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Shut Down, Debt Ceiling Round Up: All The Latest News And Developments

Tyler Durden's picture




 

Feel like you have missed any of today's (non) developments in the week-long government shutdown debacle, or the countdown to the debt ceiling X-Date, which now is 10 days away (or 222 hours as dramatically inclined CNN helpfully points out), then this summary is for you. From Bloomberg:

  • President Obama calls on House Speaker John Boehner to vote today on "clean" CR to prove he doesn’t have votes to pass it, calls on Congress to raise debt limit next week
  • Obama backs Senate plan for 1-yr debt limit hike
  • White House National Economic Council Director Gene Sperling says a 2-3 week debt-limit extension is feasible, that Obama wants to set precedent of never negotiating when nation’s "full faith and credit" is on line
  • Treasury Sec. Lew says U.S. will lose its ability to borrow on Oct. 17th if Congress doesn’t act to raise debt limit
  • Lew set to testify before Senate Finance Cmte hearing on Oct. 10
  • Rep. Hoyer says as many as 160 Republicans in House think shutdown is irrational
  • Spokesman for Senate Majority Leader Harry Reid says Boehner has a "credibility problem"
  • Boehner’s spokesman says govt shutdown is because "Democrats refuse to negotiate"
  • Sen. Schumer says he thinks Boehner will break with the Tea Party on the debt ceiling
  • House deal to avoid default may come as late as Oct. 21, Bloomberg Industries says
  • Reid says Boehner has votes to open govt
  • ABC News/Washington Post poll finds Republicans are losing ground in "shutdown blame game"

So now you know.

 

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Mon, 10/07/2013 - 18:09 | 4032058 Renewable Life
Renewable Life's picture

Here's a headline no ones reporting:

Polling indicates GOP party over if they bend over more time and let Obama claim victory for the American people!

So those POS spineless 160 so called republicans better get those worthless pollsters and congressional interns answering phones in their districts, because they vote for this shit again and they can hand in their worthless GOP badge at the border of their state!! That fucking party is over!

Mon, 10/07/2013 - 18:32 | 4032164 Bay of Pigs
Bay of Pigs's picture

The GOP died decades ago, well before the Nixon Administration.

Mon, 10/07/2013 - 18:46 | 4032219 NOTaREALmerican
NOTaREALmerican's picture

Re:  The GOP died decades ago, well before the Nixon Administration.

Not sure about its death, or the exact date, but I do remember when I thought of it as being a somewhat Libertarian party, instead of just the Big-Gov fascist party.

Maybe it was just an age thing and in really the GOP was alwasy just fascistx and the Dem just socialists.

Would be fun having a viable Libertarian party to vote for tho.

Mon, 10/07/2013 - 18:52 | 4032253 The Alarmist
The Alarmist's picture

GOP? I think it died somewhere around the time GHWB said he would "Stay the course," which was before other memorable epitaphs like "Read my Lips" and "Thousand Points of Light."  

"Stay the course" my ass!

Mon, 10/07/2013 - 19:40 | 4032416 Manthong
Manthong's picture

"The GOP died decades ago, well before the Nixon Administration"

..about the same time JFK's Democrat Party morphed into LBJ's Great's Society Carnie barking poverty pimps. 

Mon, 10/07/2013 - 20:32 | 4032572 DosZap
DosZap's picture

..about the same time JFK's Democrat Party morphed into LBJ's Great's Society Carnie barking poverty pimps.

And DESTROYED by and large the Black American family basis.Also, was THE major factor for the creation of the WELFARE state.

Mon, 10/07/2013 - 20:42 | 4032597 Manthong
Manthong's picture

true dat..

and keep in mind that is when they stuck the last nails in the coffin of real money and shifted financialization into high gear.

silver certificates and coinage 1965 (curiously immediately post JFK).. 1968 gold reserve requirement changes.. 1971 Nixon gold redemption repudiation.

Clintons CFMA in 2000 shifted financialization into hyper-drive.

Mon, 10/07/2013 - 22:30 | 4032846 Bay of Pigs
Bay of Pigs's picture

Thank you for the history lesson. The Dems and GOP have been fucking things up for a very long time (decades, like I said above).

Mon, 10/07/2013 - 18:59 | 4032282 Bay of Pigs
Bay of Pigs's picture

The last real fiscal conservatives were back in the 1940's and 50's (like Howard Buffet). Obviously, most here weren't even born so they really have no idea when the GOP sold out on trying to hold the line on gov't spending. My guess it was during the Vietnam War just before Nixon took over from "Guns N Butter" LBJ. And after Nixon cut the link of the USD from gold in 1971, it was all over.

Todays GOP is a shell of its former self. If people can't see that by now, well...

Mon, 10/07/2013 - 18:54 | 4032261 TrustWho
TrustWho's picture

...last republican administration was Herbert Hoover!!!!!!

Mon, 10/07/2013 - 21:41 | 4032746 bigkahuna
bigkahuna's picture

I can see that. What about Ike?

Tue, 10/08/2013 - 21:12 | 4036530 TrustWho
TrustWho's picture

FDR was the final knife thrust into the federalist system and concentrated power in DC. Even Reagan did not reduce DC's power.

Sat, 10/12/2013 - 06:37 | 4047368 bigkahuna
bigkahuna's picture

Yeah, after 4 terms FDR pretty much transformed the federal government from a caretaker to a controller. Just like any controller, all they want is more control. The banking cartel oligarchy had already got the unFederal Reserve in 1913. Woodrow and Franklin handed the oligarchy everything they needed.

I read about the Sec Treas (Andrew Mellon) under Cooldidge and part of the Hoover admin - followed by Ogden Mills (author of "The 17 Million" - where Mills lays out the tenents of what some today call conservatism). Mills's definition and use of the term "Liberal" is actually the true meaning of the word Liberal, before the banking cartel oligarchy, through the liars in the MSM told the statists that they are liberals. For some reason 99.9 percent of people call the statists liberals today - this is an insult to everyones' intelligence. 

It appears that they were swept away (Mellon, Mills, Hoover) during the depression because the majority of the people blamed them for the depression and the tyrant FDR came to power by promising free shit. I do not want to speak too harshly of the FDR voters, because they may have been literally hungry - but 4 terms? No way. Could lucifer have been more cunning, I doubt it. In his third term reelection, we were not in any war yet, FDR was promising to keep us out of the war even. In fact, it appears that FDR rigged the 1940 Dem primary:

---

http://en.wikipedia.org/wiki/Franklin_D._Roosevelt

Election of 1940

Main article: United States presidential election, 1940

The two-term tradition had been an unwritten rule (until the 22nd Amendment after Roosevelt's presidency) since George Washington declined to run for a third term in 1796, and both Ulysses S. Grant and Theodore Roosevelt were attacked for trying to obtain a third non-consecutive term. FDR systematically undercut prominent Democrats who were angling for the nomination, including Vice President John Nance Garner[166] and two cabinet members, Secretary of State Cordell Hull and James Farley, Roosevelt's campaign manager in 1932 and 1936, the Postmaster General and the Democratic Party chairman. Roosevelt moved the convention to Chicago where he had strong support from the city machine (which controlled the auditorium sound system). At the convention the opposition was poorly organized, but Farley had packed the galleries. Roosevelt sent a message saying that he would not run unless he was drafted, and that the delegates were free to vote for anyone. The delegates were stunned; then the loudspeaker screamed "We want Roosevelt... The world wants Roosevelt!" The delegates went wild and he was nominated by 946 to 147 on the first ballot. The tactic employed by Roosevelt was not entirely successful, as his goal had been to be drafted by acclamation.[167] The new vice-presidential nominee was Henry A. Wallace, a liberal intellectual who was Secretary of Agriculture.[168]

In his campaign against Republican Wendell Willkie, Roosevelt stressed both his proven leadership experience and his intention to do everything possible to keep the United States out of war. In one of his speeches he declared to potential recruits that "you boys are not going to be sent into any foreign war."[169] He won the 1940 election with 55% of the popular vote and 38 of the 48 states.[170] A shift to the left within the Administration was shown by the naming of Henry A. Wallace as Vice President in place of the conservative Texan John Nance Garner, who had become a bitter enemy of Roosevelt after 1937.

---

Now we have the undisputed champion of the free shit armada in power and we are so far past broke as a country that we will never balance the books. Unfortunately, human behavior has played out in favor of a complete consolidation of power under an oligarchy which has over time completely pre-empted the Republic of the United States of America. All that remains between the oligarchy and a complete takeover - an out in the open style takeover - are the Second Amendment, and a small cadre of Citizens who are aware.

Mon, 10/07/2013 - 18:34 | 4032178 Cosmicserpent
Cosmicserpent's picture

The party was over once O'Bush appointed Timmee and Larry Summers. He's been peeling off moderate Republicans ever since. Now he's going to peel everybody who can breath through their nose and count to 12.  Embrace the one party system Comrades!

Mon, 10/07/2013 - 18:06 | 4032059 SilverRhino
SilverRhino's picture

Obama, the mussel cocked goat fucker is just spreading his love all around.

Mon, 10/07/2013 - 18:07 | 4032061 7thCardinal
7thCardinal's picture

then, after all is set and done, the stock market plunge will start

Mon, 10/07/2013 - 18:41 | 4032195 gatorengineer
gatorengineer's picture

forgot the Sarc.... Once this is done, and they announce Yellen, its to the moon.... It will be Weimer hyperbolic style.... 

Tue, 10/08/2013 - 04:27 | 4033188 Sudden Debt
Sudden Debt's picture

beginning with gold and silver because America will once again be able to print MOAR MONEY!!!

Mon, 10/07/2013 - 18:08 | 4032064 NoWayJose
NoWayJose's picture

These headlines point blame at Boehner and the House Republicans. The Republicans must stick to a single message and avoid giving out these other soundbites and headlines.

Mon, 10/07/2013 - 18:08 | 4032067 Spastica Rex
Spastica Rex's picture

It's fake. It's a show.

Mon, 10/07/2013 - 18:33 | 4032125 Ghordius
Ghordius's picture

I tend to agree. but it's a damn stupid show, imho. at least from a foreign perspective

the FT is rabid, and points to the Tea Party, where most commentaries tend to see their seats as super-safe, and of course a product of generations of gerrymandering, particularly in the South

all in all, I can't believe this is not going to cause further costs, losses and lost productivity even in the case this goes not further than Oct 16th

the whole strikes me as a lose-lose scenario

Mon, 10/07/2013 - 18:35 | 4032172 Spastica Rex
Spastica Rex's picture

I wish it was easier for Americans to consider other perspectives. We're not very good at, or generally even inclined to attempt it.

Mon, 10/07/2013 - 18:42 | 4032187 Ghordius
Ghordius's picture

to be fair we euros spent dozens of centuries thinking of being the center of the world. there is still an island in Greece where the spot is marked with an "X"

of course mainland Greeks scoffed at the thought and pointed out that Delphi is the right spot

Mon, 10/07/2013 - 18:54 | 4032264 The Alarmist
The Alarmist's picture

Delphi was a nice little implementation of Pascal.  The island isn't worth much.

Mon, 10/07/2013 - 18:59 | 4032281 The Alarmist
The Alarmist's picture

No offence, but the American MSM is poisoning the world-wide well by incessantly harping on a failure to raise the debt ceiling as being a default.  Without the house organs like Bloomberg cranking out this crap, hitting the debt limit would go down like the downgrade, but instead the whole nervous world, sitting on a pile of US Treasuries, is now convinced that they are going to be holding worthless paper.

 

What Lew, the WH, the Senate, and the US MSM are doing is nothing less than financial terrorism.  It used to be they would accuse the GOP of wanting to starve grandma and the kids, but now that they have desensitised the us electorate to that tired old dirge, they now have to take the fight to the rest of the world.

Financial Terrorism.

Mon, 10/07/2013 - 21:55 | 4032769 bigkahuna
bigkahuna's picture

Yeah, the collectivist theme seems to be what is accepted and desired by the entire world - and the MSM everywhere cannot stop promoting it. 

What I cannot understand is why anyone in any country would want to collectivize their resources under a bunch of scoundrel politicians.

If people want to do this, well what Samuel Adams once said to our people in the United States applies to them:

"If ye love wealth better than liberty, the tranquility of servitude better than the animating contest of freedom, go home from us in peace. We ask not your counsels or your arms. Crouch down and lick the hands which feed you. May your chains set lightly upon you, and may posterity forget that you were our countrymen."

Mon, 10/07/2013 - 18:35 | 4032176 Ghordius
Ghordius's picture

the strangest comment (in the FT) was another generational-conflict one: that those congresspersons belong to the cohort that got prizes for partecipating instead of "winner takes all", and that this tends to make them oblivious to consequences. don't know enough about that, but I seriously don't see that much generational conflict here in europe - and a lot of projection from the US

Mon, 10/07/2013 - 18:26 | 4032128 Cosmicserpent
Cosmicserpent's picture

Hmmm. Maybe they shouldn't have picked this fight at this time? Fucking idiots.  Obama is b'rer rabbit and Boner is b'rer dumbfuck.

Mon, 10/07/2013 - 18:09 | 4032068 piceridu
piceridu's picture

If someone owes you 17 dollars, you're in control. If someone owes you 17 trillion...you own them.

Mon, 10/07/2013 - 18:14 | 4032077 mademesmile
mademesmile's picture

Nope. If someone owes you $17 and can't pay, they have a problem. If someone owes you $17 Trillion and can't pay, YOU have a problem.

Mon, 10/07/2013 - 18:16 | 4032087 walküre
walküre's picture

Wrong. If you owe someone several trillion, you're in charge and they have a problem. America's lenders and creditors have a huge problem.

Mon, 10/07/2013 - 18:20 | 4032102 Al Huxley
Al Huxley's picture

Not really - China paid around 1.244 Trillion for America's manufacturing and industrial base.  The 1.244 trillion's sunk cost, but they've already got what they wanted.  Now they're just trying to minimize the loss as they unload as much as they can.  But it's not like they actually really NEED the momey - like somehow THEY'LL default if they can't collect on their treasury portfolio.

Mon, 10/07/2013 - 18:27 | 4032139 walküre
walküre's picture

China bought the manufacturing and the other side of the deal was that America would finance the consumers to buy the Chinese made stuff. Without the consumers of Chinese made goods, the Chinese economy will not thrive. When their number one client and consumer is broke and talks about default, going BK and not shopping like they used to then the number one foreign creditor will pay attention. Essentially that is what China is doing with their comments lately. They know the US paper is trash but it's still the best trash out there and it's got good backing. They will take more trash if they can. Are they really dumping out of fear or are they dumping because they need to raise capital themselves?

Mon, 10/07/2013 - 18:55 | 4032269 Al Huxley
Al Huxley's picture

They have ~1.4 billion in potential domestic consumers that they've been gradually moving up the income scale.  We can probably stop carrying the 'burden of consumption' now (it probably won't be optional anyway).

Mon, 10/07/2013 - 18:57 | 4032270 Scarlett
Scarlett's picture

Sorry to rain on your parade, but China's consumers are about to surpass shop-till-you-droppers here, and soon.  It's the #1 market for numerous luxury goods and their middle class is 300m people.  They stop shipping and raise the rmb against the usd, we're looking at empty shelves and zombies.

Mon, 10/07/2013 - 19:03 | 4032293 Azwethinkweiz
Azwethinkweiz's picture

All China has to do is turn Africa in the manufacturing base and the Chinese into the consumers. Same game, roles now reversed.

Mon, 10/07/2013 - 19:40 | 4032411 booboo
booboo's picture

Africa! yea right, like the Tutsi's and the Huttu's are going to work side by side making Iphones and singing Kumbaya. Africa is more fucked up then a child molester on a school bus. About the only organized event you could put together on that continent is a gang rape and they are still going to fuck it up.

Mon, 10/07/2013 - 18:22 | 4032070 Rainman
Rainman's picture

I say Lew should print up trillions in non-negotiable IOU notes and be sure they don't look like FRNs...oh wait, they've already done that. @ SSTF

Mon, 10/07/2013 - 18:26 | 4032127 silverserfer
silverserfer's picture

new $100s come out tomorrow!

Mon, 10/07/2013 - 18:12 | 4032075 walküre
walküre's picture

PLEASE MAKE IT STOP

In other news ... Greece is on a path to growth and new riches!

Mon, 10/07/2013 - 18:12 | 4032076 NoWayJose
NoWayJose's picture

Boehner's talking point of 'refusing to negotiate' is a loser. This needs to be about Obamacare. The exchanges and public anger are on his side.

Mon, 10/07/2013 - 18:58 | 4032265 ebworthen
ebworthen's picture

It's the Democrats who should be holding up Obamacare over exempting the corporations from the law this year but forcing ctizens to pay.

Don't you find it odd that it is the Republicans who mention this?

What does this tell us?  It's all theater.

Mon, 10/07/2013 - 19:36 | 4032401 The_Dude
The_Dude's picture

Looks like the govs paid trolls are off of furlough...

Mon, 10/07/2013 - 18:14 | 4032078 lolmao500
lolmao500's picture

Who cares what the MSM and the stupid sheeple say. Don't raise the goddamn debt ceiling. Force a balanced budget down their throats.

Mon, 10/07/2013 - 18:15 | 4032084 Cdad
Cdad's picture

So now we know:

 

1,QE 1,2,3, and QE infinity were not enough. 

2. The idea of printing less that $85 billion per month and giving that money to banks...must go on forever or we're all dead.

3. A "clean CR" is the new killing it in America. Never mind that it means that years without a budget [and therefore mandatory spending restraints] is now considered the only way to go.

4. We know that every establishment media outlet on the planet is shilling for the President once again...to force the House to grant him a blank check again.

5. There are really good reasons that CNBC viewership is at an all time low...and probably everyone on the planet should short COMCAST for its sheer incompetence since acquiring a network full of vapid, teleprompter reading people...and doing nothing about the problems there.

6. Gold and silver are wildly underpriced. Miners are wildly oversold. 

7. The Russell 2000 is not an index. It is a risk on instrument used by hedge funds to drive capital misallocation all across the investing spectrum...and it is probably about to collapse.

8. Ben Bernanke is STILL an unrepentant criminal...in size...the likes of which the world has never seen before.

9. Jamie Dimon should just be President starting this afternoon...so that we could just skip all previously noted machinations.

10 Ths country desperately needs a resurgent third party and a giant fiscal enema.   

 

Mon, 10/07/2013 - 18:13 | 4032086 wisehiney
wisehiney's picture

<-------------Best link of the year.

<-------------Not the best link of the year.

 

 

http://www.mercurynews.com/nation-world/ci_24248486/obamacares-winners-a...

 

Mon, 10/07/2013 - 18:25 | 4032123 walküre
walküre's picture

What's not to love? Happy people all around. Everyone is a winner and everyone gets a prize. Don't earn more than 15k being single and don't earn more than 31k as family officially and all is well! Happy times are here!

We've gone so far off the deep end, it doesn't matter anymore. Just go with it and if you happen to have kids, teach them well and equip them to think for themselves. There will be two groups of people in the future. Those that need to live in FEMA camps and those who are able to survive outside the camps. The ones outside the camps will call the shots after the inevitable collapse and they will be greatly responsible for what comes after the dust has settled.

For the moment, just watch the snake devour its children.

Mon, 10/07/2013 - 18:27 | 4032134 KnightTakesKing
KnightTakesKing's picture

Dumb shit that voted for Obama says, "Of course, I want people to have health care," Vinson said. "I just didn't realize I would be the one who was going to pay for it personally."

How can this go on much longer when 80% of Americans are as stupid as this?

Mon, 10/07/2013 - 18:43 | 4032204 hardcleareye
hardcleareye's picture

Just so you remember the canadate the GOP put up.....

Mit Romney Style.....

http://www.youtube.com/watch?v=mLv2WFJY15E

(I didn't vote for either.....)

Mon, 10/07/2013 - 18:48 | 4032231 Meat Hammer
Meat Hammer's picture

I wanted the other guy to pay for it until I found out that I'm the other guy.

Mon, 10/07/2013 - 18:38 | 4032186 ebworthen
ebworthen's picture

"...while Waschura, of Portola Valley, will cough up almost $10,000 more for insurance for his family of four."

Bearish for granite countertop kitchen renovations.

Mon, 10/07/2013 - 18:17 | 4032096 jmcadg
jmcadg's picture

Am I missing something or is Harry Reid a piece of shit?

Mon, 10/07/2013 - 18:19 | 4032107 lolmao500
lolmao500's picture

JAPAN HOLDS EMERGENCY TELECONFERENCE WITH U.S TREASURY ON DEBT CEILING STANDOFF -- RTRS

THE LANDLORD CALLED. He’s a little worried... "China and Japan warn US on default

Boohoo fuckers. You CHOSE to buy US treasuries. It's your fucking problem.

Mon, 10/07/2013 - 18:34 | 4032174 The Shootist
The Shootist's picture

Would love to see China dump Obama's shitty bonds. Maybe then he really wouldn't be able to take on more debt if they raise the cieling.

Mon, 10/07/2013 - 20:55 | 4032639 Hughing
Hughing's picture

that would be cool. dump that shit like pigs in the Yangtze dump that shit

Mon, 10/07/2013 - 18:24 | 4032120 doggis
doggis's picture

1 MILLION REASONS WHY GENE SPERLING = GOLDMAN SACHS!

 

Prior to joining the Obama administration as an unconfirmed counselor, Sperling earned $887,727 from Goldman Sachs in 2008 and $158,000 for speeches mostly to financial companies.

Mon, 10/07/2013 - 18:27 | 4032131 Mototard at Large
Mototard at Large's picture

Banks, Terrorism and other Existential Threats: The Real Invisible Hand

A request for assistance from ZH readers (known for being enthusiastic commenters) :

We have prepared a series of three papers and a podcast on the dangers of the use of fiat/digital currency combined with the near total dependency of most of our economies on the international payments and settlements system.  This leaves us vulnerable to a systemic collapse, an insider threat and/or a foreign attack (read China, Iran, Hezbollah).  In short, banks and anyone who deals with a bank is on the frontline of a new form of warfare.

These research papers and the podcast mark the first time that anyone has been drawn attention to the line between fiat vulnerability and the payments and settlement system. We will be writing a fourth paper on potential solutions and options for moving ahead. Any comments or ideas are welcome here or at cohost@brokenmirrors.ca

CONFLICT OF INTEREST STATEMENT

** *The Broken Mirrors website is not set up to be a for-profit website or business (yet).   However, we do intend to make the transition to making money sometime in early 2014 as we develop the work on the site and an associated online training program. In other words, no direct financial gain from this posting.

 

Banks, Terrorism and other Existential Threats: The Real Invisible Hand

We can begin the discussion with a simple proposition: what bankers are allowing to happen (consciously or not) at Central Banks and Financial Institutions is far more fearsome than what terrorists have planned in the past. A failure of their jointly operated payments and settlements system would do more systemic damage to the advanced economies than any terrorist attack has done to date. The payments and settlements system is virtually invisible to the public, intelligence and security agencies and most politicians. Yet this ‘invisible’ system has implicated itself into the everyday lives of the populations of almost all of the developed economies.

The other invisible factor lurking in the background is the fiat currency system used by almost all developed nations. Those bank notes in your pocket or wallet are called ‘fiat currency’ as there is little to nothing that supports them other than pure faith – which is by definition invisible.  When individuals lose faith in their government or their financial system, the currency can become nearly worthless in a rapid manner: history is littered with failed fiat currencies.

The intelligence community as a whole has not seriously examined the potential for the application of the use of force (cyber or otherwise) within this economic domain. Nor is it clear that most Western governments have any ability to respond to such an attack (or internal failure) should such an event occur. As Jason Healey, the former White House Director of Cyber Infrastructure Protection noted in a recent address, if the United States is engaged in a cyberwar, Americans would be far better served by contacting Microsoft or AT&T rather than the Department of Homeland Security.

For more on this see:

Banks, Terrorism and other Existential Threats: The Real Invisible Hand http://www.brokenmirrors.ca/?p=230  (intro, list of papers and links)

The Invisible War in Your Wallet – The Sixth Domain of Warfare is You http://www.brokenmirrors.ca/?p=203  (the invisible links between banks, terrorism and existential threats, the international payments and settlements system, the existential threat resident in the current limitations of the (il)legitimacy of the fiat currency system, impact of a failure on the economy and you)

Welcome To The Front – Social and Economic Warfare is all about You http://www.brokenmirrors.ca/?p=252 (future scenario involving the People’s Republic of China, China’s capabilities and intentions, how a potential conflict scenario could develop, previous payments and settlements attacks and failures, conclusions about the state of system security)

The Transformation of the Sixth Domain: Economic Warfare and You in the Information Age.   http://warontherocks.com/2013/10/podcast-the-war-in-your-wallet-the-real-invisible-hand/  or at   http://www.brokenmirrors.ca/?p=261     Podcast (economic warfare, scenarios, fiat currency history, fiat currency current situation, pushing back against the system, community resilience)

FUTURE PAPER: We intend to write one more paper on the payments and settlements system which would identify the path ahead.  Reader comments and ideas will be included and we want your views!  This paper will address issues around the functioning of ATMs in the event of a payments and settlements crisis and whether or not individual FIs would be able/willing to provide cash to only their own customers.  Would this cause a run on the banks?  If there is a breakdown in the payments and settlements system, what would happen to note exchange and provision systems and how would cash get to the FIs?  What would be the effect on securities exchanges, cheques clearing, retail debits, direct deposits, derivatives and foreign currency exchanges? How would they be settled without the payments and settlement system?

Please leave comments here or send directly, in confidence, to cohost@brokenmirrors.ca

Mon, 10/07/2013 - 18:49 | 4032226 Encroaching Darkness
Encroaching Darkness's picture

"However, we do intend to make the transition to making money sometime in early 2014"

You might want to move a bit faster, we may not have a functional financial system in three weeks!

Mon, 10/07/2013 - 18:26 | 4032132 Payne
Payne's picture

Obama is losing everyday with the Childish behavior.  Boehner isn't exactly winning just gaining support.  We all lose not matter what outcome occurs.  The ship/train is in the middle of a wreck and we just haven't felt the impact yet.

Mon, 10/07/2013 - 18:38 | 4032156 ebworthen
ebworthen's picture

What's America without a fucking countdown to something?

Jesus H. Christ, I tell 'ya, "10-9-8-7-6...."

Why isn't my damn pizza here yet?

Lucy!

Mon, 10/07/2013 - 18:53 | 4032245 Mineral-Invest
Mineral-Invest's picture

Its the end of the world mate, start counting like everyone else...

Mon, 10/07/2013 - 18:37 | 4032180 Dre4dwolf
Dre4dwolf's picture

LET ME MAKE THIS CLEAR, 99.89% of the U.S. Population doesn't even care. . . so this "blame so and so for the govt shuterdown" (when 87% of the govt is still functioning) is complete GARBAGE  made - up by the media, they base their "polls" on votes of about 10 people....................all of them staff or interns.

 

Keep it shut-down, default on the debt, its the only way to beat china at their own currency war games anyway!

 

 

Tue, 10/08/2013 - 02:40 | 4033154 natty light
natty light's picture

No need to default! There is more than enough revenue to pay coupon.

 

Mon, 10/07/2013 - 18:38 | 4032184 kenny500c
kenny500c's picture

The Fed can cancel one trillion dollars worth of Government debt it bought for nothing (newly created dollars) thus reducing outstanding debt by that amount.
Problem solved and as a bonus they will likely get the higher inflation they crave.

Mon, 10/07/2013 - 18:52 | 4032240 Everybodys All ...
Everybodys All American's picture

No one will lend to the US again if that occurs.

Mon, 10/07/2013 - 19:10 | 4032290 Dre4dwolf
Dre4dwolf's picture

The best option under that situation is to do what JFK did...... Red Notes.

 

http://www.coinsite.com/content/faq/redseals.asp

 

 

NO "Federal Reserve" on them bills.

Debt Free Money is the only way out of this mess without causing A LOT OF DOMESTIC PAIN.

It will cause PAIN to foreign governments like CHINA, but WHO CARES??? THEY ARE OUR ENEMY!!!!!!!!!!!!!!!!!! ANYWAY!!!!!!!!!!!!!!!!!!

 

Thats the reason the Federal Reserve had JFK killed......... he was printing a functional competing currency into circulation and it was a huge success, they had to get rid of him... and... they did.

A self-sustaining, productive, strong United States of America could not last forever under the Federal Reserve system, its impossible to sustain................ but under JFK'S debt free money.... The United States would of been 10x stronger today..... and all other nations would be begging us for help.

 

ALSO on a technicallity.....

Any dollar bill should be good for the cancelation of ANY AMOUNT of DEBT (1$ bill can cancel 10000000000$ worth of debt) in legal speak.

Every type of currency has an obligation printed on the note. An obligation describes how that type of note may be used or redeemed. On Red Seal notes beginning in the 1928 series, the obligation states:

"This note is a legal tender at its face value for all debts public and private except duties on imports and interest on the public debt."

In May of 1933 the obligation was changed to read:

"This note is a legal tender at its face value for all debts public and private."

It was changed again in 1963 and notes of that series say:

""This note is legal tender for all debts, public and private."

 

Think about it..... why remove "at its face value"?????????????? 

"this note is legal tender for ALL DEBTS, public and private"

All the notes 1$ or 100$ are all worth the same thing.......................nothing..... the debt doesn't exist, the money has no value..... legally on the note it says that its legal tender for ALL DEBTS (not only its face value as it was previously).

 

Strange that they would do that.

Mon, 10/07/2013 - 19:06 | 4032262 Dre4dwolf
Dre4dwolf's picture

The Fed can cancel one trillion dollars worth of Government debt it bought for nothing (newly created dollars) thus reducing outstanding debt by that amount.
Problem solved and as a bonus they will likely get the higher inflation they crave.

 

This will actually cause deflation, since DEBT by its very nature IS MONEY in this FIAT system (your dollars in your wallet are fraudulant debt instruments used for the cancelation of debt), when you go to the store to "buy" stuff like milk, you go to the counter, and the teller rings up a "debt" you then discharge this "debt" with the Federal Reserve notes "your telling the store clerk that the federal reserve owes you 10$ and you telling them to go collect those 10$ from the Federal Reserve instead of you" since you have no money since you are operating out of bankrutpcy.

 

The entire economy is operating under bankruptcy , we are all "broke" we have no "money" we have "credit" issued by a criminal entity called the Federal Reserve, these "credits" have no value, they are a "legal remedy" for the use of discharging debts in a society where NO ONE has any real money (gold or silver or chickens or w.e to trade).

 

The entire system is pretty much a farce.

 

 

By canceling the government debt as per your example, the Federal Reserve is actually creating a deflationary pressure, as when you cancel a debt you take money out of circulation, (Joe owes me 100$, he has 50$, I tell Joe to forget about the 100$ he owes me), Joe still has 50$ no new money was created, especially when Joe was going to borrow 150$ from me tomorrow just to pay me back the 100$ he owes me today.

Because when you cancel the debt under this sytem , that means that Joe or the Government does not have to borrow MORE NEW MONEY INTO CIRCULATION to pay the money it owes (since the debt is canceled) which means that less or NO new money is entering the loop.

 

If you cancel enough debt, then the govt could actually pay off w.e it owes in its entirety and be left with a clean balance sheet to "start fresh with".

 

Im pretty sure thats deflationary or stagnation of currency supply, the 50$ in the govt (joe's) pocket was going to be spent regardless if he took on more debt (more money creation) or not anyway !

Mon, 10/07/2013 - 19:24 | 4032367 The Alarmist
The Alarmist's picture

The liability you are extinguishing by cancelling someone's debt is the destruction of some other saver's or investor's asset.  It would indeed be deflationary in a very ugly way.

Mon, 10/07/2013 - 20:22 | 4032540 DosZap
DosZap's picture

 as when you cancel a debt you take money out of circulation,

 

If it was NEVER printed, nor put into circulation(STUCK IN FED BANKS,as date entry blips), how can removing 1's & 0's from a computer be deflationary?.

Mon, 10/07/2013 - 18:39 | 4032189 cavsgt
cavsgt's picture

Come on people the fun is just starting.

Mon, 10/07/2013 - 19:00 | 4032279 krispkritter
krispkritter's picture

As .GOV throws a tantrum and starts shitting(again) on the People:

http://townhall.com/tipsheet/guybenson/2013/10/04/park-ranger-weve-been-told-to-make-life-as-difficult-for-people-as-we-can-n1717297

http://www.washingtontimes.com/news/2013/oct/3/pruden-the-cheap-tricks-of-the-game/

http://www.examiner.com/article/obama-evicts-senior-citizens-from-their-private-homes-due-to-shutdown

There's enough money to pay for barricades and Gov employees to man them, but not enough to just leave them alone....

DC=District of Cunts

 

Mon, 10/07/2013 - 19:45 | 4032439 Constitutional ...
Constitutional Republic's picture

The spiteful boy who occupies the White House as President after his selection by the international financiers (yeah, you Soros et al) wants to make it hurt for blameless Americans most, yet finds the money to arm Al-Qaeda, and ramp up support for them THIS WEEK in Syria, and recall most of the MIC complex workers.

I will remember this.

 

Tue, 10/08/2013 - 02:25 | 4033143 John_Coltrane
John_Coltrane's picture

Nice link krispy.  I voted to see who really is to blame via their online poll.  With about 6500 votes tallied dems are leading the blame game 70 to 30.  So, much for phony MSM polls claiming reps will be blamed-just pure propagada.  Keep this government closed.  No debt ceiling increase seems to be the real message.

Mon, 10/07/2013 - 19:37 | 4032387 Constitutional ...
Constitutional Republic's picture

Foreigners ought to start living with the consequences of their own decisions, and stop expecting the American taxpayer to fund them. 

Starting with you Eurocrats who have a lot to say about the U.S. debt ceiling, yet nothing to say about Russian military flying over Spain and Portugal for 'mapping' purposes. All done with the approval of the EUSSR.

End foreign 'aid' of every sort. Return this Republic to its people who pay for it, die for it, the homeland.

We can trade with all, and be an enemy of no land. The Constitution says so. That is the first law of this land, and the reason why globalists and the central bank cartel of collectivists conspire endlessly to manipulate the USA for their own private profit, and collectivist agenda: One World Government, the New World Order, the New America: neo feudalism/fascism that hides under the nicey smiley face of socialism, communism, Democrap and Repugnant, just to name a few of the euphemisms.

 

Mon, 10/07/2013 - 19:41 | 4032413 Ghordius
Ghordius's picture

ehm... foreigners have to live with the consequences of both their own decisions... and those of Washington

and your "flight issue" (any corroboration to that?) just reminds me of the CIA "interrogation flights" we had all over europe at the height of the "war on terror"

further, how much do you know about "foreign aid"? or about "free trade", aka globalization? see my other reply to you

it's easy to write EUSSR. how much do you really know about both the USSR and europe? I have seen quite a bit of both, btw

Mon, 10/07/2013 - 19:51 | 4032444 Constitutional ...
Constitutional Republic's picture

Pay for your decisions without U.S. taxpayer money and blood. Thank you.

Your personal experience of Europe/Britain  and mine is irrelevant in the grand scheme of the U.S. Constitution, and Bill of Rights. 

Mon, 10/07/2013 - 20:49 | 4032619 Ghordius
Ghordius's picture

right. because we foreigners force the US, eh? probably at gunpoint

Mon, 10/07/2013 - 20:58 | 4032641 walküre
walküre's picture

The US is the net net net benefactor of all the transactions where it has been involved.

US giving aid whether anyone wants it or not.

PLEASE Stop giving any aid! No more aid! Please, We don't want anymore dollars with strings attached.

Mon, 10/07/2013 - 20:05 | 4032506 BeetleBailey
BeetleBailey's picture

Fuck BOTH parties. BOTH are owned by the multi-douchbaggingly corporations, and those fucksticks in the Bilderbooger clan of cunts and the faceless trillionaire cock-knockers.

CNN, cnbc, Fox and all the MSM networks are paid to be shills for these cunts.

Kabuki theater at it's all time bloody fucking worst.

 

Tue, 10/08/2013 - 08:09 | 4033296 g'kar
g&#039;kar's picture

The latest decree of the Emperor. Ok's pro-amnesty rally in closed park.

 

http://washingtonexaminer.com/park-service-oks-immigration-reform-rally-...

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