. I wonder what it's like living there. Walking up to wreckage and going. Owe ooooo. That looks expensive.
Oops! who put that mountain there?
this is gonna cost the tax payers $200m - $300m... who cares I'm stupid and dead.. BOOM!
Tyler,
If they've been consistently borrowing more than the deficit, where has all the excess money gone? I think you should dig into this deeper. What's the cumulative excess? Why do they do this? Where did it go? Is the true deficit much higher than the official numbers? This could be a big story.
I believe that this has been pretty obvious, and that's that it's gone into the big holes in the likes of JPM, GS, BOA, Citi et al in attempt to plug up their leaking balance sheets. These entities would be DEAD by now had these bits not been flowing their way.
this is a big story, but no one is going to believe it. Add to that billions in failure to delivery, naked shorting , dark pools, HFT, front running dipshits at Treasury, and then you will know that by 2020 we are going to be in a new World post ponzi
This is not going to end well. Imagine what will be our fiscal state be like in the 2020s? We will pay more in debt interest more then we pay defense at that point. The next decade will the time we will face a fiscal crisis. This will end very badly. We will be the last to fall of course. The euro is done for,China will implode in a hyper depression then we will collapse in a debt collapse. It looks like we will have an apolar world with no superpower just like the middle ages. we still have time to fix this problem but we nee d to do it before we pass that rubicon at the end of ths decade.
"euro is done for"...ha ha! Americans still think they are going to be the last men standing. You are going to be the first to collapse.
Quick, pull out your printing press and let's see whose is bigger!
The US will be the last one standing. But that also means that it'll be the last to get on with the necessary corrections...
Uh, Seer, we buy our presses from Germany.
LOL!
Default, the two best words in the English language.
Since it all began with the word and the word, I've heard said was god, then by god let's use a new word.
Lets call it Debt Sealing.
ORI
http://www.youtube.com/watch?v=VBmhA6z6ieY&feature=related
clubbing
baby debt sealings ....
I am so sick of this put your faith in God shit. If things go bad then it is "God works in mysterious ways", or he has a plan! If things are good then God has a different plan, or is rewarding you. An answer for everything! So I guess we had better not worry about anything because he has a plan one way or another and there doesn't seem to be anything we can do about it. I guess God gave us brains by mistake?
Life is a test of the individual. Why should a supreme being come to you?
AMON AMARTH - Thousand years of oppression
http://www.youtube.com/watch?v=9oXITU16wGo
Go here for some testosterone tutoring.
http://www.arthurshall.com/
QC 2.1
http://www.youtube.com/watch?v=lPY6Ri0nxio
http://www.youtube.com/watch?v=LXwnQ4bjCbw
Rodent, this is what your manliness tutor is writing about:
"I have known a few people who worked at restaurants of various stripes and they all said the same thing, that 12-15% was a given and if they busted ass and really tried they thought they could get 20-25%. What the fuck? So you are being paid to do your job by the establishment you work for and you just fucking assume people are willing to add to their bill because you came to their table and wrote down their order? Or because you asked if you could fill their water? Or that you took time out of your busy schedule to bring them their bill for their convenience? At an nice restaurant a tip can easily run $10-20 for two people and I am supposed to pay that because you remembered "steak, medium rare, plain"? Fuck all that"
Too funny. Sign me up. I want to learn about manliness from this chump.
Good joke. Thanks.
ORI
Arthur is a regular guy. Read the whole site, not just a rant on lame waiters.
i was just pulling you rand Arthur's leg. I have a different concept of manliness anyways. Quitting alcohol 11 years ago did the trick for me.
ORI
Quitter.
Life should be about drinking, whoring and killing. That is what we were made for.
Until you get married. Then it is all over but the waiting for death.
"Quitting alcohol 11 years ago did the trick for me."
I'm a professional...I don't need to attend any of the meetings ;-)
So they all say nm, so they all say!
Now stand up and....oh wait, you DO know this drill!!
;-)
ORI
;-)
Told ya people was going to be blurting stuff out. ;-)
It's going to be a hell of a new moon.
on Sat, 01/22/2011 - 05:52
#895497
i was just pulling you rand Arthur's leg. I have a different concept of manliness anyways. Quitting alcohol 11 years ago did the trick for me.
ORI
*******************************************************************************
The 12 steps will not help you this time Tonto!
And why does "God" care about unborn children in the US, yet allow unborns to be bombed in other countries?
"God" is a euphemism for submisison to authoritarian control. And TPTB laugh all the way to the bank on this! (yeah, GWB, the elitist, getting the go-ahead from "God" to bomb unborn children...)
You are aware we purposely murder 1.5 million babies a year in the womb? That does not mean God does not exist.
It means we are not worthy of his mercy.
There is no nation on Earth practicing abortion on demand that is not dying. QED.
Yawn... same old ill-logic from the religious extremists, who are, in their ignornace, serving TPTB here on earth more than their long-ago departed "gods."
Either everything is by God's design, which means that NOTHING is wrong, or it's out of his/her/its control, meaning that praying to he/she/it is silly.
Like I said, it's a great tool by TPTB. Serve us to kill others so that you can get into "heaven."
Oh, and thank God's intelligent design for giving us evolution!
A new definition for GOD!
http://aadivaahan.wordpress.com/2010/06/17/god/
;-)
Yeah, the ponderance of mortality... Religions, as much as I can see, provide meaning for death, for taking lives (sometimes warranted, mostly used for unwarranted [read - un-god-like] purposes).
I believe that the diests were pretty close, that there was something responsible for how things started, but that force is only manifest as a residual- we're on auto-pilot (read "'God's' not in the car driving").
"God" is a great term for that which is unknown. Can we know the unknowable? If so, then it's no longer unknowable, it's no longer a mystery; consider that many things were a mystery, only to become less so through observations over many years.
Nature and its evolution trumps all... whether Nature was designed by a "higher being" (which, of course, must have looked like "us"!), is of secondary importance, as it, Nature, is The controlling force (now).
the part can't comprehend the whole. that doesn't make you less a part.
That is a strange conclusion. TPTB hate my religion. The State does not like competition for the hearts and souls of the population.
When the State goes into full oppression of my religion, I will become its enemy.
TBTP have ALWAYS been intertwined with religions. Hitler was hooked up quite well with the Caltholic Church. And then there's GWB's discussions with "God" to bomb children in the wombs over in the Middle East...
Spare me, troll...
You need to get current. The State has hated religion since Marx put out his Satanically inspired drivel.
Hitler did not favor the Catholic Church. He much preferred the Norse gods.
Do you read history, or just get you "knowledge" from Soros?
Listen you commie-hating, baby killing god-freak, I abhor communism, religions and ALL other BS authoritarian shit (which includes Soros). NO GODS, NO MASTERS!
Sorry, but I don't fall into any of your pre-conceived lables, I'm independent, independent from the same old mind manipulations that have been bestowed upon mankind by govts and relegions since the begining of time...
You've been lurking here for what, 16 weeks? And now you're spewing God shit, waving around an avatar with a weapon? Yeah, where the fuck do I sign up?
Hitler USED the Caltholic Church. The Catholic Church got into bed with Hitler! Got Mit Uns?
Thanks for playing!
Since when does time in grade equal competency? You are a PTB servicing dupe.
Religion is your friend.
The Catholic Church survived. It tends to do that. I will defend them against you in coordination with TPTB.
You should shut the fuck up and let me just hate on TPTB instead. Or feed your ego and I will gladly help them crush you.
You've got anger management issues! Everything out of your mouth is about hate and killing!
While not a pacifist (you come near me, my property, with bad intent and I assure you that _I_ will remember it), I don't believe that violence solves anything. You noted that ALL power comes from the barrel of a gun. Does that mean that "God" packs? WCGWJP (What Caliber of Gun Would Jesus Pack)?
The Church IS part of TBTB. It's centralized power, and you know, power corrupts... Thinging that one's religion/govt/corporation/whatever is exempt from this is pure hubris. I can get along with anyone (except, see below), and I can also clash with ANY position on the religious/political spectrum: I'm a total free-thinker, not a pawn of ANY central power.
I don't HATE, well, I hate HATERS... but, I figure that evolution will take care of them, eventually.
Got Mit Uns?
NOTE: people have worshiped all kinds of things over the span of history; many worshiped animals, in which case those that worshiped aligators didn't quite make it past the evolutionary hurdle; wouldn't feel so cocky that YOUR religion won't suffer the same fate (with demographics being what they are, seems like the Catholic Church is going to run low on young boys...)
BTW - Time in here usually tends to weed out the trolls.
I manage my anger quite well, thanks. They've never been able to prove a thing.
I hate haters of haters. They are so smug...in their hate.
Jesus would carry a Colt 1911, because 9mm are for pussies.
Strange that TPTB want us to worship Nature again. And the high priests they have designated even promise to control the weather...if we just sacrifice enough.
You actually think you're a Christian?
Sheesh. Talk about missing the point.
You guys need to quit assuming.
Ah. Just another troll. Congrats, you're winning.
The only god you have is your ego. Flaming self-worshiper, otherwise known as narcissism.
You betas are all the same.
I do not feel any shame for being better than you.
"I do not feel any shame for being better than you." Rodent Freikorp
Why post that?
You are calling Marx a Satanist and questioning other peoples understanding of history. I think not Sir.
You are calling Marx a Satanist and questioning other peoples understanding of history. I think not Sir.
You are calling Marx a Satanist and questioning other peoples understanding of history. I think not Sir.
RF, if I may, what is your religion?
In general terms if you prefer. Judeo-Christian values, traditional Prot/Catholic, or a self determined/evolved religion.
TIA
You junk it, but you can't refute it.
QED, you murder approving fiends.
Are you fucking kidding me?
Small/less government= free choice in all things...God or no God.
Mercy, schmercy...bring it.
look at russian collapse, no police no pensions, no hospitals. gov services collapsed. i see that and an eventual recovery with mobsters , then the ultimate mob, secret police taking control eventually.
enjoy your well earned retirement pollies.