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A Suddenly Nervous China Tells The US To "Earnestly Take Steps" To Avoid A Default
While the world's largest hedge fund, the Fed, may not care about the performance of its "bad bank" assets, and thus is largely ambivalent if the US Treasury defaults on the $2 trillion in US paper held by Ben Bernanke, others don't have the luxury of merely printing away any incurred MTM losses. Such as America's largest foreign creditor China, which at last check held at least $1.277 trillion in US Treasurys, which after realizing with a substantial delay that the US Congress is not precisely a "rational actor" and its bonds may be materially impaired in the case of a technical default, is starting to panic. In an oped in the largest media publication, China Daily, vice finance minister Zhu Guangyao, warned that the "clock is ticking" to avoid a US default that could hurt China's interests and the global economy. Somehow we doubt Boehner or Obama are particularly concerned about what happens to "Chinese interests." Of course, if China so wishes, it can pen an Op-Ed in the NYT and tell the US just what will happen if $1.3 trillion in US Treasurys were suddenly to be dumped in a liquidation fire sale.
China, the US's largest creditor, is "naturally concerned about developments in the US fiscal cliff", vice finance minister Zhu Guangyao said.
He asked that "the US earnestly take steps to resolve" the issue.
Mr Zhu said that China and the US are "inseparable". Beijing is a huge investor in US Treasury bonds.
"The executive branch of the US government has to take decisive and credible steps to avoid a default on its Treasury bonds," he said.
"It is important for the US economy as well as the global economy."
Zhu's parting words:
"We hope the United States fully understands the lessons of history," Mr Zhu said, referring to a similar deadlock in 2011 that led to a downgrade of the US "AAA" credit rating.
Well that, or perhaps some other history lessons, particularly those derived from Germany in the 1920s.
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'Yankee keep printing money preeze'.
The debtor is slave to the creditor
NO WONTON SOUP FOR YOU! FOR YEAR!
You misspelled 'wanton'.
no. stop. you're both right.
Would the change in interest rate be called the 'death spike?'
Expand bubble: Check
Create Crisis: Check
Allow Collepse: Check
Blame it on political polorization: Check
Retire to island: Check
I checked engrish.com for the implied definition of "earnestly" but couldn't find it. Sounds like they mean business this time.
Confucius say.. when you lend money to bum, do not expect to get it back.. especially to bum that considers Constitution to be toilet paper.
The message from the entire world (short of the domestic democrats, and paid off dictators) to DC needs to be the following, loud and clear all with one voice:
DOWNSIZE YOUR OPERATIONS IMMEDIATELY
Until this message is resonating throughout the halls of our nations capital, we have a messaging problem to solve.
Sum Ting Wong
Wei Bi Phuc Toi
China doesn't like American socialism all of a sudden?
You won't get your money back....but we'll sell you some wickedly expensive healthcare.
You can visit the First Lady's website....it's totally free and open for business. That outta be worth a billion to you right there!
AMBER ALERT WEBSITE SHUT DOWN, MICHELLE'S 'LET'S MOVE' STAYS UP
Yes nothin says lovin like keeping the AMBER ALERT website closed down for business but sending 400,000 Federal contractors back to work for the DoD while still saying there's a shutdown.
Wonder how the AMBER ALERT translates for the U.S. military and CIA when all those Syrian and African children who are being killed by our soliders or "proxies" or that are being kidnapped as child soliders?
Insurgents in Syria force children to fight for them
"Russian Committee for Solidarity with Syria underlined that the armed terrorist groups in Syria 'recruit children and force them to take up weapons and to participate in battles against the Syrian Army and state.'"
"In a statement published on Monday, the Committee pointed out that these acts contradict the international law that prohibits mustering or recruiting children under fifteen in forces or armed groups and considers misusing them in conflicts as a crime whether through the direct participation in battles or through reconnaissance, espionage and disobedience or using them as a means for information or camouflage."
"The statement pointed out that it is important for the world to know and be informed of the practices of this 'fake revolution' in Syria."
Child recruited in terrorist group: I've killed 10 soldiers and 13 civilians
"Child, Shaaban Abdullah Hamida, from Aleppo province narrated the details of his recruitment in the so-called 'Ahfad al-Rasoul' terrorist group by his uncle Yehya Aziz Aziz to commit terrorist crimes."
"He added that he hunted soldiers and civilians alike, while his uncle notified him of the persons who would cross by and whom he should not hunt as they were affiliated with 'Ahfad al-Rasoul.'"
"'I've killed some ten soldiers, thirteen civilians and nine gunmen, and I got used to killing any person without feelings,' the child said."
How many of those contractors possess hollow points?
ruh roh---brackrater
X
whatever
Treasury market is $17T...$5T of this is held in "intragov debt" meaning there is little risk that the gov won't continue to roll over this portion. So the actual public debt is $12T w/ average maturity of like 5yrs plus the $700B in new annual issuance. The Fed buys $500B annually (Fed is buying $40B monthly...the other $45B goes to MBS purchases) plus rolling over existing T holdings of over $2T. So, we have an outstanding $10T Treasury market that must be constantly rolled plus the additional new debt that the Fed doesn't buy ($200B).
Of traditional intragov buyers, seems there will be little expansion here as SS is not running the kind of surpluses previously seen. China, nope as they move more towards Yuan based trade. OPEC and petro dollar and US increasing oil production...hmmm. As of now it seems Japan is the big foreign buyer w/ freshly printed Yen in a currency debasement scheme.
Last thing to contemplate bout the Feds buying is it's focus on 3yrs issuance and up. This is the most sensitive part of the curve and absent the Fed's buying here, interest rates of new and rollover could rocket higher. So not simply how much Fed buys but where on the curve it buys that makes it so critical and so unlikely for a taper...so unlikely for another party to take over this buying at anything near the rates the Fed accepts. Check the chart of Fed holdings of Treasuries by duration...pre-crisis Fed had $1T but over $400B was in 1yr or less...now Fed has nothing 1yr or less and massive holdings in longer durations...who else would buy @ these interest rates??? Shudder to imagine what would happen if Fed didn't rollover their holdings or absolute carnage if they ever began to sell...not that either will ever happen. That the Fed is the only buyer of longer duration coupled w/ the interest rate sensitivity of our economy mean a taper will not be coming our way.
http://www.zerohedge.com/news/2013-08-16/what-fed-...
Lastly, given that of the $5T in foreign holdings ($1T China and Japan apiece) they appear concentrated in the 1yr and less portion of the market...meaning a speedy exit (non-rollover) is very possible should US policy not be to their liking or agreement
The Chinese version of Chucky Schumer telling Ben Bernanke...."Get to work ! "
During 2012, Treasury issued following debt-
Notes (less than 1yr)- $708 B ($7.7 T in total public debt)
Bills (1yr to 10yr) - $137 B ($1.6 T in total public debt)
Bonds (30yr) - $178 B ($1.4 T in total public debt)
TIPS - $102 B ($900 B in total public debt)
Please note Fed purchased no Notes, and bought $480 B in Bills, Bonds (not sure on TIPS???) but Feds focus on longer duration means Fed is buying $480 B of a possible $417 B in new issuance...or put another way the Fed is buying @ 120% of Treasury longer dated issuance (if TIPS are not Fed purchased, then Fed is buying @ 160% of Bill / Bond issuance). Think on this a little when tapering is being discussed.
Shit, there's only $3 T in public debt in Bills / Bonds...Fed already has $2.2T??? Is Fed now buying from intragovernment holdings???
FYI
Bills <= 1 year
Notes >= 2 years, <=10 years
Bonds > 10 years.
correct you are - thanks for reading and keeping a poli sci / history guy straight...
Little Chinese penis telling big black dick to get in line.
At least the little chinese prick is not gay like the big black won.
He is only half black, so his dick is not THAT big.
He is half Irish so that means his dick is then just average, as Irish weenies are pretty small (from what I hear). :~)
If you'd stop riding donkey and elephant dick, you'd not be so desperate for bigger and bigger stimulus, nomewasayin?
Now come here and cuddle.
Intlagovelnmetar Hordings! Yankee sheeper have no crue... http://www.treasurydirect.gov/govt/charts/principal/principal_govpub.htm
Hey China Fruck Yu! Obama is your boy. You backed him and he bows to you, the Saudis and the tribe/red shield.
Trump demonstrated that if the debt is big enough, the creditor is slave to the debtor
You no like nervous China.
Well ... if China would like to sell to me at 10 cents on the dollar I'll take $10,000 in T bills off their hands.
Anybody remember the mysterious missle launch off the coast of Kalifornia a few years back?
http://www.cnn.com/2010/US/11/09/california.contrails/index.html
Was that an implied threat of nervousness. I wonder?
DaddyO
oooppssssy ... we dont want to upset the chinese now, do we?
go talk to mr. Boehner not to BBC. interesting times indeed.
Proud Muppet
Somehow we doubt Boehner or Obama are particularly concerned about what happens to "Chinese interests." Of course, if China so wishes, it can pen an Op-Ed in the NYT and tell the US just what will happen if $1.3 trillion in US Treasurys were suddenly to be dumped in a liquidation fire sale.
doesn't statement two answer statement one?
they care... or if not them, their puppet masters do.
Go ahead and dump'em on to the market. Me no care.
It's nice to know that the world's two largest economies are run by high time preference morons.
Nothing good can come of it.
"We hope the United States fully understands the lessons of history,"
actually Mr Zhu was referring to Rome (but for some reason the BBC didn't want to tell its audience that)
China's worried because they can't figure out how that CT lady rammed a barrier, a cop car, and a guard station in DC and her air bags never deployed.
yours is not to question
but to believe
join with Cantor and Hoyer in thanking the Capitol police for their bravery
http://www.youtube.com/watch?v=o8TJUzRDd3Q
Bravery? Shooting an unarmed confused woman sound more like cowardice. Cantor is an idiot.
To the Empire, everyone is a possible threat!
Agreed, but nothing new there.
Everyone/every animal is a possible threat to the alpha-male in the alpha-male social hierarchy. In Homo sapiens, and due to the specialization of labor, the alpha-male is actually a mob of thieves called government.
Is it better to live inside or outside the Evil Empire?
My opinion is that it is better to live in a country that has good relations with, but not subservient to, Empire.
Wasn't she driving a shitbox Lexus? Shame she wasn't in a Tesla S - she could have put it in flamethrower mode.
Memo to China
Re: Investing 101, Disclaimer Language
"Past performance does not guarantee future results"
Translation: China not quite ready with new monetary system based in PMs for international trade (where we have to be honest) and devaluable fiat for the confined, domestic proles.
Please print Moar faster so China get couple more months to get international trade settlement system up and running.
Yes, when switch is flipped, it will be shockingly complete and frightenly sudden because we have to do it that way to make it work.
Look for an overnight on Thursday or Friday in US for execution timeframe.
After that, your on your own...suckars!
Edit: further down I see a lot of talk reflecting the idea that foreigners are still buying large quantities of our debt. This is not so. The same mechanisms of obfuscation and fraud that turned the stock markets into mere propaganda have been applied to bonds. The Fed is the main player. Expect QE to go up...by a lot.
It is even worse that that because redemptions have begun in earnest but it is in the interest of both parties to allow the charade to continue for now.
Transition to a PM based monetary system is in the very last tiny, scrambling phase of execution because the fall apart is accelerating rapidly.
Almost all discussion is about the propaganda fraud designed to keep you occupied so they can catch you off guard when it does execute.
Waste no time. Take joy in what you can now. It is very, very close to execution.
Well, China should have not gone full retard in borrowing others money. Let this whole charade collapse baby!!!
I'm not sure if you're confused about the situation or the definition of the word 'borrowing', but you're definitely confused.
No need for sarcasm as it was a mistake. Lending is the correct term. Why did you not just point out the mistake instead of being sarcastic about it?
I think you can get banned from ZH for not being sarcastic.
yeah ~ just ask Francis
Oh that Francis is such a sweet boy. I wonder if he's had his DNA tested to verify he's not Jewish. The irony would be... at least 105% of GDP.
Perhaps the same reason you don't think before you type?
Ouch!
Now you've done it, you've gone and hurt his feewings!
@Devotional - How about a simple "Oops" and edit your comment rather than being so thin skinned about YOUR error?
Give this man a prize!
You cant edit once replied.
Point well taken but I could write a post to clear up my error rather than blame someone for pointing out the fact I made one.
Why do that?
The best thing to do in cases like this is to pull an Obama and continue on as nothing has happened and then turn around and blame it on all your perceived enemies.
Next, hire some trolls to spread malicious lies and rumors about your opponent and attack the victim until they're suffering from Stockholm Syndrome.
No, I would rather admit to the mistake.
If he is from Minnesota or Wisconsin, that is how they speak. "Can you borrow me some money", never did get used to that.
Have no fear, this is just another one of the courrpt goverment games to scare people!
This is all for effect. The debt interest will be paid. I think debt payments are 6-7% of budget? They will cut Amber Alert before they stop interest payment. You want to see lobbiest coming out of the woodwork with backpacks stuffed with cash? Threaten to stop debt payments.
Lobbiest adj most abject and sycophantic
This one is lobbying for correct grammar usage today. Just correct the person,there is no need for sarcasm.
Eat a dick. <--- No sarcasm!
self flagellation _ it's and old drink but drink it anyway
I like vagina.
especially when it purrrrrrrrrrrrs
Dude, dont you have a job to do? Or are you a furloughed gov employee?
You mean a business to run, but that I can do when I feel like it (the boss and I get along extremely well, since it's a one-man operation).
Don't you have an EBT card to go swipe somewhere, Peon?
Yeah, I grab your mom's EBT when she's done.
I'd say stealing a dead woman's EBT fits your character quite snuggly, yes.
So here's the funny part (for those with neurons that connect): 2/3 of those corrections were jokes you're just too dumb to get.
Well, I bet she was something before electricity!
Yeah, we'll have the lobbiest lobbyists we've ever seen.
Gross interest payments are 7% of revenue.
Net interest payments, taking into account Fed interest rebates, are a little more than 4% of revenue.
edit: as a % of expenditures, gross and net interest payments are 5.8% and 3.4%.
What about debt rollovers ?
I thought a lot were coming due.
Those numbers I gave were mostly 2012 figures, so since interest rates have increased a little, the percentages would be higher in 2013 due to debt rollover, all other things being equal.
Variables I used were FYOINT, FGRECPT, FGEXPND in the Fed FRED database.
Federal Reserve interest rebate figure came from the NY Times and is a 2012 figure also: http://www.nytimes.com/2013/01/11/business/economy/feds-2012-profit-was-...
Yeah, and the maturities have been brought in closer and closer so now with a slightly higher rate just funding the current debt will cost more PLUS new debt will cost more PLUS the rates may move up even more causing even higher debt service costs!
Sooo, funding 17 trillion +/-, costs maybe 10 basis points more (IDK exactly) then that's 17 billion dollars more per year or 1.5 billion per month, 327 million per week, 47 million per day, 2 million per hour, $32,432.00 per minute.
Imagine a rate spike.
FYI, the Fed FRED interest number I was using (FYOINT) doesn't count interest accruing but not paid to the SS Trust fund, ie, intra-governmental debt.
Also, most interest paid to the Fed gets refunded to the Treasury, and interest isn't paid on currency and coins, so that was subtracted from gross interest to get a net figure.
So the $17 trillion figure gets reduced to $12 trillion when you consider only debt held by the public. Then it gets reduced by approx another $3.5 trillion when you take into account Fed purchases of debt, leaving a net debt of "only" about $8.5 trillion that interest is paid on.
http://www.treasurydirect.gov/govt/charts/principal/principal_govpub.htm
http://research.stlouisfed.org/fred2/series/BASE
They just cut Amber Alert, but, mysteriously, not the Wookie's website.
+1 for the manly wookie reference!
The bastards better not have cut Big Bird!
Yeah, I think they have to pay the interest on the debt.... I have no doubt though that if this administration *could* have them stop, they'd sign up for that in a second. They seem to love the power that chaos brings to their positions.... and they'd get to take America down another rung in the ladder at the same time. ( maybe a whole lot of rungs )
I've never seen in my life where we had an administration that was truly an enemy of the country and the people that live in it. I just hope we live through it. It won't be easy.
So, basically, the next "flight to quality" goes toward the renminbi or the ruble or the Sing$, and away from the USD.
Nice while it lasted.
That's if people actually recognize any of it. Which they won't. Most people can't balance a check book on this planet, it's doubtful that any secondary adoption will happen ever. historically what always happens is gold, silver and other PM's become money. Always have, always will.
If any country doesn't recognize that fact, fuck'em, they weren't thinking long term enough. Besides China has it's own problems besides it's 30 year adoption of 'capitalism' instead of just doing Business and Trade. If it gets caught with it's pants down, I suppose that will be economic reset number 200+ for China in a very loooong history of trade and commerce that is on record all over the world over 12000 years (invoices are far more common than religious references btw if looking for information about the past).
So China calling the kettle black...no, lol.
Balance is going to be restored. They have direct source material on the subject of Balance and how to apply it in their libraries if the 'communists' didn't burn it all. What's sad is when history is altered or missing or told from ridiculous regional/religious/political standpoint, it's very very difficult to find the process to reestablish the situation quickly. Usually that society just disappears with it's people and it's history.
Sing dollar? Excuse me but do you know the size of the US treasury market vs Sing dollars outstanding? And what is the Sing dollar backed by in their basket, you think?
Renminbi = not covertible = fail
Ruble = lol
I think the $ing is backed by foreigners' gold deposits.
Simon?
Ruble is backed by real assets (carbon-fuels, gold, platinum, titanium and ABC WMDs).
Yuan/Renminbie is backed by real assets also (gold, rare-earth minerals, 1.3 Billion people --> 200 Million armed soldiers with ABC WMDs).
The USD is backed by...
Oooh! Ooh! I know this one! Pick me! Pick me!
Not gonna happen. $$ is only game in the world of a size for a flight to quality. Gold and the PM complex will benefit before the currencies you mention. If the $ gets to the point that it is no longer the reserve currency because of printing, internal strife or other capricious gov't stupidity, we are gonna have big, big troubles right here in our own neighborhoods, towns and cities.
Seems to me that China would be within their "rights" to protect their assets.
"Taiwan is a pretty nice looking island. Hey, Barak, what you do think it would be worth at an auction? It would be a shame to have such a nice island wrecked."
This is serious business, they're playing with moral of society. Take that away and you wish you had never asked for a gold price skyrocketing. You'll be glad you have the gold, but not at the expense of what will unfold. With all respect.
F*cked if we do.
F*cked if we don't.
you're dead on
Fucked if you do.
Free if you don't.
There, fixed. No one rides through life for free and the cost is extracted one way or another. All that you are really deciding on is whether or not it's a one sided trade or equitable during the transaction.
And we will do something.
Like the "lesser of two evils", the only choice you have is still evil.
I think we knew that going in.
It was for protection. We are going to need it.
Due to the mental illness Bath House suffers from, you can only expect his edicts to become more and more bizarre.
By the by, has the MLK park "shut down" yet?
The parks are only closed if no one visits them. How's that for a slice of Zen?
haha +1
If Cannabis plants grow in the Parks, can anybody hear the plants grow? ;-)
Seriously though, Long legalization of Hemp and Pot products.
/ Of course if they also nationalised pot (for "National Security" reasons), then the CIA and DEA would now be officially self-financed. / s
Yes MLK is closed but there is a dream to reopen based on the content of the Spite House, not the color of its....oh nevermind
Wishes to the gold price are never granted.
Gold will do its job of balancing the money supply, whether the government or anyone else want it or not.
When the gold price speaks, one should listen closely.
Is that 'the price of gold' or 'the gold price'?
That's spot on GVB.
We can barely afford the interest payments alone on that debt anyway, so joke's on you bitches.
We can pay the debt payments for a while. That isnt the problem.
The problem comes when everyone gets scared and the interest rates pop up. THAT is what is going to bankrupt the US. Well, its already bankrupt...but you know what I mean.
Not so fast Bosch, Any Corp. that moves to China gives China 51% control as a stipulation for doing business there.
U.S. corps. over there are only subsidiaries of the Parent that remains here. China could take full control of those by default.
Yeah James, it seems a lot of Americans including commenters here think of China as they were in the 19th century. The Chinese have more experience with capitalism than America's entire existence. Their failed experimentation with communism is a 20th century aberration. they drive china-centric hard bargains, steal intellectual property and maintain controlling interest in every deal. They aren't pussies to be brushed off lightly.
there is no such thing as, fair, honest, rational in the Chinese form of capitalism either > tough to deal with, much like dealing with a criminal gang, they only respect real power
There's no such thing as "intellectual property"
We no sell you goods anymole, no do dly cleaning fol you anymo too.
Noodle eaters.
'Lessons of history' which was 2011's credit downgrade? Well, that was nothing but GOOD NEWS! DOW easily 4,000 points higher since then, credit downgrade is something to cheer! RIGHT?
Maybe they shouldn't have bought all those Treasuries that they can't sell.
But then they could not push down their RMB exchange rate and keep their people meaningfully employed.
They could never engineer a centrally planned economic growth so they had to let the multinationals do their bidding.
However the currency game is nearing the next phase.
Symptoms to look for: unemployed overeducated ant tribes in China and other plebes who do not know what to do.
No problem: they all get US visas, since all large US corporations are PC fanatics. They'll be hired under 'Diversity' quotas. When was the last time you had a stroll around a West Coast campus of Intel, HP or Microsoft?
Good luck in getting hired if you're not a "minority"*, or Chosen. You're guaranteed a high tech job (need to only fig a mirror, it seems) if you score enough 'Points'. Ideal candidate is handicapped, female bi-racial Asian. Worst chances for Christian WM, >50. Regardless of skills, experience, etc. You get too many Demographic Demerit Points scored against you. Your odds are best at a company <50 people, where the boss is in your demographic group. Sad but true.
And as much as HR depts 'suck' (lack of competence), the real policy decisions are made by the General Counsel pricks anyway, who worry only about 'compliance' to Fed employment laws, and exposure to litigation (that risks affecting their image or stock price).
Grumpy Cat analyst...
http://www.mememaker.net/static/images/memes/2416868.jpg
No more toys!
Chinese are stuck with it. A fire sale would be like setting off a doomsday device in both economies, and the Chinese know it. They have too much skin in the game now, and have built one too many ghost cities.
Just buy back the paper at discount prices, 1 cent on the $.
China is not going to grow a pair in the near future..If they had a sack ,(Russia) they would start selling the treasuries or come out and say they are reducing theit debt purchases...at this stage a lightbulb should have went off back in 2011 to scale back purchases..your telling me they are still buying impunity for all these years?
Not very wise.
"China and Japan led an exodus from U.S. Treasuries in June after the first signals the U.S. central bank was preparing to wind back its stimulus, with data showing they accounted for almost all of a record $40.8 billion of net foreign selling of Treasuries. The sales were part of $66.9 billion of net sales by foreigners of long-term U.S. securities in June, a fifth straight month of outflows and the largest since August 2007, U.S. Treasury Department data showed on Thursday." - Reuters
Who the fuck was crazy enough to buy that garbage? The Fed?
I really see no problem here. All they have to do is call the Bernank. He's got plenty of room on the Fed's balance sheet for another trillion or two. I also hear Venezuela is buyer. BIG shortage of toilet paper down there.
Fate the Magnificent
"Push the Button, Max"
Someone needs to tell China we are under the Rule of a malignant narcissist who is too busy trying to close the oceans, throw old people out of their private homes on park lands, and beating up WW2 vets to be concerned about "finances."
Had Enough, America?
What does it take?
I suggest you read the following:
http://www.nytimes.com/2013/10/06/us/a-federal-budget-crisis-months-in-the-planning.html?hp&_r=2&
I don;t think that the Kochs really value your liberty all that much...
Take your strawman and shove it up your assholio.
Likewise, take your regurgitated bullshit as it is clear that you're nuthin' but an ignorant kochsucker...
BTW, pretty obvious that you don't even know what a strawman is...
Falls in line what DHS insider reported (Rosebud). Both are in collaboration on this Budget closing and the worst will happen. WATCH.
This President is a complete child. He cares nothing for anyone but himself...Can you imagine how the staged media would be taking W. to task if he done done things such as this:
DOJ Shuts down Amber Alert Website:
http://therightscoop.com/obama-plays-politics-with-your-lost-children-sh...
Park Rangers set up blocks to prevent Mt. Rushmore viewings:
http://www.argusleader.com/article/20131005/NEWS/310050021/Mount-Rushmor...
After all this time do people really not see what a malicious personality this President is? Does anybody really question now who was ordering the I.R.S. Audits? There is nothing I could hear about this President having done at this stage that would suprise me in the slightest.
You have an overactive imagination if you think the WH is ordering the Park Service to do anything of the sort...
Take it up with the Kochs and their willing pawns....
You are either wildly naive, or flat-out disingenuous, to suggest otherwise.
In politics (particularly modern-day American politics), reality is often worse than imagination.
I would guess that it is a few Park Rangers pissed at being furloughed...
You know Occam's razor is preferable to a grand conspiracy, at least in places where rational thought prevails...
You are really being a disingenuous asshat with your strawman and red herring of the suggestion of "conspiracy" here.
To NOT believe that this administration would use, and IS using, and playing up, this 'federal government shutdown' to acheive their political ends is simple idiocy and being blind to the manifold evidence staring you directly in the face.
I have often stood up for you in the past here, but not this time Flak --- you are being a particularly egregious fool and liar in this case.
Akak,
we will just have to differ on this one... The way I see it, Kochs and the right-wing oligarchs have been planning the shutdown for a while:
http://www.nytimes.com/2013/10/06/us/a-federal-budget-crisis-months-in-the-planning.html?hp&_r=1&
It's not - "grand conspiracy" is the singular purpose of operation of the US Federal government. It has no secondary mode of operation.
Kochs are just lobbyists - they don't make the blockades, place them or pay the lowest government employees.
It takes cutting off the NFL/Wings/Beer feed for the plebs. You know, real pain.
i know most of us here keep waiting for this bs to end, but rest assured, the fed has no way out. either death by drowning or death by suffocation, the fed is dead. they have run this charade to it's end. no way they will choose a quick death, however.
When you can print money to acquire real assets do you think the fed cares if it all collapses they will be positioned to do well
They already have their plan for who to blame during the reset so they remain in power
Always amazing to see how they keep it going but I believe you're right. There have been more people joining that argument of a Keynesian end point just this year than the last 5 combined it seems to me.
When you logically follow through the excesses of monetary policy there has to be an end and there has never been a seamless transition to a new monetary construct.
Never let a good crisis go to waste.
crisis, reaction, solution...
control 101
After a lecture on economics and the structure of the Federal Reserve System, Ben Bernanke was accosted by a little old lady.
"Your theory that the Fed is the centre of the economic universe, and that QE has saved the global economy has a very convincing ring to it, Mr. Brenanke, but it's wrong. I've got a better theory," said the little old lady.
"And what is that, madam?" Inquired Bernanke politely.
"That our economy is a ponzi scheme built on the back of a giant con job."
Not wishing to demolish this absurd little theory by bringing to bear the masses of economic evidence he had at his command, Bernanke decided to gently dissuade his opponent by making her see some of the inadequacies of her position.
"If your theory is correct, madam," he asked, "what does this con job stand on?"
"You're a very clever man, Mr. Bernanke, and that's a very good question," replied the little old lady, "but I have an answer to it. And it is this: The first con job stands on the back of a second, far larger, con job, which stands directly under it."
"But what does this second con job stand on?" Persisted Bernanke patiently.
To this the little old lady crowed triumphantly. "It's no use, Mr. Bernanke---it's cons all the way down."
(adapted from J. R. Ross, Constraints on Variables in Syntax 1967)
I like how you turtled your way out of that...
@Flakmeister
Flakmeister: Irrelevance personified.
Oh my.... You do realize that you are anagram of ahole?
Somehow that is a perfect fit for you...
Glad you could take a moment out from under the desk perfecting your felatio at the IPCC to prove my point.
Christ, if you are going to use big fancy words like fellatio at least spell them right...
Edit: BTW, the IPCC is old hat, here is something from today
http://press.web.cern.ch/press-releases/2013/10/cerns-cloud-experiment-shines-new-light-climate-change
Looks like it ain't cosmic rays (not that anyone serious ever though otherwise)...
I suggest you might read this
http://tamino.wordpress.com/2013/09/02/el-nino-and-the-non-spherical-cow/
but if you don't know how to spell fellatio, then it is clearly above your pay grade....
"Looks like it ain't cosmic rays (not that anyone serious ever though otherwise)..."
Cern article: "But it does not rule out a role for cosmic radiation..."
"Computer simulations of earth’s climate system can actually reproduce the ENSO phenomenon..."
Oh great, more computer "simulations"...
"While the ENSO phenomenon has a potent impact on global temperature, it’s one of those phenomena which doesn’t create a long-term trend. It can and does cause temperature to go up and down and up and down and down and up and down and up, so that short-term (a decade or even longer) trends are profoundly affected, but on longer timescales (30 years or more, which we usually associate with “climate”) the ups and down mostly cancel each other and the long-term trend impact is minimal."
"The phrase “global warming” refers to climate change, including temperature increase, which is caused by mankind, and that has continued unabated. In fact, if it weren’t for the continued warming due to human activity, natural variations (like ENSO) would have brought about a notable cooling over the last decade or so. But earth hasn’t cooled during that period, not even at the surface where we notice it most immediately, and that’s because the man-made component — global warming — has continued."
Looks like the IPCC isn't old hat, just repackaged in different speculative "science". Still blaming mankind for warming that hasn't happened in well over a decade now complete with attributions to gasses and airborn particulate in the thousanths of a single percent...
That's great Flakmeister. I'm more comfortable haphazardly missing one letter in a word on occasion than to have virtually everything I write reference conjecture, propaganda and junk science based on biased computer modelling with a proven history of failure.
I'm even more convinced after reading those articles that you're best just ignored altogether.
My what a cunning riposte...
Would you like to comment on where ~97% of the heat has always gone and what is happening there of late?
http://skepticalscience.com/nuccitelli-et-al-2012.html
Didn't think so...
And it is pretty clear that you don;t have a fucking clue about any form of computer modelling....