Congress Resumes Debt Limit Discussion

Tyler Durden's picture

The soap opera has resumed in Congress. Feels a little deja vu'ish? So it should. The expectation is that Congress will pass the "amended amended" Boehner Bill around 6 pm. The same as yesterday. Will it pass? Who knows. If not, expect overnight GC to surge on Monday, yields on Bills and CMB maturing after August 2 to surge, even as the 30 Year plunges to zero, making a mockery of UST curve "market efficiency." On the other hand, Obama will likely just end up invoking the 14th amendment, and then we will have a constitutional crisis to go along with all the other drama.


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slaughterer's picture

Don't they have Monday to do this again? 

Fascist Dictator's picture

Yes, this is the famous Friday cliff-hanger. Nice and soapy  ;-)

RacerX's picture

Laughed while I was eating and milk came through my nose.

So is this video the budget debate or afternoon soap acting tryouts? Almost has that "revival weekend" feel to it. Can I get an "A-MEN!"

Fascist Dictator's picture

channeling Maxwell Smart, "Sorry about that Chief."

smlbizman's picture

is it just me or does pelosi look like wax fruit melting?

macholatte's picture



"Do you wish to know whether that day is coming? Watch money. Money is the barometer of a society's virtue. When you see that trading is done, not by consent, but by compulsion--when you see that in order to produce, you need to obtain permission from men who produce nothing--when you see that money is flowing to those who deal, not in goods, but in favors--when you see that men get richer by graft and by pull than by work, and your laws don't protect you against them, but protect them against you--when you see corruption being rewarded and honesty becoming a self-sacrifice--you may know that your society is doomed."

Ayn Rand ~ Atlas Shrugged

NewThor's picture

And Howard Roark laughed, "I AM AWESOME!"

AYN RAND - The Fountainhead


tempo's picture

Recent Bloomberg article estimates USA total unfunded debt exceeds $200 trillion. With 65000 people per day going on social security, 1% GDP growth, labor costs 10 times that of China/India, all wealth with be confisicated over time. All gold transactions are being tracked and individuals will be required to surrender their gold at a fraction of cost under penalty of $10,000/oz fine and/or 10 years of prison for not complying. Yea, holding gold will protect you.

samslaught's picture

Paranoid coward. I don't hold gold for protection, I hold it because I'm free. My gun is for protection.

oogs66's picture

Isn't this bill even less likely to be approved by the senate?  and the president?  what is the point?  how many times can the algo's buy stocks on the same news?  and news that doesn't even support buying stocks in the first place?

slaughterer's picture

algos can just keep on buying forever on false news points.  They never think, they never stop. 

Eric Cartman's picture

I'm like an algo. I'll play the game for a few ticks. 

Quantum Nucleonics's picture

It can be amended in the Senate to look more like the Reid plan.  Assuming it got enough votes, the House and Senate would have a conference to haggle over the differences.  The final version would then go to both the House and Senate for a final vote.  That's the way it is USUALLY done with important, complex legislation.

chet's picture

I just read that even if everything goes perfectly for the Reid bill, it won't be voted on until the afternoon of August 2nd.  And that's before it's reconciled with the House.  So basically, we're going to blow the deadline.  The only thing that might mediate is if they can announce a "sure thing" deal before then, even if they don't have a chance to vote on it until the 3rd or 4th.

The House bill only requires an Amendment to the US Constitution, so that's a pretty low bar.

SheepDog-One's picture

Ammendment to the constitution requires 75% of all states in agreement, thats an easy done deal?

HelluvaEngineer's picture

This administration will probably propose a Facebook poll, so it's likely doable in time.

unknownknowns's picture



Sarcasm being; a supreme illustration of subtle humour.


mynhair's picture

SD1, yes, it's more than doable.  Count the blue states.  And wake up!

DosZap's picture

Here it is in all it's glory...........................I can really see them agreeing on this.

Quantum Nucleonics's picture

I think you missed the sarcasm in their comment.  :-)

Seriously, though, the Republican/Tea Party balanced budget amendment demand only applies to getting it through Congress.  That requires 2/3rds of each chamber of Congress.  Even if they hammer out a deal, the amendment won't pass.  It's mostly about having the vote to score political points.  Only after an amendment passes both chambers of Congress does it go out to the states.  Incidentally, it would have a decent chance of getting to 3/4ths of the states if it ever got that far.

TwelfthVulture's picture

It doesn't require an Amendment to the Constitution only that an Amendment be sent to the states for ratification.  Think ERA.

wang's picture
wang (not verified) chet Jul 29, 2011 4:10 PM

What you need to remember is who created the August 2 deadline


and of course to a tax cheat deadlines mean squat, Aug 2 is arbitrary and will be recast to fit the script e.g. Aug 5


When you think about it, which would O rather be dealing with, the GDP number or this soap opera - lesser of two evils and if one brings out the tin foil you might even conclude that some have intentionally created/prolonged this crisis because of the looming GDP disaster

CrashisOptimistic's picture

No point in even passing the Reid bill.  It has no chance in the House.

Cleanclog's picture

None of the Congresssheeple want to have any vote on their record regarding debt, budget, etc.  They'll keep sploshing around until Obama does the 14th Amendment idiocy.  Can kick, rinse repeat Groundhog day until it just doesn't work anymore.  As long as Dancing with the Stars and the NFL keep people occupied/distracted the charade marches on.

Calmyourself's picture

He cannot and he will not. 

SheepDog-One's picture

Bunch of BS is all it is, they have no money, we have no money, GDP is sub 1% which means theyre not getting any money....tempest in a teapot until they set off the false flag diversion probably nuclear attacks this time of *poof* there goes everyones pensions, 401K's, into Treasury control. Enjoy.

baby_BLYTHE's picture


Best to sit on the sidelines with our Gold and watch it all burn down.

Markets are a fraud, Gold ain't buying the BS.

SheepDog-One's picture

Im with you Blythe, sit on the deck with some umbrellas and drinks and watch them shred each other over some worthless paper. 

caerus's picture

this is bullish for bullshit

itsallajoke's picture

You really think this dog and pony show is that surprising? 

Talk about utter and complete BS...  

There aren't enough rotten tomatoes and cabbages to throw at these morons!

mynhair's picture

Shoes.  Think shoes.  Building a store of really smelly tennies for when Oweblahma hits Ft. Myers.

(He'd never come here.)

SheepDog-One's picture

$5 trillion in 401K and pension ETF funds, people think that pot of gold is just going to sit there unmolested thru all this? Just sayin.

Smiley's picture

Just a statistic in the shadows of the real world
The system's failing you just the way it failed me
Hell is home on the concrete where the city bleeds
America - home of the free - land of fucking



Roy Bush's picture

ZZZZZZZZZZZZZZZ.....what a f'n bore!  Is this democracy or what!?

itsallajoke's picture

I'll take "Or what"

Democracy has been lost on our goubbert for at least 50+ years..

It is disguesting..  and no one cares..  to apathetic with their starbucks, and their own little worlds filled with apple-toys and coke and hookers. 

Roy Bush's picture

I'm apathetic without my Starbucks, coke and hookers.   As far as I'm concerned, to be "apethetic" is to be right.  What a joke of a process.  To take this seriously is to be insane!

UncleFester's picture

Actually, it IS Democracy!  That's why we were suppose to fight to keep the Republic.  You are witnessing pure, unadulterated Lawlessness coming at you live on national television from your elected officials...precisely because this IS a Democracy.  Watch them as they sign the names of another generation yet born to the new contracts.  Debt slaves, bitches.

RobotTrader's picture



Bonds on fire.  TIP just broke out to world record highs.

Uncle Gorilla paper trading as if it were just upgraded from AAA to AAAA!!!

GDX getting absolutely smoked again.  Another day where "Paper" rules over "Things"

Zing's picture

Who the heck is actually giving you a positive rating?

mynhair's picture

Me, for one, dick.

Your 2 week life is lame.

DoChenRollingBearing's picture

RobotTrader is a TRADER.  That's why I never junk him.   He points out short-term moves.  He also offered up his Moster Box of AG Eagles right up there near silver's last top.  Silver then went down.  But, I would bet that RobotT still has his silver...

Might be a lttle easier on us perma-bulls on gold though.  Get junked less.  Unless he IS a Robot too, then wouldn't care!

MaxFrost's picture

Robo, I know you know this but...GDX is paper too. The stuff you can use to weigh your papers down went up today.

Mr Lennon Hendrix's picture

That's just the "dead Geithner bounce".

Greater Fool's picture

::golf clap:: Politainment at its best!

The relevance of all this can be easily discerned from 10Y Treasury yields. Down, what, more than 10bp today? Enjoy your screen time, gentlemen.

wombats's picture

They race headlong toward the cliff.  Will they hit the brakes in time and save the world, or will they run it headlong over the edge?  Stay tuned as the drama unfolds.  It's just like watching a TV soap opera with a cliff hanger at the end of each episode.


You can bet that the pols all have parachutes in hand.  They may send the train over the edge to the unknown but you can be sure that no pols or their finances will be harmed.  As for the rest of you little people, who cares?


Enjoy the show.

ZackLo's picture

Rofl, what a joke I can't watch anymore of this I'll break my monitor fucking political hacks who understand nothing about the banking system or economics....Broke system bitchez better recognize 100 years of failed economics coming to a T in a ussa state near you...