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Republicans Demand Block Of US IMF Funding To Bail Out Europe

Tyler Durden's picture




 

In an odd coincidence, we were just updating the notional amount of FX swaps that the Fed has conducted with Europe in the past week, when we noticed that the GOP has finally made it an issue to fill in the gray area void of whether or not the US will be required to fund the IMF bailout of Europe. Tangentially, the Fed's USD swaps - an indicator of dollar-denominated last resort liquidity - just hit a 2012 high of $84.5 billion, increasing by $2 billion from the $82.5 billion in the prior week which makes us scratch our heads just how is it that Europe is "getting better" if instead of declining, usage of USD swaps is increasing confirming interbank liquidity is non-existence. This merely confirms that 4 weeks after peaking at a multi-year high of $85.4 billion in the last week of December, the European liquidity situation has once again started to deteriorate. It also means that the "self-reported" to the BBA 3M USD (but it's 'declining') is and continues to be about as worthless as any data out of the NAR. Finally, it disproves that statement under oath that Bernanke made to Congress that he would not bail out Europe. However, while Bernanke does not have any direct checks and balances-type supervision (the private Fed is merely beholden to its bank supervisors - just note the Class A directors on the FRBNY's Board) and does not have to concern himself too much with the nuances of perjury, the same can not be said about the US Secretary of the Treasury, for at most another 11 months, Tim Geithner, who doesn't have very powerful interests watching over him. It is Tim Geithner who would ultimately be the person responsible for permitting any IMF (of which America is the largest quota member, and thus, funder) capital transferm in which US taxpayer capital is used to rescue the lost cause known as Europe.

Which is why we were delighted that after months of modest confusion on the topic, the Congressional Committee on Financial Services (including subcommittee chairman Ron Paul), have demanded that not only Geithner make his stance on a US-funded IMF bailout of Europe crystal clear, but that they are openly opposed to "American taxpayer dollars being used to bail out Europe...through additional contributions to the IMF." We are curious to see just how Geithner will weasel his way out of responding to this: perhaps the only logical stall tactic is to reply that he will be busy helping Mitt Romney in his tax "revisions" over the next several months.

Incidentally, the House Committee on Financial Services may want to also ask the Fed Chairman how he reconciles his "no European bailout" statement with the chart below:

The press release issued by the "Republican Leaders." We are confused why Democrat Leaders are also not interest in the SecTres' response on the question of whether and how much US citizens will be bailing out the Italians and French with.

Washington, Jan 25 - Republican leaders of the House Financial Services Committee are seeking assurances from the Obama Administration that U.S. taxpayers will not bear the burden of bailing out debt-ridden European governments.

 

In a letter sent Wednesday to Treasury Secretary Timothy Geithner, Chairman Spencer Bachus, Vice Chairman Jeb Hensarling and the chairmen of the Committee’s six subcommittees ask for confirmation that the Administration will not use taxpayer funds to subsidize Europe’s financial programs through additional contributions to the International Monetary Fund (IMF). 

 

The IMF has requested up to $500 billion to respond to the Eurozone debt crisis.  The U.S. is the IMF’s largest member country. 

 

“The European Union includes four of the ten wealthiest countries in the
world.  European countries have the ability to implement austerity measures to reduce their countries’ debt over the long term and they also have the means to restore confidence to markets,” Chairman Bachus and the other Committee Republicans said.

 

In addition to Chairman Bachus and Vice Chairman Hensarling, the letter was signed by:

 

Rep. Scott Garrett, Chairman of the Subcommittee on Capital Markets and Government Sponsored Enterprises

 

Rep. Ron Paul, Chairman of the Subcommittee on Domestic Monetary Policy and Technology

 

Rep. Shelley Moore Capito, Chairman of the Subcommittee on Financial Institutions and Consumer Credit

 

Rep. Judy Biggert, Chairman of the Subcommittee on Insurance, Housing and Community Opportunity

 

Rep. Gary Miller, Chairman of the Subcommittee on International Monetary Policy and Trade

 

Rep. Randy Neugebauer, Chairman of the Subcommittee on Oversight and Investigations

And the full letter to Geithner:

 

 

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Thu, 01/26/2012 - 18:59 | 2101111 nope-1004
nope-1004's picture

Geithner = Loser.  Another slimy, corrupt civil servant that takes more from the people than he gives back - the exact opposite of what someone in his position should be doing.  He was a failure as head of the NYFed and is a failure still today.

Maybe he can be the next JPM ceo?  Or is that going to be Corzine's?

 

Thu, 01/26/2012 - 19:01 | 2101122 whatsinaname
whatsinaname's picture

In more important news, Bwaney Fwank is getting hitched.

Thu, 01/26/2012 - 19:25 | 2101181 nmewn
nmewn's picture

To what?

Thu, 01/26/2012 - 19:41 | 2101224 Whoa Dammit
Whoa Dammit's picture

A human plow, or to be more PC, his long term significant other.

Thu, 01/26/2012 - 20:22 | 2101320 King_of_simpletons
King_of_simpletons's picture

Republicans = Democrats = Political theater to pass time.  Bankers rule. Both parties will do what the bankers want.

Thu, 01/26/2012 - 21:44 | 2101460 Everybodys All ...
Everybodys All American's picture

Not the same according to this article. Who btw is the equivalent of Ron Paul on the democratic side?

Thu, 01/26/2012 - 22:26 | 2101531 Ivanovich
Ivanovich's picture

That would be Ron Paul.

Fri, 01/27/2012 - 00:07 | 2101625 JW n FL
JW n FL's picture

 

 

well.. it looks like the polite blue blooded, blood suckers have voted Death for Greece.

That would be the presbyterian's NOT! the Jews that they bank roll.

http://www.youtube.com/watch?v=JDCUJnoQL8s&feature=uploademail

Portfolio: Eurozone Prepares To Eject Greece by Stratfor

Fri, 01/27/2012 - 01:30 | 2101692 TruthInSunshine
TruthInSunshine's picture

All I have to say is -

Is this like when The Bernank pledged to the House & Senate, on multiple occassions, that he would NOT monetize U.S. deficit spending, and then proceeded (and is still proceeding to this day) to monetize U.S. deficit spending?

If The Bernank continues to bail out Europe (through currency swap arrangements, the IMF or World Bank, or any other direct or indirect, stealth route), there ought to be a law against this asinine bullshit.

Wait...wait...I do believe there are several laws precluding this asinine bullshit, prohibiting The Non-Federal Reserve-less Non-Bank from facilitating a 'bail out' of the EU, European Nations or or any foreign sovereign [never mind for the moment that The Fed is the most toxic repository of bad assets that history has ever been witness to, and that it's literally an illusion of a solvent entity projected onto a rationality-bending hologram) already in place, so it's a moot issue and we must be imagining that The Bernank's currency swap scheme (and who knows what else he's up to at present or planning for the future) is taking place, as it can't be taking place, right?

If The Bernank were to facilitate the bail out of the EU or any foreign sovereign it would bring about serious criminal ramifications for The Bernank, his cohorts and co-conspirators at The The Non-Federal Reserve-less Non-Bankand any other governmental agency, quasi-governmental agency or non-governmental agency, especially since it would have to be done with the direct or semi-direct use of U.S. taxpayer monies.

That could never be. Breaking such significant rules of law, fundamental to The The Non-Federal Reserve-less Non-Bank limited authority and narrow mission plan, empowered by a single act of congress, subject to being repealed at any given time, would lead to sweeping criminal prosecutions of the members participating in such activities, and if that did not happen, certainly foment revolutionary fervor by the masses, as soon as they became aware of such dubious, sinister plotting, right?

Right?

If SOME Republicans (or maybe even Democrats), want to fire themselves from the same paymasters that fund 'both' political parties in the U.S., now would be the most opportune time to declare their independence loudly, and come clean with the American People on what The Fed & The Bernank are up to these days, and they may just have much deserved rewards and glory heaped upon them (assuming they survive to tell the truth).

Where's Congress?

Where's anyone in a position of power, legislatively, or otherwise, to stand up and call Bernanke onto the carpet right now and demand a detailed explanation of all of his actions, to ensure that he's complying with, and not violating, basic rule of law vis-a-vis clear, unambiguous U.S. statutory authority?

Where? When? Who?

Fri, 01/27/2012 - 03:26 | 2101867 jeff montanye
jeff montanye's picture

it's not just "money to help bail out europe".  it's what the money is used for.  it is still, to a considerable degree, to make up for losses that broke bank bondholders should rightfully bear.  it makes zombie banks like japan's that prevent organic recovery.  the banks cannot be too big to fail.  they must be reorganized in bankruptcy.

oh, and as for who is ron paul for the democrats?  kucinich and sanders?  none of the three seem to be getting close to the real levers of power.  this may change if the sheeple begin to change.  ron paul '12.

also a decent critique of clinton/obama from the left  http://www.truthdig.com/report/item/obamas_faux_populism_sounds_like_bil...

Fri, 01/27/2012 - 08:40 | 2102028 pan-the-ist
pan-the-ist's picture

No, Bernie Sanders.  But he doesn't pretend to be a democrat, and RP shouldn't pretend to be a Republican.

Thu, 01/26/2012 - 22:44 | 2101551 dwdollar
dwdollar's picture

Ron Paul is on nobody's side, because nobody is on his side... except for the people and they don't count.

Fri, 01/27/2012 - 00:39 | 2101702 xela2200
xela2200's picture

If they counted, they wouldn't be allowed to vote.

Fri, 01/27/2012 - 01:22 | 2101747 dwdollar
dwdollar's picture

Haha... So true... I will add...

The people are allowed a vote OR a fair count, but not a vote AND a fair count.

Fri, 01/27/2012 - 08:58 | 2102050 Mitzibitzi
Mitzibitzi's picture

Same in every 'democracy'. When setting up such a 'democracy', there is considerable flexibility in how you may as 'a people' organize it;

You can have the universal right to vote, the right to a fair vote (count) and the right to choose between a selection of candidates who aren't all assholes. But you only get to pick two of the three.

Pick option A and you get 'the government will support my right to slob on the couch with other peoples' money!'

Column B leads to a society with so many rules and regulations required to enforce honesty on a population which comprises at least 10% lazy, greedy, corrupt pricks, that it rapidly turns into a police / nanny state.

And C might get you a decent leader, but only if it suits the interests of whichever group is allowed to vote at all / counts the 'universal' votes.

Over time, a 'democracy' may abandon one of these options in favour of another, but never (to my knowledge at least) has any populus trying such a system ever managed to maintain all three. The USA in it's early years doesn't count; it was a constitutional republic in more than name. You only ran into trouble when that shifted more radically towards a democratic system, as far as I can see. Shortly after the formation of Standard Oil, though that may be pure coincidence...

Fri, 01/27/2012 - 01:38 | 2101773 Joseph Jones
Joseph Jones's picture

Closest I can think of is Congressman Dennis Kucinich (OH)...independent version Senator Bernie Sanders (VT).  I'd ban both parties for all national office (not state level though).

IMO Ron Paul is not long for the Rep. Party anyway...he'll run for President as independent, and hopefully win.    

Thu, 01/26/2012 - 21:47 | 2101464 WonderDawg
WonderDawg's picture

You're mostly preaching to the choir here, but keep spreading that message. I don't think most Americans realize exactly how corrupt the system has become. When people put the blame on Republicans or Democrats, it means they don't get it. This is what the status quo wants to maintain. It's obvious that they're terrified of a critical mass of people seeing through the lies, so they'll do anything they can to prevent it. Keep shining the light.

Thu, 01/26/2012 - 22:03 | 2101490 -1Delta
-1Delta's picture

traders still have an edge- ish

http://evilspeculator.com/?p=26715#disqus_thread

Thu, 01/26/2012 - 23:16 | 2101587 billybobtx
billybobtx's picture

SAME SHYTE DIFFERENT SMELLY PILE.

Fri, 01/27/2012 - 04:32 | 2101894 Esculent 69
Esculent 69's picture

What don't people understand that there is no party's anymore.  It's Rome all over and I think I smell something burning. 

Fri, 01/27/2012 - 04:54 | 2101903 akak
akak's picture

Actually, the famous burning of Rome happened at the height of its power and glory.

What I smell today is a horde of unwashed, angry Visigoths outside the city gates --- and they want gold!

Thu, 01/26/2012 - 20:36 | 2101343 knukles
knukles's picture

As in dog knot?

Thu, 01/26/2012 - 19:29 | 2101193 disabledvet
disabledvet's picture

Who's the lucky guy?

Thu, 01/26/2012 - 20:00 | 2101247 akak
akak's picture

Or the unlucky gerbil?

 

http://www.youtube.com/watch?v=XQ8_nAeeXaE

Thu, 01/26/2012 - 19:32 | 2101204 tom a taxpayer
tom a taxpayer's picture

I'm getting married in the mornin'!
Ding dong! The bells are gonna chime.
Pull out the stopper!
Let's have a whopper!
But get me to the church on time!

http://www.youtube.com/watch?v=EGzAPP_7uEY

Thu, 01/26/2012 - 20:08 | 2101288 johnu1978
Thu, 01/26/2012 - 21:25 | 2101430 zeroGtoilet
zeroGtoilet's picture

It will be interesting to see if he shows more commitment to his marriage than Newt does to the dalliances he refers to as marriage.

Thu, 01/26/2012 - 21:51 | 2101470 WonderDawg
WonderDawg's picture

Who gives a fuck? We can only hope they both get what they deserve. I'm counting on karma taking care of those corrupt lying solipsistic cock sucking pieces of shit.

Thu, 01/26/2012 - 23:13 | 2101579 leftcoastfool
leftcoastfool's picture

couldn't have said it better myself...

Fri, 01/27/2012 - 01:05 | 2101731 WonderDawg
WonderDawg's picture

Oh, and I almost forgot, hypocritical motherfuckers.

Thu, 01/26/2012 - 23:38 | 2101624 Ms. Erable
Ms. Erable's picture

Sounds like Bawney is getting what Newt deserves.

Thu, 01/26/2012 - 19:01 | 2101125 AbelCatalyst
AbelCatalyst's picture

 

 

Long live Math!!  

It is an absolute impossibility to manipulate, spin, print, or destroy Math!!  Deep beneath the outward economy Math is doing it's work - an unrelenting, dispassionate force of reality.  Math works slowly at first, building pressure, but there will reach a moment in time when a tipping point will be reached and Math with have His day!!  

Long Live Math!!! 

Thu, 01/26/2012 - 20:29 | 2101328 mtomato2
mtomato2's picture

The simplest sermons are the best.

I think you have just won the award for the best comment in the history of Zero Hedge.

Thu, 01/26/2012 - 22:04 | 2101495 -1Delta
-1Delta's picture

well if u like math then go to evilspeculator.com - full of math

http://evilspeculator.com/?p=26715#disqus_thread

 

Thu, 01/26/2012 - 22:16 | 2101516 Backspin
Backspin's picture

Exponential functions, baby.  Learn what is meant by the term "knee of the curve".

Fri, 01/27/2012 - 01:52 | 2101796 TruthInSunshine
TruthInSunshine's picture

Arithmetic is The Bernank's kryptonite, bitchez.

[Arithmetic is all of fractional reserve banking/alchemy's kryptonite]

Fri, 01/27/2012 - 05:53 | 2101922 StychoKiller
StychoKiller's picture

Please to keep "knees" away from my 'nads -- thanx in advance! :>D

Thu, 01/26/2012 - 19:47 | 2101235 midtowng
midtowng's picture

It's all for show. The Republicans will fold because their masters on Wall Street want them to.

Thu, 01/26/2012 - 20:14 | 2101301 Manthong
Manthong's picture

As importantly, this little concern by the supposed holders of the purse strings is treated as just a minor nuisance by those actually running things. 

Thu, 01/26/2012 - 20:48 | 2101372 The Alarmist
The Alarmist's picture

No CEO role for Timmay, but he will be a Managing Director or Vice Chairman paid something on the oder of $10m or so per annum.

That is the way the door revolves.

 

Thu, 01/26/2012 - 22:45 | 2101547 tom a taxpayer
tom a taxpayer's picture

Or Little Timmy could end up as Attendant in the Executive Bathroom at Goldman Sachs. Does not pay much but he would get an occasional tip. Most of all it would fulfill a lifelong career goal for Timmy: to work at Goldman Sachs...that is, officially, on the books.

Fri, 01/27/2012 - 00:34 | 2101676 TruthInSunshine
TruthInSunshine's picture

Message above

Thu, 01/26/2012 - 19:22 | 2101112 kill switch
Thu, 01/26/2012 - 18:58 | 2101118 Irish66
Irish66's picture

Come on, this should of went to Bernake

Thu, 01/26/2012 - 19:00 | 2101120 cossack55
cossack55's picture

But....but.....if the US does not bail the Euros out again, why,  they may turn into socialists. 

Thu, 01/26/2012 - 19:27 | 2101190 Sean7k
Sean7k's picture

Bankrupt socialists. Fixed it. :)

Thu, 01/26/2012 - 20:06 | 2101282 AbruptlyKawaii
AbruptlyKawaii's picture

vs bankrupt capitalists

Thu, 01/26/2012 - 21:07 | 2101403 knukles
knukles's picture

America the land of the free and the home of the brave can pay for all of Europe.

Alls we gotta do is sell Bawney's salted gerbil bars

Thu, 01/26/2012 - 22:11 | 2101506 KickIce
KickIce's picture

I prefer bailed out crony capitalists that have in turn bankrupted real capitalists like small business owners and farmers.

Fri, 01/27/2012 - 08:47 | 2102034 pan-the-ist
pan-the-ist's picture

Close, but farmers are certainly socialists.

Thu, 01/26/2012 - 19:02 | 2101126 vocational tainee
vocational tainee's picture

Oops, when fresh mony is printed, it is the taxpayers? Ok, print more..

Thu, 01/26/2012 - 19:03 | 2101128 Jlmadyson
Jlmadyson's picture

Hey Timmy I want my 2K+ refund tomorrow not Monday. Never in my 10+ years of refunds have I got a DD for a Monday.

Run out of money much with those gov pension accounts? Debt ceiling a heck of thing. Good thing you can print a trillion more tomorrow.

Fall is a coming......

Thu, 01/26/2012 - 19:04 | 2101130 Squid Vicious
Squid Vicious's picture

speaking of Ben Shalom, just saw that he will be giving a series of lectures at George Washington University.... guaranteed to increase GW's spinning in grave to 5,000 rpm's

Thu, 01/26/2012 - 19:12 | 2101153 Moe Howard
Moe Howard's picture

If we could just harness that energy.....

Thu, 01/26/2012 - 19:19 | 2101171 frosty zoom
frosty zoom's picture

actually, america did until reagan came along..

NIXON/CARTER '12 --  Balls'n'Sanity

Thu, 01/26/2012 - 20:46 | 2101369 sun tzu
sun tzu's picture

N'Sanity is right

Thu, 01/26/2012 - 22:26 | 2101532 frosty zoom
frosty zoom's picture

heheh

Thu, 01/26/2012 - 23:08 | 2101573 billybobtx
billybobtx's picture

Pretty sure we can. Just 100M of taxpayer money and a nice fat BK filing after two years should do it.

Thu, 01/26/2012 - 19:08 | 2101138 Wipeout2097
Wipeout2097's picture

I don't vote 5* due to the usual "US taxpayer uber alles" rhetoric. The Fed can create money out of thin air.

Thu, 01/26/2012 - 19:09 | 2101141 BobPaulson
BobPaulson's picture

Of course they will say it is naive to let Europe burn because any genius who has worked with the squid 10 minutes knows that the whole plate of spaghetti goes down together when it goes.

Except for the naive part they are right. What their optimism bias prevents them from understanding is that it's going down anyway, gasoline on the fire notwithstanding.

Thu, 01/26/2012 - 19:09 | 2101142 SillySalesmanQu...
SillySalesmanQuestion's picture

I could"nt agree more with "reconciling that chart" Mr Chairman...we're waiting.

Thu, 01/26/2012 - 19:15 | 2101146 Boilermaker
Boilermaker's picture

Ah, yes, the feigning of restistance.  Awesome tactic, never seen it before.

Thu, 01/26/2012 - 21:47 | 2101465 kito
kito's picture

Always best served in an election year....rally the crowd!!! Lets do the wave as the cheerleaders shout "Give me an R, give me an E, give me a P, give me a U..........

Thu, 01/26/2012 - 19:10 | 2101147 NumNutt
NumNutt's picture

If we are going to save Europe why stop there? shit lets bailout Japan, and China too! then all the worlds leaders can meet in one place and come up with a plan to make the American tax payer work until he is 250 years old.  I love paying higher taxes (sarc on) 

Thu, 01/26/2012 - 19:11 | 2101148 chump666
chump666's picture

This is what Roach missed (and others) that the ECB is the real danger.  The FED is backstopping the ECB massively with USD swaps. The only reason that since Jan to now with all the fudgy stats and bond auctions, is the ECB is clandestine buying PIIGS debt.  That dropped the yields.  Whilst re-capping EZ banks.  Greece has to go, as does all the PIIGS one by one.  The US should grow balls and not fund bankrupt countries via the IMF.

Block it.  Send Europe a message

 

Thu, 01/26/2012 - 19:20 | 2101167 Wipeout2097
Wipeout2097's picture

Indeed the USA does not have yet balls. You needed Europe to help you fight your Afghanistan war.

Thu, 01/26/2012 - 19:31 | 2101196 chump666
chump666's picture

It has balls, big ones. Just needs to believe in the power of the ball sack.  As for Europe...no balls.  Weak and pathetic run by lunatics and French midgets.

Slight, very slight respect to Germany.  You can see some balls forming there, not much though.

The US should allow Europe to sort out it's own crap.  You can have Bernanke and the FED, that f*cker is running is own freak show with the ECB.

Thu, 01/26/2012 - 20:04 | 2101270 Wipeout2097
Wipeout2097's picture

After starting to believe it's ball sack, America needs to fix the brain. Make up your mind if you want to cooperate or compete with Europe!  You can't ask Europe for help on your wars and then attack the same Europe weak links

Fri, 01/27/2012 - 01:21 | 2101754 sun tzu
sun tzu's picture

Cooperate doesn't mean US has to bail out EU. I didn't see EU bail anyone out except themselves. Maybe Europe should stop asking the US for help in its wars like Bosnia and Libya

Thu, 01/26/2012 - 20:34 | 2101341 IndicaTive
IndicaTive's picture

"Snatch-big brave balls" on youtube. Your words somewhat personified.

Thu, 01/26/2012 - 21:02 | 2101395 chump666
chump666's picture

So good and so true.

London.  Great city.

Thu, 01/26/2012 - 21:23 | 2101427 smiler03
smiler03's picture

London is the anus of the world. (I'm feeling polite tonight)

Thu, 01/26/2012 - 21:33 | 2101441 chump666
chump666's picture

I lived there for awhile, many yrs back. the English/Londoners were a blast to hang out with.   The city, historic.  Holland was cool too.

But the way Europe is now.  It's a bad joke.

Thu, 01/26/2012 - 19:11 | 2101149 Moe Howard
Moe Howard's picture

Long live Arthmetic! It will take these bastards down in the end.

Thu, 01/26/2012 - 19:11 | 2101150 Jerry Maguire
Jerry Maguire's picture

It is not difficult to see what is happening here:  stringing out and postponing a mathematical certainty - debt implosion both here and abroad - with band-aid after band-aid.

We need to cancel debt - nearly all of it - and start over.  The PTB will never do that, so we have to do it ourselves, throught the legal mechanism left to us by our anecestors:  the constitution.

http://strikelawyer.wordpress.com/2011/12/27/saving-the-world-revised-ed...

http://strikelawyer.wordpress.com/2011/12/27/saving-the-world-revised-ed...

http://strikelawyer.wordpress.com/2011/12/31/brief-history-of-jubilees/

 

Thu, 01/26/2012 - 19:11 | 2101151 Wipeout2097
Wipeout2097's picture

Allow me

“The European Union includes four of the ten wealthiest countries in the world. European countries have the ability to implement austerity measures to reduce their countries’ debt over the long term and they also have the means to restore confidence to markets, ...”

... if the USA stops it's negative bets against the Euro, trolling PIIGS and so on.

Fri, 01/27/2012 - 01:24 | 2101758 sun tzu
sun tzu's picture

LOL poor boohoo EU

I'm sure EU banks aren't involved in  CDS and shorting the PIIGS

Idiots like you probably blamed the NASDAQ and RE crash on shorts

The PIIGS are in trouble because they are spending way more than they take in

Let that sink into your dense noggin

Fri, 01/27/2012 - 08:54 | 2102039 pan-the-ist
pan-the-ist's picture

And they cannot raise taxes or their business will relocate to the USofA where the effective tax rate for Crony Capitliasts is -30% paid for by the wages of the working class, small business owners, and the debt slavery of their unborn children.

Thu, 01/26/2012 - 19:15 | 2101159 chump666
chump666's picture

The IMF are a f*cking a joke.

 

Thu, 01/26/2012 - 19:16 | 2101160 Boilermaker
Boilermaker's picture

ES IS FREAKING OUT! 

Only up a few handles instead of the normal 10!

Thu, 01/26/2012 - 19:16 | 2101162 SilverDOG
SilverDOG's picture

AHHH, who gives a damn.

We all know that we are wasting our time, EVEN THINKING, a healthy financial resolution will occur.

Prepare Bitchez. This ship is going down. 

Thu, 01/26/2012 - 19:16 | 2101163 monopoly
monopoly's picture

Perfect, lets see if it works.

Thu, 01/26/2012 - 19:17 | 2101164 frosty zoom
frosty zoom's picture

these clowns could care less...

the banks that pay the pepsicrats pay the republicokes.

if europe goes down, so do jpcitisachs et al.

just more blubberblubber.

Thu, 01/26/2012 - 19:19 | 2101169 Nacho Libre III
Nacho Libre III's picture

Such fun to listen to the endless info-vomit from our political elite.  If they really want to stop funding bailouts of Europe via the "U.S. taxpayer" how bout they deal with those pesky unlimited USD swap lines.  Oh wait, I forgot, that would actually mean reminding double b that the miserable and sticky crap that's stuck to the bottom of his shoes is actually the "U.S. taxpayer". 

Thu, 01/26/2012 - 19:21 | 2101174 tickhound
tickhound's picture

 

"The Honorable Timothy Geithner"

surely they jest

Thu, 01/26/2012 - 19:33 | 2101206 krispkritter
krispkritter's picture

Looks like I picked the wrong week to stop smelling the Hopium...and stop calling me Shirley!

Thu, 01/26/2012 - 21:40 | 2101452 Raging Debate
Raging Debate's picture

Now there's the spirit!

Thu, 01/26/2012 - 19:52 | 2101245 The Count
The Count's picture

should read "The Horrible Timothy Geither"

Thu, 01/26/2012 - 19:23 | 2101176 slewie the pi-rat
slewie the pi-rat's picture

6 chairs and prez0?

whose deal is it?

Thu, 01/26/2012 - 19:23 | 2101177 vintageyz
vintageyz's picture

Too busy laughing at all of Tyler's great lines...excellent.

Thu, 01/26/2012 - 19:27 | 2101184 VelvetHog
VelvetHog's picture

Forgiving the debt would do the trick, but we can't accept that a few banks would go away.  Allow the entire world to fester instead of toppling the Vampire Squids of the world. 

Thu, 01/26/2012 - 19:27 | 2101185 earleflorida
earleflorida's picture

let's hear it for "Ron Paul"!

Thu, 01/26/2012 - 19:30 | 2101199 Smartie37
Smartie37's picture

What's that bad smell over by the fan ?

uhhh, uh - oh..................

Thu, 01/26/2012 - 19:30 | 2101200 krispkritter
krispkritter's picture

Looking forward to voting for the Honorable Ron Paul this coming Tuesday.  "The Horrible Timothy Geithner" can suck my sweaty ball sack '...I wanna look him straight in the eye and ..." http://www.youtube.com/watch?v=afbLb8A6oSE

Thu, 01/26/2012 - 19:31 | 2101201 Hansel
Hansel's picture

Is this the same kind of fake opposition that the Republicans put up during the debt charade in August?

Thu, 01/26/2012 - 19:45 | 2101229 Reese Bobby
Reese Bobby's picture

Yes.  Our one-party government is great fun.  Who believes it matters one bit who the next President of the U.S. is?  Anybody?  Is there one starry-eyed innocent left?

Thu, 01/26/2012 - 22:16 | 2101515 Raging Debate
Raging Debate's picture

No Reece. but the humor is awesome and the good news. 1.8 B in 1911 and near 7 B now. It was past time for taking a bow while drinking a cup of hypocrisy ale. But no need to pay for a certain kind of play as we're collectively lit up like Christmas trees online.

Thu, 01/26/2012 - 20:32 | 2101335 Questan1913
Questan1913's picture

"Is this the same kind of fake opposition that the Republicans put up during the debt charade in August?"

Indeed it is.  Glad you caught that.

Fri, 01/27/2012 - 01:27 | 2101760 sun tzu
sun tzu's picture

The sheeple get what they deserve. When it collapses the Free Shit Army will hurt the most. Be prepared to defend your family and property from the FSA

Fri, 01/27/2012 - 01:46 | 2101785 AbruptlyKawaii
AbruptlyKawaii's picture

negative ghost rider; you get what YOU DESRVE.

Thu, 01/26/2012 - 19:32 | 2101203 blunderdog
blunderdog's picture

How are we gonna kill the dollar WITHOUT bailing out Europe?

Big picture, huh?

Thu, 01/26/2012 - 19:37 | 2101215 lizzy36
lizzy36's picture

Meanwhile back at GOP headquarters, Newt is busy planning his Mars Colony and Romney is busy hiding his tax returns.

At the White House Obama & Crew are busy doing a happy dance.

#clusterfuck

Thu, 01/26/2012 - 22:31 | 2101537 Raging Debate
Raging Debate's picture

I don't know about all that politicin' but I got dibs on Mars rocket!

Fri, 01/27/2012 - 01:48 | 2101790 AbruptlyKawaii
AbruptlyKawaii's picture

#CircleJerkClusterFcuk babe ; )

Thu, 01/26/2012 - 19:38 | 2101219 ZeroPoint
ZeroPoint's picture

Sounds like the banks are squeezing their whores in Washington.

Thu, 01/26/2012 - 19:45 | 2101226 Heroic Couplet
Heroic Couplet's picture

Grandstanding. Republicans are the wholly-owned subsidiary of Wall Street. We got Republicans for Deregulation. Deregulation ALWAYS leads to increased risk. Republicans are too dumb to figure it out in advance.

Comes down to who pays: the Rothschilds, Warburgs, Rockefellers, Kissingers, the bank cartel, or the Saudi Arabians.

When there was an FOIA for Bernanke to release who got the bailout money, weren't the Saudis recipients? So it makes sense for the Saudis to bail out the Republicans in the US if the Rothschilds aren't going to. Given the Rothschilds are in Europe, maybe they'll bail out the IMF! After all, we have a major debt crisis in the US and the dry drunk former Republican President, George W Bush, hasn't come out of his hole in Crawford, Saudi Arab--sorry, Crawford, Texas. Good thing the Bush family knows the Saudis!

 

Thu, 01/26/2012 - 19:48 | 2101238 Reese Bobby
Reese Bobby's picture

You might be a starry-eyed innocent!  It's like seeing a humming bird these days!

Thu, 01/26/2012 - 20:37 | 2101346 Questan1913
Questan1913's picture

"Deregulation ALWAYS leads to increased risk"

Typo here.......should have read "increased theft"

Fri, 01/27/2012 - 01:34 | 2101765 sun tzu
sun tzu's picture

You mean both parties are wholly owned by Wall Street. Every 0bozo financial regulatory or advisory nominee has been a Wall Street alumni. John Corzine is still walking free. Angelo Mozilo got a slap on the wrist. No Wall Street bigs were ever charged with a crime. 0bozo's top contributors were the Wall Street firms. Schumer, Dodd, etc are all in the pockets of Wall Street. I also haven't seen oil prices come down since his Higness became TOTUS, but no complaints from his admirers. We all know who bowed down to the Saudi king

Nice attempt at pointing the finger away from your Messiah in Chief though. Amazingly, he's an even bigger fuckup than Bush Jr.

Fri, 01/27/2012 - 11:32 | 2102533 Xkwisetly Paneful
Xkwisetly Paneful's picture

Obvious typo as Sun Tzu pointed out.

Regulation always leads to greater risk and theft.

JFC the US banks had seven or eight federal agencies and state regulators and amongst the highest reserves in the world at shit hit fan moment and how many of the no show beaurocrats were held accountable?  They basically failed at the peak of their regulatory burdens.

There is no regulating stupidity and the buyers of the subsequently worthless debt were stupid. No buyers, no sellers, no market-the rest is bullshit.

FTR some of the banks like WAMU founded in 1880 or something, existence predated the alphabet soup agencies and things like Glass Steagall by decades.

 I do realize the confusion at times though, not like a country needs a banking system, military, food and fuel to exist.

 

Thu, 01/26/2012 - 19:54 | 2101230 The Count
The Count's picture

Friends, the truth is that the old (jewish) money congrlomerates like Rothshild, Warburg etc etc control the US banking system to a great degree through proxies. Remember when Paulson went to Bush and put a gun to his head? And billions of dollars were being transferred out of the US in minutes? That was a very clear message that they will not be messed with. I can guarantee you that they know how to pressure on Mr. O's ballsack to force him to bail out Europe if its in the bankers interest. While over on this side of the ocean the bankers still get their million dollar bonuses, the SEC is still a joke, legislation to curb financial excesses has been watered down more than my single malt on the rocks.

Thu, 01/26/2012 - 20:12 | 2101296 itstippy
itstippy's picture

This IMF deal could be a great opportunity for the U.S. to save the Euro zone and ourselves at the same time.  

We rehypothecate the $1.5T of special Treasury bonds in the SS Trust Fund to the IMF.  The IMF levers the funds to $8T and buys high-yield European PIIGS soveriegn bonds.  The PIIGS get over their temporary economic rough patch; the bonds skyrocket in value. 

The IMF returns our initial investment to the US Treasury X3, or $4.5T.  Treasury returns the original $1.5T to the SS Trust fund and uses the remaining $3T to cover the deficit through the 2012 election cycle.

What could go wrong?

 

Thu, 01/26/2012 - 20:21 | 2101319 AC_Doctor
AC_Doctor's picture

Dude, if you are being serious, you are definately one fucked up individual...

Thu, 01/26/2012 - 20:46 | 2101370 itstippy
itstippy's picture

You're right.

$3T would not see us through the 2012 election cycle.  We need to think bigger. 

But it's a start!

Thu, 01/26/2012 - 20:21 | 2101314 Questan1913
Questan1913's picture

I am very sorry to see that RP signed onto this letter but I would not question his motives.   Boilermaker has it right; "feigned resistance", manipulative politics and dishonesty on parade yet again.  I personally,am tired of lying.  Therefore I am proposing a new law be passed that would apply to that branch of government known as "the media" and also the other branches consisting of legislative, judicial and Executive.  My modest proposal is this; "You lie, You die",  That would be a very tight summary of a bill that might run to several hundred pages, and in the spirit of recent legislative tradition would be titled "The Defense of Lying Act"  If someone were drowning and you could quickly drain the water they were drowning in wouldn't you do it?  If the answer is yes then I think my proposal has some merit.  Why not protect the country from this couldburst?

Thu, 01/26/2012 - 20:21 | 2101318 HD
HD's picture

You have to love the fact that we've come to the point where even the rescuers need rescuing.

Equity bulls are blind, insane or both.

Fri, 01/27/2012 - 00:26 | 2101682 Incubus
Incubus's picture

Simple, they'll just create a new organization that'll rescue the rescuers of the rescuers and so on and so forth. It's like debtception.  A bailout within a bailout within a bailout.

 

And FYI: if you did not realize it,  the end scheme is the destruction of "countries" and the formation of world government.  A healthy society puts up too much resistance, so you have to weaken it.  bleed it out and then when they're sick and begging for treatment, they'll save you alright.

And anyways, they're gonna kick this can until your great great great great great grandkids feel it. The top'll keep spinning.  Keep on dreamin'.

 

 

Thu, 01/26/2012 - 20:22 | 2101321 alien-IQ
alien-IQ's picture

Has anybody noticed this story running in Der Spiegel?

 

Revenge for EU Sanctions Iran Set to Turn Off Oil Supply to Europe

The European Union embargo on Iranian oil will only come into effect in six months, but the leadership in Tehran wants to act first: Exports to Europe are set to be halted immediately. It is a move which could mean added difficulties for struggling economies in southern Europe.

It's a move which has tit-for-tat written all over it, but one which could nonetheless have a serious impact: The Iranian government wants to present a bill to parliament this weekend calling for an immediate halt to oil deliveries to Europe. The move, with most reports citing the Iranian news agency Mehr, has come about in response to the EU agreement to impose sanctions against Iran, which were announced earlier this week.

 

The sanctions banned any new contracts for buying oil from Iran, but allowed existing deals to continue until July in order to give countries time to find other sources. But that process is now at risk after the latest move from Tehran, a step the Iranian government had already threatened.

"If this bill is passed, the government will be forced to stop selling oil to Europe before the actual implementation of their sanctions," said Emad Hosseini, spokesman for the Iranian parliament's energy commission, reportedly said. The bill is set to become law on Sunday.

 

Full story here:

http://www.spiegel.de/international/world/0,1518,811507,00.html


Thu, 01/26/2012 - 21:30 | 2101439 smiler03
smiler03's picture

+100

The best news I've read all day, I was wondering why Iran didn't just tell the EU to go get fucked. It makes perfect sense. Now wait for the false bravado from the EU tossers, I'll be ROTFLMAO!

Thu, 01/26/2012 - 23:31 | 2101609 Jim in MN
Jim in MN's picture

Yes.  The EU revealed its weakness by rambling on about exceptions and now the chess masters are going to shove it down their throats.

Fri, 01/27/2012 - 01:36 | 2101770 sun tzu
sun tzu's picture

Iran has plenty of customers for its oil. India and China can easily consume all of Iran's oil exports

Thu, 01/26/2012 - 20:26 | 2101326 Eric L. Prentis
Eric L. Prentis's picture

Chairman Bernanke admits his Zero Interest Rate Policy (ZIRP), that now extents to the end of 2014, is a massive transfer of wealth from savers to borrowers, which reduces capital formation. Consequently, savers and over-indebted borrowers are not spending, reducing demand. Quantitative Easing (QE) by the Federal Reserve to monetize the federal debt, which keeps interest rates low, only increases inflation and asset prices on items everyday workers desperately need, i.e., gasoline, food, clothing. This transfers money from the real economy to the financial markets, further hurting demand. (Another result, increasing asset prices in the stock market mainly goes to the top 10%).

 

Since 2000, the national debt has increased from about $5.6 trillion dollars to $15.3 trillion dollars, or 273%, in twelve years. Adding in the increased debt at the Fed for QE 1&2, +$2.1 trillion dollars, and Fannie Mae and Freddie Mac debt, +$5.3 trillion dollars, brings the US national debt to $22.7 trillion dollars, or 149% of GDP. Fiscal policy is under severe strain and politically, expanding it is unworkable.

 

Public and private debt is about 370% of GDP. As the public deleverages, mainly through bankruptcy and defaulting on their underwater mortgages, government has attempted to spend more to maintain demand. The problem is we have hit a debt wall, it is impossible to service debt when it is 370% of GDP.

 

All the stupid decisions by the financial elite have already been made (Mortgage fraud, securitization, MERS, robo-signing). The American people no longer want to use taxpayer money to support the status quo. The only solution is debt forgiveness. Let the zombie banks die. Raise interest rates to increase demand. Let’s transition out of this casino financial system and start growing the real economy again.

Thu, 01/26/2012 - 21:28 | 2101436 The Count
The Count's picture

Very well said.

Thu, 01/26/2012 - 23:17 | 2101591 tarsubil
tarsubil's picture

'... it is impossible to service debt when it is 370% of GDP.'

Isn't it possible to service that debt by printing?

Fri, 01/27/2012 - 00:08 | 2101656 i-dog
i-dog's picture

 

"The American people no longer want to use taxpayer money to support the status quo"

"The American people" have no fucking idea where the money comes from, and they most certainly do not want to see an end to the status quo!

They just want "the government" to keep sending them more ... and more ... and more.....

The Bernank and The Midget are doing exactly what the public wants and the public will praise them for it. Indeed, the public would mount a "Bernank/Midget 2012" campaign before they would give their votes to Ron Paul.

Fri, 01/27/2012 - 08:38 | 2102027 ebworthen
ebworthen's picture

Jubilee!

Thu, 01/26/2012 - 20:44 | 2101365 The Alarmist
The Alarmist's picture

What would be really nice is if they actually submitted a budget for 2012.  How can a government function on vague continuing resolutions for more than two years?

These are not serious people.

Thu, 01/26/2012 - 21:24 | 2101429 divide_by_zero
divide_by_zero's picture

They have but Harry Reid (D-NV) will not bring any budget up for a vote(even when the Dems controlled the House). So all we get is continuing resolution votes with the $857B porkulus bill cooked in.

Thu, 01/26/2012 - 20:45 | 2101367 bugs_
bugs_'s picture

those waskaly wepublicans!

Newt looking in his wine glass.....bail out europe....or....GO TO THE MOON?

Thu, 01/26/2012 - 20:50 | 2101371 ebworthen
ebworthen's picture

 

 

"Dear Committee on Financial Services,

To reach clarity on these issues, as a committee please define to the best of your ability the following terms:

  1. Bail Out
  2. Contribution
  3. Financial Capacity
  4. Debt
  5. Dollars
  6. Funds
  7. Crisis
  8. Position

Once I receive your definitions, I'm certain that we can come to some form of agreement on the meaning of this crisis (definition needed) and the complex permutations involved.

Sincerely,

Timothy Geithner"

Thu, 01/26/2012 - 20:49 | 2101377 Seasmoke
Seasmoke's picture

who wants to challenge Geithner to a duel ?

Thu, 01/26/2012 - 20:52 | 2101382 Pants McPants
Pants McPants's picture

Off topic, but I wish those obnoxious Ron Paul supporters in Florida would shut up.  I can't hear the real news....you know, like Gloria Borger/David Gergen debate over whether or not Newt was a Reagan foot soldier and the impact of super PAC-sponsored PAC ads.

(sarcasm)

Thu, 01/26/2012 - 23:39 | 2101627 Jim in MN
Jim in MN's picture

I loved how Paul totally refused the Kool-Aid not only on Castro, but on which ethnic pet he would pretend to like for the rabid voters.  He said sensible things that are political suicide in Florida, and did with grace and good humor.  I had to ease my jaw shut.

I only wish he had been given some time on the Israel-Palestine issue.

Notice how the others are now visibly remembering to say we won't just invade the shit out of everybody on Earth while glancing over at Paul?  Hilarious and deeply disturbing at the same time.

Santorum said some of the most loathsome and reprehensible things I have ever heard from a Presidential candidate.  For shame.  Liberty depends on Christianity (so America's promise to the world is nil)?  The Constitution is just an operator's manual? Fuck you, Senator.

Thu, 01/26/2012 - 21:25 | 2101401 Atomizer
Atomizer's picture

 

 

Christine Lagarde was just another cunt put in place to push the agenda forward. After the scandal with DSK occurred, the fog was lifted. My 1986 childhood memories immediately surfaced!! Side one of vinyl, song 5 [ http://www.discogs.com/viewimages?release=1536720 ]

MY DAD IS DEAD  (MDID) 

Like a Vise

You better watch out for that man.

He’ll dig into your soul, deep down

And he’ll hold you like a vise

Squeezing out your will

Drop by drop no resistance.

And he’s grabbing your heart and he’s shaking shaking shaking

And it just won’t stop

Your shaking just won’t stop.

You won’t allow it.

Thu, 01/26/2012 - 21:16 | 2101415 fuu
fuu's picture

I just watched a room full of Republicans put their hands on their hearts and sing a national anthem to a telesviion. Then I watched 3 of the 4 men on the stage talk up a national e-verify system possibly run by mastercard, visa, or american express.

Thu, 01/26/2012 - 21:33 | 2101444 Atomizer
Atomizer's picture

The Pledge of Allegiance would have been to challenging and racist. Now they can 'play ball' with debate. Winks.

Thu, 01/26/2012 - 21:45 | 2101458 fuu
fuu's picture

Tonights episode seems to have involved a slightly different quality of writer.

Thu, 01/26/2012 - 21:33 | 2101445 ghostfaceinvestah
ghostfaceinvestah's picture

Fuck yeah, let those Euros work into their 70s like Americans have to, or if they want to bankrupt themselves, let them.

Thu, 01/26/2012 - 22:02 | 2101488 mayhem_korner
mayhem_korner's picture

The Honorable Timothy Geithner

 

These guys lie even in how they address each other.

Thu, 01/26/2012 - 22:37 | 2101543 TK7936
TK7936's picture

Hegemony has its price...

Thu, 01/26/2012 - 22:51 | 2101555 lemosbrasil
lemosbrasil's picture

 

Double top in the Dow Jones bearish divergences with MACD and RSI14 Figure "M" to be configured?SP500, the downtrendline touched in chart monthly. It's The End Of The World? See here :http://pracompraroupravender.blogspot.com/2012/01/its-end-of-world.html http://www.gstatic.com/translate/buttons6.png); background-attachment: initial; background-origin: initial; background-clip: initial; background-color: initial; opacity: 0.667; margin-top: -3px; vertical-align: middle; background-position: -94px -3px; background-repeat: no-repeat no-repeat;"> 

 

Thu, 01/26/2012 - 22:56 | 2101562 The Reich
The Reich's picture

But US fiat money should bailout Euro fiat money to a good purpose.

Thu, 01/26/2012 - 23:14 | 2101580 chump666
chump666's picture

Asian markets have lost the plot. 

USDs were slammed back down, major momo stock rally kicked in.  Lets see if the ECB goes for broke before Germany finally remembers how they got boned Weimar style.    C'mon Merkel the ECB is rogue buying everything.  Your backlash will be historic.

Thu, 01/26/2012 - 23:28 | 2101604 DaddabhaJataka
DaddabhaJataka's picture

So, the swaps are the source of monies for the S&P 500 melt up since xmas.

Thu, 01/26/2012 - 23:41 | 2101612 Pontius
Pontius's picture

Put the "x" back in xmas!

Fri, 01/27/2012 - 01:07 | 2101734 slewie the pi-rat
slewie the pi-rat's picture

L0L!!!

hi!

Fri, 01/27/2012 - 00:06 | 2101645 simone
simone's picture

Correlation is causation.

Do NOT follow this link or you will be banned from the site!