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Bankers Warn Obama, Don't Mess With The Debt Ceiling (Again)

Tyler Durden's picture





 

15 Bankers just paid a visit to the White House, listened to President Obama, and explained what a total disaster it would be if the US debt-ceiling is breached and Treasuries technically default. While the politicians exclaimed how bad a government shutdown would be, the banks have turned the panic dial to 11 as Goldman's Lloyd Blankfein noted, bankers are “in a position to really know early what the consequences are,” and it would be catastrophic. The irony that the firm which the government is trying to fine $20 billion for selling fraudulent debt and giving bad advice is now providing the same government with advice on its own bad debt, is not lost on us as Dimon was among the visitors but it is Blankfein's warning, echoing Obama, that will get the headlines, "they shouldn't use the threat of causing the U.S. to fail on its obligation to repay debt as a cudgel."


Via Bloomberg,

Blankfein - "You can litigate these policy issues, you can relitigate these policy issues in a public forum, but they shouldn't use the threat of causing the U.S. to fail on its obligation to repay debt as a cudgel."

 

*BLANKFEIN: BANK CEOS EXPLAINED IN MTG HOW BAD DEFAULT WOULD BE

 

*BLANKFEIN SAYS HE'S `NOT ANXIOUS' TO BE WITNESS TO DEFAULT

 

*BLANKFEIN SAYS ECONOMIC DAMAGE OF DEFAULT WOULD BE `SEVERE'

 

“There’s no debate on the seriousness of the U.S. not paying its debt,” Bank of America CEO Brian Moynihan tells reporters after he, other executives met with President Obama.

 

Default might affect small businesses, Treasuries

 

Debt ceiling fight in Aug. 2011 led “to a slowdown in the economy, and we’re facing that again”

 

Bankers are “in a position to really know early what the consequences are,” Goldman’s Lloyd Blankfein tells reporters

 

Says bankers “listened” in conversation with Obama, then told him “exactly how bad it would be”

 

Blankfein: “There’s precedent for a government shutdown; there’s no precedent for default”

 

“We’re the most important economy in the world, we’re the reserve currency in the world, payments have to go out to people”

 

“If money doesn’t flow in, then money doesn’t flow out, so we really haven’t seen this before and I’m not anxious to be part of the process to witness this”

 


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Wed, 10/02/2013 - 14:53 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Let me guess, "tanks in the streets"?

Roll the motherfucking guillotines to the fucking hamptons and let's end this shit, now.

Nothing changes otherwise.  (fuck you Hank TARP/TALF Paulson, karma is a bitch)

Wed, 10/02/2013 - 15:00 | Link to Comment nope-1004
nope-1004's picture

So, Blankfein is there to protect "small businesses"?

LMFAO!!!

 

LIE after LIE... he's there to protect himself, his income, bonus, etc...

Fucking thief.  Go to hell, Blankfein.

 

Wed, 10/02/2013 - 15:01 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Notice that the puppet mentions social security.  Social security has a revenue stream dipshit.  My employees and I pay that in every check, yet do not use it.  Again, the propaganda is unbelievable.  Fine, time to pay everyone in silver.

Wed, 10/02/2013 - 15:01 | Link to Comment radiotom
radiotom's picture

I hope they can't fix the debt ceiling issue. That way they'll be forced to balance the budget. "Defaulting" is just BS, they will still be collecting taxes which legally and constitutionally have to be used to fund the debt.

Wed, 10/02/2013 - 15:08 | Link to Comment Manthong
Manthong's picture

and the ATMs will shut down.. yada yada yada.. 

they rolled the Republicans with TARP..

maybe it's the Dem's turn now.

Wed, 10/02/2013 - 15:11 | Link to Comment nope-1004
nope-1004's picture

Banks are 100% dependent on the state.

Worse than a child, bum, homeless person, or inmate.

I say default... I'll take the risk of taking care of myself without those generous bankers.

 

 

 

Wed, 10/02/2013 - 15:11 | Link to Comment Keyser
Keyser's picture

I love it when the bankers get their panties in a twist. I'll huff and I'll puff and I'll blow your house down. Fuck 'em. 

 

Wed, 10/02/2013 - 15:33 | Link to Comment The Juggernaut
The Juggernaut's picture

Buying Treasuries cheap from the Fed Reserve (like a good agent will do) as a primer and lend out a bunch of other levered shit based on that bundle of treasuries... what a racket they're trying to protect.

Wed, 10/02/2013 - 16:31 | Link to Comment ndotken
ndotken's picture

Those 15 assholes all borrow from the Fed at 0% and loan it back to the Treasury (us) at 3-4%.  Even those morons can't fuck that up.  However, if the debt limit isn't raised, their entire fucking business model collapses.  THAT'S why they're in Washington ... to protect their gravy train.  FUCK YOU DIMON, BLANKFEIN, ETAL

Wed, 10/02/2013 - 17:26 | Link to Comment Scarlett
Scarlett's picture

 

 

 

"Give us our fucking money!"

"I'm trying, I'm trying, sorry!"

Wed, 10/02/2013 - 15:08 | Link to Comment max2205
max2205's picture

TSLA TANKING 7%...TIDE moving

Wed, 10/02/2013 - 15:09 | Link to Comment NoDebt
NoDebt's picture

On Yahoo Finance this story is titled "Bank CEOs Go To Bat For Main Street"

Funny, huh?

Fortunately it's Jeff Macke and he's plenty salty about calling it that.  I don't know if he reads ZH, but I think he still gets it.

http://finance.yahoo.com/blogs/breakout/big-bank-ceos-bat-main-street-17...

Wed, 10/02/2013 - 15:41 | Link to Comment gamera9
gamera9's picture

Josef Goebbels would be so proud of our media today

Wed, 10/02/2013 - 15:59 | Link to Comment NotApplicable
NotApplicable's picture

Unfortunately, he should know better than to say one thing in a headline, with the total opposite message in the story, as the number of headline readers outnumbers the number of article readers by a longshot.

So... intentional troll, or unintentional?

Wed, 10/02/2013 - 18:29 | Link to Comment cougar_w
cougar_w's picture

He doesn't write the title that is used on the site. An anonymous editor gets to do that.

Wed, 10/02/2013 - 16:20 | Link to Comment DaveyJones
DaveyJones's picture

Bank CEOs take a bat to Main St. 

Wed, 10/02/2013 - 15:17 | Link to Comment eclectic syncretist
eclectic syncretist's picture

Everyone knows that the US will never be able to fully pay off it's debts, yet these assclowns act as if it were a distinct possibility.  The only possibility left is to borrow more money (by raising the debt ceiling) in order to make the interest payments on the debt.  Everyone knows where this ends up.  The fact that the Fed will no longer tolerate more than 3% yield on the 10-year bond is a clear indication of how much closer we are to the end of the perception that the dollar has any sort of intrinsic value.

Wed, 10/02/2013 - 15:44 | Link to Comment kralizec
kralizec's picture

As long as there is revenue to pay interest and principle hitting maturity date the rest of the talk is all verbal masturbation!

Wed, 10/02/2013 - 15:50 | Link to Comment Blammo
Blammo's picture

"If money doesn’t flow in, then money doesn’t flow out"

Win!Win!

Wed, 10/02/2013 - 17:25 | Link to Comment ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

"legally"?  "constitutionally"?  

If you are going to introduce foreign ideas into the debate you best define your terms if you want to be taken seriously.

Wed, 10/02/2013 - 15:02 | Link to Comment CrazyCooter
CrazyCooter's picture

When I see this:

*BLANKFEIN: BANK CEOS EXPLAINED IN MTG HOW BAD DEFAULT WOULD BE

 *BLANKFEIN SAYS HE'S `NOT ANXIOUS' TO BE WITNESS TO DEFAULT

 *BLANKFEIN SAYS ECONOMIC DAMAGE OF DEFAULT WOULD BE `SEVERE'

I can't help but think they are betting on the opposite...

Regards,

Cooter

Wed, 10/02/2013 - 15:08 | Link to Comment Chupacabra-322
Chupacabra-322's picture

Wonder what they're going to threaten CONgress with now.

Banksters Threaten Martial Law in America

http://m.youtube.com/watch?v=0Xv5d2GOg4s

Wed, 10/02/2013 - 15:10 | Link to Comment max2205
max2205's picture

All show...boener would never default. Ever

He knows about the car crashes and hot tubs

What a joke

Wed, 10/02/2013 - 15:32 | Link to Comment JLee2027
JLee2027's picture

Eventually, there will be no choice but to default. Are we here now? Probably not, but you never know.

 

Wed, 10/02/2013 - 15:41 | Link to Comment thelibcentury
thelibcentury's picture

I don't get this meme of "there is no precedent for a default"

 

what in the heck was 1971 then??

Wed, 10/02/2013 - 17:15 | Link to Comment NidStyles
NidStyles's picture

1933.

Wed, 10/02/2013 - 15:22 | Link to Comment asteroids
asteroids's picture

Obozo was begging the bankers in the room NOT to tank the markets. LOL.

Wed, 10/02/2013 - 15:33 | Link to Comment ziggy59
ziggy59's picture

Wonder who will wake with horse head soon...

Wed, 10/02/2013 - 17:10 | Link to Comment AbbeBrel
AbbeBrel's picture

Wow when the Banksters show up - it means that even tugging with all their might on the strings hooked up to The Bernank might not pull this SuperKlunker around. Kinda suggests that their ability to Cow CONgress might have its limits. Not even a simple SheepleShearing will take care of this mess - if it will cost them some basis points in the long run!

Add little to little and you have a big pile
—Ovid

And it probably works with subtraction too !!

Wed, 10/02/2013 - 18:31 | Link to Comment cougar_w
cougar_w's picture

I thought exactly the same thing: Briar rabbit.

Blankfein is short and wants to punk the longs.

Wed, 10/02/2013 - 15:03 | Link to Comment nope-1004
nope-1004's picture

"I'm not anxious to see a default".

 

Really means "I'm not anxious to have my gov't assistance pulled".

Fucking teet sucker.  Can't even create a new job, let alone balance the book for his own.  100% suckface.  Worse than a leech.

 

Wed, 10/02/2013 - 15:06 | Link to Comment DJ Happy Ending
DJ Happy Ending's picture

"If money doesn’t flow in, then money doesn’t flow out"

Last time I checked, the money never flowed out, they are sitting on almost all of it.

Wed, 10/02/2013 - 15:48 | Link to Comment Smartie37
Smartie37's picture

Let's just clarify source of funds and use of funds----

"If money doesn't flow in [From the FED], then money doesn't flow out [To the PRIMARY DEALERS] !  

then NO BONUS for YOU !!!!

Lloyd you deceitful self-serving scumbag------nice try with the propaganda!

 

Wed, 10/02/2013 - 16:25 | Link to Comment DaveyJones
DaveyJones's picture

why is it that people who claim to do "God's work" are often working for the competition?

Wed, 10/02/2013 - 15:07 | Link to Comment Atlasshruggedme
Atlasshruggedme's picture

Have you asked your employees if they will work for silver? Not sure your legal stance regarding payroll taxes. But your trading a good for the service of your employees. 

 

Do whats right, save your employees and their families. Pay in Silver.

Wed, 10/02/2013 - 15:12 | Link to Comment LawsofPhysics
LawsofPhysics's picture

I have exchanged many things (including silver) for the fruit of another's labor.  I suspect this will become more common as the true counterparty risk in fiat is recognized and become apparent.

Wed, 10/02/2013 - 15:45 | Link to Comment Jethro
Jethro's picture

You are a good employer.

Wed, 10/02/2013 - 16:01 | Link to Comment LawsofPhysics
LawsofPhysics's picture

A dependable tribe is very important.

Wed, 10/02/2013 - 15:06 | Link to Comment Atlasshruggedme
Atlasshruggedme's picture

server error - double post. Sry. F- Benny

Wed, 10/02/2013 - 15:03 | Link to Comment SilverIsKing
SilverIsKing's picture

Did the bankers know early what the ramifications of CDO, CDS, etc etc were?

Wed, 10/02/2013 - 15:02 | Link to Comment viahj
viahj's picture

“We’re the most important economy in the world, we’re the reserve currency in the world, payments have to go out to people”

 

- Im sure that the "we" in this quote is not the "American public" and the use of "people" really means "us"

Wed, 10/02/2013 - 16:14 | Link to Comment Wahooo
Wahooo's picture

Yes, painful to whom? Why Wall Street of course. Loss of dollar will KILL these bastards. They don't control the Ruble, or the Yuan, or Commodities. I hope the debt ceiling is breached and these muthers get breached with it.

Wed, 10/02/2013 - 16:41 | Link to Comment Common_Cents22
Common_Cents22's picture

Well Lloyd can't say "its for the chiilllllllllrennnnn!!!"

Wed, 10/02/2013 - 17:38 | Link to Comment edwardo1
edwardo1's picture

Yes, about as credible as Walter White "doing it for his family".

Wed, 10/02/2013 - 15:00 | Link to Comment Grande Tetons
Grande Tetons's picture

IMO, Looks to be the same stage as 2008. This time instead of talking about banks/solvency they are talking about nation states/solvency. 

 

Either way, this fall should be a hoot. 

Wed, 10/02/2013 - 15:03 | Link to Comment fonzannoon
fonzannoon's picture

I sure hope not because I have been loading up, lol.

By the way, are these miners dead money or what? Holy crapola.

Wed, 10/02/2013 - 15:08 | Link to Comment Grande Tetons
Grande Tetons's picture

DUST in the wnd. Great call..BTW.  

 

Wed, 10/02/2013 - 15:11 | Link to Comment fonzannoon
fonzannoon's picture

Dust was all dimeshowman. He laid the path out. As I said, the most astute invstor I have ever come across, anywhere.

Wed, 10/02/2013 - 15:17 | Link to Comment Grande Tetons
Grande Tetons's picture

He is no slouch. Your posture is not so bad either.  

I stlll think they are going to tear this bitch down. Time will tell. 

Wed, 10/02/2013 - 15:32 | Link to Comment Dr. Engali
Dr. Engali's picture

CNBC says these comments were directed to congress. Who is telling da troof?

Wed, 10/02/2013 - 15:34 | Link to Comment Carpenter1
Carpenter1's picture

I get Sprott's newsletter. Few of his analysts saying the quality of deposits dropping off severely for miners. Sign they were cherry picking best grade gold years ago, nothing left but low grade, hard to mine gold.

Miners dirty little secret, coming out of the closet at the worst possible time. Don't they always?

I'm out of miners until the washout happens, this analysis is specifically for the big guys so don't think you're safe cause you own Goldcorp.

Wed, 10/02/2013 - 15:03 | Link to Comment 1100-TACTICAL-12
1100-TACTICAL-12's picture

I'm with you LofP crash this motherfucker & let's get it on... I aint gettin no younger.

Wed, 10/02/2013 - 15:05 | Link to Comment azzhatter
azzhatter's picture

Obama taking advice from criminals. Priceless

Wed, 10/02/2013 - 15:13 | Link to Comment Cosmicserpent
Cosmicserpent's picture

Priceless? Hardly.  The general, mouthbreathing, Miley twerking, bible banging, gun toting, save the children! public is about to find out the price of our criminal enterprise called "The US Republic".

Wed, 10/02/2013 - 15:16 | Link to Comment fooshorter
fooshorter's picture

+100 Well give them the real war on terror French Revolution Reign of Terror style ;)

Wed, 10/02/2013 - 16:22 | Link to Comment Wahooo
Wahooo's picture

"Tell the Wind and the Fire where to stop; not me!"

Wed, 10/02/2013 - 15:36 | Link to Comment TheGardener
TheGardener's picture

The licensed fools meet up with the chief jester to give instructions.

Wed, 10/02/2013 - 15:42 | Link to Comment fooshorter
fooshorter's picture

Vampire Squids in MY white house?! Its more likely than you think!

Wed, 10/02/2013 - 16:40 | Link to Comment Ruffcut
Ruffcut's picture

GS should be the symbol, CUNT

Wed, 10/02/2013 - 17:34 | Link to Comment Common_Cents22
Thu, 10/03/2013 - 00:58 | Link to Comment rotagen
rotagen's picture

Yeah .. what a disaster it would be to pretend our fucking fake debt ceiling from our fucking fake bankster derived money from or fucking fake jewish banksters was.....   fake.

Wed, 10/02/2013 - 14:54 | Link to Comment I am a Man I am...
I am a Man I am Forty's picture

Bankers want more money?!?!?!..............shocking

Wed, 10/02/2013 - 15:03 | Link to Comment waterwitch
waterwitch's picture

False flag coming in 3, 2, 1...

Wed, 10/02/2013 - 15:02 | Link to Comment rum_runner
rum_runner's picture

Doing God's work isn't cheap!  Which god though is open for debate.  Baal perhaps.

Wed, 10/02/2013 - 14:55 | Link to Comment QQQBall
QQQBall's picture

If we don't borrow moar, we will be in technical default.

 

 

Wed, 10/02/2013 - 14:55 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Yes, the cure to alcoholism is always another drink...

Wed, 10/02/2013 - 15:10 | Link to Comment Winston Churchill
Winston Churchill's picture

Tried that for years.Strangely enough it didn't work An allergy did though.

Spontaneouly breaking out in handcuffs when I drank did the trick.Maybe we could

try that on "our" leadership.

Maybe SA(Spendaholics Anon.) meeting could help. 5-30 pm sounds like a could  time for

this lot to get their white chip.

Wed, 10/02/2013 - 15:50 | Link to Comment DYS
DYS's picture

"spontaneously breaking out in handcuffs"  LOL

I always broke out in black eyes and lost jobs.

Wed, 10/02/2013 - 16:30 | Link to Comment DaveyJones
DaveyJones's picture

I enjoyed it too

(the phrase not the handcuffs)

Wed, 10/02/2013 - 15:18 | Link to Comment Cosmicserpent
Cosmicserpent's picture

If a hard case alcoholic goes cold turkey, they die. First, the sweats, DT's, extreme pain, and then death.

It is obvious that THIS is what the Tea Baggers are trying to do with the debt addiction.

Alas, in the end the Tea Baggers will be crushed by the Dr. Frankenstein Republican Party money that spawned them.

Wed, 10/02/2013 - 16:43 | Link to Comment Ruffcut
Ruffcut's picture

What sauce you on, so to avoid it.  Tea baggers? Leave my tea alone, you pervert.

Wed, 10/02/2013 - 16:54 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

The last time we had a Budget Shutdown, was in 1995/96, during the Clinton/Gingrich tussle.  That lasted ~ 3 weeks.

The economy did actually better after that.  So why is Bankfine involved now?  Must be REALLY scared.  Bonuses in jeopardy?  Or scared that the Debt Ceiling in 2 weeks will hit the fan, and then give Just Cause (Cover) to BRICs to dump Treasuries and the USD as the GRC.

Wed, 10/02/2013 - 14:54 | Link to Comment Theta_Burn
Theta_Burn's picture

Shows everyone just whos in charge

Well done America

Wed, 10/02/2013 - 14:55 | Link to Comment ziggy59
ziggy59's picture

Even rats panic on a sinking ship..

Wed, 10/02/2013 - 16:32 | Link to Comment DaveyJones
DaveyJones's picture

on this ship, we're all lab rats

and the dollar is our GMO 

Wed, 10/02/2013 - 16:46 | Link to Comment Ruffcut
Ruffcut's picture

Horseshit, rats will celebrate the of casualities for food will be plentiful.

Wed, 10/02/2013 - 14:56 | Link to Comment NoDebt
NoDebt's picture

Short version: The spice must flow.

Wed, 10/02/2013 - 14:57 | Link to Comment LawsofPhysics
LawsofPhysics's picture

What's that have to do with bankers? they produce nothing but paper promises, oh wait, someone in the office just shouted "petrodollar".  nevermind...

Wed, 10/02/2013 - 14:57 | Link to Comment TrumpXVI
TrumpXVI's picture

Yup.

The Federal government is shut down, but not that which really matters to TPTB; the Federal Reserve Bank and the investment banks on Wall Street.  They're all up and running and delivering the only orders that need to be delivered.

Wed, 10/02/2013 - 14:57 | Link to Comment Atomizer
Atomizer's picture

Dear Mr. Soros,

 

You should have died by way of natural causes. The public will learn in time how wonderful stem cell research has been for you, and how it will be exploited under the new mandatory healthcare programs.

Look in the mirror Mr. Soros. Tell me who & what you see in the mirror.  In the meantime, watch your own charade called life. BTW, congratulation’s on the new soul mate.  How does it feel to be married to a wife that would be younger than your own conceived daughter?  I’ll bet your experience of youthfulness is so potent.

 

Spiritual Fascism

 

Two fold meaning here, read between the tea leaves.

Wed, 10/02/2013 - 15:14 | Link to Comment MillionDollarBogus_
MillionDollarBogus_'s picture

You should have died by way of natural causes. Too wealthy to allow that to happen.

The public will learn in time how wonderful stem cell research has been for you, and how it will be exploited under the new mandatory healthcare programs.  If the public was as obscenely wealthy as me, they would do the same.

Look in the mirror Mr. Soros. Tell me who & what you see in the mirror.  A super rich old fart…

In the meantime, watch your own charade called life. BTW, congratulation’s on the new soul mate.  Thanks…

 How does it feel to be married to a wife that would be younger than your own conceived daughter?  If you have to ask, you wouldn’t understand my answer…

I’ll bet your experience of youthfulness is so potent.  Ask my wife…

Wed, 10/02/2013 - 15:23 | Link to Comment Atomizer
Atomizer's picture

I always enjoy the spurts of irrelevant content. Let me ask you, is your DNA as the same you were given at birth? Did you pay someone to alter DNA sequencing? This is the nature of my statement. Apparently, your knowledge of this technology has fallen into the abyss. It’s very black market by today’s standards.

 

:P

Wed, 10/02/2013 - 16:38 | Link to Comment MillionDollarBogus_
MillionDollarBogus_'s picture

I always enjoy the spurts of irrelevant content. Thanks…

 Let me ask you, is your DNA as the same you were given at birth?  Not since my stem cell treatments at the Swiss clinic…

Did you pay someone to alter DNA sequencing?  See previous answer…

This is the nature of my statement.  Right…

Apparently, your knowledge of this technology has fallen into the abyss.  If only you knew what I knew…

It’s very black market by today’s standards.  Black is beautiful..

Wed, 10/02/2013 - 15:00 | Link to Comment edwardo1
edwardo1's picture

I can see some very real benefits to a default, but none of them are anything but long term. The benefits to "more of the same" are precisely the converse of defaulting and that is why there will be no hard default in the here and now.. In the meantime the rest of the world is tapering regardless.

Wed, 10/02/2013 - 14:58 | Link to Comment lucyvp
lucyvp's picture

this is theater!

No new debt limit means the gvt cannot borrow more than it already has.  They have enough revenue from taxes to pay the interest, and they can sell more bonds to pay for the ones that are retiring.  There is no reason for a default unless they want one.

Wed, 10/02/2013 - 14:58 | Link to Comment fonzannoon
fonzannoon's picture

We can't let this happen!!!! Give the bankers money quick!!!!!!

Wed, 10/02/2013 - 15:05 | Link to Comment SilverIsKing
SilverIsKing's picture

I bet BO regrets not keeping all the doors and windows locked.

Wed, 10/02/2013 - 16:50 | Link to Comment Ruffcut
Ruffcut's picture

and I bet he wished he had morals and balls to go with his supersized unhappy meal.

Wed, 10/02/2013 - 14:59 | Link to Comment Everyman
Everyman's picture

Those fifteen individuals need to die!

Wed, 10/02/2013 - 15:03 | Link to Comment waterwitch
waterwitch's picture

Don't you mean 16?

Wed, 10/02/2013 - 15:57 | Link to Comment Everyman
Everyman's picture

NOPE!  Threatening the President is a major crime.  Especially with a Holder DOJ!  Besides, there is no honor in killing a puppet!

 

EDIT:  I am betting there is NOW a deal in the shutdown AND the Debt Ceiling debate.  The PTB decided they would have a talk, and told Prez, what will happen next. The same woudl happen with a Red State Prez.  Bankers are the evil.

Wed, 10/02/2013 - 15:00 | Link to Comment youngandhealthy
youngandhealthy's picture

The truth is that US is not the most important economy in the world (read e.g. Barclay report). Growth in Europe is more important than growth in US. Full stop.

Wed, 10/02/2013 - 15:10 | Link to Comment IndyPat
IndyPat's picture

Fucking funny dude

Wed, 10/02/2013 - 16:53 | Link to Comment Ruffcut
Ruffcut's picture

Yep, the greeks are partying in the streets. Oh wait, that is the weirdest partying with tear gas and such.

goody, goody, when does it come the US?

Wed, 10/02/2013 - 18:38 | Link to Comment cougar_w
cougar_w's picture

Forget about growth. That ship has sailed.

The US has enough debt to blow up the entire financial world, plus most of the manufacturing world, and probably even a respectable part of the actual real world.

Wed, 10/02/2013 - 15:02 | Link to Comment earnyermoney
earnyermoney's picture

The pending lawsuites will disappear

Wed, 10/02/2013 - 15:01 | Link to Comment drink or die
drink or die's picture

What will they make the new limit?  $20T? That seems like a nice round number.

Wed, 10/02/2013 - 15:06 | Link to Comment Bastiat
Bastiat's picture

$21.33 - that way it looks like they have specific plans.

Wed, 10/02/2013 - 15:03 | Link to Comment toadold
toadold's picture

Bankers tell Obama default would be disasterous for the US...Obama starts drooling at the thought. 

Wed, 10/02/2013 - 15:37 | Link to Comment geno-econ
geno-econ's picture

Bankers tell Obama default would be disastrous to their astronomical salaries subsidized by government and taxpayer bailouts. Instead Bankers held firm and did not offer any salary reductions to undo income disparity, or did they offer to pay higher taxes and reduce tax loopholes. Now that's Courage and the American Can Do Spirit in the face of adversity!

Wed, 10/02/2013 - 15:04 | Link to Comment buzzsaw99
buzzsaw99's picture

fucking parasites

Wed, 10/02/2013 - 15:06 | Link to Comment youngandhealthy
youngandhealthy's picture

BTW...it is 25 Tea-Party hecklers that are dragging a nation of 320 Million into the mud not the President. Good luck America

Wed, 10/02/2013 - 15:09 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Re: 25 Tea-Party hecklers

If ONLY the "Progressives" had helped what's-his-name drowned the beast in the bathtub a few years ago maybe the government wouldn't have had the money to create a PoliceState,  perpetually bomb brown people, or bail out the banks?

Wouldn't it be wonderful if the "Progressives" had the guts to suggest cuts to Big-Ag, Big-MIC, Big-Road, Big-Water, Big-Airport, Big-Energy, Big-Ed, Big-House, Big-Fin, Big-OldFart, Big-OldFartHealthcare, Big-AntiDrug, & Big-PoliceState?   

 

Wed, 10/02/2013 - 15:56 | Link to Comment Bay of Pigs
Bay of Pigs's picture

I asked that very question earlier. How the fuck does a few members of Congress with zero clout, shut the gov't down?

Answer: They don't. We truly live in a country of inbreds, pychos and retards when it comes to connecting the dots politically.

Wed, 10/02/2013 - 15:22 | Link to Comment SheepDog-One
SheepDog-One's picture

Ohhhhh if only there were no opposition to The One...then we'd all be feasting on pie in the sky ohhhh woe is me....

Wed, 10/02/2013 - 15:21 | Link to Comment orangegeek
orangegeek's picture

uh.....BTW.....go blog your political vomit on Huffington Post of Politico or one of those puke sites where you can rant and blame and spin.

 

In the meantime, why don't you go outside and play hide and go fuck yourself?

Wed, 10/02/2013 - 15:26 | Link to Comment Jethro
Jethro's picture

I didn't realize that the health exchanges already performed voluntary frontal lobotomies. Hoocoodanode?

Wed, 10/02/2013 - 15:34 | Link to Comment TheMeatTrapper
TheMeatTrapper's picture

BTW...it is 25 Tea-Party hecklers that are dragging a nation of 320 Million into the mud not the President. Good luck America

Oh for God's sake. Grow up you little ass wipe. This nation has been in the mud for a long damn time - largely because it's populated by dumbshits who abhor personal responsibility and fiscal sanity. 

If you want somebody to blame - find a fucking mirror.

Wed, 10/02/2013 - 15:06 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Well,  as always:   Think of the [children | trrrrss].  

Wed, 10/02/2013 - 15:06 | Link to Comment hyperfocus
hyperfocus's picture

Look Mr Obama, if you can't borrow more money from us you are screwed. If you do borrow more money from us you are screwed even more, but later not now.

Wed, 10/02/2013 - 15:28 | Link to Comment ChanceIs
ChanceIs's picture

Silly, silly ba$^ards.

Default only happens if you don't pay the debt service.  Were tax collections stopped when the federal government shut down!?!?!  I don't think so.  We are pushing the boundary when total tax receipts won't service the debt, but we aren't there yet.

OBTW.  The SCOTUS declared some time ago that Social Security was a tax - not an obligation on the government.  Who will get paid first, Treasury holders or retirees?  No question in my mind.  (I hope that the irony is not lost on anyone that long ago the Supremes declared SS a tax.)

OBTW.  Just why in haedes did we make FNE/FRE paper holders "whole" when they crashed?  It says right on the front that the agencies, and not the federal government insure them.  You see....we had an "implicit guarantee."  The government had no obligation there.  Just willy-nilly decided to pay out trillions to fools who bought FNE/FRE paper in '05.  Oh.  Given that, I hope that there is no doubt in your minds whether bond holders or retirees will get paid first.

OBTW.  In lots of cases, derivatives were sent from the investment side of the TBTF house to the normal banking side.  (So much for Glass-Steagal.)  Where did they go in the regular bank's capital structure?  That's right - in front of mom and pop's regular savings deposits.

OBTW.  Why is not the Fed causing inflation (deliberately debasing the currency) not a default on the US debt.  Give Obama $1K today and he will pay you back in say...10 years... with one half the purchasing power.

Wed, 10/02/2013 - 15:34 | Link to Comment ChanceIs
ChanceIs's picture

OBTW again.

I am really rather sure that the federal government reserves the right to roll over its Treasuries at will - except for bills of less than one year duration.  The implication is that for a maturing instrument, the government can decline to give you the principle - just extend the maturity date for however f*&cking long it feels like doing.

Hey!!!  My name is Barrack Obama.  I am the Chosen One.  Don't you trust me?  You will get paid - in a year or so.

In the current circumstances the notion of default is laughable.  Maybe if the government were shut for several years then true default might be discussed by reasonably informed citizens.  Right now it is just Dimon, Blankfein, Lew, Nancy, Harry and Barry blowing smoke up our rectums.

Wed, 10/02/2013 - 20:01 | Link to Comment DosZap
DosZap's picture

Who will get paid first, Treasury holders or retirees? No question in my mind. (I hope that the irony is not lost on anyone that long ago the Supremes declared SS a tax.)

 

I know one thing, IF it's not the latter,better lock n load.

The SWHTF.

Wed, 10/02/2013 - 15:08 | Link to Comment razorthin
razorthin's picture

God's work, Blankcheck and Dimonheist.

Wed, 10/02/2013 - 15:07 | Link to Comment The Proletariat
The Proletariat's picture

Mr President, we really really really really need a war this time.  Stop fucking it up!  It was supposed to happen already to distract the public from the looting.  Signed, bankers and economists.

Wed, 10/02/2013 - 15:09 | Link to Comment buzzsaw99
buzzsaw99's picture

leechfuck bankers

Wed, 10/02/2013 - 15:09 | Link to Comment Black Forest
Black Forest's picture

"If money doesn’t flow in, then money doesn’t flow out, ..."

If fiat velocity tends to zero, its monetary base must be exponentially increased in order to meet a nominal inflation target. Or did I miss something?

Wed, 10/02/2013 - 15:09 | Link to Comment involuntarilybirthed
involuntarilybirthed's picture

All theater, all scripted.  For whom I do not know? 

Wed, 10/02/2013 - 15:13 | Link to Comment Yen Cross
Yen Cross's picture

  Need MOAR cowbell!

Wed, 10/02/2013 - 15:13 | Link to Comment BullyBearish
BullyBearish's picture

Yes, when things get HOT they always trot out the twins: FEAD and GREED

Wed, 10/02/2013 - 15:25 | Link to Comment Tenshin Headache
Tenshin Headache's picture

IGNORANCE being always in play ...

Wed, 10/02/2013 - 17:05 | Link to Comment HardlyZero
HardlyZero's picture

Fear...and Heart of Darkness (a.k.a Apocalypse Now).....or was that Buckaroo Banzai.

Wed, 10/02/2013 - 15:16 | Link to Comment kevinearick
kevinearick's picture

Borg Propaganda Assimilation

“…just as there was a glimmer of economic recovery, war exploded…They married in record numbers and gave birth to another distinctive generation, the Baby Boomers…They became part of the greatest investment in higher education any society ever made…” The war babies bring you war as an economy, observers prism, what a surprise. Government putting a gun to its own head as a prelude to war is no crisis for labor.

So, government’s argument is that it knows things you do not because it is printing money to pay everyone to spy on each other, so you should do whatever it says, or it will bankrupt you with laws, and should that fail, it will send you to prison, on the basis of majority peer pressure, to confer the necessary powers and a trial of government fact, and if that should fail, it will simply declare war with no due process. How f-ing stupid is that?

And riddle me this Batman: if smoking tobacco is so bad for your health, why is government dependent upon it for tax revenue, why does it ensure that corporate cigs are embedded with bullsh- chemicals, and why is it legalizing similar low-quality pot with bullsh- chemicals embedded in it? You have the Internet. Why can’t you get a $500 rolling machine and order tobacco straight from the farmer for $500/yr?

On the basis of what market theory does a pack of smokes cost $10, an hour’s work for many, given the tobacco market price, which is subsidized? Blaming everything on the bankers, or the top 1%, is just damn ignorant, and who’s fault is that?

Capital peddles ignorance as the solution to ignorance. Bliss for everyone. Of course the Fed is going to print just as fast as the ignorant mass will demand stupid. The Internet is widely distributed. What is everyone’s excuse for participating now?

Money is a capital perpetuation system. That’s it. The amount of gravity you want depends upon the timing requirements of your development. Capital breeds the middle class to assume that money has value in and of itself, that it is the good to be chased with services rendered, exactly backwards (shift half cycle back, recursively). In the first round, capital ‘pays’ the middle class a good return, high wage and low rent. In each subsequent round, rent is increased relative to wage, with the result measured as GDP growth for positive feedback.

Over generations, the assumption and proliferating associated assumptions are embedded in middle class DNA, event horizon to event horizon, in a ponzi of promises capital never intends to pay with anything other than more complex notes, to defer the perception of reckoning until the last moment.

The empire may only be a ponzi because capital cannot adapt itself and middle class wouldn’t render the war service if it expected to be responsible for the outcome. Current generations win and future generations lose, until they don’t, when a generation of kids says FU, we’ll just short the nothing for nothing empire.

Money ensures a relatively quick return to the churn pool for middle class DNA, and some, relatively inconsequential, delay for most of capital. War is about growing, killing and rebooting the middle class ponzi, as is all tools employed by the bank – artificial interest rates, corporate business cycles, market rotation, the lot, hence Pearl Harbor and all the other irrational WWII social engineering, which simply extended the day of reckoning for a few capitalists by killing off part of the global middle class, temporarily reducing rent, and centering economic activity on promises of future pensions.

Money does not begin to convey the information necessary to transact profitable business. It produces artificial scarcity to ensure capital control over growing populations of robots, impulse reactors with ever shrinking event horizons and the patience of knats. It tells you that nature is the enemy, to hide in buildings, lay pavement, put on an inch of make-up, buy a Porsche, and then bases rents on the resulting artificial scarcity of nature. The critters want to live by the beach, but are afraid of water, buy bottled water, divert water to Las Vegas, and buy fruit from South America. Brilliant.

Bob’s dollar bill is not worth as much as Fred’s dollar bill, due to the difference between accounting and real community multiplier effects, but go chase Bob for less value at greater cost because your ‘inner voice’ tells you that you want to be like Bob and drive a Porsche. Money buys power and influence, from people granting money to themselves, which will not exist if you do not sell off your privacy because a ponzi cannot withstand leakage.

You must accept the programming or the TBTF-WMD collapses, and then what happens, the Dark Ages, simpletons seeking ignorance as bliss and surprised when it blows up? Everyone did not commit suicide or stand in a soup line during the Great Depression.

The middle class cannot adapt in real time so it must herd up and employ peer pressure to steal your product. Legacy capital is only too happy to accept the blame, monetizing the tax base to provide increasing misdirection in consideration of its own existence, in a positive feedback loop of loops.

The hoard competes to weaken marriage and you cooperate to strengthen it. That’s the battery. The middle class and capital are collapsing, and current is flowing back to labor. Rent is falling in a sporadic trickle now, through rapidly growing cracks in the RE peer pressure dam. Yes, membranes exist for a reason.

Contrary to popular assumption, humanity sub-automation is not the beginning, middle and end. It’s not the price at the pump you care about; it’s the embedded price of oil multiplied across all your inputs. And it’s not really the multiplier effect of oil you care about. You care about fertile soil, good seed and water, an embedded false assumption. Your body generates electricity, with zero requirement for Exxon, GE, or Silicon Valley.

Space is the problem and the solution. If you want to go from A to B, eliminate space, through C. Sooner or later, most accept assimilation, when individual logic is overwhelmed by mass hysteria. You have the universe; employ it.

Family is private, small business is private and public, and corporate is public whether it is legally defined as public, private or non-profit. An empire may only resort to peer pressure to establish habit, law to confirm the habit, and war to protect the habit. Law follows behavior, not the other way around, and war quickly follows, along the false assumptions embedded in popular History.

You cannot choose your children and you cannot stop them from accepting assimilation at the least empire cost. You can provide them with skills in an environment built for the purpose, by showing them love as exploration, rather than control. You are not going to learn anything from books or speeches, from critters with no clue, and no one with a clue is going to sell private production short for public consumption.

If you didn’t learn anything from an admiral, you didn’t earn the required confidence. Admirals are fashioned in war, not in Virginia, and not in games of shock and awe for public consumption under a false flag, where “personal responsibility, duty, honor and faith” are nowhere to be found.

Depressions are about replacing the root kernel. The names change simply to put new dresses on the revolving eunuchs. There is nothing wrong with playing dolls as a child, but it is not life. Current depends upon the path from second to first derivative, on to the integral. Always be two bridges ahead because the empire hoard collapses every bridge it occupies, owning the past on the way back to the churn pool.

OK, so, you have a circle, separating inferential and differential torque…set your distance to perception. If the robots are rerouting water to their own end of real estate and public work bubbles, what do you suppose is going on inside and beyond the planet?

The empire has no vision unless you give it one. Let the middle class chase its own tail, until you don’t. If you have capital, it’s pretty damn easy; set labor to rent at 4.0 to find the labor that can profitably rework your capital, and hold the line. The only real union is marriage resulting in labor. Your job is to propagate, intelligently.

DuPont was not mad at FDR; he laughed all the way back to the bank every time, ‘profiting’ from both sides of the war. The Democrats brought you ‘free trade’ as a solution to ‘international tensions’ created by Republicans. Prohibition does no work, but it creates lots of money with nowhere to go.

Shocking; ‘round up the usual suspects and take them over the hill, pump and dump.

 

Wed, 10/02/2013 - 15:20 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Nice rant.   Of course, it has always been so.

Wed, 10/02/2013 - 15:51 | Link to Comment ChanceIs
ChanceIs's picture

So....ummmm....like...'resistence is futile,' or....ummmm like...V/I?  What if it is complex???  Then we get that j omega squared stuff.  My head hurts.

I am to understand after all this time that duPont was making Zyklon B?  Chit?  I can't handle the truth.

Wed, 10/02/2013 - 15:15 | Link to Comment MrButtoMcFarty
MrButtoMcFarty's picture

ONION??

YAHOO??

 

Big Bank CEOs Go to Bat for Main Street

Breakout With the U.S. government shut down for the second straight day President Obama met with JP Morgan CEO Jamie Dimon, Goldman Sachs CEO Lloyd Blankfein, and other top financial industry leaders today to discuss the shutdown as well efforts to raise the federal debt ceiling.

Wed, 10/02/2013 - 15:16 | Link to Comment Jethro
Jethro's picture

Obama gives a speech in
3
2
1
.....

Wed, 10/02/2013 - 15:19 | Link to Comment NuYawkFrankie
NuYawkFrankie's picture

Lloyd & Jamie Go To Washington:

"We're The Kosha Nostra - and We're Here to Help"

Wed, 10/02/2013 - 15:19 | Link to Comment Tinky
Tinky's picture

Frankly, any post in which the word "cudgel" is used is OK in my book.

Wed, 10/02/2013 - 15:19 | Link to Comment SheepDog-One
SheepDog-One's picture

Now we see who actually runs the whole show and calls all the shots.

Wed, 10/02/2013 - 15:44 | Link to Comment WTFx10
WTFx10's picture

It took you this long to realize who runs the show?

WTF haven't been paying attention much.

 "Banking was conceived in iniquity and was born in sin.
    The Bankers own the earth. Take it away from them,
    but leave them the power to create deposits,
    and with the flick of the pen they will
    create enough deposits to buy it back again.
    However, take it away from them, and
    all the great fortunes like mine
    will disappear and they ought to disappear, for
    this would be a happier and better world to live in.
    But, if you wish to remain the slaves of Bankers
    and pay the cost of your own slavery,
    let them continue to create deposits."

    --- Sir Josiah Stamp (1880-1941)

    President of the Bank of England & 2nd richest man in Britain

    Source: Speaking at the Commencement Address of the University of Texas in 1927

"The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks."
John Dalberg Lord Acton

 

 

Wed, 10/02/2013 - 15:48 | Link to Comment Dr. Engali
Dr. Engali's picture

Rest assured, sheepdog knows who runs the show.

Wed, 10/02/2013 - 17:37 | Link to Comment WTFx10
WTFx10's picture

Then he shouldn't be making obvious comments. Doctor

Wed, 10/02/2013 - 16:12 | Link to Comment SheepDog-One
SheepDog-One's picture

WTF fuck off X20!

Wed, 10/02/2013 - 16:36 | Link to Comment 29.5 hours
29.5 hours's picture

 

@ WTFx10

Getting tired of that fake quote from Josiah Stamp. You know the quote is fake, why do you repeat it? You can put your own name next to it, if you want. It may sound less fake then.

 

Wed, 10/02/2013 - 17:43 | Link to Comment WTFx10
WTFx10's picture

1 week and 4 fucking days on ZH. How tired can you be?

"(I’m) doing God’s work." – Goldman Sachs CEO, Lloyd Blankfein

First of all the Federal Reserve is an INDEPENTDANT Agency and that means basically that there is NO other agency of government which can OVERRULE actions that we take.
Alan Greenspan Federal Reserve Chairman

Better?


Wed, 10/02/2013 - 15:23 | Link to Comment Dr. Engali
Dr. Engali's picture

The old "there will be tanks in the streets" routine. They haven't used that in a while.

Wed, 10/02/2013 - 15:23 | Link to Comment stant
stant's picture

the population should declare martial law on dc and the banksters

Wed, 10/02/2013 - 15:22 | Link to Comment Duc888
Duc888's picture

Is the relationship clear now?  Banks write the loans and make the money off of the interest.  Banks buy the polititians.  Not that it will ever happen but if USA ever paid off it's debt, the banks would make no money off the vig.

Wed, 10/02/2013 - 16:36 | Link to Comment Caggge
Caggge's picture

Do banks even loan money anymore? I thought they just got it from the Fed for free and manipulated the markets with it for their gain.

Wed, 10/02/2013 - 15:25 | Link to Comment jmcadg
jmcadg's picture

BrianMoynihanBlowsLloydBlankfein.com

Registered - tick

Cunts

Wed, 10/02/2013 - 15:25 | Link to Comment orangegeek
orangegeek's picture

" ...Bankers are “in a position to really know early what the consequences are,” Goldman’s Lloyd Blankfein tells reporters ..."

 

LMFAO!!!!! Just like in 2006 and in 2008, right? 

 

What an asshole you are Blankenfuck!!!!

Wed, 10/02/2013 - 15:24 | Link to Comment SheepDog-One
SheepDog-One's picture

Do you see this bit of market red, Mr. ObaMao? DO YOU SEE?? All you have is pointing to markets....wanna see them REAL RED one of these mornings? Like -10%? DO YOU???

Wed, 10/02/2013 - 17:08 | Link to Comment HardlyZero
HardlyZero's picture

If Hank Paulson was at this meeting...probably not yet....maybe Hank will be at next week's crisis quorum.

Then get worried.

Wed, 10/02/2013 - 15:26 | Link to Comment jmcadg
jmcadg's picture

Blankfein admitted being part of the problem right there. Arrest that traitor and burn him on the stake.

Wed, 10/02/2013 - 15:25 | Link to Comment TrustbutVerify
TrustbutVerify's picture

How high would Obama and his cronies allow the overall debt as percentage of GDP to go?  Are the American people ready for the real cutbacks that would feel bad but slowly put the country country back on the track to fiscal responsibility?  Real cutbacks that would have to be adhered to for decades. 

Society's increasing heroin-like dependence would have to be reversed.  People would have to start thinking for themselves.  It would be the modern American culture of dependence turned upside down.  

Wed, 10/02/2013 - 15:31 | Link to Comment Spastica Rex
Spastica Rex's picture

Are the American people ready for the real cutbacks that would feel bad but slowly put the country country back on the track to fiscal responsibility?

Uhmm... no?

Wed, 10/02/2013 - 15:30 | Link to Comment Diogenes
Diogenes's picture

"15 Bankers just paid a visit to the White House, listened to President Obama, and explained what a total disaster it would be if the US debt-ceiling is breached and Treasuries technically default. While the politicians exclaimed how bad a government shutdown would be, the banks have turned the panic dial to 11"

What the hell is this supposed to mean, "breached". Do they mean if they raise  the limit they are screwed? Or if they don't raise the limit they are screwed?

Both are true, I need to know what the benksters' next scam is so I can bet accordingly.

Wed, 10/02/2013 - 15:29 | Link to Comment samsara
samsara's picture

Or paraphrasing

"You can fuck with your "Subjects"  about not paying them all you want,  But Don'T FUCK with not paying your creditors " (ie the owners of Us,   Rockefeller, Rothchilds, et al).

I probably got that all wrong but that's how it feels.

 

 

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