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Down To The Wire: Wednesday's Congressional Vote On Boehner Plan Delayed Until Thursday To "Find More Savings"
When describing the Boehner's plan as perceived by the CBO we used one key word: "laughable" in that i) it cut far less than many had expected it would cut, particularly during its "first stage" and ii) it had a pathetic $4 billion of actual discretionary cuts in its first projected year. It seems even the GOP has realized that its plan is nothing but a red herring, and as a result has declared that it is delaying its previously scheduled vote on the debt ceiling which was supposed to take place tomorrow, has now been delayed until Thursday after republicans "scrambled Tuesday night to rewrite the measure to ensure that accompanying spending cuts were large enough." Which means that with far too much action expected int he aftermath, most of which includes the expected voting down in the Senate following just after the House vote, and another vote on a plan proposed by Reid, as well as possibly a vote on Obama's still non-existent grand compromise, this is no longer an 11th hour affair. The budget farce just became a 12th hour and 1 minute affair. Alas, the money runs out at midnight. What happens next nobody knows, but perhaps Ben Bernanke can tell us: after all it is him everyone looks up to in order to justify never selling on any news, good, bard or otherwise. And he better have a damn good explanation.
From Washington Post:
House members have just seven deals to raise the debt ceiling before next Tuesday’s deadline, and the latest move came after budget analysts said the plan endorsed by Speaker John A. Boehner (R-Ohio) would only create $850 billion in government savings, rather than the sought-after $1.2 trillion.
Boehner had spent much of Tuesday furiously rallying support for his two-step plan to avert a potential default, even though Senate Majority Leader Harry M. Reid declared the proposal “dead on arrival” in his chamber and the White House issued a veto threat.
Senior lawmakers and aides continued negotiations aimed at finding a compromise between competing plans from Boehner and Reid (D-Nev.). But the two sides were still split over whether to hold multiple votes over the next eight months to lift the government’s debt limit or to have just one vote in the next few days that would extend the Treasury’s borrowing authority into 2013. Boehner’s plan calls for linking increases in the debt ceiling in two stages to about $3 trillion in spending cuts.
he White House expressed strong opposition to Boehner’s proposal Tuesday afternoon and threatened a veto, and Boehner also faced misgivings in his own party. About 10 House Republicans publicly declared opposition to his plan as too timid in its restraints on spending, and about nine more suggested they were leaning against the plan. Few, if any, Democrats were expected to support his plan, so the speaker could afford to lose only about two dozen of his 240 House Republicans.
This latest push merely guarantees that a "compromise" plan out of necessity will have to be adopted as there will be "no other options" or at least that is how it will be spun by the GOP. The result will be, just as expected, a plan that has been completely and utterly gutted and who only point is to flick the switch allowing not only another $2.5 trillion in debt to be issued, but the long overdue QE3 to be launched.
Because Bernanke has to monetize something.
In the meantime keep an eye on the dollar and gold. Both are likely, as soon as the market realizes what just happened, to move very fast in opposite directions.
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BURN BABYLON BURN!!!!!
BURN BABYLON BURN!!!!!
They are not going to fix the budget mess ! The Draconian cuts necessary would provoke a revolution immediately ! Kickin' the can buys a little time ! Those are the options ! Get ready to freddy ! This would be a good time to spend your "dry powder" ? It ain't gettin' no better ! Whatever floats your hope ! Monedas 2011 Do you know how sweet it is to be there already ? I ain't braggin' ! Monedas actually cares about people....sometimes !
Does anyone know what [ POST FLOAT] Means? How about " Vanilla options"?
Yield curves? ( Banking structure)/? This isn't a popularity contest. ASS HATS
I know you mean FX (how 'bout them Aussies and Kiwis mate?), but you're leaving yourself open to some seriously foul potty humor with that one. ;)
I'm not a sheep shagger... RBA is Running on PBoC time. NUF SaID? I know you are laughing 777 (1/2)?
Nothing quite like Mandarin spoken with a thick Oz accent, but I was talking about their post-float highs in the AUD and NZD.
Here's my take on the DXY:
http://www.youtube.com/watch?v=E_tYb0ws66E
AUD has a new float... NZD is an anomoly... Like CHF.... Do you follow KRW? That was an interesting #... You trade well 777) I have a lot of respect for you... Yen
FOWL... Edible Birds!!! I have a lot of respect for you 777. Explore eur/aud...
do you know where your counterparty is, tonight?
I guess they're out for Obama's resignation pronto, like that will fix anything
Obamalaise?
Why doesn't the Treasury just print/digitize "United States Notes" like the Kennedy Administration in the early 1960's? Couldn't fiat be created and injected by simply paying the government's bills instead of buying Treasuries and incurring more debt or is this option avoided because some fear it would cause the universe to manifest killer magic bullets?
DEFAULT, DEFAULT, DEFAULT. We want a U.S. DEAFAULT. Our country doesn't need the government spending frenzy anymore. Trillions spent with nothing to show for it except lost jobs, businesses, and death to millions of people worldwide. The American people and the rest of the world is tired of it. Our congress should be ashamed of themselves. Your all useless, ridiculous fools! As Gerald Celente put it in his latest Summer 2011 Trends. We need "Direct Democracy" These stooges don't represent the people, they represent themselves and special interest groups. They run just like the mafia. America is done with you fools! Let the people run the country, not a bunch of politicians who are not worth the shit their filled with!
Please have some liquor on hand as we near the waterfall. While we know more than most about what is happening, still vital to be able to get lucid when the rollercoaster plummets and we wake up in a new world order. Seriously, for your heart!
Oh whah. The sheeple are too stupid to understand what default means... until the bolt is right there in their faces.
Stay flat Slewie.
It's a suckers market. Liquidity, volume Ect... Risk off friday is my mantra.
i think tomorrow = senior day @ discount foods, Y/C. it's madness! but not like the $. this is insane!
the dollar + euro are like holmes + moriarty going over the falls, together.
but there could be a tsunami, soon. risk on, most folks seem to think. we'll get this ceiling thing working and then we can have a real kick-ass inflationary recession/depression. sounds pretty fuking risky to me!
http://www.youtube.com/watch?v=4PQrz8F0dBI
Billion Chinese and Indians are willing to work as slaves for the benefit of top 0.1% corporate executives and shareholders. American and European middle class has no chance unless a revolution happens.
Unless the American, European, Chinese, and Indian workers can revolt in unison, the status quo will remain such.
This entire drama seems like Ecuador.
The congress would never bring any legislation to a vote knowing that the president would issue an executive order to put the proposed item into effect until a vote was taken. Then the congress would still not call a vote and the voters had no one to blame----congress or the President---only themselves for being dumb enough in the first (through the last) place.
Damn good system-----nothing was ever accomplished and less damage was done with a federal government that no one paid any attention to.
We would be better off here--imo--having politicians we paid to do-nothing---cheaper than their doing anything else.
Like they say at ZH---"Government? we don't need no stinking government!"
When treasury wants more debt, fed has to? print it, because asia isn't buying. The debt puppet show is calling asia's bluff. If china and japan refuse buy any further debt, US is threatening to pull the plug on all their economies. A stand off, like the good, the bad and the ugly.
When treasury wants more debt, fed has to? print it, because asia isn't buying. The debt puppet show is calling asia's bluff. If china and japan refuse buy any further debt, US is threatening to pull the plug on all their economies. A stand off, like the good, the bad and the ugly.
The US represents ~25% of Chinese export consumption...and they're doing their best to hitch themselves to a new wagon, even if it means helping Europe's friend Greece find their way home after too much Ouzo.
Riddle me this Batmen and girls. When the SHTF and the LIBOR spikes (LIBOR was around 5% in 2001) what happens to all those Interest Rates Swaps that have been written (450 Trillion FRN notional) of which JPMorgue has 130 Trillion? KABOOM? Is this the real threat here, Interest Swaps written during artificially low LIBOR blowing up as interest rates spike?
Just asking.
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