GOP Warns "Definitely A Chance We're Going To Go Past The Deadline"

Tyler Durden's picture

The rhetoric from today's political maneuvering is eerily reminiscent of the rhetoric just a week ago and absolutely in now way represents the 'progress' than an impatient to BTFATH equity market appears confident about. As AP reports, Harry Reid seemed to arrogantly explain "we haven't done anything yet" by way of compromise (as his party rejected the compromise deal on the basis of the spending and taxes issues; and the Republicans came out swinging. Boehner (behind closed doors) exclaimed "The Senate needs to hold tough; the President isn't negotiating with us;" and tea-party caucus member Fleming blasted, "It's very clear to us he does not now, and never had, any intentions of negotiating," and warned, there was "definitely a chance that we're going to go past the deadline."

 

Via AP,

Republicans and Democrats in Congress lumbered through a day of political maneuvering Saturday while a threatened default by the Treasury crept uncomfortably closer and a partial government shutdown neared the end of its second week.

 

"We haven't done anything yet" by way of compromise, Majority Leader Harry Reid, D-Nev.,

 

...

 

Across the Capitol, tea party caucus Republican Rep. John Fleming of Louisiana said there was "definitely a chance that we're going to go past the deadline" that Treasury Secretary Jack Lew has set

 

...

 

"The Senate needs to hold tough," Rep. Greg Walden, R-Ore., quoted Speaker John Boehner, R-Ohio, as telling the GOP rank and file in a private meeting. "The president now isn't negotiating with us."

 

...

 

The president's party rejected a stab at compromise led by GOP Maine Sen. Susan Collins, while Republicans blocked the advance of a no-strings attached measure the Democrats drafted to let the Treasury resume normal borrowing. The party line vote was 53-45, seven short of the 60 required.

 

In disagreement was a pair of issues, both important and also emblematic of a broader, unyielding dispute between the political parties over spending, taxes and deficits.

 

...

 

"Perhaps he sees this as the best opportunity for him to win the House in 2014," Fleming said of the president. "It's very clear to us he does not now, and never had, any intentions of negotiating."

 

Reid was savage.

 

Republicans had begun seeking concessions on health care, he said, and now their No. 1 issue is "to divert attention from the fools they've made of themselves on Obamacare."

 

...

 

In his Saturday address, Obama said, "Politics is a battle of ideas, but you advance those ideas through elections and legislation - not extortion."

 

 

Doesn't exactly sound like the "deal is close" bullshit that drove the Dow up 500 points in 36 hours we saw last week?

 

In the meantime, we wonder what "sweet nothings" these two were discussing in the past...

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LetThemEatRand's picture

Won't happen.  No.  Fucking.  Way.  Not because anyone wants to do the right thing, but because everyone in DC wants to do the wrong thing for their major contributors.  I hate to spoil the end of the movie, but someone looks bad and a few people lose their jobs next election and the debt ceiling is raised.  No alternate ending is available on Blu Ray.  

ApollyonDestroy's picture

FUCK YOU YELLEN YOU STUPID WHORE

LetThemEatRand's picture

Come on man.  She's not stupid.

LetThemEatRand's picture

I have long ago given up on the notion that any of these guys are stupid.  They say stupid shit, but they do exactly what benefits the oligarchs.  If they came out and said "we know our monetary policy is enriching a few people at the expense of everyone else who is destined to be a debt slave serf," do you think the system would continue?   Pay attention to what they do, not what they say.   Yellen was selected because she will do what her masters tell her to do.  She will live a life of ease and retire wealthy.  She's not stupid.

NoDebt's picture

Did you notice that every time they do this it goes a little closer to the bink?  Not sure if they're conditioning themselves or conditioning us, but somebody's testing/getting more comfortable with playing on the edge.  This time it looks like they'll hang their toes over it before stepping back.

bigkahuna's picture

Yellin in 2005 from the above article:

 

In my view, it makes sense to organize one’s thinking around three consecutive questions—three hurdles to jump before pulling the monetary policy trigger. First, if the bubble were to deflate on its own, would the effect on the economy be exceedingly large? Second, is it unlikely that the Fed could mitigate the consequences? Third, is monetary policy the best tool to use to deflate a house-price bubble?

My answers to these questions in the shortest possible form are, “no,” “no,” and “no.” 

---------------------

I read she attended Brown and grad school at Yale. I do not think she is technically stupid, but all that education behind a statement like that is worse than being technically stupid. One of the worst situations to deal with is when you give a person power and everyone believes (including themselves) that they are brilliant. She appears to be a delusional, inept, sychophant. She will fit right in. All show and no go.

AGuy's picture

What the Fed talking head say in Public is likely completely different in Private. You can't rule out their is a hidden agenda.

That said, The GOP seems pretty stupid. If the US Defaults Barry can use the NDAA to seize control.

 

 

Headbanger's picture

The education people like Yellen have is much like that of the Alchemists of old times and ironically has the same misguided goal of making money or gold from nothing. Oh they're so well taught all  the formulas and the names of the various elements and the magical incantations to turn lead into gold. 

So we can say these people are highly educated and thus not stupid but when their education is essentially a system of rationalizations for how the world should work,  then they're just a bunch of very dangerous charlatans!

Blood letting anyone??? 

Spigot's picture

My concern is that The Zero will want so desperately to humiliate the Repubs that he will escallate the rhetoric to the point where there is no possibility of any negotiations. Then he will tell Lew to miss payment on some obscure debt, maybe a $100 million payment to something that will hurt the Repubs the most, like their retirement funds. It will get played as a "default" by the US Government. It will end up igniting a firestorm of insecurity and selling in the US$ abd US Bonds.

Oopsie!

Zero will try to blame the Repubs for this but the whole thing will be revealed as his petty attempt to be "the man". After that the entire globe will recognize his psychopathy and incompetence. Once that sets in all hell will break loose.

NoDebt's picture

Obama doesn't care about Republicans.  He doesn't care about Democrats.  He doesn't care much about scoring political points  or what things look like to anyone with half a brain since he's not going to be up for reelection.  He was taught one line of thinking:  overload and bring down the system.  Which is what he's doing.  Strangely, the banks never seem to feel the brunt of his policies, though.  Odd that they haven't, don't you think?

 

LetThemEatRand's picture

"Strangely, the banks never seem to feel the brunt of his policies, though..."

Strange indeed that a socialist Marxist consistently does what benefits the bankers.  Hmmmm.

eatthebanksters's picture

So the passage of piece of legislation as far reaching as Obamacare using reconciliation is representative of a fair democratic process?  And then why Mr. President, do we e offcials to office?  Is is to represent the interests of their consitiuents or is it merely to rubber stamp the legislation set fort by the majority party?  Where the fuck did you learn about consitutional law?  Harvard?

nmewn's picture

"Democracy" is great huh?

All 50% has to do is bribe a single fence sitter (and they always know who they are) to get that one extra vote...like the CornHusker Kickback...to impose your wishes on a 100%.

Its like the tyranny of the majority or sumpin ;-)

Tigerbait's picture

and the Louisiana Purchase.....

SunRise's picture

What's also representative of a fair democratic process is that the Constitution says Funding starts in the House.  There's a good reason for this balance!

olto's picture

Spigot:

 "After that the entire globe will recognize his psychopathy and incompetence. Once that sets in all hell will break loose."

Except for the US, "the entire globe" already recognizes "his psychopathy and incompetence".

All hell broke loose in 2008 when the Congress was slapped down in the coup of '08, and--------is still running wild and very hot.

We are not waiting for the 'collapse'----we are in the collapse!

Spigot's picture

Olto, Your points well taken. Death is death, its how you get there. So far we started out chain smoking via Reagan. When Clinton went for the Weed in 1996 we entered the gateway. Bush gave us uppers. SInce 2008 we've been main lining under Zero. But you can only go so far. We're half dead on the gutter curb right now. But the truck that is about to clean our clocks will definitely finish the job. But you are right, dead is dead.

olto's picture

Thanks, Spigot

Let's have another cup of tea, shall we?

yogibear's picture

Old Yellen is a ditzy Jewish American Princess. No original thought inside her skull.

prains's picture

Yes, she'll retire to a little hobbit house with doors 2 ft. wide and 2 ft. high

Zero Point's picture

Yeah, I heard that argument about Bush too... That he's not actually stupid, he just plays it up.

Nah, he's just stupid. It really is that easy. Not stupid enough to ever cross the guys that supply his coke, and smart enough to put on his own suit (probably gets someone to tie the tie though).

In fact, the low grade of fucking moron "running" the world right now, is a sad indictment of what the true powers think of our collective intellect.

In short: They think we're a pack of retards, and they're not often wrong.

Oracle 911's picture

Do you ever heard the term "useful idiot"?

Because that is what Yellen is.

Debugas's picture

actually the opposite is true - she is very smart since she was able to "invent" a variaty of reasons not to deflate the real estate bubble

rtalcott's picture

"That depends on what the definition of is is."

 

Edit:  OK...yes reading the above I agree....'effing corrupt dirtbags.

j0nx's picture

Yeah they tell me she's got like a 180 IQ and shit. 180 IQ and still can't figure out what the word 'patsy' means I guess.

Bangin7GramRocks's picture

"We are like totally fucking serious about this! I'm not kidding. We will do it man! Really, no bullshit this time!"

darkstar7646's picture

You see, here's the problem:

Polls presume elections take place.

What if the Tea Party basically says that the country is finished, one way or the other, so either they win (and the country loses order quickly by November 1), or they no longer exist (made into a terrorist organization, as I believe they should)...

It doesn't matter if your approval rating is zero if there's no more voting. They never stopped the sequester, and now they have less than 96 hours left before X-Date.

Then, do they get the two weeks in interim to figure out if it's going to happen or not...

Everybodys All American's picture

Face it Boehner you can't negotiate with lieing assholes like Reid and Obama.

nmewn's picture

Hang tough TP, we got your back outside the Beltway. If the Imperial Guard won't negotiate the terms of its surrender...burn it down around them.

They're suicidal anyways ;-)

NoDebt's picture

In a bygone era my family were active supporters of Oliver Cromwell.  Why did I just think about that?

 

nmewn's picture

Something to do with a certain death warrant, no doubt ;-)

NoDebt's picture

Yeah, there's good reason why my family, what was left of it, headed for the new world.

Element's picture

Even if this went well from here, good for a couple of notches of downgrade? ... wotcha reckon?

nmewn's picture

As it should be.

Government doesn't have rights, people do. Government only has laws & restrictions & regulations & mandates & bureaucracies to enforce them, they are not omnipotent.

To the US government debt holders I say, you chose poorly, you'll just have to get over it. It was a bad decision on your part. Don't compound the error by supporting a tyranical government aligned with your financial interests.

It pisses us off ;-)

Parousia's picture

So you mean that it's not a good idea to loan money to an entity that's $17,000,000,000,000 in the hole CURRENTLY, and has bills coming due to the tune of $100,000,000,000,000 and expect to make money on this loan?  If that's the case then you probably also think that, should you be employed by this entity, you shouldn't always expect to get paid (on time).  

Debugas's picture

if it can print money out of thin air why not ?

darkstar7646's picture

Then start it. (Not joking, not angry at you (except I think we're done with the "talking" phase...))

If you really believe that, it needs to start before you're the one that gets gunned down, because, here's the shocker to you: Most of these people understand they're probably dead anyway if SHTF, so they will have no problems taking you with them.

Do they get to dictate terms, or do you?

Cursive's picture

@Everybody's All American

I can't speak for the rest of the country, but in my little corner the majority of people never wanted Obama, would love to see him go and, when not working, are preoccupied with college and pro football. A little sad, yes, but nobody and I mean nobody that I know cares about shutdown and/or possible default. And why should anyone care? Everything has always ended up perfectly fine before, so it always will. This is the problem with the nanny state. When the little consequences have been suspended, the catastrophic consequences are all that's left.

The Shootist's picture

Just do it. You won't do it. Come on, do it.

lolmao500's picture

... so that way we'll make even more money trading with our insider trading! MWAHAHAHAHAHA!

HOLD THE FUCKING LINE YOU FUCKERS. NO FUCKING DEAL.

drooley's picture

One guy is to blame for most of this.  All Obama has to do is delay Obamacare by a year.

LetThemEatRand's picture

He knows he doesn't need to.  The Red Team is 100% in the pockets of the bankers just like the Blue Team.  The Reds are posturing about Obamacare to get your vote.  They want to raise the debt ceiling because their owners want them to raise it.  The rest is pure fiction designed to get your vote next time around.  Don't fall for it.  

nmewn's picture

Not ALL the Reds Rand, not all.

There is a sub-group of Reds that knows life as WE know it will not end without another handout to Wall Street corporations & DC. Just as the parasites of Wall Street & DC know it, that their lives WILL end, as they knew it, without the force of a bad law driving young peoples money into ObamaCare DotCorp.

Pretty much everyone is aware of what this really is.

LetThemEatRand's picture

Fair enough.  Same is true of a few Blues.  Kucinich was against the bailouts, for example.  But those guys have become fringe and they are all universally marginalized and demonized by the MSM.  My point is that we need to get away from the Red Team vs Blue Team debate.  I should add "mainstream" Red and Blue to the equation.

nmewn's picture

Ya know, I've been looking at Kucinich. Despite some of his unorthodox views (UFO's and whatnot) he usually comes down as a civil libertarian...when he's not promoting a welfare state.

Believe or not, thats a compliment to Kucinich from me...lol.

And no, I'm not interested in debating 2,000 year old batteries, Mayans or how in the hell the Nazca Lines were drawn by a primitive people ;-)

LetThemEatRand's picture

Pelosi is an alien.  There.  I said it.  She sure as fuck isn't human.