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Why The US Running Out Of Cash In 4 Weeks Is Good News
Over the past several weeks, Americans (not to mention the market) were forced to grapple with the latest example of congressional infighting and outright legislative gridlock as US lawmakers narrowly averted a government shutdown in the wake of House Speaker John Boehner’s surprise resignation.
Now, the debt ceiling battle looms ahead of Boehner’s October 30 exit and according to Treasury Secretary Jack Lew, the US will run out of money to pay its bills far sooner than originally expected - November 5, to be exact. Here’s WSJ:
The government will run out of money to pay its bills sooner than previously thought, forcing Republican lawmakers who are already scrambling to elect new leaders to immediately confront a series of unpopular fiscal deadlines.
Treasury Secretary Jacob Lew said the government would be left with just $30 billion cash on or around Nov. 5. Government outlays can be twice that level on certain weekdays, underscoring the need to raise the federal borrowing limit, Mr. Lew said in a letter late Thursday to House Speaker John Boehner (R., Ohio).
“Without sufficient cash, it would be impossible for the United States of America to meet all of its obligations for the first time in our history,” Mr. Lew said in the letter.
The new debt-ceiling deadline falls less than a week after Mr. Boehner will leave Congress, putting pressure on him—and an incoming Republican leadership team—to pass legislation raising the limit before that transition. Some congressional estimates had indicated the government could get by without action until December. Traders and Wall Street analysts are watching the timeline closely due to the turbulence that hits financial markets as debt-limit deadlines approach.
And so, the stage is once again set for GOP lawmakers to use the debt ceiling as a negotiating tool in an effort to extract concessions from the White House while the rest of the world looks on incredulous at the spectacle the US creates when its lawmakers effectively blackmail themselves by threatening to force the nation into default in order to secure a bit more bargaining power.
Of course this never ends well and only serves to i) undermine Washington's credibility with the rest of the world, ii) increase market volatility as investors can never completely rule out the possibility that this time around, someone might actually make good on their threats, triggering a technical default somewhere, and iii) further destroy the government's credibility in the eyes of voters to whom the entire thing appears completely absurd. Note that the latter point there speaks to why Donald Trump is polling so well in the GOP primaries - the electorate is simply fed up with lawmakers' inability to do what they were elected to do (i.e. legislate).
In the end, the result will likely be the same as it always is. Some last minute can kick will ensure that the US doesn't default and the debt limit will be raised to a number that's even more meaningless than it is now, ensuring that America remains on track to eventually compete with Japan for world's worst debt-to-central government revenue ratio.
And as if the whole thing weren't ridiculous enough as it is, consider this bit of counterintuitive silliness: the fact that the timetable for an unprecedented US default has just been moved up by a month is actually good news this time around because it means that the negotiations will likely be presided over by Boehner as opposed to his successor and because Boehner will be out the door at the end of October anyway, he'll be free to negotiate in good faith.
In any event, we suppose it's best to just give the last word to Goldman since they're probably the ones who will end up making the final decision anyway.
From Goldman
USA: Earlier Debt Limit Deadline Might Lower Risk of Disruptions
BOTTOM LINE: Treasury Secretary Lew has notified Congress that the debt limit will need to be raised by November 5, earlier than expected. This increases the probability that it will be voted on before Speaker Boehner leaves office on October 30, which would reduce the risk of a disruptive last-minute increase in the limit.
MAIN POINTS:
1. In a letter to congressional leaders, Treasury Secretary Lew has indicated that the debt limit will need to be raised by November 5. This is slightly earlier than the mid-November deadline that we had recently estimated and is due, according to the Treasury, to a combination of slightly weaker-than-expected estimated taxes in September and higher-than-expected obligations associated with certain trust funds.
2. This earlier deadline raises the probability that the House will vote to raise the debt limit prior to the time Speaker Boehner steps down on October 30. If so, this would reduce the risk of a disruptive debate on the issue, because Speaker Boehner is more likely than his successor, in our view, to allow a "clean" debt limit increase without the debate over extraneous issues that have delayed enactment until shortly before the deadline in the past.
3. By contrast, this reduces the probability that the debt limit would be dealt with as part of a broader fiscal negotiation that also includes the extension of spending authority past the current December 11 expiration. Such a scenario would presumably involve negotiations over spending levels and other matters that could create significant uncertainty in the period leading up to the deadline, similar to the experience in the summer of 2011.
4. That said, the path forward for increasing the debt limit is still uncertain. There has been no indication yet from congressional leaders on how they plan to proceed with increasing the debt limit in light of the new deadline. However, we recently noted the possibility that legislation to extend the Highway Bill, which expires October 29, could be a vehicle for other items, including the debt limit, and today's announcement makes that a bit more likely, in our view.
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Without debt, there is no fiat money!!!
A debt is an agreement between a lender and a borrower. The lender agrees to transfer the possession of their money to someone else without transferring the ownership. The borrower agrees to transfer the possession of the money back to its owner and they agree to transfer the ownership of more money back to the lender than was borrowed. It is in the interest of the lender to receive more money in return for forgoing whatever else they could have done with the money had they retained possession. It is in the interest of the borrower to return more money to the lender then they received as the extra payment they are willing to return for the ability to obtain the total amount of money now instead of having to obtain it incrementally as they work for it.
If the money loaned already exists then the debt is good. If the money loaned did not exist but was created to make the loan possible, then this is counterfeit, not money, and the loan is bad. To lend money in order for the borrower to produce more money is investing. To lend counterfeit in order to not have to lend money is theft. A good debt must come from money, the representation that productive work has already been performed. A bad debt does not come from any productive work and its purpose is therefore to steal from productive work that someone else performs. Debt issued that is not represented by productive work that has already been performed but instead is represented by the promise that future productive work will be confiscated is bad. When a government issues a debt not underwritten by existing collateral and the same government, or another, purchases the debt with currency that does not already exist but is created to assist in facilitating the transaction, then this is the sanction of both forms of bad debt in one transaction. It is the combination of robbery and theft. Bad debt facilitated by governments is the method of bad people who have gained control in order to plunder the citizens.
Once upon a time, good people gained a control by investing in the citizens. Money was loaned, vested in the borrower, as the means for the borrower to create more value than was loaned. More productive work would have to be performed in order to return possession of the money loaned to its owner. It was a win-win-win exchange. A win for the lender who invested money to earn money. A win for the borrower who used the money to make money. A win for the third party who traded money for the value produced by the maker of money from the invested money.
Don't forget that when the Federalies "shut down" the vast majority of the federal gooberment keeps on functioning. Period, EOC.
They close down roadways with scenic views, parks, and the shit that'll really annoy the public, accompanied by a massive hue and cry by the media that all's gonna go to hell in a hand bag and ISIS is gonna take over the health care system or Twinkies will rot on Compton's liquor store shelves or that some illegal immigrant will not be shipped back home but instead be housed costing $3,000/mo which is what woulda happened anyhow.
In fact, from the standpoint of reality, there's nothing wrong with the Leviathan being "shut down" except that in reality it doesn't "shut down".
All Kabuki Theater
The Walking Dead, anyone?
In other words...
"Print Moar, Bitchez".
(double dog-dare you)
"Note that the latter point there speaks to why Donald Trump is polling so well in the GOP primaries - the electorate is simply fed up with lawmakers' inability to do what they were elected to do (i.e. legislate)."
Son of a bitch! The LAST thing I want these motherfuckers to do is legislate! What they NEED to be doing is throwing out every damn bit of federal law, virtually the entirety of which is a foul grotesquery.
Remember, remember the fifth of November.
We need to pass this funding now because...Terrorists.
I say fuck off. What a bunch of fucking bull shit theater. Why don't you guys all just fucking go home and the world will be a happier place?
"BOTTOM LINE: Treasury Secretary Lew has notified Congress that the debt limit will need to be raised by November 5, earlier than expected. This increases the probability that it will be voted on before Speaker Boehner leaves office on October 30, which would reduce the risk of a disruptive last-minute increase in the limit."
How convenient the deadline is artificially moved up to coincide with Boehner's ability to squeeze out another one.
Shut It Down ! (Dark City)
I do think that there's's more Time and Price to the Downside for the S&P500.
1987 lasted 61 trading days, 2011 took 66 trading days. Currently, 2015 takes 56 trading days.
Price also suggests a Lower Low will be seen in OCT: specific dates are OCT 8-10, OCT 16-19 and OCT 29-NOV 1 to expect a short term change in Trend.
http://tripstrading.com/2015/10/03/sp500-1987-vs-2011-vs-2015-pattern-of...
More like, Fear of The Walking Dead.
It delays the opening of the IRS efile window. Who uses that in January and February? People who are filing for a refund.
Hopefully those sheep will learn what a refund is some day. An ass fucking for the 14 previous months.
Just raise the debt ceiling 50 trillion so we don't have to worry about this until 2025....hit the send button Lew, that's all it takes
Good post, knukles. That is exactly how the game is played. When your government at any level complains about too little money they shut down everything you enjoy or need. Going to the DMV for your mandatory government papers? They will cut the clerks from eight to one and close two hours early. Then the nice fellow citizen called a "cop" will pull you over for expired tags. The parks will shut down. The potholes will multiply. Every teacher but no administrators or grief counselors will get laid off.
Call the bluff and see how the government defends itself. You will find the absurd proposition of a government that can spend trillions and actually provide no services whatsoever. Fire every single teacher, provide no education (or babysitting) and you will see that the system still spends eye bleeding amounts with 100% full retirements.
Give up the religion of government. Break the psychological dependence on mommy-government. We really don't need them. They need us.
What was the middle part?
ZH tweeted out "S&P just downgraded a bunch of junk-rated shale companies, puts chevron on outlook negative" an hour ago and I've yet to get any follow-up on this and am getting no search engine results.
Can we get an article on this? This might be a big deal coming up on Monday. It would explain why they pumped energy stocks up so much today, right before the big dump.
Come on, Joey, just go to S&P .....
http://www.standardandpoors.com/en_US/web/guest/ratings/ratings-actions
Thanks for this. I don't know why I didn't just decide to go straight to the source upon finding no news articles about it.
Still looking to the media for answers? Try Afghanistan and your town's heroin problem.
"Tonight we investigate where all the dope is really coming from and how The xyz Company are involved." You will not see that debate televised.
And a big note on that site:
S&P.com will be conducting routine maintenance Friday at 8pm through Sunday at 5pm, EDT. Site performance may not be optimal during this time. In addition, there may be a period of time when there will be no ratings updates. We apologize for the inconvenience and thank you for your patience.
This is the same horse shit every time...
Oh my god we are going to fail to pay our debts....big fucking deal. This shit is so old...the shit is as hard as marbles. This is the wash and repeat for eternity. There is no way out...except one. Trump 2016 Motherfuckers. He will fix this shit. Tax the fuck out of foreign shit coming in here just like they do to us. When I visit Costa Rica..guess what the government tax is on cars coming in from around the world ?? 100%. Yep A new FJ Cruiser is $77,000. A Kia Rio is $17,000 plus $17,000 tax. That is the way it is. Say you want to bring a pool table. The pool table is made by Brunswick in the USA. It is $2400. add $2400 tax to the government because it is not made in their country. You want chinese crap...add a $100% tax. And collect the tax at the point of ENTRY. Not at the cash register. The tax is paid at the wholesale import level. It does NOT get unloaded onto a U.S. dock until the tax is paid. Make that fucking dollar store the $2 store. 100% tax on the garbage. People will bitch for 2 weeks...and that is it.
Boner staying in to screw libertarians and conservtives just one more time!
*** Without debt, there is no fiat money!!! ***
Not True. The fiat money is issued debt free.
The problem is not the fiat money, which, comparatively, there is precious little of, the problem is fractional reserve banking, and Fed and bank generated credit being used as if it were money.
Our fiat money, Legal Tender, is defined by law. Specifically Section 31 U.S.C. 5103, it's a short paragraph. In it, you will not find the credit generated by the banks or the Federal Reserve listed. In point of fact, there is no law anywhere that grants to either the Federal Reserve or the banks the authority to create money. There is no law anywhere that designates or acknowledges the credit they do generate as being money or even a currency. The United States Federal Government owns the Legal Tender, it owns the money.
Extrapolate that.
You've been lied to and propagandized on the subject of money and fractional reserve banking for years.
Learn the truth.
http://carl-random-thoughts.blogspot.com/
What Lew was actually saying was this:
"Sorry Mr. Obama, we stole from every place we could think of and even got help from the Fed and we were not able to make it to where you left office"
See what you guys need to do on your next budget is this.
Classify the entire federal budget as an insurance program. That way you can claim you are not going to spend anything. Then when you do spend that 3.8 trillion it does not have to show up as government spending (just have the Fed print you some monopoly money and slide it to you under the table)
Why go half assclown when you can go full assclown?
The Fed is using it's "tools" to fight demographics although it's a battle the Fed can't ever win...and demographics get far worse over the next decade.
http://bit.ly/1Kzcfrc
This is the worst recovery in US history...not a single net new full time job created since July 2007 while population increased by 20 million...55+yr/olds took 4 million full time jobs all at the expense of the 15-64yrs/olds (article still showing last months #'s).
http://bit.ly/1iRVilg
But looking for market forces to be allowed to determine price between willing/able buyers and sellers just doesn't seem likely. The chasm between current valuations and reality has grown far too wide...these are to the level of national security issues, unfortunately the only place true capitalism lives anymore are the history books.
There has been $400 to $500 billion in spending absent debt issuance. The bill will come due when the debt ceiling is lifted...just as nearly all sources of buying are backing away...this is setting up NIRP and rather than write a book here...you are welcome to read the latest post of why this "recovery" will be extended by NIRP.
http://bit.ly/1iRVfG4
What happens from there...fuckifIknow.
ham, w happens from here? : cue japan, debt to gdp can keep rising until? that is the question every mathematician would like to answer. if rates go true zirp and approach nirp, doesn't the total debt become just a number? why yes, no cost to carry cept an army of number crunchers in dc. so this 20trillion balance sheet entry is meaningless. keep rolling the due notes and adding moar. and do you or i think this can get out of control(rates rise by market forces)? , huh, not when they control the market. at least for the forseeable future. so all this fretting over the debt limit is dooms day porn for the centerfold deprived individual...
and as a side note, the treasuries are leveragable currency to be used in the markets as further control of an outcome(derivatives-moar doomsday porn). ask the squid if you doubt my thoughts...
The absolute best thing that could happen for the people of the woirld is for the USA federal government and their massive debt to shut down and not reopen. Each US state can handle their business .
if the feral reserve via the feral gubmint lifting the debt ceiling gets more money, you may as well put your money in the stock and bond market because that's where it will go. they have no interest in jobs, the economy or anything else. they will ride this bitch to the end. all current strange rises in the stock markets are the fed banks expending their capital to keep it afloat until the debt ceiling limits are broached under orders of the fed who have limited capital to pump the markets.
Life without USURY
''The greatest displays of a nation's wealth, its cathedrals, were built during the Middle Ages. The skilled labour used to construct the cathedrals was mostly volunteer labour. Labour was donated to the church to perfect skills, learn or upgrade new skills. How could such labour be donated? At the dawn of the age, the usurers were driven from the land. Anyone on either side of a usury contract was given thirty days to cease and desist. Failure to comply meant expulsion from the land and the denial of the right to a Christian burial. Usury dried up and blew away.''
http://studimonetari.org/articoli/lifewithoutusury.html
Really, Usurious? Adam Smith, the Austrian Economists, and the evidence of capitalism is unwarranted?
"I am now convinced that if we as a people can abolish usury from our society as our forbearers did in Europe seven hundred years ago, we will leave our children and grandchildren a circumstance where they will be able to make a society that is prosperous and just, peaceful and plentiful. If we cannot as a people banish usury from our nation, we will condemn our children and grandchildren to a world of poverty and tyranny. It will be one hell of a fight where as Salomon P. Chase said: "The people will be arrayed on one side, and the banks on the other, in a contest such as we have never before seen in this country. " - http://studimonetari.org/articoli/lifewithoutusury.html
your quote is not inconsistent with the previous. Two perspectives.
My quote is from the conclusion of the link of his quote. Two perspectives, same article?
Usury is good.
Noah Webster in America and Jeremy Benthem in England did more for the wings of capitalism than anyone else.
I would not say usury is good but rather inevitable. I just do not see what the big deal is over this debate.
In the context of state fiat, usury is just the math of what they are doing to you anyways.
Usury is code for cheesepopes? It sounds like it.
So here is the definition of usury:
the lending of money with an interest charge for its use; especially : the lending of money at exorbitant interest rates
3 : an unconscionable or exorbitant rate or amount of interest; specifically : interest in excess of a legal rate charged to a borrower for the use of money Bold emphasis is mine. First the definition and I expect most people's use of the word is full of subjectives like exorbitant, unconscionable, etc. My idea of a high rate might be rather different from my neighbor's. If I'm pretty certain my purchase of capital -remember folks interest is THE PRICE of money or more fomally CAPITAL- will lead to HIGHER profit then I might be inclined to buy that undervalued (ATMO) home that I believe will appreciate over time with some crazy rate of say 6% which these days might be considered unconscionable or exorbitant considering ZIRP and that home loans yend to be around 4%. IF YOU CAN GET ONE. Second brings me to RISK. Oh yeah, there's that thing. And while I'm explaining this rather econ 101 bullshit does anyone want to consider that financial intitutions PAY interest (okay it's been a while so I forgive anyone who can't remember back a couple decades when any idiot could get 5% COMPOUNDING on even the lowest of deposits-no, wait I do not forgive you as if you cannot understand this you are a fucking idiot and we all know what happens to fools and their money) for the use of capital? Without the risk component and the PROFIT MOTIVE to move capital this little experiment would seixe up. Hey, wai, what? Seize up? You mean like NOW? Like our grinding (okay it fully grinded and stopped) to a halt economy that is really in free fall? Oh, shit. Yean, oh shit. Look people no one if forcing anyone to take on visa card debt at 22%. And frankly anyone paying that is a fucking idiot because it can easily be negotiated down to ZERO over time if you know what you are doing. I've done it mulitple times and against the 2% inflation TARGET that is really more realistically 5-6% compounding yearly the tiny one time fee I paid still leaves me way ahead in real purchasing power. Thanks Jamie Dimon! Fucking moron. Maybe that's why HIS balance sheet looks like shit. Just see what The JP Morgue actually OWES. But I digress. Intrest rates are just PRICES.@ artless. Usury: You have one of the definitions of usury correct. Usury in biblical times simply meant interest, even minimal simple interest or fee, charged to the borrower. It's good to know this, in the event you are referencing the term in use in ancient history.
it is ODIOUS. It is USURIOUS. Deny IT.
shh, don't bother me I'm watching the Bubble Guppies cartoon with my kids... not sure if Huxley is getting royalties but he should...
default now , default later, but we will default
The federal government hasn't had a budget now for 7 years running - which is mandated by the Constitution. If that doesn't matter then is it really important they raise the debt limit? This government always picks and chooses which laws/mandates they want to abide by. Nothing matters to these people - it's one big fucking game to them.
BINGO!
It's all Kabuki Theater
BUT BUT BUT BUT Don't forget, the shutdown will cause a recession and give Janet an out to ease .....
Our leaders are smarter than the founding fathers, above the Constitution and the law. So we can leave it all in their able, problem solving hands and relax, right? US citizens followed TV orders and chose the most capable junior senator from Chicago they could find and gave him two terms. He in turn chose the most capable department heads the world has ever seen for the EPA, Department of Defense, Department of Education, State Department, etc. and on and on. Everything's fine. Have a nice day. Don't forget to take your pills.
I nearly threw up in my mouth when I watched the arrogant asshole-in-chief lecture Congress on getting a budget where "No one gets everything they want." meaning "I get everything I want". He had all three branches with his leftist BS party and they never did a budget. The leftist press falls for the head-fake every time. It's always the Republicans fault as long as even one in in Congress.
We should run out of a government too while we're at it. We'd be better off.
This is a load of bullshit. The Federal Government takes in more than enough money to service the debt. Have these assholes ever heard of an interest only loan? Of course they have. And of course they know they take in more than enough money to pay the interest on the debt. Of course they would have to quit spending money they don't have on crap they shouldn't be spending it on but there is not reason for a default. They use this as a threat everytime to raise the debt ceiling and for some reason 90% of the so-called experts buy it. Local school districts do the same thing when they want a millage increase. If you don't vote for it they threaten to get rid of the buses and sports. It's extortion. What a joke.
Same ol same ol, media will ring its collective hands at the thought of a government shut down, Social Security checks won't go out (although Welfare checks will be on time as always), and at the last minute a deal will be reached, because at the end of the day, the government needs us more than we need them, just like the banks and Wall Street.
"The Federal Government takes in more than enough money to service the debt."
Don't forget to mention that the debt that is issued is uncollateralized! The "collateral" anchored to it is the confiscation of the future productive work of the citizens.
At the very, very, very, very least, stop issuing debt that is only collateralized by the promise to shake down the citizens?
Why does this site insist on double posting sometimes? Anyway, f the government and their default threats.
Not happening. The "deal" was to get boner out before this. It still works and "his party" doesn't want him around for this particular issue. Why? Time will tell. The appearance would be they intend to block the increase whereas, of course boner would increase it without a fight.
Lew moved the date intentionally
We're not living in a fixed exchange rate system since 1971, so there is no limit to what we can spend. Pretending that money is scarce is the *whole cause* of our current predicament.
Stephanie Kelton estimates we can spend 10 billion per day without hitting the limit of our aggregate demand and driving up the price of goods. Recessions and depressions are self-imposed policy choices.
Read Keen, Hudson, Blythe, Kelton, Mosler, Vague and Mitchell.
This graph explains why public sector spending is our only hope:
http://imgur.com/iwb41oy
A study by the Cato institute revealed that the 56 historical episodes of hyperinflation were due to political crises and instability, and not deficit spending (see this interview with Kelton). It may be counter-intuitive, but the whole idea of 'tightening our belts' is the very thing that is destroying our economies!
Pretending that Keynesian Klownism and Monetarist Moronics are anything more than the baffling baloney of con-artists is the *whole cause* of your inane postings.
Well then why didn't $14 Trillion plus injection into banks help the economy?
Why hasn't trillions in government entitlement spending lift the ghettos out of poverty?
I hope you are being sarcastic.
Do you know what would help me? Spending $500k I don't have. I'd be able to live like a king. As long as I can keep expanding my credit line to pay the interest on my debt, I'd be fine.
If I could do thisnfor 50 years, hell I'd be golden.
I guess that is the secret to life. Never actually pay for anything and just use credit to pay the interest on the debts.
So why don't banks give everyone unlimited credit?
Could it be that nothing would ever be made because everyone would want to buy everything their heart desires, but not want to work to actually make anything?
I think I just figured out what is wrong with the economy. Everyone wants everything, but isn't willing to work for the money needed to buy it. ESPECIALLY THE WALL STREET SET. Even the young ones only expect to work hard for a couple years before they are lavished with millions of dollars they can't ever truly spend.
Gimme Dats fed by fraudulent fiat. It only ends one way. Hyperinflation caused by foreign abandonment of dollars. Not over printing by banks who have an interest in the health of their debt slaves. At least, to the extent they can't get gov. bailouts, which will helps lead to this abandonment that's already happening.
lol...does anyone seriously think that hard-statist-left and boner-statist-lite will not come to an amicable agreement to...as the prog meme goes..."increase the share OF DEBT put upon on the middle class" via devaluation?
Its a fucking lock.
There might be some squabbling over the 500 billion the government is already over the limit and how it is reconciled.
Or they could just do what the California Franchise Tax Board did each time it was trapped after a recession...
Commit fraud.
I always thought the IRS/Treasury would never go there, the US being a sovereign nation and all with control of its currency(or not?).
I might be mistaken in my thinking.
Sad times...
I think we should just borrow another monopoly game box and take the cash from it and put it all in the bank of the current game we are playing.
No matter what the .gov does about the debt, I'm certain we will all miss our period
so sick of all these idiots claiming that the government will default. the fact that they get articles published while making these bizarre claims is astonishing. servicing the debt comes off the top you idiot. force the government to operate on what they can steal from the citizens .. believe me, it is plenty.
Is any of this real? Just a 100% useless congress that will do whatever it takes to keep the fools happy so they can get re-elected. We desperately need the Donald! The ONLY candidate who will say "F*** You!, we are bankrupt and we are not spending one more penny than we have! No one else will do this. Nineteen TRILLION in debt and they want to raise the ceiling AGAIN.
No, a revolt will never happen so long as the handouts continue...get over it. More entitlements, more wars, more defense spending...
What a waste, gotta get Trump into the White House!
"because Boehner will be out the door at the end of October anyway, he'll be free to negotiate in good faith. "
Pfft. The only thing Boehner is going to negotiate in good faith is how many zeros will be in his pension on the way out as a result of his screwing the populace in negotiating yet another raw deal.
Boehner is as Boehner does.
Boner(resigned) resigned because either way his ass was barbequed.
The assclown McCarthy is an even bigger village idiot, will attempt to carry Boners legacy until the '16 elections.
Why has the debt ceiling been locked for almost 5 months? All the cash on hand for "extreme spending" has been exhausted, and Boner gave the extension based on his resignation from congress, in hope(s) that the debt ceiling would be raised.
We have a bunch of financially illiterate PIKERS attempting to manage Trillions of dollars debt that has been put on the backs of our children.
Marco Rubio as an example. [Presidential candidate?]
Does Rubio have a spending problem? - The Washington Post
Marco Rubio’s Career Bedeviled by Financial Struggles - The New York Times
What happened to Puerto Rico Marco? Too busy dealing with Castro & Co.?
Yeah, I do not know much about McCarthy but if he is in the "nice" middle establishment Republican wing we are in for even worse things. We need someone as tough as Comrade Obama and smarter...which really should not be hard to find.
The only "good faith" negotiation Boner will be engaged in is how to maximize the payoff to himself.
ZH has really jumped the shark suggesting Boner will be negotiating in "good faith". He won't be representing his party and he won't be representing the electorate, just looking to get his bag filled on the way out the door.
But if you take stuff from GS you have to expect to present trash.
Any enterprise that pubicly announces that it will default if it can't borrow more is in reality proclaiming to the world that it's running a Ponzi scheme, which is exactly what the criminals in D.C. are running.
All Ponzi schemes fail eventually. The dollar Ponzi will be no different.
That's actually a very good point.
I know. I'm going to try calling all the creditors for my plastic and try the same thing. I'll keep everyone posted on how well it goes.
The government is illegitimate and operating illegally in the open since Obama was elected. They shouldn't have been able to spend one dollar because they have failed to pass a budget in six years.
Once again law doesn't matter.
"Therefore he who bids the law rule may be deemed to bid God and Reason alone rule, but he who bids man rule adds an element of the beast; for desire is a wild beast, and passion perverts the minds of rulers, even when they are the best of men. The law is reason unaffected by desire." - Aristotle, Politics, Book 3, part 16
THEY HAVE A FUCKING PRINTING PRESS, AND ALL THE ELECTRONIC DIGITS THERE IS! DEBT IS JUST A GAME TO ENSLAVE US.
The Government of the United States of America will borrow moar money in the name of growth so that you will go to the God damned Bank and borrow moar money to purchase Christmas presents for Christmas. The stats indicate that your disposable income can't cut the mustard this year, and that you will indeed have to hit up the God damned Bank just like your Welfare State Government that would have no Christmas if it decided to postpone the decision to draw you further towards Chapter 11 bankruptcy.
Enjoy your last turkey supper.
Merry Christmas, America.
:|
US is bankrupt no matter what... just declare bankruptcy... Donald will do it anyway when he gets in..
buy rice... a bowl of rice per day will keep you alive... ask asians
good luck
Cut EBT, SS, and Medicare benefits in half. Then sit back and watch it all burn.
YES!!! Thank you SO MUCH! This is EXACTLY what we hear from the Americanos who have fled USA and are now living here in Singapore. Contrary to what USA media publishes, they are NOT leaving because of taxes, but because of the threats to their lives, as you mentioned.
We all know that this Ponzi schmeme can't go on much longer. Now that China is also going bust, you have the world's two largest economies about to go on the skids. THIS IS A BIG THING, despite all the attempts to make everyone think it is otherwise. And when the money finally stops flowing and the entitlements are cut off, OOH BACHA (Baby), watch out!
It all BS. Now Boner can negotiate in good faith--BS, Boner is totally incompetent. The majority of the $20 trillion in Treasury debt was mis-spent on enriching the MIC (how are those $700 hammers working?), undertaking Black Operations, supporting needless federal workers, waging war on false pretenses, enlarging the domestic spying and surveilance complex, militarizing the local police, poisoning the water and foods, promoting poisoned vaccines while relieving the drug makers of all responsibility, creating 40,000 regulations that are impossible to know or administer, building indoctrination centers (i.e. public schools) and setting their indoctrination policies ("No Child Left Behind" = all children degraded), the war on drugs embedded with the prison industrial complex, the limitless and undefineable war on terror, false science (EPA, FDA, NASA, etc.), false flags, the FSA, the too big to jail policy, constructing and outfitting bunkers for the elite/continuiety of government, and corrupt practices of the administrators/politicians/justices in all branches of the federal government whose only focus is to enrich themselves. Necessary first step: declare the $5 trillion in Treasury debt held by the FED NULL and VOID and END the FED.
NASA rules.
700$ Hammers?
When I worked on armour, they kept the 700 and got hammers at the swap meet.
Time and time again USA has this problem and time and time again it is solved only temporarily.
This all tells us that the end is certainly near. I predict in the next 2-3 years will be the grand finale, with China also bankrupt and possibly breaking up like USSR. Things are not going to be rpetty anywhere in the world. But USA and China will be absolutely bedlam. This is why so many are leaving these two countries.
Ha, this is because I said to hell with it, scaled back my business and spend more time on myself and family. This has reduced the amount of taxes the government steals from me at the point of a gun. I didn't realize I was supporting the entire .GOV but it sure felt like it and now it is confirmed.
I fully expect to be SWAT teamed and forced to work harder in order to generate more money for my government overlords.
And thus uncontrolled immigration; replace pissed-off American citizens with subservient, naive, ESL, tax donkeys. Bonus for H1Bs, work them on your plantation for 5 years with no worker autonomy, locked-in wages and tax rates.
Stop spending until the debt is paid off.
TEA PARTY sellout in 3... 2... 1.
Jacob Lew, Orthodox Jew
https://en.wikipedia.org/wiki/Jack_Lew
Janet Yellen, Religion Judaism
Ben Bernanke, Religion Judaism
https://en.wikipedia.org/wiki/Janet_Yellen
Running out of Cash
As the God of Central Banksters (Greenspan) said once, We can always Print more. So you can't run out of Cash, and with things turning Cash-Less, Cash is obsolete and replaced with Cards.
Count how many checkouts at the supermarkets are "Card Only"
Cash is not running out, it's becoming obsolete.
Scotty at the printing press: "She can't take no more! She's gonna blow!"