This page has been archived and commenting is disabled.

Senate Attempt To Block Debt Ceiling Increase Fails: Debt Target Is Now $15.2 Trillion, Or Over 100% Of GDP

Tyler Durden's picture




 

Earlier today we observed that absent immediate action by the House and Senate to enact the critical $500 billion debt ceiling expansion, the US would run out of Keynesian dry powder as soon as Monday. There is no longer a need to worry. According to the Hill, an attempt to sabotage the bankruptcy of America has failed after a Senate resolution to disapprove the $500 billion debt ceiling increase proposed by Mitch McConnell was voted down 45 to 52. As a reminder, "Under the debt-ceiling agreement reached in early August, the Obama administration was authorized to immediately raise the debt ceiling by $400 billion. Another $500 billion increase was authorized this month, although that could have been blocked if both the House and Senate approved resolutions expressing disapproval." The opportunity cost of passing the bill would have been an additional 10 hours of work tomorrow for the Senatorial millionaires for whom insider trading is legal: "Earlier in the day Senate Majority Leader Harry Reid (D-Nev.) threatened to hold the Senate open for up to ten hours on Friday to "dispose" of the resolution if it moved forward." As a result of this vote, a parallel bill in Congress is now moot even though it has not been voted on. This effectively greenlights the increase of the US debt ceiling from the current $14.694 to $15.194 trillion, or roughly 101% of GDP.

Some more:

On Thursday morning McConnell suggested senators could use the vote as a way to respond to President Obama's "jobs" speech to a joint session of Congress in which he presented a proposal that he said would stimulate the  American economy.

 

"After the president's speech tonight calling for more stimulus spending, the Senate will vote on his request for an additional $500 billion increase in the debt ceiling," McConnell said. "So senators will have an opportunity to vote for or against this type of approach right away."

 

A House Republican resolution has also been introduced, H.J.Res. 77, that has the potential to pass if most Republicans decide to support it. Still, House passage would not be enough to stop the $500 billion increase in the debt ceiling since the Senate stopped it.

 

The House resolution, from Rep. Tom Reed (R-NY), has 49 cosponsors, all Republicans.

 

The House and Senate resolutions are identical, and read:

 

"Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That Congress disapproves of the President's exercise of authority to increase the debt limit, as exercised pursuant to the certification under section 3101A(a) of title 31, United States Code."

 

The Senate adjourned at 8.31 p.m. and is set to return on Friday at 9:45 a.m.

Congratulations America: you just bought yourself 3 more months.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 09/08/2011 - 21:45 | 1649189 DaylightWastingTime
DaylightWastingTime's picture

the buck stops here sounds alot better than the fuck, guess the romance stops here

Thu, 09/08/2011 - 22:10 | 1649263 Soul Train
Soul Train's picture

Latest Hilsenrath shill comments from the Wall Street Journal:

 

BY JON HILSENRATH

Federal Reserve officials are considering three unconventional steps to revive the economic recovery and seem increasingly inclined to take at least one as they prepare to meet this month.

 

Worries about inflation at the Fed have receded in recent weeks and economic data have worsened, putting officials on the lookout for ways to spur economic growth and improve financial conditions.

Chairman Ben Bernanke speaks Thursday in Minneapolis, and is likely to reiterate that the central bank is studying all its options, before officials meet Sept. 20 and 21.

Other Fed officials, meanwhile, are expressing support for additional action.

 

Wow- SOUNDS LIKE these YOYO PEDIGREES at the Fed stopped worrying about inflation after A WHOLE FEW WEEKS OF RECENT DATA. Did I understand that right?

wHAT A CIRCUS THE FEDERAL RESERVE IS !  qUACK QUACK QUACK.

FUCKING ZOO AND USING THE WSJ AS THEIR FAV PROPAGANDA PARROTT.

iTS A PONZI SCHEME. aND THE LIE IS GETTING BIGGER AND BIGGER/ THE FEDERAL RESERVE HAS BECOME LIKE A SOAP OPERA AND USING THE WSJ TO TRIAL BALLOON AND CONFIDENCE SCHEME.

EMPeROR WITH NO CLOTHES. Meanwhile, Ben keeps his beard neatly manicured, meticulously using voodoo words and high brow news leaks to manage our currency. Sham. it's a fucking sham.

We call their bluff, ---  simply buy gold coins and silver specimen - physcial people. Physical.

 

Thu, 09/08/2011 - 22:43 | 1649399 oobrien
oobrien's picture

Good citizens of Metropolis!

I have breaking news.

We are now all officially fucked.

Buy your pork and beans.  Then immediately run to the hills.

Thank you for your time.

http://geraldcelente.proboards.com

Thu, 09/08/2011 - 22:55 | 1649406 Taku
Taku's picture

Jean-Claude Trichet is a Sith Lord.

Just thought I'd throw that out there.

Fri, 09/09/2011 - 00:33 | 1649604 A Nanny Moose
A Nanny Moose's picture

Always two sith, there are. Reveal the second, we must.

 

 

Fri, 09/09/2011 - 03:57 | 1649762 Michael
Michael's picture

OT

 The Obama Doctrine;

Never let a 9/11 anniversary go to waste.

You heard it here first on ZH. Please repeat the message.

Fri, 09/09/2011 - 10:03 | 1650486 papaswamp
papaswamp's picture

it's Timmay!!

Fri, 09/09/2011 - 01:44 | 1649676 NumNutt
NumNutt's picture

OK wait a minute, trying to collect the last two remaining brain cells.....been drinking a bit.....So what the fuck! The assholes put puppet boy up in front of the nation to make his speech and while everyone is high five'en and yelling Yeah! they decide to slide this shit in our ass?!?!?! Really? Man this is to mutch...er much. Can I have another beer please...? Anyway as I was saying, Your  momma's ass is bigger than a ..... huh wha...ok soory differnt thred.....ok , where is Janis need a transition.....over an out.

Thu, 09/08/2011 - 21:45 | 1649190 LiquidIce
LiquidIce's picture

They just cut into the football game for a terror alert. pffttt

Thu, 09/08/2011 - 21:48 | 1649202 55 men
55 men's picture

What game? I am watching a highschool football game.

Thu, 09/08/2011 - 22:09 | 1649296 CrockettAlmanac.com
CrockettAlmanac.com's picture

They'll break into that with a toilet paper in the trees alert.

Thu, 09/08/2011 - 23:40 | 1649517 Bringin It
Bringin It's picture

55 men - Plus 11 for making the better choice.  Ignore the putrid MSM bread and circus mind-play.

Thu, 09/08/2011 - 21:49 | 1649203 vmromk
vmromk's picture

keynesian dry powder - that's killer !

Thu, 09/08/2011 - 22:11 | 1649309 nmewn
nmewn's picture

Senator Reid...again.

Thu, 09/08/2011 - 22:23 | 1649341 Falcon15
Falcon15's picture

I sincerely hope a pissed off constituent of Mr. Reid shoves a broomstick up Mr. Reid's dessicated ass and breaks it off. Barring that I'd love to see any of those worthless dog puke eating reps on the Hill work, I mean really work, for a living.

Fri, 09/09/2011 - 00:22 | 1649588 CompassionateFascist
CompassionateFascist's picture

Reid is nothing. It the Jew wife that calls the shots.

Thu, 09/08/2011 - 21:49 | 1649204 lolmao500
lolmao500's picture

Yay. Democrats just love debt. Republicans too.

Thu, 09/08/2011 - 21:49 | 1649209 X.inf.capt
X.inf.capt's picture

they print,print,print

we BUY,BUY,BUY

PM's

Thu, 09/08/2011 - 22:00 | 1649255 DoChenRollingBearing
DoChenRollingBearing's picture

+ $1860 and green

Thu, 09/08/2011 - 22:21 | 1649339 X.inf.capt
X.inf.capt's picture

how you doing, bearing. remember how i got junked big time for telling people not to sell PM's when they wanted to sell. we were right, my friend....now the sky is limit for PM's. look out above........

Fri, 09/09/2011 - 00:14 | 1649568 DoChenRollingBearing
DoChenRollingBearing's picture

Junking is just a part of the terrain here Cap'n.  You see?  Someone junked me above for a benign comment.  You know, you come onto the Internet, you put your life on the line, not just the namby-pamby stuff they do in the military (j/k of course).

Long time ago, I expressed non-sympathy for a Turkish "peace" protester (on that ship the Israelis raided), and got blown right off the thread (20 "junks" at that time, and your comment disappeard).  ZH-er ZeroHead told me it was an HONOR getting junked.  I suppose that he was at least partly correct, when they junk you, you KNOW you pushed a button!

Send me a gmail sometime X at my name above, and I will send you a link to my blog.  I write about gold and similar (+/- 60%) and the other stuff I write about is whatever I want to.  I make ZH-ers jump through the hoop (like you did not have to THAT in the .mil...) because of the nature of ZH (my blog is not Fight Club), and make them promise to behave as I write under my real name.  Over 200 readers, most from ZH, most very fine people.  Some of them are into some very advanced stuff.

Here's an example of something I am working on myself.  The link below takes you to a Google spreadsheet up there in "The Cloud", I posted this on my other blog (oriented to our customers in Peru) about new bearings that arrived to our company down there:

https://docs.google.com/spreadsheet/ccc?key=0AhnHmH-02CQIdG1zbTY3clR1Rnlmc2NwaV96dXozbnc&hl=en_US

The above and my own work with our import company help me to learn a little something new everyday.  Zero Hedge too!

Thu, 09/08/2011 - 23:57 | 1649545 IEVI
IEVI's picture

Did anyone see this pathetic attempt by Bloomberg to talk down gold

Gold Poised for Weekly Decline as Obama Employment Plan May Boost Economy

 

http://www.bloomberg.com/news/2011-09-08/gold-futures-advance-for-second-day-as-bernanke-offers-no-new-growth-boost.html
Fri, 09/09/2011 - 06:17 | 1649854 saulysw
Fri, 09/09/2011 - 02:54 | 1649737 FreedomGuy
FreedomGuy's picture

Don't worry, we are a AAA+ rated company. With this new DEBT and SPENDING and tax reduction we are sure to get the first evey AAAA+ rating. This is what top ratings look like, right? Debts over 100% GDP, endless deficits and approaching entitlement tsunamis, right? Yep, we are saved!

Thu, 09/08/2011 - 21:50 | 1649211 Yamaha
Yamaha's picture

The terror is Hillary running naked in the end zone........

Fri, 09/09/2011 - 01:18 | 1649652 Fish Gone Bad
Fish Gone Bad's picture

The thought of that pretty much makes me feel sorry for Bill...

Fri, 09/09/2011 - 07:16 | 1649983 spankfish
spankfish's picture

Scary thought, I would pay to see that.

Fri, 09/09/2011 - 07:41 | 1650035 Soul Train
Soul Train's picture

Hillary naked is indeed a scary thought.

Short squeeze nightmare.

Thu, 09/08/2011 - 21:50 | 1649212 mfoste1
mfoste1's picture

this is bullish for sure....

Thu, 09/08/2011 - 21:51 | 1649214 Slow-choke-off
Slow-choke-off's picture

Breaking News.

Western Canada has been sold to the USA, and I'm pissed. I want my f'n money you pricks. I worked for 40 f'n years to be sold out by that ass Harper.

Thu, 09/08/2011 - 21:53 | 1649226 T-Bond
T-Bond's picture

This should be good for a 25 handle higher opening in the S&P tomorrow.

Thu, 09/08/2011 - 21:53 | 1649228 X.inf.capt
X.inf.capt's picture

instead of offering prosperity

they offer protection from the booggie man...

the politics of fear.....

Thu, 09/08/2011 - 21:54 | 1649229 And...Its Gone
Thu, 09/08/2011 - 21:53 | 1649230 And...Its Gone
Fri, 09/09/2011 - 00:40 | 1649619 Shirley Wilfahrt
Shirley Wilfahrt's picture

The wife was watching a movie last night....I walked by during a rent a center commercial....

"Is your life passing you by because you don't have a big screen television yet?"

.....

That was the opening pitch line. Colour us FUCKED.

You watch....they are gonna kick this can for awhile yet.

I'll just keep head down and keep stacking.

And drinking.

Cheers

Bitchez

Fri, 09/09/2011 - 02:54 | 1649736 Incubus
Incubus's picture

It's all in the sale, anyway. 

 

People want you to smile and speak very nicely to them while you're carving them up.  Who cares about any truth when you can just feel good?

 

Fri, 09/09/2011 - 20:54 | 1653098 Shirley Wilfahrt
Shirley Wilfahrt's picture

That my friend is some big money advice.

Thank you sincerely.

Thu, 09/08/2011 - 21:54 | 1649232 Smiley
Smiley's picture

JENGA, JENGA, JENGA...

Thu, 09/08/2011 - 22:03 | 1649270 55 men
Thu, 09/08/2011 - 23:18 | 1649470 boffster
boffster's picture

BUNGA, BUNGA, BUNGA

Thu, 09/08/2011 - 21:57 | 1649245 mfoste1
mfoste1's picture

these fucking pieces of shit scum are running this country into the ground...can the people stage a coup?

Thu, 09/08/2011 - 22:04 | 1649277 lolmao500
lolmao500's picture

That's the military job. The military should overthrow Obama, arrest congress and put troops in all big banks in America.

 

Thu, 09/08/2011 - 22:09 | 1649298 mfoste1
mfoste1's picture

just think if the military did stage a coup.....my how all those scum ass clown politicians and bankers would be quivering in fear

Thu, 09/08/2011 - 22:11 | 1649306 CrockettAlmanac.com
CrockettAlmanac.com's picture

would be quivering in fear

 

So would I and I work for a living.

Thu, 09/08/2011 - 22:56 | 1649426 poor fella
poor fella's picture

If the military were hurting for food, perhaps, otherwise the peeps have no money and we know how much 'liquidity' is floating around Wall Street and D.C. to PAY FOR PROTECTION.

The soldiers WOULD be in the banks and surrounding the Capital but it would be YOU and ME looking down the barrels... Look at the 'protest zones'... Unless we go FULL RETARD APESHIT ANARCHIST NUTFUCK straight to destroy-mode - nobody will listen to the populace. It would take massive 'losses' to build sympathy, if ever.

A 'million MOTHERS walk' would do it - we are a pubic hair away from full fascism

Thu, 09/08/2011 - 21:59 | 1649251 Slow-choke-off
Slow-choke-off's picture

I'm not going to work like a dog for war mongering asses like you. I didn't agree to the deal. Try and live in -40 winter here assholes. You have no idea what its like. Think you can starve us out? I own my water and the land and all the geese that fly over it. I wont take orders from you ass f'ers.

Fri, 09/09/2011 - 00:27 | 1649598 CompassionateFascist
CompassionateFascist's picture

Predator, incoming....

Fri, 09/09/2011 - 04:05 | 1649767 Hobbleknee
Hobbleknee's picture

lol

Thu, 09/08/2011 - 22:00 | 1649259 DaylightWastingTime
DaylightWastingTime's picture

dear governmant, thanks for sparing me from a dry fuck, and your spit on a magnetic strip, at least i retain my dignity in a long line. but always i give freely of the unmentionable freely, as long as you continue to end the friction of living in a world i fucked up,  becuase of course i fucked it up, wish i had at least 2000$ then we wouldn't have this conversation out loud but thankfully i am one of 43%, the line is long. and my voice is growing hoarse. i want to work, or rather i would prefer a different species of work one, that asks for more than nothing but i want to keep my teeth in this nipple. i still love you no matter what.

Thu, 09/08/2011 - 22:00 | 1649261 DaylightWastingTime
DaylightWastingTime's picture

dear governmant, thanks for sparing me from a dry fuck, and your spit on a magnetic strip, at least i retain my dignity in a long line. but always i give freely of the unmentionable freely, as long as you continue to end the friction of living in a world i fucked up,  becuase of course i fucked it up, wish i had at least 2000$ then we wouldn't have this conversation out loud but thankfully i am one of 43%, the line is long. and my voice is growing hoarse. i want to work, or rather i would prefer a different species of work one, that asks for more than nothing but i want to keep my teeth in this nipple. i still love you no matter what.

Thu, 09/08/2011 - 22:01 | 1649266 max2205
max2205's picture

Wow, while you were sleeping... In the dead of night.... Where are the fucking tea baggers ?

Thu, 09/08/2011 - 22:04 | 1649281 UGrev
UGrev's picture

Got cold cocked on this one.. didn't even know about it.. but I'll be making some noise tomorrow. 

Thu, 09/08/2011 - 22:29 | 1649364 docj
docj's picture

There are, like, what, 6 maybe 7 legit "Tea Party" votes in the Senate (I think that's how many voted for Rand Paul's budget - and at least one of them, Hatch, did it just to try to keep from getting primaried next year). This outcome was priced-in weeks ago.

Thu, 09/08/2011 - 22:03 | 1649274 MFL8240
MFL8240's picture

The criminals are out of control, goodbye to America as we know it.  The US fool stood before America tonght with more spending ideas and not one accoplishment to his name.  Why would anyone listen to this clown?

Fri, 09/09/2011 - 10:52 | 1650744 andybev01
andybev01's picture

Because they are having a hard time getting to sleep?

Thu, 09/08/2011 - 22:03 | 1649275 alien-IQ
alien-IQ's picture

America has proven, once again, that it can out banana any banana republic on earth.

Thu, 09/08/2011 - 22:04 | 1649276 King_of_simpletons
King_of_simpletons's picture

Who cares about the debt ceiling anymore... Spend man.... Keep spending into oblivion.

Thu, 09/08/2011 - 22:04 | 1649280 Atomizer
Atomizer's picture

Burn baby Burn. Enron.

Reportedly, George Kasier has been producing high levels of Co2 in his underpants.

Somehow, we need to work off Solyndra's inventory of photovoltaic solar cells. Some green nut job can figure out how to retrofit those batteries into our existing electrical grid source/Chevy Volt.

BTW..I was a vendor, unharmed thankfully. They immediately ramped up with CTP http://www.ctplastics.com/ after new building went 80% online. Another company affected, http://corporate.evonik.com/en/Pages/default.aspx

FBI clean sweep operation today was to protect a fraud in office.

Jacob J. Lew, Director

http://www.whitehouse.gov/omb/organization_office

IMPACT: OMB dodges subpoena deadline on Solyndra

http://www.iwatchnews.org/2011/07/22/5302/impact-omb-dodges-subpoena-deadline-solyndra

Tonight Obama spoke without his Gibson guitar. Folks, his next media event will have the teleprompter playing softly in the background..

Immigrant Song - Led Zeppelin 

Without the new participants to invest into SS & Medicare program, the Ponzi myth will be exposed.

More taxpayer funded shell company laundering will come into exposure.

 Calgon "Ancient Chinese Secret"

 

Thu, 09/08/2011 - 22:07 | 1649282 knukles
knukles's picture

See!  Fixed again. 
A real bi-partisan solution in the True Keynesian Kumbayahian manner.
Yidju get that early tee time for tomorrow at Congressional, Joe?

Thu, 09/08/2011 - 22:21 | 1649287 razorthin
razorthin's picture

I was discussing with the some of the smartest people I know about the indemnity of Congress against insider trading laws.  Their jaws dropped in disbelief.  It's appalling that almost no Americans realize JUST how bought and paid our "representatives" are.

Someone should remind the congressional assphucks that they can also SHORT.  That would be the most beneficial self-enriching thing they could do for their country.

Thu, 09/08/2011 - 22:08 | 1649293 chump666
chump666's picture

The August 'chaos' trade will come back with a vegenace.  Obama has set up a fight with the Republicans.  His tax BS was never planned to be passed, he wants to get a public backlash going against the majority of congress.

The mind boggles how close everything is to the edge and that a-hole is about to tip it over.

Markets trading in narrow ranges, there is not going to be a major bull market here, no way...back to extereme swings in bull/bear trades.

Bad vibes man

Thu, 09/08/2011 - 22:09 | 1649300 floyd084
floyd084's picture

Im sure you guys all know where to look, but here it is for those that dont (table iii-c). That 400 billion sure went fast.

https://www.fms.treas.gov/fmsweb/viewDTSFiles?dir=w&fname=11090700.txt

 

Thu, 09/08/2011 - 22:09 | 1649301 Setarcos
Setarcos's picture

I OBJECT to the constant reference to Keynes.

He would be rolling in his grave to see what has gone on since everything he stood for got obliterated from the late 1970s.

He NEVER endorsed deficit spending with money borrowed (at compound interest) from private banks ... writ large in the Fed.

He would never have agreed with the Chicago School ... if you do not know what that produced, e.g. Greenspan and all current mainstream economic theories, then more fool you.

Does any reader of this know the difference between fiscal policies and monetarist ones?

In any case what Keynes advocated was taxing and saving during good times, so as to be able to spend the savings during bad times.

Shame that few have actually read J M Keynes, or at least J K Galbraith.

Thu, 09/08/2011 - 22:15 | 1649317 CrockettAlmanac.com
CrockettAlmanac.com's picture

But Keynes would print money, stuff it into jars and bury it under tons of garbage in abandoned coal mines so that people could have jobs digging it out. What a guy.

Thu, 09/08/2011 - 22:23 | 1649342 Calculated_Risk
Calculated_Risk's picture

The fact that he thought a politician could save money says everything I need to know about the man.

Thu, 09/08/2011 - 22:28 | 1649358 centerline
centerline's picture

If I recall correctly, Keynes was a proponent of socializing losses as spreading out the impact of malinvestment is easier (kinder) than letting smaller groups of people fail more catestrophically (Austrian school of thought).  Is interesting that we are up against this very subject now.  Yeah, Keynes never imagined what has been created - a true MMT abortion that is built to fleece.  But, it appears a key flaw was the failure to recognize that debts do in fact matter, because they serve as a wealth transfer mechanism from the masses to the financial elite (those who are closer to the creation/control of a currency).  Damn human behavior getting in the way of all that fancy math.  Go figure. 

Thu, 09/08/2011 - 23:01 | 1649440 Libertarian777
Libertarian777's picture

actually you have a point there.

Austrian school of thought is you don't need government regulation, market regulation will make malinvestment die a horrid death.

Keynes as you indicate, says socialise losses to 'save' those who malinvested. Which is why we end up in economic malaise (like Japan).

 

Still waiting for Krugman to explain why Japan's tsunami + QEn  hasn't doubled the Japanese GDP this quarter.

Thu, 09/08/2011 - 22:31 | 1649368 Goldman Hufs
Goldman Hufs's picture

You've posted this garbage before.  No government in the history of the world has ever "saved during the good times."  The fact that his policies hinged on this idiotic concept ensured that they were doomed from the start.  He's either incredibly naive or a criminal but either way his policies have significantly contributed to the mess we are in today.  Go back to grading papers for you econ professor.  The rest of us don't want to hear it.

Thu, 09/08/2011 - 23:24 | 1649484 kito
kito's picture

You obviously havent looked into chile

Fri, 09/09/2011 - 00:37 | 1649611 Fiat2Zero
Fiat2Zero's picture

You are the ultimate chile troll. I think you made Simon cry just now.

Fri, 09/09/2011 - 01:46 | 1649678 Goldman Hufs
Goldman Hufs's picture

No, I must admit I have not allocated a lot of my free time researching an economic power house like Chile.

Fri, 09/09/2011 - 07:27 | 1650007 spankfish
spankfish's picture

I have a friend who is married to an absolutely smoking hot Chilean woman from Santiago. Now thats the type of import I could live with.  I think I'm supposed to say "hot Latin bitchez" now.  Done.

Thu, 09/08/2011 - 22:58 | 1649435 gwar5
gwar5's picture

Namesakes of Marx and Stalin were also invoked in some tragic undertakings. No pun intended. 

You're right, but the trouble is that the people doing the damage are the ones calling it Keynesianism. Romer even dragged out her Keynesian economic books to Bill Maher to defend what she did. Keynes started with a gold standard but his long term vision was, indeed, for total fiat and that's what we have.  He knew it would lead to expansion of government spending, that's why he did it. It made deficit spending and Central Bank usury respectable. 

Bill Maher: How uncontroversial is Keynesianism?

Christine Romer: "What we did was all from documented research and standard economics text books."   

 

How about Neo-Keynesianism

 

 

 

 

 

 

Fri, 09/09/2011 - 03:02 | 1649742 FreedomGuy
FreedomGuy's picture

That's not completely true. He would have endorsed deficit spending in the short run, but with the idea to repay it in good times. He also believed in government controlling the "commanding heights" of an economy which is why statists love him. It is the essential part of any centrally planned economy. We are in a political centrally planned economy now. Each year increases government controls.

However, I do agree that Keynes would not have put us directly in the huge long term debt situations that characterise the entire western world and Japan.

Fri, 09/09/2011 - 04:03 | 1649766 Dr. Acula
Dr. Acula's picture

Who gives two shits what Keynes would have done. He's a pseudoscientist through and through.

Read Hazlitt's "Failure of the New Economics" for a thorough (sometimes paragraph-by-paragraph) debunking or Keynes' tangled fallacies.

Fri, 09/09/2011 - 06:13 | 1649847 falak pema
falak pema's picture

or joan robinson.

Thu, 09/08/2011 - 22:17 | 1649324 Belarus
Belarus's picture

Oh...that's why Gold and Silver are down in Asia trading. We're gonna try to spend another $400 billion on another failed policy with money we don't have on top of the whooping $13 billion in planned future spending increased cuts for next year as they allow the credit card limit to be raised without so much as a burp in Congress while we were already gonna run $1.5 trillion in unfunded deficts for 2012.....

It all makes so much sense. Fiscal discpline bitchez.

Thu, 09/08/2011 - 22:22 | 1649338 Belarus
Belarus's picture

And let's not forget, sands gold and silver, futures are loving this shit. 

Thu, 09/08/2011 - 22:27 | 1649355 Belarus
Belarus's picture

....Will end up be a +3% day tomorrow for the markets. 

Thu, 09/08/2011 - 22:30 | 1649365 ArkansasAngie
ArkansasAngie's picture

Washington needs to be gutted.  Every last one of them.  Republicans and Democrats.

The very idea that they snookered the American people again is flat unacceptable.

The name of the game has become how do we stop them. 

 

Thu, 09/08/2011 - 23:19 | 1649469 Zadok
Zadok's picture

@ ArkansasAngie

Apparently someone else had the same idea a long time ago.  Judges 3:21-22

Fri, 09/09/2011 - 04:37 | 1649787 Bicycle Repairman
Bicycle Repairman's picture

"they snookered the American people again"

LOL.

Sat, 09/10/2011 - 20:12 | 1655368 bid the soldier...
bid the soldiers shoot's picture

Anybody getting snookered, make sure he's wearing a love glove.

Thu, 09/08/2011 - 22:37 | 1649387 mynhair
mynhair's picture
Ceerist, now we will get 4 days of not blaming Mooslims.

It's why I like Palin. She hunts moose.

Fri, 09/09/2011 - 07:31 | 1650017 spankfish
spankfish's picture

Moose and squirrel.

Thu, 09/08/2011 - 22:38 | 1649388 Zadok
Zadok's picture

I have not commented often but have read much...I am going to throw this into the ring.  

It seems laughable to realistically push for eliminating the Federal Reserve in the face of the contextual circumstance.  Here is why...

Right in principal, wrong in timing...We need the right response at the right time to get the right result, otherwise it just gets worse.  

While I appreciate the anti-Federal Reserve push by what still seems to be a ridiculously small group of people, it seems far too late to effectively matter.  

Go Ron Paul but perhaps at this point it would be better to go for the opposite just to push it into the ditch to get it over with and put something better together...however...

Observation tells me all I need to know about why we are here and why it will not change.  Ignorance and laziness in the face of institutionalized theft are appalling and prolific.  You have to go far and wide just to find someone with enough about them to even be interested in being educated regarding what is causing them so much pain.  

Agreed, the Federal Reserve may be gone in 18 months or a bit more but it will not be because of the success of Ron Paul or a movement, it will be because they have done their job in it's entirety.  If the Federal Reserve went away today, the net effect would be for naught because it is too late.  Keeping the Bernanke lying some more merely directs the implosion and delays the ignorati a bit more.  

Unfortunately observation and experience tells me this tragicomedic horror story will get far worse.  It will be replaced with the next Ponzi scheme but this will embrace the entire world.  This looks to me like the last naked dash to the finish where it really doesn't matter if you yell the truth at the top of your lungs, it will not effectively change the outcome anyway.  

Bottom line is that I see a global fiat currency (not sound money) being issued likely within a couple of years as a replacement for the failed (by planning and subtle execution) national currencies and the existing system.  The path to that looks painful and the Ponzi implosion from the systemic fraud the new system will build in will likely not take very long.   

If this push had come 15 or 30 years ago, we might have had a chance but it looks like it will play out in a tragic human disaster until the King returns.  

So, there you go, a summary of my thoughts, have at it fight club...

Zadok

Thu, 09/08/2011 - 22:43 | 1649401 Belarus
Belarus's picture

@Zadok,

Excellent contrarian view. And not a bad one at that. Vote for Obama so he can re-elect Ben and Timmy (If he hasn't gone to Goldman by then) and this will hasten the day.....

Smart move. I'll think about it. Long Obama to get the reset sooner? 

Fri, 09/09/2011 - 00:43 | 1649622 CompassionateFascist
CompassionateFascist's picture

Take a long look at the 2004 US election map. Intensify to get 2012 result: Perry with 3 million+ popular vote margin, but Zero nips thru in the EC by a handful of electoral votes. Civil War by March, 2013. Maybe sooner, if Ponzi economy collapses before the election.  

Fri, 09/09/2011 - 00:53 | 1649635 Shirley Wilfahrt
Shirley Wilfahrt's picture

Sure....right after the NASCAR race....I hear Taylor Swift is fucking Katy Perry's dad these days....

 

I think you are badly underestimating the capacity of the typical American to be completely oblivious to getting dry fucked in their collective fiscal ass.

I think the vast majority of Americans are fucking sheep.... that would have be lying in a ditch with their fucking heads cut off before they realized they were duped.

It is the only logical explanation as to why the USA is now nearly completely broken.

Americans are stupid.

Cheers Bitchez.

 

Fri, 09/09/2011 - 01:29 | 1649665 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

The vast majority of Americans are not stupid. If that was true, one would have to conclude that the public education system was stupid. Trillons of dollars have been spent by the Dept of Education and they continue to be funded. Why would anyone in power allow a system to spend that much money only to produce stupid citizens?

Barrack Obama has a degree from one of the finest examples of the American education system. You are not calling the President stupid are you?

That is racism.

Fri, 09/09/2011 - 20:49 | 1653084 Shirley Wilfahrt
Shirley Wilfahrt's picture

It is by the goodness of God that in our country we have those three unspeakably precious things: freedom of speech, freedom of conscience, and the prudence never to practice either of them. 
Mark Twain 

Fri, 09/09/2011 - 01:49 | 1649682 blunderdog
blunderdog's picture

I don't think it's quite that bad.  You've got to assume that a lot of people who have been fucked the most, and are probably going through a painful awakening process, are effectively homeless by now.

Not "homeless" like those alcohol addicts under the bridge, but "homeless" like "moved a few hundred miles to live with friends/relatives while getting shit together" kind of homeless.

What percentage of the poor/working-class who are living through the current economic shitstorm are going to VOTE? 

How could they if they wanted to?

Our turnout has always been abyssmal, and there's no reason to expect that to change.

Fri, 09/09/2011 - 20:50 | 1653091 Shirley Wilfahrt
Shirley Wilfahrt's picture

If voting changed anything, they'd make it illegal.
Emma Goldman

Sat, 09/10/2011 - 00:02 | 1653613 bid the soldier...
bid the soldiers shoot's picture

Emma Goldman or Emma Lazarus?

"Give me your spoiled, your rich,
Your huddled golfers in a summer rain,
The well-dressed reflet from Armani’s teeming store,
Send these, the time shared, and vacation homed abroad,
I lift my lamp beside the golden door.”

Fri, 09/09/2011 - 15:55 | 1652252 bid the soldier...
bid the soldiers shoot's picture

So you don't buy "we're out of oil' flapdoodle?

Anyways, what's the difference if they herd you into the cattle car for hyperinflation or for peak oil? In a couple of weeks you'll be minced and grilling on a rich person's Weber.

Fri, 09/09/2011 - 20:52 | 1653093 Shirley Wilfahrt
Shirley Wilfahrt's picture

Every normal man must be tempted, at times, to spit on his hands, hoist the black flag, and begin slitting throats.
H. L. Mencken

Fri, 09/09/2011 - 23:55 | 1653587 bid the soldier...
bid the soldiers shoot's picture

Slitting throats is an extra curricular activity at the Thought Police Academy.

Fri, 09/09/2011 - 09:06 | 1650227 chubbar
chubbar's picture

IT's a nice write up and certainly plausible but hardly contrarian. This is the exact scenario described here many times by the NWO conspiracy theorists. Collapse the whole system at the same time and discuss ONLY the solution TPTB want enacted and sell it as the only way to keep food on the table. Done deal. I don't see why it is so hard to accept that our world leaders are colluding towards some common goal given the fact of Bilderbergs, et al.

Most if not all of the world leaders are aware by now that building 7 was a demolition job. The whole world changed with the advent of the "war on terrorism" which was the outcome of 911. For these leaders to allow the world to continue to operate under that false paradigm shows their complicity or fear. In other words, yes, we are too far down the rabbit hole to turn this around. We are going to crash hard and there will be world changing events coming our way.

I will vote for Ron Paul AGAIN and hopefully this time his name will actually be on the ballot. I just don't think he can change what is coming, but hope I'm wrong.

Fri, 09/09/2011 - 17:19 | 1652527 Zadok
Zadok's picture

@ Chubbar

Agreed it is not contrarian, merely rational association of impact based observation.  Think logically rather than allowing distraction to move you from appropriate perception and action regarding the true purpose of the events. For example, You don't have to be dramaticly assassinated to be utterly neutralized.  Just be lazy and distracted by non-important stuff...the impact is the same with much less attention and cost associated with it.  

I waited a long time to hear Ron Paul essentially say that if you can create currency out of thin air, then you can un-create it too.  Not a really difficult concept to perceive, it is just that it comes with a cost that most are not ready to face, even if the delaying alternative is worse.  

It is not that people can't perceive, think, decide, and act...it is that they won't.  

A lot of water has to pass under the bridge before vote time, we shall see.  I could argue it both ways.  Either way it will likely be quite entertaining.  

Zadok

Fri, 09/09/2011 - 18:35 | 1652746 chubbar
chubbar's picture

Agreed. I look forward to more of your commentary as we progress into the abyss! Regards.

Thu, 09/08/2011 - 23:24 | 1649485 SIOP
SIOP's picture

Excellent Zadok.

Fri, 09/09/2011 - 00:22 | 1649587 DoChenRollingBearing
DoChenRollingBearing's picture

@ Zadok, have another green!

Welcome, that was a very good first post.  We'll keep an eye out for your stuff.

My take on all of this: NO WAY out of the box.  I cannot say whether we should "just get it over with ASAP" (probably) or kick that can far enough so we aren't around to deal with it (probably would be worse).

Fri, 09/09/2011 - 01:23 | 1649658 RockyRacoon
RockyRacoon's picture

Nothing wrong with crashing the system, Zadok.  Not that I can find fault with anyhow.  These bastards will put up a helluva fight, however.    How bloody you willing to get?

Fri, 09/09/2011 - 05:00 | 1649800 falak pema
falak pema's picture

You sound like Cicero, in the year 50 BC. He can see the collapse of the Republic, the storm clouds of approaching implosion under the weight of imperial debt caused by populist  'great society', land speculation,  and war programs gone mad. 

He wanted the system fixed. He despaired at the lack of purpose of TPTB of which he was an eminent member. 

He diagnosed the ills. It was Caesar who solved the problem in unexpected fashion. Ask yourself is the USA heading that way...As chronic grid-lock,  no Congressional solution,  to runaway debt could mean ...WHere is our Caesar to clean out all this corrupt shit?

Summary, uber-alles solution of magnitude change. GW and Jefferson would obviously rise from the dead. But Caesar was never scared by ghosts, that's why he died, but his legacy survived. 

Thu, 09/08/2011 - 22:39 | 1649390 PulauHantu29
PulauHantu29's picture

Raise Debt Ceiling, $500 Billion Barry spending spree and lower taxes...mmmm...where did you say the revenues come from to pay for all this?

Fri, 09/09/2011 - 04:47 | 1649793 Mitzibitzi
Mitzibitzi's picture

Libya, Syria, Yemen, Iran, Pakistan......

Thu, 09/08/2011 - 22:48 | 1649397 mt paul
mt paul's picture

gold 2000.$

thanx

 

gold 

13,000 yuan 

my bad...

 

 

Thu, 09/08/2011 - 22:51 | 1649419 LongSoupLine
LongSoupLine's picture

Well, time to get even more "gallon of gas" silver dimes.

Thu, 09/08/2011 - 22:58 | 1649433 Libertarian777
Libertarian777's picture

Congratulations America: you just bought yourself 3 more months.

Gotta correct that. Obama's $447bn 'jobs' bill will use that up, so they don't even have 3 months. They needed that $500bn to rollover existing maturities. Now they're well and truely fucked.

 

Thu, 09/08/2011 - 23:07 | 1649449 bobert
bobert's picture

Any body here remember what the debt to GDP ratio is for some other countries in the news: like Ireland, Greece, Italy, Spain ect. I'm just wondering and too lazy to look. Any reasonable guesstimates would be appreciated. Just wondering how we stand in comparison to the above as we are currently @ 101%.

Fri, 09/09/2011 - 00:49 | 1649633 CompassionateFascist
CompassionateFascist's picture

Wrong. People keep forgetting the 5 trillion+ debt parked at the federal mortgage agencies. Add on: >125% GDP.

Thu, 09/08/2011 - 23:09 | 1649452 DaylightWastingTime
DaylightWastingTime's picture

where is the socially liberal, fiscally conservative block in politics? what is essentially important, actualization or enablement.? and by enablement i am speaking co-dependantly. i don't have kids, i don't own a house, did i miss the window of excess because the blinds of responsibility where drawn? should i have over extended my self because hair awaits a haircut. tried to stay clean shaven, responsible and culpable.

throw away culture in a a throw away world, and i am dumpster diving for the crumpled truth.i only aim to steal the identity of truth. but at this point i would declare that that should be last thing to be stolen, still it is refuse where it should be refuge. start thinking seriously about the what you throw away.fromm spoke of the escape from freedom, maybe growing pains shouldn't fuse a commercial break.

Thu, 09/08/2011 - 23:26 | 1649493 bobert
bobert's picture

Your an artist aren't you?

Thu, 09/08/2011 - 23:10 | 1649455 pappyhlace
pappyhlace's picture

i am jack's unpayable debt...

Fri, 09/09/2011 - 00:56 | 1649636 Shirley Wilfahrt
Shirley Wilfahrt's picture

I am Jack's sucking chest wound....

Fri, 09/09/2011 - 18:53 | 1652797 andybev01
andybev01's picture

I am Jack's last breath.

Thu, 09/08/2011 - 23:13 | 1649459 puck
puck's picture

Think about something they have been mulling over for a long time...the measure of electic unit called the lectro

Thu, 09/08/2011 - 23:14 | 1649462 mynhair
mynhair's picture

I don't care anymore.  My steak knife hits the table with every name I call 'dead'.

Yes, I am dead fishes alter-ego.

Thu, 09/08/2011 - 23:35 | 1649473 DaveyJones
DaveyJones's picture

this country is not a wonkavator

Thu, 09/08/2011 - 23:24 | 1649487 bobert
bobert's picture

I loked on Wikpedia.

Debt ratios as of the end of 2010 (worse now I suppose):

Greece 140%

Italy 119%

Ireland 97%

Portugal 93%

The only countries over 100% are like the Congo, Zimbabwae etc.

We need GDP to grow fast to keep ourselves close to 100%. What cha think the chances are???

Fri, 09/09/2011 - 00:24 | 1649593 DoChenRollingBearing
DoChenRollingBearing's picture

Green for bothering to do the work.

Thu, 09/08/2011 - 23:28 | 1649497 Stack Trace
Stack Trace's picture

Why do the little asian girls on CNBC Asia look like they could suck the chrome off Bernanke's printing knob? I know this isn't relevant. Seems like the financial channels are more about sex than substance these days.

Fri, 09/09/2011 - 04:46 | 1649792 falak pema
falak pema's picture

Hey, just don't forget one golden rule : the medium is the message!...So succulant asian girls is what its all about, the rest is publicity, GRAVY....for the Morlocks, and as toast to go with their marmalade, slow apathetical murder of the Hobbits of middle kingdom. Where is Gandalf?

Fri, 09/09/2011 - 18:57 | 1652805 andybev01
andybev01's picture

So the left hand doesn't know what the right hand is doing.

Actually, I think I know what the right hand is doing...

Thu, 09/08/2011 - 23:32 | 1649507 Yes_Questions
Yes_Questions's picture

Senate Attempt To Block Debt Ceiling???

Hahahahahaahahhhhhahahaaaaaaaaaahahahhhahhaahhha!

ha.

Lift a finger off of CNTL P they did and will not.

 

Ha.

Thu, 09/08/2011 - 23:43 | 1649518 Caviar Emptor
Caviar Emptor's picture

I'm batting 1,000 tonight as the jobs bill comes in Venti, the tax cut proposals are Grande and the infrastructure proposal is Tall. So that's only half-a-trillion worth of propsals right? Not so fast....there's the giant mortgage refi proposal still to come (and Bruce Krasting figured out how it's also stealth QE). So that'll bring us to a cool Taaaarrrrillion in no time. Just as I called it

GOP response? Generally pretty receptive. I expected a lot more whiff n poof, "Outrage!" and "We Will Never!". Don't worry, it's a huge win for them that live off the ability to keep the fat cats happy. And yes they will frontrun (legally), write in their own pork, and then benefit on the back end with a huge golden parachute courtesy of their paymasters. 

But in this election year where the middle class is getting whacked, they needed to stop being seen as doling out money to wall street. They're wearing their "Man of The People" hat now

Fri, 09/09/2011 - 02:42 | 1649726 Manthong
Manthong's picture

Maybe they think that when the adversary is out there dousing himself with gasoline and lighting a cigarette, you don’t necessarily want to make too much noise except to agree with the need for a fire safety program.

Thu, 09/08/2011 - 23:46 | 1649527 Caviar Emptor
Caviar Emptor's picture

The Terror Alert. Translation : You still need us, sheeple, else your ass is grass. Or as they say in Juarez: Grassyass

Thu, 09/08/2011 - 23:52 | 1649537 Stack Trace
Stack Trace's picture

Wow, Chinese CPI pretty high at 6.2%. Korean PPI 6.6%.

Thu, 09/08/2011 - 23:58 | 1649548 chump666
chump666's picture

Hendry's CDS shorts on Japan via a China blowup. Must be laughing all the way ...

Smart guy. 

Fri, 09/09/2011 - 00:15 | 1649574 Cabreado
Cabreado's picture

A gentle reminder...

so·ci·o·path
 [soh-see-uh-path, soh-shee-]
 a person, as a psychopathic personality, whose behavior is antisocial and who lacks a sense of moral responsibility or social conscience.

So then,
all purveyors of news,

give us something new and unexpected,
in the context of
the unwell calling the shots.

 

Fri, 09/09/2011 - 00:25 | 1649594 Shineola
Shineola's picture

Damn, I'm old enough to remember when a trillion dollars was a lot of money. 

 

Why not just bump the debt limit to a Quadrillion?   That should pay for continued expansion of the empire through...... next May?

Fri, 09/09/2011 - 00:28 | 1649600 RafterManFMJ
RafterManFMJ's picture

Just raise the limit to 500 trillion, and cut out all this moaning!  

Fri, 09/09/2011 - 00:38 | 1649614 zorba THE GREEK
zorba THE GREEK's picture

Why is everyone so upset with Obama's spending plan to boost job recovery in U.S.?

Didn't you hear that it would all be paid for? Obama said he was now going to ask

congress to cut spending in the future by more than enough to cover cost of his plan.

Obama's plan to tax flying cars and teletransporters in the future will nearly cover the

cost of his jobs plan. Add to that his proposed tax on future

private intergalactic travel and his proposed tax on time machines, the U.S. will

have a surplus budget by the year 2211. 

 

Fri, 09/09/2011 - 00:38 | 1649615 Fiat2Zero
Fiat2Zero's picture

Is the Bernanke fucking with us? I mean, a gold fucking tie. Such an awesome job of trolling the PM bugs

Fri, 09/09/2011 - 01:11 | 1649644 CapitalAnarchy
CapitalAnarchy's picture

Final gasp of a fiat debt-based currency ponzi scheme? 

Fri, 09/09/2011 - 01:21 | 1649655 GoldmanSux
GoldmanSux's picture

Proof positive that this is all a game. This won't even be reported in the press.

Fri, 09/09/2011 - 01:41 | 1649670 MalthusWasRight
MalthusWasRight's picture

This government long ago (before Obama, before Bush, before Warren G., even) has stopped being for the people.  Mr. Obama is advocating policies that will benefit low IQ whites in the short term (through a $4,000 bonus for hiring Demitrius Negronomus off of his porch) but will inevitably cause them to lose in the long term.  

The fact is that selective eugenics is the key to the perpetuation of an intelligent human race.  There are millions, if not billions, of useless people on this planet. 

 

Show a 99th percentile score on a standardized test or die.  (Shit, I just advocated the annhilitation of the teabaggers along with the white trash.)

 

"Tyler Durden"  - Post an SAT score.  Post an SAT subject score.  Post an ACT score.  Post your long form birth certificate.  Post a degree.  Post a graduate degree.  Post under your own name.  Post a picture of you sucking the Soviet dick.

You are a pussy, though I doubt you are what you eat.

The people who post as TD are sackless, unintelligent, nobodies.  You all sit here and read the "tips" of those who have failed at life.  

 

Fight Club was a shitty film.

 

 

FTW 

 

 

 

Pi

 

 

Fri, 09/09/2011 - 01:52 | 1649685 blunderdog
blunderdog's picture

You don't really want Alpha double plusses mopping floors, yo.

Fri, 09/09/2011 - 02:01 | 1649693 bid the soldier...
bid the soldiers shoot's picture

When the going gets tough, the alpha double plusses get mopping.

Fri, 09/09/2011 - 10:32 | 1650627 FreedomGuy
FreedomGuy's picture

Start by eliminating yourself.

Fri, 09/09/2011 - 02:08 | 1649696 MalthusWasRight
MalthusWasRight's picture

We need "job creation" as much as we need everybody and their brother, half-bruddah, cousin, half-cousin, buddy, baby-daddy and the rest going to college on the taxpayers' dime.  

 

There are too many unintelligent people on this planet.  Let's give a generation of the population of a large, urban inner-city a free college tuition to a top-tier school.  The sole condition will be their forced sterilization if they are unable to complete the curriculum within ten years of their enrollment.

 

Win. Win. Bitchez.

Fri, 09/09/2011 - 02:58 | 1649738 MalthusWasRight
MalthusWasRight's picture

While were at it, let's give white trash America the same opportunity.  They are more of a strain than anyone on this planet.  

 

Easy application:  Go to rural (insert KentuckAlabmaGeorgiaMissisAverage82IQ State) and ask a random sample of 100 whites to identify the president in 1963.  (Rigged in their favor; I'd be shocked if more than 25 were to come up with one of the two possibilities.)

 

Let's slash the funding of schools that are full of unmotivated and unintelligent students.  Successful companies don't pour money into their worst performing divisions.  Successful people don't piss money away.  Wake up America:  Most of you are going to be left behind.  Beleive me, your gold will mean nothing to me when you want to buy my oil.

 

 

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