We’ve Just Breached the Debt Ceiling… Next Comes the Default

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Wed, 05/25/2011 - 14:44 | 1309871 honestann
honestann's picture

Tyler.  Is it impossible to impose honesty upon article authors?

A "free" 1oz gold coin is honestly "free" if someone just hands it to you, then smiles, says "Enjoy!", and walks away.

A "free" 1oz gold coin is NOT "free" if you must purchase a $400,000 home, a $40,000 car, a $4,000 refrigerator, a $400 newsletter, or even $0.40 candy - before you get the gold.

Yeah, I know.  Blatant lies are now common practice.  However, note this.  I refuse to deal with anyone who lies to me.  Guess what?  So can you.

Wed, 05/25/2011 - 12:14 | 1309349 LoneCapitalist
LoneCapitalist's picture

Debt ceiling will be raised. Republicans have no political will to stand up to Democrats. This is all theater.

Wed, 05/25/2011 - 12:15 | 1309335 Dolemite
Dolemite's picture

Weak holders getting out before next leg down

Wed, 05/25/2011 - 12:02 | 1309292 sunnydays
sunnydays's picture

I have noticed that MSM somehow forgets to mention that small fact that the Treasury confiscated all the Fed pensions for the U.S. debt.  Shows they are strictly an arm of the govt. for propaganda and distraction instead of real news that impacts everyone.

Wed, 05/25/2011 - 11:59 | 1309272 DOT
DOT's picture

another debt ceiling breach and I ain't got nobody

I got some money cuz I just got paid...



Wed, 05/25/2011 - 11:38 | 1309195 Treasure Freedom
Treasure Freedom's picture

And not a PEEP from the MSM.. hmmmm

Wed, 05/25/2011 - 11:13 | 1309065 ElvisDog
ElvisDog's picture

I think strictly speaking the U.S. won't default if the debt ceiling isn't raised by August, because we can still make our interest payments from tax receipts. What will happen (theoretically anyway) is that it will cut off deficit spending. I suspect if the ceiling is not raised, that they'll ignore it and just continue sending the checks out to granny.

Wed, 05/25/2011 - 13:47 | 1309689 Thisson
Thisson's picture

The plan is 100% monetization.  Everyone gets the nominal amount promised.  It just won't buy much.  And after all, we're already at a 70% run rate for monetarization, so it's not much further from here.

Wed, 05/25/2011 - 11:05 | 1309026 dbTX
dbTX's picture

It's Congress finally forcing the Federal govdernment to approximate "living within it's means".


Yeah, sure and pigs are flying @ warp speed

Wed, 05/25/2011 - 10:59 | 1309013 Doyle Hargraves
Doyle Hargraves's picture


Wed, 05/25/2011 - 10:33 | 1308892 happybob007
happybob007's picture

No.  We won't default on debt payments.  At least, it's not a foregon conclusion that we will.  That is certainly one option.  Instead, we'll probably just be stuck not spending the money on a program that has already been approved by Congress.

It's not the end of the world.  It's Congress finally forcing the Federal government to approximate "living within it's means."

Wed, 05/25/2011 - 13:49 | 1309684 Thisson
Thisson's picture

I'm defaulting on "my" portion of the debt.  You can go ahead and pay yours, if you like. 

Wed, 05/25/2011 - 10:20 | 1308848 the left behinds
the left behinds's picture

ok, so why are they doing this?

do tim and the other idiots really believe the world is ending so 'screw-it!'?

these animals usually have an ends, what's the going theory here?

extermination? unified currency/control? 

world [choking] peace?

Wed, 05/25/2011 - 13:06 | 1309537 FreedomGuy
FreedomGuy's picture

I liken the whole Obama crew, including Tax Cheat Timmy to a group of  five year olds at the controls of an airplane. The plane is in a dive and they are just pushing buttons, flipping switches and getting mesmerized by any red lights without knowing what any of it will do.

The secret of free markets is that the plane will fly itself if you leave it alone.

Wed, 05/25/2011 - 10:54 | 1308992 Problem Is
Problem Is's picture

"ok, so why are they doing this?"

His only analysis and answer is buy his newsletter...

Why the corporate whore media is silent is a good question, though.

The answer to that is the ruling oligarchy who own the douche media order it so...

Wed, 05/25/2011 - 10:44 | 1308955 birdie2
birdie2's picture

Conspiracy theories aside, the real productive capacity of the US has been largely hollowed out and moved to slave labour countries to satisfy Wall Street Shareholders. As a result, there is relatively little left to grow the US economy with.  Low interest rates, huge debt, and massive money printing are the only tools left to fill the economic void.  Corporate America sold Americans down a river 30 years ago turning the masses into debt slaves and concentrating the wealth in the hands of a few globalist shareholders.  Thomas Jefferson warned about BANKS and Corporations 200 years ago, yet the masses are distracted with politicians that are owned and beholdent to financial interests.  The end game, is the elite swoop in and buy everything cheap after the economic collapse.   

Wed, 05/25/2011 - 12:54 | 1309493 SYantiss
SYantiss's picture

You're part right... We were sold down river by Banks, Corporations, Et Al... But it was at the request of "We The Sheeple". Our drive to let the Nanny take care of us is what caused this mess. Socialism is what we've wanted as a society... Socialism is what we're getting.

Nanny Dearest eventually has to take everything we produce to keep us pacified... She couldn't do it all right away or flat out... so she borrowed what our kids and their kids will produce. All so we could have a standard of living that was unsustainable.

Good job Sheeple!!!

Wed, 05/25/2011 - 10:42 | 1308940 tired1
tired1's picture

I think that many of us here would benefit from informed speculation of the bankster's plan as it pertains to the US.

Wed, 05/25/2011 - 10:17 | 1308832 Cdad
Cdad's picture

You’d think that the world’s largest economy (and home of the world’s reserve currency) exceeding its debt limits would be big time news. But we’ve yet to hear a peep about it from the mainstream financial media.

Mr. Summers,

It should not come as a surprise to you that the government and the press in charge of reporting on government does not speak of the impending US debt default.  Between DC and criminal syndicate Wall Street bankers, you have a conspiracy of Ponzi masters.

What you should be surprised about is the fact that, despite the vacuum of public information on the subject, Average Joe is having nothing to do with the US stock market.  Somehow, and through the relentlessness of alternative media [yourself included], Average Joe knows what is going on and is in the process of hunkering down ahead of the storm.  That is what is so surprising about this FUBAR situation.  

Wed, 05/25/2011 - 11:05 | 1309042 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

This is via my own very un-scientific poll of folks around me, but I'm still surprised at the number of people who will take no responsibility for their longer term financial well-being. Avg Joe still has a 401k acct that they know little about. There's a company or plan administrator who chooses the most popular dreck for the sheeple to choose from. Of course Avg Joe wouldn't be so bold as to trade their own account every day, or bother to find out about options and futures. Trust me, I've tried to tell folks, but the first thing out of their mouths is "I can't do that" or "I don't have the time to learn". They'll still have time to watch American Idol. Ugh. Yeah, some folks who are buying PMs will have something to weather the storm, but I'm afraid we have a great many dolts still among us.
P.S. Avg Joe doesn't even want to hear about storing extra food. The grasshoppers are in the majority.

Wed, 05/25/2011 - 11:51 | 1309237 Doyle Hargraves
Doyle Hargraves's picture

Yeah the same AVG JOE will be coming to your house to take yer stuff though...even though you warned him. I embrace the tinfoil hat comments and have one on right now! Beans and Bullets are all you need! Good to have a 12 gauge and lots of ammo. .223, 30-06, and .308 are good rifles to have. .45, 9MM (not agood round but very common), and .40 are pretty common pistols, good to have common calibers that way when you find the not so lucky ones who already met their maker they at least may have something you can use. Of course a Ron Paul victory in 2012 would make all this prep a moot point, but TPTB will never allow that to happen. Instead we will get some other CFR shill or the same one we have now advocating their unique brand of debt slavery for the masses in the name of 'preserving amerika'. Yeah it seems better time to prepare than hope for the good outcome later on.

Wed, 05/25/2011 - 13:02 | 1309527 FreedomGuy
FreedomGuy's picture

I personally prefer .357 magnum revolvers. You can also shoot .38's. Revolvers are reliable, simple and concealable. The one disadvantage is slow reload but rarely does anyone need to shoot dozens of rounds. Speed loaders help. You will need them with your government concealed carry as you go to the bank to withdraw your PM's and keep from getting carjacked. Remember, we have an entire very large class of people in the U.S. who think it's the government's job to get them stuff...other people's stuff. When the government fails they will simply shortcut the process and do it for themselves. It actually is the same process, just more overt without the official legalities that your government covers it with. It's direct redistribution and you have to defend yourself from it.

Help your friends and family and fend off the rest.

Wed, 05/25/2011 - 13:15 | 1309576 Doyle Hargraves
Doyle Hargraves's picture

Amen to that Freedom Guy, a GP-100 is my personal sidearm (.357 6 inch barrel not terribly concealable), but that being said the masses and others who we may encounter for resupply don't really use .38 or .357 anymore. I have a lot of ammo for that though. The great thing about revolvers is their reliability. No jamming, no misfires. "If you need more than 6 shots at any given time you probably shouldn't be using a handgun to begin with" has always been my take on it. When they do decide to 'shortcut' the process I will be sure to have em stacked like cord wood publicly to make sure any others get the message. The main thing is this though, if you are at least somewhat prepared to put up a fight, they will go off and try and get their stuff somewhere else where resistance is less intense (i.e. those of you who failed to prepare). It won't be until further down the timeline that those who are prepared actually have to deal with those people who have managed to organize, survive, and set up elaborate schemes of raids/siege/ambush. Hopefully by then order will be regained on a local level.

Wed, 05/25/2011 - 13:02 | 1309524 RafterManFMJ
RafterManFMJ's picture

Sure what is RP going to do? Turn back time? GL with that.  Plus, he'd probably get his head blowed clean off driving in a convertivle, or drown in a tub.  This plane is going in at mach 3.75 - eject now or you won't survive.

Wed, 05/25/2011 - 13:05 | 1309545 Doyle Hargraves
Doyle Hargraves's picture

Yeah maybe it is just wishful thinking...maybe thinking we can stave off the end, and get a little bit of our liberty back at the same time through peaceful means. I realize the jig is up though. Sometimes you just don't wanna believe it is done. If RP ever made it that far his plane would probably fall outta the sky ala the clinton years disposal methods. 

Wed, 05/25/2011 - 11:43 | 1309207 falardea
falardea's picture

I understand exactly what you're saying.  I've tried talking to family and neighbors, only to get the "tinfoil hat" comments.

So I bought my first TINY amount of silver the other day.  Yes, I know I may be too late, but I have to start somewhere... when I bought it, the guy behind the counter chuckled at me when I suggested I would be able to use it in the future as currency.  His general point was, "if the sh#t hits the fan so silver and PMs are useful as currency, bullets and canned goods will be the real currency of the survivors".  So I'm investing in .223 and hormel.  I figure I can use the same ammo our police will be using to herd us into the re-education camps.

Wed, 05/25/2011 - 13:23 | 1309603 Ned Zeppelin
Ned Zeppelin's picture

Exactly - part of your PM investment ought to be in that unsung PM, lead, and the various fast-lead-delivery mechanisms you might have need of when TSHTF.

Wed, 05/25/2011 - 11:40 | 1309203 Nothing To See Here
Nothing To See Here's picture


What amazes me also is that Avg. Joe is still undecided between Obama and Romney, as if this was a real choice that would matter.

Wed, 05/25/2011 - 10:15 | 1308819 apberusdisvet
apberusdisvet's picture

Next up:  401(k)s.  Cash out at penalty or take out a loan against; buy PMs.

Wed, 05/25/2011 - 12:28 | 1309387 SYantiss
SYantiss's picture


Wed, 05/25/2011 - 10:14 | 1308813 tired1
tired1's picture

OK, so the US defaults sooner or later. There will be a war with China so they dont get paid.

What about the Fed? Is the Fed going to demand sovereign assets for debt satisfaction?

This crap has been going on for decades in places far away, plces where there are no McDonalds, US folks didn't notice and didn't care. Is this the Fed's endgame and do they think they can succeed?

Wed, 05/25/2011 - 11:40 | 1309193 Logans_Run
Logans_Run's picture

Since the Fed is the largest holder of Treasuries, let's declare war on them first.

Wed, 05/25/2011 - 10:13 | 1308795 irazmo
irazmo's picture

Thanks, I am never suprised by what the US mainstream media decides to cover, or not anymore.

Wed, 05/25/2011 - 11:52 | 1309242 Votewithabullet
Votewithabullet's picture

FYI  Katie Couric announced both aspects of the ceiling breach and the raiding of the pensions the same day it happened, you musta missed it. I would like to give a shout out above  to becky quick, Hey becky, I'd like to suck your dick, I mean clit. Whatever just put it in my hand I'll suck it...I love you Becky.

Wed, 05/25/2011 - 09:53 | 1308688 becky quick and...
becky quick and her beautiful mouth's picture

dear graham:


your newsletter shill part of the article shouldn't be longer than the actual article itself.




everyone on zerohedge

Wed, 05/25/2011 - 12:19 | 1309366 Dan The Man
Dan The Man's picture


Thank You Graham,

Some concern themselves more with medium than message.

I found it very informative.


is that a haiku?

Wed, 05/25/2011 - 10:41 | 1308935 42 is the answer
42 is the answer's picture


360 Number of words in article minus the pitch ending

214 Number of words in pitch

Seems excessive to me.

Wed, 05/25/2011 - 10:01 | 1308718 Tenma13
Tenma13's picture

+1 we are all well versed on the whereabouts of your 'special reports'. Put the site address and be done with it. 



Wed, 05/25/2011 - 09:52 | 1308685 Racer
Racer's picture

And in the meantime BTFD

Wed, 05/25/2011 - 12:53 | 1309502 silberblick
silberblick's picture

And enjoy some hilarity.

Click below to see a graphic illustration of bankster's dirty hierarchy of needs:


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