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House Narrowly Passes "Avoid Default" Bill - 221-207; US CDS Ticks Up
The Treasury market can rest assured that the Republican-'owned' House has done its very best to avoid a default on the debt securities of the US. The 'debt prioritization' bill narrowly passed the House 221-207 amd now moves on to the Senate where it stands a snowball's chance in hell of passing. Let the Grand-Standing begin... Meanwhile, US 5Y CDS rose modestly to around 35bps (from 31bps) - but remains near post-crisis lows.
Charts: Bloomberg
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If Republicans were serious they would not increase the debt ceiling. That would be the ultimate FUCK YOU BERNANKE! and it gives the Fed a very quick exit... sort of like jumping out a window.
Unfortunately the MIC needs to be paid. Another sheeple that still believes they have a "choice". Fucking halarious. It take $$$ to get elected, BERNANKE provides those dollars for BOTH parties. Wake the fuck up.
The way I see it, the only choice we have in this matter is either a fist shoved up our ass or a dildo. I guess I will take the dildo.
With, or without lube?
Not raising the debt ceiling means Turbo Timmy raids government and military pensions. When those run out he'll go for the 401Ks and entitlement programs. When those run out it will be ultra taxation, austerity, and eventually default, in a best case scenario.
No politician is going to get re-elected on that platform unless they fail at its implementation.
Or neither (ie exit only). Buy physical gold and silver and ignore the politicians. The one thing narcissists cannot stand is being ignored.
This is why I wrote Ron Paul in for everything. Hell, I even had my fiancee write him in on the Democratic ticket (her parents are Democrats because they live off the system)
It's my little way of saying "fuck you, I refuse to play your stupid game"
People tell me I'm wasting my vote, I tell them the politicians already wasted my vote for me by picking walking talking bell-ends for candidates.
Well, normally I'd tell you that you're wasting your freedom by voting, but given you wrote in Dr. Paul for everything, I'll give you a pass.
After all, LULZ are sometimes liberating.
Voting for a man whose entire family is in the Masonic lodges... still playing into their hand.
There is one vote and only one vote that matters - your wallet.
If you're not willing to burn dollars then at least trade them in for real money, gold and silver.
Only 14 votes from stopping Bernanke. It will depend how people vote in next ellection...
They probably decided in the smoke room to "make it close".
waiting for the "lets ban selling" bill or the "no red day" bill
Already exists by proxie. 85 billion per month, soon to be 120 billion per month, then 400 billion per month...
The Treasury market is functioning fine except that it hasn't priced in the risk of default. ('course, that is a 100% certainty, but let's not quibble over details)
The default has been happening for quite a while.
USA CDS? Like that will ever pay out. Fucking halarious, so many ways to destroy capital these days.
And its priced in Euros as well, for those skeptical ones;-)
Someday the Fed will have to buy all those off of JPM in a bailout. This will be known as going "360 degree retard".
But in the land of leveraged derivatives, it is a move in either direction that destroys the system. The fine line to be walked becomes finer as bets on both sides mount. The only way to bet against it , and for the only possible outcome, is physical gold.
Unless of course "both sides" agreed to suddenly wipe those bets out. Hypothetically speaking of course, WWIII is more likely.
Unfortunately, I think that garbage is too big a part of bank balance sheets to be just erased. The loser has to die. The winner has to die because the loser could not pay out or stay on the other end of the swap. There will be winners. But they will have been betting against the whole process in one way or another, not involved in it. And the winners will happily pass out boat anchors to the floundering swimmers when the ship starts sinking.
Please, it's simple. The "loser" will be anyone holding paper promises (of all kinds, period). This has many times throughout history, every single time, the world has gone to war. Every single time, without exception.
The printer can never stop again until catastrophe hits and makes printing futile.
Gold is not the only bet. Let me give you a few examples.
Low tech guns and munition factories. Prefferably powered by windmills and or solar pannels. And installed in a kibutz like complex for organic food growth. Low tech water pumps. Desalinizer stations...
Fair enough. I guess I was looking at it form a purely financial standpoint.
Love it...."so many ways to destroy capital these days"
Someone will sell it down to 0 pips.....
That's not the point of a CDS, the point is to hold the world ransom in threatening a derivatives trigger wipeout. Mutually assured destruction. Keeps the other guy honest.
When is the next 'oh my god the world is going to end!!!!' deadline?
EXP rules...!! Politicians are only play acting.
Huzzah!! We've been SAVED by our career politicians!!
Can: check
Foot: check
Road: check
Kick: check
Resume spending: check (is in the mail, honest!)
Republicrats and demicians, what difference does it make. The spending will continue, the printing will continue and the lies will continue. Please dont let yourself be fooled by this shit. Its all self serving shit and any time they talk about citizens it to tax us, regulate us or threaten us with NDAA and the like.
the funny thing is.....
kyle bass is hyping up the japan debt crisis....
probably worse off in our own backyard...
i do love me some kyle bass tho
Wait an minute. Its all important!! We cant prioritize government spending since it is all so critical to Americans lives. Zero Tolerance for spending cuts!
Make it hurt
Love, Obammy
The only hope we have is for the Republicans to stand firm, let the US default, and after the smoke clears, introduce a real bill based on sound fiscal policy and with no more Federal Reserve. Anything else is politics as usual, and the Democrats are way better at playing that game than the Republicans.
What does sound fiscal policy mean?
Means to keep the rate of increase of your spending at the rate of growth of your economic activity on the average
It means Quantitative Easement which means Quantum Fabrication which means Abstract Entanglement which means Postmodern Irony which means devoid of all meaning without knowing so and intending as much simulataneously.
I.E. A trinket in China comprised of Santa Claus nailed to a crucifix being sold to American tourists.
We don't know because humans have never managed to muster it... it might exist in a vacuum, but once introduced to the real world, it gets aids and dies...
I am really afraid to see what Obama's priorities are. I better not see ACORN or Obamaphone funding in the top ten.
I'm fucking shocked. I thought today was going to be the day that the bankster-owned politicians gave the finger to their masters. Maybe they'll do it next month...or next year...or after the next elections...or after Haley's comet appears again...or....
Here's to hoping they'll self-castrate, don Nikes and drink the Kool-Aid; in that order.
"Ti and Do, here we come!!!"
Uh oh! I hope my $ 3,000,000 government grant to study the reading habits of dust mites isn't in jeopardy.
I almost cancelled my dentist's appointment to wait for the results.
Proctologist?
So everything is fixed, right? Whew. Another close call. Good thing we have leaders working hard to keep us safe.
/sarc
The "debt ceiling" serves no practical purpose anymore, only a political one. It is not a winning proposition for the GOP to continue with the charade of a debt ceiling unless they actually grow a pair, dip 'em in brass, and stand firm on the borrowing limit. No more extensions. No point in having a debt ceiling if you're just going to extend it every time our credit limit is reached.
Fuckin' politicians, pissing me off daily.
So you're getting it... That there's no intention of growing a pair. There's no liquid brass.
You've been given proof that the only purpose is to pretend they have a purpose about one thing and do quite another.
Growing a pair is a one-way ticket out of office. That's why no one has a pair (although I think Mooschelle prolly does...)
Off topic but since it's already May 9th, the crowd has gone away without making sales. So much for another anticipatory cataclysmic event.
"Republican-'owned' House has done its very best to avoid a default on the debt securities of the US."
Haaaa haaa ahaaa haaaa haaaaa haaaaa ahaaa haaaa aaaah aaah hack, cough. Thanks, I needed that. And you think I smoke strong stuff?
If we want to see what our economy will look like in a few years time, just reread your history from the centuries following the collapse of the Western Roman Empire. Trade, commerce and money disappeared almost everywhere. Barter was the chief means of exchange. Population collapsed and much of the tilable of the Empire reverted to forest. Cities disappeared with 10,000-20,000 being the largest population of any city in Europe (save Constantinople). Fun times...they are coming!
"a snowball's chance in hell of passing the Senate"
Is that sarcasm?
So are the swap contracts denominated in dollars?
what do swap contracts denominated in gold sell for?