Trump Wants To End The Debt Ceiling, Schumer Agrees

Tyler Durden's picture

If you are wondering what is dragging the dollar down to 32-month lows, perhaps you should add this to the calculus...

Politico reports that President Donald Trump suggested to congressional leaders on Wednesday morning that votes to raise the debt ceiling could be done away with altogether, according to three people familiar with the conversation.

In a meeting with GOP and Democratic leaders, in which Trump sided with the Democrats on a fiscal deal to raise the debt ceiling, the president said he believes the votes are unproductive, those people said.

 

With Congress set to lift the debt ceiling into December as part of the deal, Trump floated the idea that the next time Congress votes to raise the debt ceiling, it could be the last.

 

He said conversations should happen over the next three months, according to people in the room.

President Trump has now added his thoughts, telling reporters "we have great respect for the sanctity of the debt ceiling,” as he meets with Emir of Kuwait. "There are a lot of good reasons" to get rid of debt ceiling altogether, Trump says, adding that he discussed it with congressional leaders yesterday, and adding that "there will never be a problem" on the debt ceiling.

The Dems, are of course, delighted by Trump's shocking U-turn:

Schumer said such a move could not be accomplished now, but indicated he would talk to his caucus about considering structural changes to the debt limit in December, a conversation Trump supported.

 

House Minority Leader Nancy Pelosi (D-Calif.) also appeared interested in the deal but was noncommittal. The debt ceiling is a key leverage point for members of the minority, particularly because it can be filibustered in the Senate and require 60 votes.

As WaPo confirms, President Trump and Senate Minority Leader Chuck Schumer have agreed to pursue a deal that would permanently remove the requirement that Congress repeatedly raise the debt ceiling, three people familiar with the decision said.

Trump and Schumer discussed the idea Wednesday during an Oval Office meeting. Schumer, Trump, and House Minority Leader Nancy Pelosi (D.–Calif.) agreed to work together over the next several months to see if they can finalize a plan, which would need to be approved by Congress.

 

One of the people familiar described it as a “gentlemen’s agreement.”

We suspect Reps won't be so happy...

Freedom Caucus legislators, angry about Wednesday's deal, promised a spirited fight in December over the debt ceiling.

 

Conservatives are unhappy that the White House and congressional leaders have agreed to raise the debt ceiling without spending cuts.

However, Orrin Hatch - Republican Senator for Utah and Chair of Senate Finance Committee - says he wants to abolish debt ceiling votes.

Translated: Trump suggests that there should be no constraint at all, not even the fiscally conservative pretense of the debt ceiling law, over how much debt the government can pile on the backs of future generations of Americans. If Obama can add $10 trillion, we are sure Trump can do "better."

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The_Juggernaut's picture

Bullish.  In dollar terms, anyway.

Stuck on Zero's picture

Accelerating a return to reality.

BaBaBouy's picture

""Trump Reportedly Wants To End The Debt Ceiling""

Excellent IDEA ...

$$$ Keynesian Paper Print Print Print Storms!

Goo Donald...

Perimetr's picture

What debt ceiling?

Since when do we have one??

Soul Glow's picture

So the self proclaimed "King of Debt", the man that invented the term "Prime the pump" wants to end the debt ceiling?

I am Jack's lack of surprise.

MillionDollarButter's picture

In other news, Wile E. Coyote reportedly wants to end gravity.

NoDecaf's picture

Lets see some negative rates too, pay me to borrow.

Ftw

Let 'er rip!!

Kotzbomber747's picture

Hahaha, de self-proclaimed King of Debt wants to add more water to the financial swamp? Why am I not surprised...?

Keep on dreaming Trumpfans, keep on dreaming!

tmosley's picture

Schumer is a total retard. The Dems have benefitted tremendously from holding the debt ceiling over Trump's head, bartering concessions for a few months extension each time. Now they are giving up their best leverage.

Wonder how Trump convinced them to acceed? They might just have been stupid enough to blunder into it.

chemcounter's picture

Totally agree. Democrats are the only people allowed to use debt ceiling as leverage so blow it away. Republicans in Congress are nutless so just start eliminating congressional powers. Repubs won't do anything about it anyway and then when the Democrats take over they will have less control.

robertsgt40's picture

Thesis,  antithesis, synthesis.  The Hegelian Dialectic personified. 

Ajax-1's picture

It's true that way too many in the Republican Party are nutless. They have squandered a generational opportunity to advance Conservative principles. I would love to see real Conservatives form a 3rd party and leave the Rino's to either join the Democrat Party or just die on the vine.  It's time to end the charade.

HopefulCynical's picture

They're not nutless so much as they've got Soros/Adelson/etc. shekels bulging in their pockets.

All they care about is the Globalist Bux.

slwsnowman40's picture

The GOPe only care about getting re-elected.  The Dems are betting the GOP Representatives will get voted out in 2018 with the debt ceiling and amnesty.

Trump thinks he's won, Dems think they won and are positioned better to retake the House.

cheka's picture

repugs and dims suspended the debt cap for obomba's last two years....setting up this drama

1033eruth's picture

You know ahole, when you make a comment like this, you are always insinuating that hitlery would have been a wonderful choice instead of Trump.  Your point being, is that everybody should have voted for Hitlery and this would not have occurred.  

No, its just another case of "The Lesser of Two Evils".  Turd breath, voting for Hitlery would have resulted in quite a few other catastrophes instead.  She would NOT have been a better choice.  The only good thing about her is that she's not black, therefore her supporters would not have been calling racism after every criticism.  That would have been switched to sexist, or misogynist but at least we wouldn't hear "racism" on a daily basis and thank goodness we're not hearing that now.  Instead, its the braindead insinuations that Hitlery would have saved us with the STRONGER TOGETHER communist chant.

El Oregonian's picture

Scotty: "SHE'S GOING TO BLOW CAPTAIN, I'M GIVING 'ER ALL WE GOT! SHE CAN'T TAKE IT MUCH LONGER!"

Capt. Kirk: "Scotty! We've removed the governor so this baby has no limits! PUNCH IT! FULL SPEED AHEAD!!!

Scotty: But CAPT...KABOOM!!! 

bigkahuna's picture

Pretty much. The fuckers are going to "fly her apart".

janus's picture

My guess is that DJT is prepositioning for the massive yuan deval due sometime in mid to late october.  Republicunts are just chinese and saudi proxies.  

#DrainTheSwamp!

Okay, Mr. President, want a signature piece of legislation that will effect real and lasting change (not to mention cement your legacy amongst the Regans and Ikes)?

National Voter ID Act.  Using block-chain tech, match a legal citizen who's properly registered to vote with his/her vote in ALL federal elections.  This will immediately and permanantly end the machine-politics in Chicago, LA, NY, Boston, etc., etc., etc.  No more illegals voting, no more votes from the grave, no more duplicates, no more out of state ballot stuffers.  

End the two-party duopoply forever.  

janus

Not Too Important's picture

Trump is getting ready for the end of the United States. It'll happen on his watch.

There won't be 'future generations' to worry about. It's all about 'bread and circuses'  - food, shelter and healthcare/hospicecare, with violent law enforcement against assholes - going forward.

Ever wonder why countries threaten the US with destruction, but never threaten with invasion? Because all human life is going to cease to exist here, and North America will be too radioactive to even send in slave labor to extract resources.

The party is over, and Trump is the one to tell everyone to go home.

Son of Loki's picture

As the dolla sinks lower and lower, gold will rise higher and higher.

 

Excellent for that part of my portfolio...if only it didn't get lost in Lake Minnihaha when the boat tipped over ...

...sigh......

Mr. Universe's picture

I've been told by those in control that debt matters not. In fact more debt is good. It will never be repaid anyways (by .gov at least) so why worry? Coming up next, Universal Basic Income for all! Of course they will have to reassociate the definition of "income".

knukles's picture

Whodathunk that it'd be Mr Trump eliminating a debt ceiling? 
That Mr Trump would propel PMs higher.
I'd a thought that woulda been more of a Democratic plan.

              gallic shrug

RedDwarf's picture

"Whodathunk that it'd be Mr Trump eliminating a debt ceiling?

That Mr Trump would propel PMs higher.

I'd a thought that woulda been more of a Democratic plan."

Trump has always been an old school Populist Democrat.

sickavme's picture

Put the pedal to the metal...

 

... on economic collapse.

 

On a long enough timeline....

Juggernaut x2's picture

Trump has always been a Democrat. This country is so far left no one could even recognize a true conservative.

Escrava Isaura's picture

A true conservative talking is just a lie as well.

 

Yog Soggoth's picture

When the yuan goes gold backed, we must have an answer, or flounder. The only question is what happens to the debt incurred before? I say history has already taught us that lesson. It goes POOF leaving only the smell of sulphur. Invest in fishing supplies in Florida.

consider me gone's picture

I already did invest heavily in fishing supplies in Florida. I figured if worse came to worse I could catch fish and barter for vegetables and fruit.

agstacks's picture

Why do I get the feeling I will not "qualify" for universal income. 

Dukes's picture

You must not be "more equal" comrade

American Psycho's picture

I'll check out Animal Farm to get the definiation of "more equal." 

consider me gone's picture

Who knew being a white male and educated would become a liability? 

Pool Shark's picture

Debt ceilings matter not.

 

[Posted in other thread:]

THEY WILL ALWAYS VOTE TO RAISE IT BECAUSE THEY HAVE TO:

https://www.youtube.com/watch?v=iFDe5kUUyT0

(Watch from 12:00 to 15:25)

The alternative is complete economic collapse.

As a fiscal conservative, it pains me to acknowledge this, but we've gone so far into debt that the failure to continue debt issuance will bring on the end of the Ponzi.

I'm not saying I like the idea of raising the debt ceiling, just acknowledging that it is inevitable...

Yog Soggoth's picture

Exactly, and it wastes time. Speed up the demise of Fiat.

American Psycho's picture

Whenever I go for a nice afternoon cruise in my dinghy, I make sure my PHYS is wearing floaties.  Only those floaties are filled with cement.  I try to get the Misses to also wear them, but I have been unsuccessful as of late. 

Bill of Rights's picture

LMFAO!...that must be some good Koolaid, care to share?

T.Gracchus's picture

Despite the down-votes, I believe you are correct. Trump is a sort of populist tv star version of Michail Gorbachev. He will be entrusted to over-see the sudden rush to the plug-hole that characterises typical end of empire scenarios- lots of swirling about, followed by a very rapid and increasingly accelerated rush down the drain of history.

America based upon its people is still a huge force for good- but based upon its government.....it is dead in the water already.

chiaroscuro's picture

I'm not sure it's quite as grim as the entire country turning into a sea of molten, radioactive glass. But I agree we're in for one wild ride. Can you imagine Congress trying to agree on a new debt ceiling every week once hyperinflation sets in? Is it fiscally responsible? No. But as a palliative care measure for a dying economy it is at least practical. 

Not Too Important's picture

Not a sea of molten radioactive glass. A continent covered with tens of thousands of tons of aerosolized enriched uranium and plutonium, and rain from the Pacific Ocean saturated with the radiation from the leaching Fukushima NPP's. Everything we eat and drink is radioactive, and increasing in strength, not including what we have all breathed in since 3/11/11. It'll kill the kids first, then the adults. Follow the Infant Mortality Rates, if you can find any. Regular Fed reporting was discontinued in October, 2011, after Fukushima the previous March.

Here is a comprehensive list of mass animal die-offs (owner's a bit religious, but the research is thorough, and has been well-documented for years). Look at everything dying off in the Pacific Ocean and across North America. We're not going to escape this:

http://www.end-times-prophecy.org/animal-deaths-birds-fish-end-times.html

Financially, morally, physically - we're all dying early. And once North America is too radioactive to survive in, who is going to maintain the cooling for the 100+ US and Canadian nuclear plants and Spent Fuel Pools that will be radioactive for billions of years?

We are at the beginning of the end of all human life on Earth, starting with Japan and North America. It's just nuclear demographic math.

Hug your loved ones and make peace with your Creator.

 

consider me gone's picture

I think I just want to get through Irma first. After that, Monday morning, I'll jump on that whole nuklar holocaust thing.

Mr 9x19's picture

make official the ceiling removal would unleash QE4, or iQE1, infinite quantitative easing, meaning the end of the dollar within a decade.

the flow of money would be so important it would collapse all markets.

 

you can't take a nothing from the void, giving it existence and value, and trade it against physical.

in a reel world you have a limit to stupidity.

Khan Bucklin's picture

Lolz... This would be the equivalent of sticking a bendy straw into the swamp. You'll have to suck but you might get a tiny bit out.

giovanni_f's picture

there was no debt ceiling for good, Covfefe wants to end the debt ceiling spectacle. It got somewhat boring lately anyway with all the other competing performances like Kurt Eichenwalds hurrican predictions or Hillaries theories about why she lost the election.

knukles's picture

So The Bernak's taking Cohn's place, huh?

847328_3527's picture

"If you want to keep your debt ceiling, you can keep your debt ceiling!"

Give Me Some Truth's picture

Re: The tag-line to this story: "The Republicans won't be happy."

Yes hell they will. They might not say it, but they are smiling inside. 

As I posted the other day, "governing" is the easiest job in the world. Certainly much easier than running a small business or making ends meet in your household. When running out of money is never a possibility, you can do whatever you want and sleep like a baby. 

NotApplicable's picture

The only Republican's that will be unhappy are the Freedom Caucus libertarian types in the House. Otherwise, the full-blooded RINOs are elated, as they get out from under this problem without getting any of the blame, thanks to Trump.

His base won't like it, but honestly, it's his best survival strategy.

Son of Loki's picture
<<Trump Wants To End The Debt Ceiling, Schumer Agrees>>

But isn't this all up to the Russians?

What do they say since the DNC and Muller think they control our government.