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Obama Warns "No Magic Bullets", Exploring "All Default Contingencies"

Tyler Durden's picture





 

In an ominous supplication to the fact that a deal may not be coming President Obama admitted that his administration is "exploring all contingencies on the debt limit." We assume, given his dismissal of the 14th Amendment and the idiocy ("there are no magic bullets" to avoid default) of the trillion-dollar-coin and premium-bond issuance to the Fed, this implies - unlike the ECB - that they are conceding it is possible we cross the "X" date. His remarks were a perfect rehash of everything he has said before... unless the Republicans stop demanding 100% of what they want and give him 100% of what he wants, he will not negotiate. In Summary: no negotiation with extremists holding hostages

 

 

Headline summary of speech (via Bloomberg):

  • *OBAMA SAYS `HAPPY' TO NEGOTIATE AFTER GOVERNMENT REOPENED
  • *OBAMA SAYS CONGRESS SHOULD NOT DEMAND RANSOM FOR DOING ITS JOB
  • *OBAMA SAYS SPENDING BILL, DEBT LIMIT `BASIC' JOB OF CONGRESS
  • *OBAMA SAYS TELLS CONGRESS `LET'S LIFT THESE THREATS'
  • *OBAMA SAYS NO `SERIOUS POSITIONS' FROM REPUBLICANS
  • *OBAMA SAYS REPUBLICANS RUNNING OUT CLOCK FOR LEVERAGE
  • *OBAMA SAYS DEMOCRATS HAVE SHOWN WILLINGNESS TO TALK
  • *OBAMA SAYS TO BOEHNER `LET'S STOP THE EXCUSES'

But the market doesn't believe this will be a problem...

  • *OBAMA SAYS U.S. DEFAULT WOULD UNDERMINE CONFIDENCE IN AMERICA
  • *OBAMA SAYS DEFAULT WOULD CREATE RISK OF `VERY DEEP RECESSION'

It's the extremists' fault...

  • *OBAMA SAYS REPUBLICANS ARE OBSESSED WITH DISMANTLING HEALTH LAW
  • *OBAMA SAYS `PIECEMEAL APPROACH' NOT RIGHT TO FUND GOVERNMENT

Open to negotiation... ummm...

  • *OBAMA SAYS HE WILL TALK ABOUT `ANYTHING' WITH REPUBLICANS
  • *OBAMA SAYS HE WILL NOT PAY `RANSOM' FOR NATION TO PAY BILLS
  • *OBAMA SAYS HE WILL CONTINUE TO BE `HOPEFUL' DEBT LIMIT RAISED
  • *OBAMA SAYS U.S. HAS OBLIGATIONS BEYOND TREASURY BILLS
  • *OBAMA SAYS U.S. MUST PAY CONTRACTORS, RETIREES, VETERANS
  • *OBAMA SAYS `NO OPTION IS GOOD' IN EVENT OF DEFAULT
  • *OBAMA SAYS REPUBLICANS CAN ATTACH `PROCESS' TO DEBT BILL

Forget about the gimmicks - trillion dollar coin, 14th Amendmen etc...

  • *OBAMA SAYS NOTHING COULD `WISH AWAY CHAOS' OF DEFAULT
  • *OBAMA SAYS U.S. `EXPLORING ALL CONTINGENCIES' ON DEBT LIMIT
  • *OBAMA SAYS HE'S `NERVOUS' SOME REPUBLICANS SAY DEFAULT NOT BAD
  • *OBAMA SAYS `THERE COMES A POINT' WHEN TREASURY CAN'T PAY BILLS
  • *OBAMA SAYS `THERE ARE NO MAGIC BULLETS HERE' ON DEBT LIMIT

It's affecting our standing around the world (which is already low)...

  • *OBAMA SAYS DEFAULT DEBATE `HURTS OUR CREDIBILITY' IN WORLD
  • *OBAMA SAYS GOVERNMENT SHUTDOWN CREATES `MISSED OPPORTUNITIES'
  • *OBAMA SAYS CREDITORS WON'T BE CALMED UNTIL BOEHNER ACTS
  • *OBAMA SAYS `DIDN'T HELP' HE WAS UNABLE TO ATTEND ASIA SUMMIT
  • *OBAMA SAYS U.S. MUST STOP REPEATING `PATTERN' OF CRISES
  • *OBAMA SAYS `I'M SURE THE CHINESE DON'T MIND' HE'S NOT AT SUMMIT

 

And it doesn't seem like a deal will be done before late Thursday - given this!!

  • *OBAMA SAYS LEW WILL MAKE `FORMAL PRESENTATION' ON THURSDAY
  • *OBAMA SAYS LEW WILL SPEAK TO PRIORITIZATION BEFORE SENATE CMTE
  • *OBAMA SAYS NEW COMMITTEE NOT NEEDED TO DISCUSS SPENDING, DEBT

 

Wordcloud:

 

So for those confused, here are the Cliff Notes:

 

 

Full Statement:

Obama Prepared Remarks on Debt Ceiling by zerohedge

 


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Tue, 10/08/2013 - 15:27 | Link to Comment NidStyles
NidStyles's picture

Not sure why he is ignoring that several budgets have made it through the House already before the shutdown. It was him and the Senate that said no.

 

If anyone is going to look like an ass over this it's him. No one cares about Congress anyways.

Tue, 10/08/2013 - 15:26 | Link to Comment Zer0head
Zer0head's picture

those MSM fucks

what evil traitors most of them are

Tue, 10/08/2013 - 15:32 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Helmsmen!  Your names are Obama and Reid!

Tue, 10/08/2013 - 15:32 | Link to Comment highandwired
highandwired's picture

This is how you should talk to government bureaucrats:

 

http://www.youtube.com/watch?v=GXBLDL0GoEA

Tue, 10/08/2013 - 15:46 | Link to Comment Manthong
Manthong's picture

No magic BULLETS??:..

I am offended.

That’s as bad as Sarah Palin “targeting” political objectives.

Aw, WTF..

THIS guy has a solution that includes bullets.

Tue, 10/08/2013 - 16:02 | Link to Comment eclectic syncretist
eclectic syncretist's picture

Maybe they want a default.  But you have to ask yourself, what would the motive be?

Tue, 10/08/2013 - 16:22 | Link to Comment Mike in GA
Mike in GA's picture

Cloward-Piven.  By the time the smoke clears he'll be crowned HMFIC for life.

Tue, 10/08/2013 - 16:25 | Link to Comment 10mm
10mm's picture

Motive would be collaspe of dollar,kill off anything related/left of the Constitution,2nd Amendment,chaos and then troops.But i see foreign troops.Confiscation.

Tue, 10/08/2013 - 17:42 | Link to Comment smlbizman
smlbizman's picture

o'fuck head says...love my good and plenty...ofuckhead says plenty good for me...ofuckhead says love my good and plenty...and this will benefit nobody but me...

Tue, 10/08/2013 - 16:30 | Link to Comment pods
pods's picture

IIRC, the 14th says the debt "shall not be questioned."

Which trumps the whining from the FSA.  (I include the MIC in the FSA)

So if they try and default while there is ANY money in the coffers I think we have a constitutional crisis.

They are bound to pay the debts before one dime of promises get paid out.  That is all the rest of the budget is, a promise.

pods 

Tue, 10/08/2013 - 17:06 | Link to Comment TBT or not TBT
TBT or not TBT's picture

That'd be a good constitutional crisis to have, if the result would be decimation of government activity for lack of approved funding from Congtess, under the constraint of paying down treasury debt.

Tue, 10/08/2013 - 18:32 | Link to Comment donsluck
donsluck's picture

This is how parties are destroyed. The brinkmanship will continue until the pain becomes unbearable. And the winner will be Obummer. The Reps started this thing with the more negative public image, they will be the ones to fold. There goes the party.

Tue, 10/08/2013 - 15:46 | Link to Comment SafelyGraze
SafelyGraze's picture

once upon a time, a typical legislator -- elected by the people he lived among -- tried to persuade those same people that it was a good idea for them to throw their money into a bucket so he and other legislators could spend it

the people weren't so sure that they would get more from the bucket than they pitched in to it

so generally they opposed an effort like that

 

Tue, 10/08/2013 - 15:34 | Link to Comment macholatte
macholatte's picture

 

The Constitution is an extremist agenda.

--- Barry S

Tue, 10/08/2013 - 15:34 | Link to Comment Beam Me Up Scotty
Beam Me Up Scotty's picture

Give me EVERYTHING I want, then I will negotiate with you about whats for dinner.

Tue, 10/08/2013 - 15:48 | Link to Comment Chupacabra-322
Chupacabra-322's picture

This is all Political Therater. They're lying, deceiving Criminals. We're broke, they know it & The Criminal Treasury knows it.

Perhaps, & its a long stretch, if they would just stop spending & the problem would resolve itself. NOT a chance, the Criminal system is run on debt & credit.

Without it, KaBoom. The Criminals will default on a Friday news dump when no ones paying attention. Come Monday the RUDE awakening to The Broke American People. Over, it's been over.

Tue, 10/08/2013 - 16:00 | Link to Comment MissCellany
MissCellany's picture

See, though, that's the attitude of all Dear Leaders vis-a-vis "their people."

Tue, 10/08/2013 - 15:48 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

"Thought Experiment: Who was at the Helm?"

http://tinyurl.com/pha34tx

 

(hit piece on Obama and Ds)

 

 

Tue, 10/08/2013 - 15:29 | Link to Comment TeamDepends
TeamDepends's picture

Silly Barry doesn't know his history!  Magic bullets do indeed exist.  In Dallas anyway.

Tue, 10/08/2013 - 15:34 | Link to Comment McMolotov
McMolotov's picture

Arlen Specter could fix this mess! Too bad he's dead.

And by 'Too bad he's dead,' I mean 'Rot in hell, Specter.'

Tue, 10/08/2013 - 15:49 | Link to Comment TeamDepends
TeamDepends's picture

True!  And H. W. Bush could shed some light- nope, that ain't gonna work.

Tue, 10/08/2013 - 15:41 | Link to Comment Newfie
Newfie's picture

Obama is an Idiot. Congress is doing it's job. it is all designed for checks and balance.

Pride comes before a fall FTARD

Tue, 10/08/2013 - 16:03 | Link to Comment Bobbyrib
Bobbyrib's picture

He's fear mongering the same way the Republicans did before they got approval to invade Iraq.

It's just another campaign promise Obama has broken. I woud list them all, but I don't want to crash the server.

Tue, 10/08/2013 - 16:24 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Long 3x inverse FTARD

Tue, 10/08/2013 - 18:36 | Link to Comment donsluck
donsluck's picture

The Reps got used to a very soft Obummer. Now they are dealing with an insecure little man who was pushed too hard once too much. Now they have a Columbine on their hands. This will not be pretty.

Tue, 10/08/2013 - 15:30 | Link to Comment stocktivity
stocktivity's picture

3:29 pm - One minute to go until bizarro time.

Tue, 10/08/2013 - 15:52 | Link to Comment Ham-bone
Ham-bone's picture

FYI - an increase of the 1mo bills from .003 as recently as Sept 29 to .33 now is about an increase of $10 Billion or more dollars in interest to be paid just on these $3T + of debt rolling over every month...things could get real expensive very quickly - A move to 1% on the short end will result in an increase of $30 billion monthly just to pay the 1 mo debt???

Isn't this the Japanese conundrum that the slightest interest rate increase when starting at basically @ zero interest can bring the whole thing down???  Particularly because this is not like a big move in the 10yr that will take 10yrs to get fully priced into new issuance replacing rollover...this will get fully priced in in 1 months time...If this isn't reversed overnight, then, Weezy, this is the big one!!!  Not to mention the leveraged interest rate derivatives that will explode on this change...

Tue, 10/08/2013 - 15:57 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Excellent, excellent comment!

Yet another danger of near-zero interest rates.

Tue, 10/08/2013 - 16:04 | Link to Comment eclectic syncretist
eclectic syncretist's picture

They got us on a runaway train with no way to stop except by jumping off!

Tue, 10/08/2013 - 19:18 | Link to Comment Clayton Bigsby
Clayton Bigsby's picture

Fuck you, Obama.

Tue, 10/08/2013 - 15:25 | Link to Comment jcaz
jcaz's picture

Stupid chimp....

 

Tue, 10/08/2013 - 15:29 | Link to Comment Grande Tetons
Grande Tetons's picture

Speaking of stupid chimps...Kevin...it is time? Ramp?  

Fuck you, Kevin...you little bastard. 

Tue, 10/08/2013 - 15:46 | Link to Comment Urban Redneck
Urban Redneck's picture

Don't insult chimps like that... besides his incessant yapping reminds me more of a macaque, or perhaps oreo-boy is a new gibbon hybrid. Regardless of whatever lower primate he descends from, he certainly lacks the basic problem solving abilities of chimp (which are ironically and generally capable of NEGOTIATION).

Tue, 10/08/2013 - 15:27 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

 

I propose a 1 year delay on ACA in return for a 6 month delay on Sequester's further spending baseline reduction.

There.  Done.

Tue, 10/08/2013 - 15:34 | Link to Comment The Gooch
The Gooch's picture

If there was a magic bullet, it would be piercing that motherfucker's forehead right about now.

From flyover country, with love.

Tue, 10/08/2013 - 16:28 | Link to Comment Chaos_Theory
Chaos_Theory's picture

That would be the final tool needed for the bang-bang stick haters to drop the pretense and go straight nationwide confiscation.  In other words, the worst thing possible.  Now asteroids on the other hand...

Tue, 10/08/2013 - 16:30 | Link to Comment The Gooch
The Gooch's picture

Fuck 'em.

MOLON LABE.

Tue, 10/08/2013 - 16:48 | Link to Comment IndyPat
IndyPat's picture

It's comets, goddammit. Think BIG. Think Fast. Think soon.
Smoke em if you got em. We are snowball bait. Or sue me.

Tue, 10/08/2013 - 16:48 | Link to Comment IndyPat
IndyPat's picture

I believe in magic.

Tue, 10/08/2013 - 15:25 | Link to Comment Fukushima Sam
Fukushima Sam's picture

I'm sure everything is just fine over in DC.

Tue, 10/08/2013 - 15:26 | Link to Comment ZeroPoint
ZeroPoint's picture

The carry trade on bonds is broken. The game is over. Time to take the pain and act like grown ups.

 

The pendulum is about ready to swing back towards honesty and integrity. Got gold?

 

Tue, 10/08/2013 - 15:28 | Link to Comment Gamma735
Gamma735's picture

Politicians never deal in honesty or integrity.   Lies and empty promises are the politicians currency.

Tue, 10/08/2013 - 15:46 | Link to Comment ZeroPoint
ZeroPoint's picture

And that's why gold and silver are hoarded by wise men & women.

Tue, 10/08/2013 - 15:39 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Re:  The pendulum is about ready to swing back towards honesty and integrity

Back to when?   Fairytail time?

Back when humans were honest and lived with integrity a tiny midget appeared.   His name was Duplicity.

Tue, 10/08/2013 - 15:42 | Link to Comment ZeroPoint
ZeroPoint's picture

And that's why gold & silver have been with us as money for so long.

 

 

Tue, 10/08/2013 - 16:02 | Link to Comment insanelysane
insanelysane's picture

I have a book of quotes that sits in the throne room at home.  Quotes from Chinese, Indian, and Greek philosophers from 1,000 to 500 BC show that people have not changed one iota.  Thrones on the other hand are more comfy and smell less.

Tue, 10/08/2013 - 16:50 | Link to Comment IndyPat
IndyPat's picture

I'll quote you on that

Tue, 10/08/2013 - 15:25 | Link to Comment f16hoser
f16hoser's picture

If you don't own physical Gold/Silver, well, "that's your sign!"

Tue, 10/08/2013 - 15:26 | Link to Comment thismarketisrigged
thismarketisrigged's picture

of course markets starting to come back a bit because douchebag harry reid just said they will present a debt ceiling bill later today.

 

fuck u harry reid u douchebag. just fucking default, it will be good for us in the end.

Tue, 10/08/2013 - 16:43 | Link to Comment JungleJim
JungleJim's picture

Thanks, but I don't think I'd like it in the end ...

Tue, 10/08/2013 - 15:26 | Link to Comment EmmittFitzhume
EmmittFitzhume's picture

I never thought I could hate a person this much

Tue, 10/08/2013 - 15:30 | Link to Comment Winston Churchill
Winston Churchill's picture

Obozo.Reid, or Pelosi ?

Tue, 10/08/2013 - 15:40 | Link to Comment kralizec
kralizec's picture

All of the above...but number one is that shit-tossing jackass Obozo!

Tue, 10/08/2013 - 15:59 | Link to Comment B2u
B2u's picture

Yes.

Tue, 10/08/2013 - 15:28 | Link to Comment freedogger
freedogger's picture

Someone call Putin. He'll figure a way out of this for us.

Tue, 10/08/2013 - 15:28 | Link to Comment geotrader
geotrader's picture

Because Obama

Tue, 10/08/2013 - 15:38 | Link to Comment The Gooch
The Gooch's picture

Because OBAMA.

Tue, 10/08/2013 - 15:54 | Link to Comment XitSam
XitSam's picture

FOWARD!

Tue, 10/08/2013 - 15:27 | Link to Comment McMolotov
McMolotov's picture

OBAMA SAYS U.S. MUST STOP REPEATING 'PATTERN' OF CRISES

Sometimes when there's a pattern, it's because it's deliberate, Barry.

Tue, 10/08/2013 - 17:51 | Link to Comment Miffed Microbio...
Miffed Microbiologist's picture

OBAMA SAYS U.S. MUST STOP REPEATING 'PATTERN' OF CRISES

The problem is, this jackass thinks by stating this, somehow things will change. As if his words have magical powers and we the ignorant must simply heed his wisdom. The idiot mistakes leadership for speeches. The fundimental problems are well known. Either you have viable proposals to solve them or not. He might as well just play golf and not irritate us with his attempt at acumen

Miffed;-)

Tue, 10/08/2013 - 15:26 | Link to Comment Cheyenne
Cheyenne's picture

Funny you bring up bullets...

If you don't have 15 minutes to watch Bankster Baseball, a Sergio Leone/Ennio Morricone homage featuring 8 pieces by WilliamBanzai7 and showing how Jamie Dimon blatantly lied before the Senate but is immunized from any perjury prosecution through straight-up racketeering…

http://www.youtube.com/watch?v=xhcFYJ68A7M

… no worries--just check out this 1-page picture show, which tells the whole story of how Sheriff Frank Justice (Henry Fonda) kicks the shit out of J.P. Morton in a fistful of frames:

http://www.godlikeproductions.com/forum1/message2376842/pg1

Candidly, I'm trying to jack up the view counter (now north of 6300) so's I can wave it in front of some smaller label bands and entice them into letting me use a tune or two for the next video (1st entry in 2nd link, above) without legal trouble. Of course, I'm all ears as to other suggestions…

Thanks, y'all.

(To preempt a chorus of armchair lawyers: I've practiced intellectual property litigation for nearly 20 years, and published a law review article specifically on copyright law before that. This video falls well within the ambit of fair use under 17 U.S.C. § 107. Capisce?)

Tue, 10/08/2013 - 15:27 | Link to Comment NoTTD
NoTTD's picture

Bullish.

Tue, 10/08/2013 - 15:29 | Link to Comment tony wilson
tony wilson's picture

sweet baby jesus

help us

rid us of this rothschild curse.

Tue, 10/08/2013 - 15:28 | Link to Comment Dr. No
Dr. No's picture

*OBAMA SAYS CONGRESS SHOULD NOT DEMAND RANSOM FOR DOING ITS JOB

 

Well, technically, they are doing their job.  They passed a budget and was rejected by the Senate and pres.

Tue, 10/08/2013 - 15:32 | Link to Comment HoofHearted
HoofHearted's picture

and then Congress er, the House, says that Obama shouldn't demand a ransom for not doing his job. 

Someone will say "stupid" or "motherfucker" or something in here. It's the level of discourse we have going on in the US at this point...

Tue, 10/08/2013 - 15:57 | Link to Comment B2u
B2u's picture

Let's see, there are three branches of government.  Obama is the one not doing his job to work with, not demand from, Congress.

 

Tue, 10/08/2013 - 18:46 | Link to Comment donsluck
donsluck's picture

Everyone is doing their job. There is nothing unconstitutional about any of this. The Senate and Pres do not HAVE to sign the spending bill. Unless the Reps have the VOTES to override a veto, it's dead. The onus, in this case, is on the House since they do not have the VOTES. They are throwing a tantrum because they couldn't keep the Senate. Too bad. Get the VOTES you fools.

This is about POLITICAL POWER. Nothing else. The Dems have the power. The Reps will loose. Too bad. Get the VOTES you fools.

When a little man picks on the bigger man, who's fault is it when the little man gets slugged? The little man MAY be right, but he looses.

Tue, 10/08/2013 - 15:31 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

The prioritization presentation should be interesting. 

I'll bet Lew thinks that when he says he can service the debt, pay SocSec, the FAA and Medicare, and then must drastically cut everything else in a 0 deficit scenario that people will be horrified.

Rather, they'll probably applaud.

Tue, 10/08/2013 - 15:35 | Link to Comment Zer0head
Zer0head's picture

unlike Timmay

Lew is effing smart and will give a command performance that will rival a reading of the book of Revelation by Morgan Freeman

Tue, 10/08/2013 - 16:14 | Link to Comment Arius
Arius's picture

why assume SS and Medicare are first?  these might be last ...

Tue, 10/08/2013 - 15:30 | Link to Comment HUGE_Gamma
HUGE_Gamma's picture

He mentioned XBOX

Tue, 10/08/2013 - 15:28 | Link to Comment Dick Gazinia
Dick Gazinia's picture

I propose that we change the name of the Washington Redskins to the Washington Fucktards

Tue, 10/08/2013 - 15:33 | Link to Comment dexter_morgan
dexter_morgan's picture

Didn't the house pass 2 or 3 budgets already that got kaboshed in the senate and threatened with vetos and stuff? Or was that just my overactive imagination?

Tue, 10/08/2013 - 15:50 | Link to Comment odatruf
odatruf's picture

It's bullshit semantics, of course, but since the confusion is deliberate and used to lie to and mislead the public, here on ZH we should be as precise and accurate when possible. It's only in that vein that I will note that what the House has recently passed are appropriations bills and not budgets. The budget is supposed to be passed in the spring and is a framework for the year's appropriations process. The budget, in fact, is not sent to the President to be signed and is an enforceable document without it.

Under regular order, the appropriations bills are supposed to be divided by government function into 13 separate bills (so yes, it is supposed to be piecemeal, Dear Leader) that are passed by the House then the Senate then signed by the President before October 1.

Tue, 10/08/2013 - 18:57 | Link to Comment donsluck
donsluck's picture

As long as you are seeking accuracy, the appropriations do not HAVE to be signed by the Senate and Pres. A discussion of a budgets' enforcability is silly, the only enforcement is through appropriations. So, as the minority power, how do the Reps get their bill through the Senate and Pres? Brute force? Financial terrorism? This is a continuation of the Reps "politics is war" philosophy. The Dems finally got wise. The Reps will loose and the USA will be the victims.

Tue, 10/08/2013 - 15:33 | Link to Comment QQQBall
QQQBall's picture

How 'bout we stop spending more than our revenues. Both sides

Tue, 10/08/2013 - 15:34 | Link to Comment Jethro
Jethro's picture

"That's mathematical impossible!"

Tue, 10/08/2013 - 15:41 | Link to Comment insanelysane
insanelysane's picture

Exactly!

If you take the clean CR, $3.5T spending with $2.5T of income and pass it, Congress is great.

If you take the same piece of paper, $3.5T spending with $2.5T of income and label it Federal Budget and then pass it, Congress is moronic.

Tue, 10/08/2013 - 15:36 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Gotta love the Kabuki show.

OMG, my 401k is shrinkin'.   It's those [Red Team | Blue Team] bastards makin' it shrink.  

Tue, 10/08/2013 - 15:37 | Link to Comment MichiganMilitiaMan
MichiganMilitiaMan's picture

Something that I Finally agree with Obummer!

"There is no magic bullet"

Rock and Roll Baby!

Full disclosure:  Long real bullets!

Tue, 10/08/2013 - 15:44 | Link to Comment kurzdump
kurzdump's picture

The only way to solve the debt crisis is to generate more debt AND more virtual or real collateral. More real collateral leads to a wealthier middle class, more virtual collateral means a wealthier 1%.

There is NO alternative except default - leading to deadly deflation.

Printing money without any collateral does not stop this default. It can only work if other nations generate collaterals (e.g. goods) and accept printed money as compensation. However, public debt will rise exponentially and the value of the dollar will inflate until those other nations stop to accept it eventually. Leading to default. So this is only a transitory solution. Well and once global growth turns negativ it will stop working immediately in ANY way.

Obama has two options:

- Default now

- Default later

Tue, 10/08/2013 - 16:22 | Link to Comment dexter_morgan
dexter_morgan's picture

3 options

- default now

- default later

- delay till next prez has to deal with it, which is risky since he has 3 more years.......OMG 3 more years!!!!!

Tue, 10/08/2013 - 15:44 | Link to Comment FuzzyDunlop21
FuzzyDunlop21's picture

Tyler is there a reason why the premium bond issuance wouldnt work (besides, of course, the fact that its just kicking the can)? 

Tue, 10/08/2013 - 15:44 | Link to Comment Bunga Bunga
Bunga Bunga's picture

Exceptional!

Tue, 10/08/2013 - 15:50 | Link to Comment Hannibal
Hannibal's picture

Nonetheless, (dumb) Americans still think paper gold/silver is real.

Tue, 10/08/2013 - 15:53 | Link to Comment Rocbottom
Rocbottom's picture

Obama IS getting 100% of what he wants!  He gets a government shutdown the unwashed masses will blame on the GOP, he gets a U.S. default which cripples the economy and levels the repuatation of America the world-over (his primary goal all along), and in the end, he will STILL get his disasterous health-care law!  This is a NO-LOSE situation for the Asswipe-in-Chief.  Brace yourselves...

Tue, 10/08/2013 - 16:26 | Link to Comment Catullus
Catullus's picture

So risk a multi-trillion margin call to win a popularity contest on the back-end of your second term? I like it. Can I get a picture of Dave Chappelle grinding his feet into Charlie Murphy's couch steaming "Fuck yo Couch!!"?

Tue, 10/08/2013 - 19:03 | Link to Comment donsluck
donsluck's picture

As an excercise in political power, you are correct. But the obvious question to me is why the Reps would want to give him a NO-LOSE situation? The Reps WILL LOSE, polically and in the polls. They are the minority party. So why are they asking for it? It may be hard to believe, but I think the Reps are suffering from echo-chamber syndrome.

Tue, 10/08/2013 - 15:51 | Link to Comment TaperProof
TaperProof's picture

The magic bullet is back down, call off obamacare, sit the fuck down and shutup like you did when Putin bitch slapped you last time.

Tue, 10/08/2013 - 15:55 | Link to Comment insanelysane
insanelysane's picture

If this was a private company, there would be multiple contingency plans being considered, instead of default but whereas this is the government rife with government employees, they want the easiest way which is the way it has been handled for the last 15 years, no budget, continuing CR of budget from 90s, and debt limit increases.  

Why do we bother having campaigns and elections if all we need is for someone to approve continuing CRs and debt limit increases?  Just shut the fucker down.  At least save us the cost of having a Legislative Branch.  The Executive and Judicial branches have been more than willing to legislate.

Tue, 10/08/2013 - 15:55 | Link to Comment Mr. Crisp
Mr. Crisp's picture

<--- Obama's a total asshole

<--- Obama's a total asshole

Tue, 10/08/2013 - 16:01 | Link to Comment sosoome
sosoome's picture

Can't make up my mind.

Tue, 10/08/2013 - 16:32 | Link to Comment Mike in GA
Mike in GA's picture

I just had to give him a red down arrow because obama is such a negative lying  black liberation theologist community organizer asshole.  Plus I don't even like the guy. 

Tue, 10/08/2013 - 18:54 | Link to Comment Inbetween is pain
Inbetween is pain's picture

Does the fact that he's black bother you?

Tue, 10/08/2013 - 16:01 | Link to Comment Joebloinvestor
Joebloinvestor's picture

I hope there is a "magic bullet" so this scumsucking, anti WWII vet, asshole werewolf doesn't have a chance at coming back.

Tue, 10/08/2013 - 16:06 | Link to Comment Moe Howard
Moe Howard's picture

Monkey with a magic bullet.

Tue, 10/08/2013 - 16:18 | Link to Comment Miss Expectations
Miss Expectations's picture

*OBAMA SAYS HE WILL NOT PAY `RANSOM' FOR NATION TO PAY BILLS

But, but, but...he's the one taking hostages:

Federal land

Federal monuments

Federal workers

Children with cancer (Children!)

Mount Vernon

Beaches

Oceans

National Parks

Homes on Federal Property

 

Tue, 10/08/2013 - 16:35 | Link to Comment Mike in GA
Mike in GA's picture

And he doesn't mind talking down the full faith and credit through his shenanigans or scaring the seniors like the democrats always do by mentioning withholding SS payments.  What a complete jerk and a perfect asshole to bring the US down to Cloward-Piven levels.  So he can "save" us.

Tue, 10/08/2013 - 16:56 | Link to Comment Miss Expectations
Miss Expectations's picture

Forgot Christians

and now...NIH stopped service dogs from visiting sick children

Tue, 10/08/2013 - 16:18 | Link to Comment Catullus
Catullus's picture

Just stiff the other 87% of the government that is "essential". They're public servants. They'll probably just keep showing up, diligently serving the public free of charge. They're such selfless individuals. Ask them. They'll tell you.

Tue, 10/08/2013 - 16:24 | Link to Comment g'kar
g&#039;kar's picture

Time to go Egypt on our Morsi.

Tue, 10/08/2013 - 16:28 | Link to Comment 22winmag
22winmag's picture

These cryptic references to the JFK assassination and the Bush Sr. led assassination team that carried it out are really pissing me off.

Tue, 10/08/2013 - 16:35 | Link to Comment Buggy
Buggy's picture

Dear Mr. President,

 

Today you called us, you called me a deadbeat if I decided to stop paying my mortgage.  I believe some perspective is in order.  There was once a family who lived in a very nice house.  The husband and wife worked diligently to provide for their three children.  They always paid their bills, they met all of their obligations and this family was considered a pillar in the community.  When the children became teenagers the parents entrusted each of them with a credit card.  In other stories, one of the children would have been responsible, but in this story all three children ran up their credit cards to the limit purchasing frivolous personal items, throwing lavish parties, letting friends live in their house for free, eat all they wanted  and even paying the mortgages  of their  friends’ houses.  Why, they spent so much money that their credit card debts equaled more than what the husband and wife made together in a year.  To hide what they had done, one of the children started printing counterfeit money in the basement, another child started stealing money from mom’s purse and the other child started begging dad to raise the limit on their credit cards.  Dad showed compassion and convinced their creditors to raise the debt limit but scolded the children for being so irresponsible and warned them to get their finances in order.  Realizing that they had conned dad, the children did not change their ways and convinced the father to get the debt limit raised a total of 78 times before the parents finally threatened to stop paying for the house they had worked so hard to provide.   In this story Mr. President, you, the republicans and the democrats are the three children.  I, we the hard working Americans are the parents who have worked so diligently to provide for you three spoiled brats.  So Mr. President…

 

Who’s the deadbeat?

 

Tue, 10/08/2013 - 16:55 | Link to Comment Winston Smith 2009
Winston Smith 2009's picture

I had the misfortune of being in a public area where plutocracy front man #44's press conference was on TV and heard nothing but misrepresentation after misrepresentation that I could have easily destroyed in follow-up questions. Basically a liar talking to the ignorant. One example:

"And because it's called raising the debt ceiling, boys and girls, I think a lot of Americans think it's raising our debt. It is not raising our debt. This does not add a teeny weeny dime to our nasty, nasty debt."

No, it just enables an increase in the debt instead of forcing Congress to pay for with tax receipts what it promises to fund. Simple. But the useless lapdog mainstream media questions that followed were obviously all prepared in advance and had nothing to do with or questioned the BS he'd just spewed.

And this default talk is all complete BS.  The fedgov brings in 250 BILLION dollars of income every month meaning that the 30 billion dollar interest on the national debt could easily be paid.

"Our" government - perpetually lying to the sheep because they're too damned clueless to distinguish lies from truth.

Tue, 10/08/2013 - 16:51 | Link to Comment OldE_Ant
OldE_Ant's picture

lmao.  OblameA says.   No magic bullet.

Not yet.  Not yet.

What OblameA meant to say was out of the 5 billion bullets bought in the last few weeks he couldn't yet find the magical silver ones for Boehner and the republicans.

Thats because you don't have any silver or gold anything anymore Mr. President you sent it all to China.

But hey you do have the ultimate terrorist threat, shut the fucking govt. down.

You know you want to, you know you can.

Don't let anyone run roughshod over you.  Your the man, you are the president of the United States of America, no-one fucks with you.

Now go play golf maybe you can find the magic hole to hide in so no-one thinks you and the rest of you (repubs and dems alike) caused this problem, and will never solve it.

Tue, 10/08/2013 - 17:37 | Link to Comment kchrisc
kchrisc's picture

It isn't a "shutdown" until the guillotines come out.

Tue, 10/08/2013 - 18:29 | Link to Comment Buggy
Buggy's picture

I thought we loaned all our guillotines out to the PIIGS?

 

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