Futures Plunge As Boehner Unable To Get Enough Votes, Essentially Cancelling Deficit Plan Vote, Dollar Plummets

Tyler Durden's picture

Tonight just got that Lehman Brothersy feel to it. After hours of delays, Boehner just experienced a supreme dose of humiliation after he announcing he would cancel tonight's much delayed vote on his deficit plan after apparently being unable to get the requisite 218 votes to pass his plan though the Congress (forget that it would never pass Senate or the President). Boehner has said he will instead hold an emergency meeting with members Friday morning but the damage has been done. The result: the markets are now in absolutely terrified mode, with ES just plunging by over 12 points on the news, the dollar hitting fresh post March 17th lows against the Yen following the Fukushima explosion, and overall total chaos appears to be on the horizon. And with Europe about to open, all hell is about to break loose. Something tells us that the deer in headlights will be on prominent display tomorrow, not to mention the bear cavalry.


America could soon be technically insolvent. What to do... what to do.... I know, let's buy Treasurys!


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camoes's picture



TheFourthStooge-ing's picture

Bhoaner is popping, bigtime.


FEDbuster's picture

CNBS better have a fresh box of Depends available for the on air "talent" tomorrow.  Cramer better wear some rubber pants and boots, so he can clean his puke off easier.

tahoebumsmith's picture

Yup just like last time when Hank the Skank held a gun to congresses head and demanded 800 Billion dollars. When there was a delay the markets crashed and left all the 401k'ers holding the empty bag. Same scenerio this time for the CRONIES to steal another trillion from the markets. Their lips are wet and they can taste the meat...bring it baby, they will sell high leaving all the mom and pops with the losses and then buy low and rally the beatch back up when they strike a dea.l Nothing more then a  stealth mode robbery. They nay get the lemmings attention if they showed up with a mask on and holding a gun, however this approach is just way too easy as the past has proven.

Spirit Of Truth's picture

This is all symbolic of how the last thing irrationally self-interested Americans, whether on the Left or the Right, will do is engage in "shared sacrifice":



Consequently, the whole nation will soon be sacrificed.


Why?  Ayn Rand was wrong. (There's a reason her philosophy of "objective reality" had to be expressed via fictional novels.) Selfishness is not a virtue.  


In fact, due to our fallen nature, this mode of individual conduct is ultimately a means to collective suicide "in the long-run".


Fish Gone Bad's picture

As I have said before: "Anything that can be destroyed, can be controlled."  The Tea Partiers have eaten Boehner's lunch.  They will eat everyone's lunch.  The US borrows 40 cents of every dollar spent.  It is time for this sad spending behavior to come to an end.

StychoKiller's picture

Selfishness != Lack of Compassion

Go forth, and alleviate some suffering:  www.worldvision.org

Michael's picture

MSNBC is like Russian propaganda.

FOX News is like NAZI propaganda.

CNN is like somewhere in between.

None of it is acceptable.

CNN is like somewhere in between.

None of it is acceptable.

Chris Mathews of MSNBC actually said this today;

"The only question is, whether certain voters out there think this is the way they want things done.

If they do, listen here closely, they are the trouble, they the voters are the danger.

It's not what they want, it's the weapon they use to get it. They threaten to blow up the country to get certain things done."

I present to you Chris Mathews Obituary;



WaterWings's picture

I hate that fellow Americans can't get their shit together - gladly lying to themselves.

The Bloc countries (and Ireland) have plenty of tough mofos because of all the suffering...

Get tough now. As Boston T. Party would say, "Get rugged."

WaterWings's picture

Nice clip. The Confoozled Sheeple of the United States are frothing and shrieking into the wind. They have no idea.

If they consider themselves smart, ask them what inflation and CPI have in common. Trick question. Next: "Where does it come from?"

Is it just me, or do they not teach Latin in public skools anymore so that the Sheeple will always be amazed by lawyers' "great understanding"?


Edit: I just found out you can self-vote, and voted all of us up one. Have a good weekend, Mikey. You da man. Always wanted to say that.

Michael's picture

Thanks WaterWings. Here's another one for you;

Senator John McCain's Obituary 7-28-2011


AldousHuxley's picture

sorry, but your fellow americans are content eating fat and watching "reality" TV. They didn't pick the blue pill. They were never even offered the choice of red pill vs. blue pill. because they were deemed too retarded to be even given the choice. Wouldn't account on idiots to be of much use.

GetZeeGold's picture


BS.....gold would be skying if this was that critical.....and it's not.



Chuck Walla's picture

Selfishness makes the world go 'round, Rand ws only talking self interest.  I like working for myself. I hate working for Detroit and Newark and their epic fails. 


I like working for my family, I hate helping make the Congress ever richer while they use my money to buy votes and pay off friends. Then the friends recycle my earnings into campaign contributions that their politician pals convert into their personal income by paying a little tax(fee) to keep it.


Yeah, I'll share the sacrifice when the bastards who proclaim how they are "for the little guy" who only keep working solely for themselves start sharing, too.   In other words, if the needs of the masses are so great, why are there any rich Socialists?  And why are they getting richer at the working man's expense?


wisefool's picture

It will be a rough day, but Do not ever question cramer.

Gold is tax free and women like it, And for now, cramer says it is tax free, in his tax free charity. Untill we figure out a way to enslave the mooninites with a tax code, and take thier gold.

Journalistically, CNBC's talent died when the parent tax free corp MSNBC's chris matthews compared weiner sexting to randy british scandals of the tip o'neil century, Every LLM makes more money per year than every PhD in Econ.

Bernnke >>>>>> CNBC+MSNBC



eurusdog's picture

I don't see the dollar plummeting. I see it moved from 74.23 to 74.02 and currently at 74.11, seems to be catching a bid as of late. As for impending DJI and SP crash, it does seem to really be catching some momentum.

Cdad's picture

And the great irony here is...that this vote, had it passed, was sure to be killed on the floor of the Senate, anyway.

Put me down as one who believes that the market is falling because the economy is coming unglued in spite of the current fight in DC.

Missiondweller's picture

Absolutely agree and a bad Q2 GDP number could accelerate it.

zhandax's picture

Put me down that the SPU momos are having fun on the short side trying to keep up the fear angle for the sheep.  33 pips on the dollar does not a plunge make and bonds barely broke 126.

zhandax's picture

That shit can crater.  I watch the price of hookers as much as the price of paper gold.  Which is to say I pay too much attention to both of them.

GetZeeGold's picture


Wouldn't even know where to find one....let alone know the price.

.......a hooker that is.

Just buy gold.


Milton Waddams's picture

anyone who puts political considerations ahead of the interests of the American people should be tarred and feathered.

anyone who puts political interests ahead of the interests of the American people becuase they think Americans are illinformed should be tarred and feathered; as it is likely that you, and/ or your operatives,  contributed to the logical fallacies held by you and your 'quasi constituents'.   


In the end it wonk matter of course; banks, china, and other 1%'ers will receive their interest on the debt .. the rest of you can suck it up and cope.

DormRoom's picture

don't worry. Obama can always use the 14th Amendment. Of course it would set a very dangerous precedent, and override checks and balances in the US constitution. But he may have no other choice. And the next Republican president could use it to override Congress, if they choose to not to fund his/her next war. The death throes of Roman Empire began when Caesar  let the Army into Rome. This debt ceiling impasse is the beginning of the end of the American Empire.

CrashisOptimistic's picture

Doesn't work.  Spending authority expires 1 October.  If he did it, it would only work 6 weeks.

Crisismode's picture




The Egyptian Empire

The Persian Empire

The Macedonean Empire

The Roman Empire

The Holy Roman Empire

The Mongol Empire

The Mayan Empire

The Chinese Empire

The Spanish Empire

The Napoleonic Empire

The British Empire

. . . . . . . . .


The American Empire




AldousHuxley's picture

squid is part of US.


next is the China's Dynasties.

Killuminati's picture

You forgot the biggest empire of all, the founder of freemasonry- NIMROD.  Babylonian Empire.  Assyrian Empire.

Max Hunter's picture

The Holy Roman Empire

Well.. I'm just a man that uses observation. I've seen a lot of Europe and live in the U.S.  I see a lot of evidence this empire might still be around in some form.

Brian's picture

If Obama used the 14th Amendment, there would never be a debt ceiling again, as it would have been found to be unconstitutional.  That result by itself should preclude Obama from considering the action.  Markets would interpret the move as meaning that America will never be able to control it's spending, since it is constitutionally prohibited from limiting its future self.  IMHO, China would puke, and the bond market would rupture.

Of course, you may think there is a potential loophole - which would be for Obama to use the 14th amendment and then have the action he took to have itself been unconstitutional, in which case, the issued debt would be canceled.  Thus, this option also would probably lead to a bond market rupture.

I think the 14th Amendment is a doomed move.  Similarly, the other "tricks" being though up, like printing $2 trillion in platinum coins (http://www.cnn.com/2011/OPINION/07/28/balkin.obama.options/index.html?hp... ), or fed options all have the same ultimate failings.

Cole Younger's picture

The 14th amendment only speaks to the "validity" of public debt authorized by congress. Only Congress can authorize "borrowing" 

 If Timmy does attempt to borrow, it would not be "authorized by law" nor would it be valid.

"Section 4. The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void."

I don't see the language that says we have to pay our debt  in the 14th amendment.

I read it in short to say "The validity of the public debt of the United States, authorized by law,.... shall not be questioned. " It does list where some debt "shall be held illegal and void."

Cdad's picture

authorized by law

That is the key phrase.  The President has no authority to raise the debt ceiling...but I'd be willing to bet he is considering it.  Another emergency not to be wasted.

Average Joe should first be prepared for an asault on his wallet, and then his liberties.

So be it.  Why not?  Toss a Constitutional crisis on top of all the other shit burning on this heap mess.

wisefool's picture

Satandard stuff  from the playbook.


Jethro marries a Roddam and he get gets to be president with benefits. Newt is jealous.

GWB tells us it is just a document, and the house of saud flies free on .gov airlines anytime after 9/11.

I honestly can not wait for what obamas legacy is going to to imprint on this snowball headed to hell.

Or maybe he takes every IRS agent out to the rose garden to pick vegetables, and asks them to help fetch a solar panel to the roof of the whitehouse like Al Gore would do.




nmewn's picture

"I read it in short to say "The validity of the public debt of the United States, authorized by law,.... shall not be questioned. " It does list where some debt "shall be held illegal and void."

Correct Cole...and surely our (ahem) constitutional law professor from Chicago should know this. Without authorization from Congress, who are the peoples representatives, the bonds would be invalid, that is, counterfeits.

The only entity I know of that would buy bad debt is the Fed and they've been pretty clear they're done with it for now.

But it would be par for the course in this new bizzaro world, fraudulent currency issuance (FRN's) buying fraudulent debt, theoretically to be paid back plus interest by less than half the populations taxation of their honest labor.

AGuy's picture

O'Bama already said he can't use the 14 Amendment to raise the debt ceiling. He Said unfortunately, only Congress has the authority.

Looks like Sept is coming early this year. Feels like Sept 2008 or Sept 1929 all over again.

As Hugh Hendry put it "I would recommend you panic."

DoChenRollingBearing's picture

Already have.  Green for you!

Oh regional Indian's picture

Sure feels like September already. In fact, to keep it interesting, they might give us an August surprise this time.




John_Coltrane's picture

He's got 2.6T$ in SS treasureies he can monitarize to write checks if he's already monitarized all the Fed retirement treasuries to run the government for the last two months.  This allows them to stay under the debt ceiling and create cash out of these IOUs.  Remember, this debt ceiling issue is only about issuing new debt.  That won't be allowed by the tea party until spending is under control.  But they can monitarize (convert to cash money) any and all of the almost 4.5T$ of intergovernmental treasury holdings which is part of the total ~14.3T$ subject to the debt limit.  So, no 14th amendment needed to pay the bills.  But eventually, they would need to pay it back (ha, ha!).  But, by then hopefully Ron Paul will be president and we'll be back on the gold standard.

Chuck Walla's picture

Zero just told La Raza how it would be much easier if he were a dictator. Its pretty obvious that, in light of Obama knowing nothing but theory, that being dictator would guarantee his success.  Killing & jailing the nay sayers beats the snot out of "compromise".

candyman's picture