If the Republicans are always going to give the Democrats virtually whatever they want, why do we even have elections anyway?
“If the People Actually Knew and Understood What Was Happening to Them Behind the Scenes by the Politicians and Their Bankers, There’d Be a Revolution By Morning.“
By summer, they will be out of cash. Then we will be in the mother of all debt ceiling crises. Everything will grind to a halt…
BrotherJohnF discusses the House Republicans folding and passing a clean debt ceiling bill, as well as a historical review of the US debt, and discusses how the increase is likely to affect the markets as well as gold & silver in his latest Silver Update:
The federal government is literally destroying the future of America, and what we are doing to our children and our grandchildren is beyond criminal. If there was one thing that the Republicans in Congress were supposed to do, it was to do something about all of this debt. These days Republicans can’t seem to agree on much, but the one issue that virtually all “conservatives” were supposed to agree on was the national debt. The American people gave the Republicans control of the House in 2010 and 2012 for a reason. Unfortunately, nothing has been done. Our debt has continued to spiral out of control and now John Boehner and Paul Ryan are pushing a “budget deal” that will essentially give the free-spending Democrats virtually everything that they want for the next 10 years. That is why John Boehner and Paul Ryan should immediately resign.
To paraphrase William Shakespeare, “the debt ceiling drama is a tale told by idiots, full of sound and political fury, signifying nothing.” We now have a reprieve for three months – the 11th hour deal, complete with payoffs and the usual corruption, will keep the world safe for more ineptitude, deficit spending, administrative hypocrisy and the guarantee of a sequel. All is well! Celebration! Champagne! Cut to a prime-time commercial promoting big government and Obamacare…
And back in the real world where people work and support their families, life goes on, few noticed the lack of government “services,” and in three months we will be blessed with another episode of our “Congressional Reality Show.”
It appears that Fitch has failed to learn from S&P & Egan-Jones’ 2011 “mistakes”. Fitch placed the US’ long term AAA credit rating on rating watch negative Tuesday evening as the US runs out of extraordinary measures to continue funding government operations.
- FITCH SAYS PUTS U.S. ON RATING WATCH NEGATIVE AS U.S. AUTHORITIES HAVE NOT RAISED FEDERAL DEBT CEILING IN A “TIMELY MANNER
We are now into a second week of a partial Federal Government shut-down, which is causing considerable concern, centered on the Government’s ability to finance its debt and pay interest without a budget agreed for the new fiscal year. Should this continue into next week and beyond, the Fed will have to enter damage-limitation mode if the Treasury cannot issue any more bonds because of the separate problem of the debt ceiling.
Most likely, QE will have to be switched from financing the government to buying Treasuries already owned by the private sector. Any attempt to reduce the monthly addition of raw money will simply result in bond yields and then interest rates rising. And indeed, already this week we have seen yields on short-term T-bills rise in anticipation of a possible default. The market is naturally beginning to discount the possibility that the Fed may not be able to control the situation.
On this week’s Metals & Markets Wrap The Doc & Eric Dubin cover:
- Ongoing metals manipulation visible across the board; we’ll document this week’s gold and silver lunacy- & cartel signaling minutes prior to dumping 17,000 paper gold contracts on the market between 8:43 and 8:45am: triggering a stop of Comex gold trading as the market went dark for 20 seconds!
- Signs that physical market demand is tightening up again in Asia, which should limit cartel maneuverability;
- Shut-down, Obama Care and debt ceiling debate analysis and its relationship to precious metals trading
The SD Weekly Metals & Markets Wrap With The Doc & Eric Dubin is below!
A U.S. debt default that lasts for more than a couple of days could potentially cause a financial crash unlike anything that the world has ever seen before. If the U.S. government purposely wanted to damage the global financial system, the best way that they could do that would be to default on U.S. debt obligations. A U.S. debt default would cause stocks to crash, would cause bonds to crash, would cause interest rates to soar wildly out of control, would cause a massive credit crunch, and would cause a derivatives panic that would be absolutely unprecedented. And that would just be for starters. But don’t just take my word for it. These are the things that top financial experts all over the planet are saying will happen if there is an extended U.S. debt default.
All of this whining and crying about a “government shutdown” is a total joke. You see, there really is very little reason why this “government shutdown” cannot continue indefinitely because almost everything is still running. 63 percent of all federal workers are still working, and 85 percent of all government activities are still being funded during this “shutdown”. Yes, the Obama administration has been making a big show of taking down government websites and blocking off the World War II Memorial, but overall business in Washington D.C. is being conducted pretty much as usual. It turns out that the definition of “essential personnel” has expanded so much over the years that almost everyone is considered “essential” at this point. In fact, this shutdown is such a non-event that even referring to it as a “partial government shutdown” would really be overstating what is actually happening. The following are 36 facts which prove that almost everything is still running during this government shutdown…
Bloomberg News’ Al Hunt sat down with our favorite Turbo Tax expert and Treasury Secretary Timothy Geithner for his thoughts on the fiscal cliff and the debt ceiling negotiations in Congress.
When Hunt asked whether the US should get rid of the debt ceiling altogether so that Congress can spend to infinity and the Treasury and Fed can counterfeit to infinity, Geithner responded: “Absolutely”.