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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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.

Zer0head's picture

those MSM fucks

what evil traitors most of them are

DoChenRollingBearing's picture

Helmsmen!  Your names are Obama and Reid!

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.

eclectic syncretist's picture

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

Mike in GA's picture

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

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.

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...

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 

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.

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.

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

 

macholatte's picture

 

The Constitution is an extremist agenda.

--- Barry S

Beam Me Up Scotty's picture

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

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.

MissCellany's picture

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

DoChenRollingBearing's picture

"Thought Experiment: Who was at the Helm?"

http://tinyurl.com/pha34tx

 

(hit piece on Obama and Ds)

 

 

TeamDepends's picture

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

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.'

TeamDepends's picture

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

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

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.

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.

stocktivity's picture

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

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...

DoChenRollingBearing's picture

Excellent, excellent comment!

Yet another danger of near-zero interest rates.

eclectic syncretist's picture

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

jcaz's picture

Stupid chimp....

 

Grande Tetons's picture

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

Fuck you, Kevin...you little bastard. 

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).

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.

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.

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...

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.

Fukushima Sam's picture

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

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?

 

Gamma735's picture

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

ZeroPoint's picture

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

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.

ZeroPoint's picture

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

 

 

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.

f16hoser's picture

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

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.

JungleJim's picture

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