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Overnight Debt Bomb Countdown

Overnight Debt Bomb Countdown

Because the Sun may not rise in the East tomorrow, I’ll be posting random updates of interest, but feel free to help out in the comments particularly in those hours known on the East Coast as sleepy time.

  • Harry Reid just (8:40 p.m. Eastern) issued a statement saying a short term extension is a “non-starter.”  Via Reuters:  “”Speaker Boehner’s plan, no matter how he tries to dress it up, is simply a short-term plan, and is therefore a non-starter in the Senate and with the president,” Reid said in a prepared statement.”
  • Keep track of our national debt in various iterations, including debt subject to debt limit, total debt, per person, etc., at U.S. National Debt Clock.org.
  • Remember when George Soros broke the Bank of England in September 1992?  “On Black Wednesday, Mr Soros’s bet paid off. In the following days, he unwound his positions, paying back his original borrowings and ending with a profit of around £1 billion.”  How ironic that currency speculating profits is the mother’s milk of modern American liberal causes.
  • Buy! or was it Sell!?

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Comments

Hey! Remiond me again which is supposed to be the “PArty of No?” I get confused whenever the Democrats say something is a nonstarter but produce no real alternatives.

(Sorry for the spelling. Fat, sloppy fingers.)

Reid seems to have a lot of time to prepare and issue statements but very little time to offer ANY constructive plans. The progressives are so clearly wanting to push this to the limit for political gain, regardless of the costs, that it has to make head spin…

10 year treasuries trading in Asia are not budging. No wholesale dumping. I won’t worry until our notes, bills, and bonds are dumped big time.

I support spending cuts not over 5 years, not over 10 years, at a minimum they need to start next year, 2012.

Should the house repubs trust any senate dems? No. They haven’t even passed a budget for 3 years, what makes anyone think they would confront anything they “promised” over 10 years?

I’m an independent voter, I support the house repubs, they aren’t fringe, they are americans who got fed up, so ran for congress, it is the congressional dems who aren’t listening to the american people anymore. And I used to be a democrat until very recently. The senate dems are too cowardly to even allow a debate on cut cap and balance, if there are things they want to change, fine, then allow a debate!

Either we confront this now, even if its small steps, like an across the board 5% cut across all depts, or there will be a downgrade anyways, the debt itself is a bigger issue than the debt ceiling.

If there are no spending cuts and no tax increases, essentially that money will be printed up by Dr. Bernanke, which means the very middle class that these dems keep harping on that they supposed cared about will be hurt the most, as inflation will kick in, businesses will be worried when their taxes will go up to pay for that huge debt.

and no extension for after 2012, do it in 3 months, 6 month chunks, when I lost my job, guess what? I didn’t budget out 10 years out, we budgeted week to week! the most important stuff got paid, the other had to be prioritized.

I didn’t support TARP for this same reason, I knew it was just delaying the pain. I hope the house tea party repubs stay strong, this isn’t about throwing grandma off the cliff, if this is not at least started to be slowed down (the growth of govt), forget just grandma, the entire coountry will go down the cliff, and it will be the middle class who will severely hurt the most, no cost of living increase, no jobs and huge inflation. It won’t be millionaires like Pelosi or Reid or Warner, they will be just fine, its the middle class that will suffer.

3-4 month extensions at a time! and a constitutional amendent to restrict spending no matter who is in office!

“In an accidental moment of honesty, White House Deputy Press Secretary Dan Pfeiffer today admitted on Twitter that President Obama will likely sign any debt deal Congress sends his way.”

So, we essentially have a poser, not a leader, just someone there to rubberstamp, party, golf, go on vacations, etc, all the perks with taxpayers paying everything without doing any of the job.

Reid, Pelosi, Durbin, Schumer, Obama, et al are in a state of panic. Their only hope to prevent a rout in 2012 is a long term debt extension.

They cannot afford to revisit this issue before the election and they know it. They will let the entire world go to hell in a hand basket before surrendering on this short term extension issue. I think the rank and file voters are slowly awakening as to just how devious the Democrat Party really is. I hope so.

And let us not forget the stock markets in moment of panic selling would reap billions for Soros, Obama’s campaign contributor. He spent a lot of money getting Obama elected with his various front organizations, so now is the time for him to collect on his investment.

Are you listening SEC? Still looking at porn on your computers OR are you paying attention to Soros’ activities in the market? The Democrat Party is nothing more than a front for organized crime. All the fiddle faddle they spout about caring for the poor is just fluff to hide their feeding frenzy at the taxpayers expense. Or did you not pay attention to GE (Obama’s major campaign contributor) recently making billions at the expense of the taxpayer?

Why do you think the EPA is pushing CO2 restrictions? For the health of the planet? Don’t be naive, Obama’s friends at the Chicago Carbon Credit Exchange are ready to get back in business as soon as the EPA finalizes everything. Then look to Freddie and Fannie under the guise of EPA rules forcing homeowners to either pay a carbon fee or vastly improve their homes energy efficiency for sale on the market on some outlandish EPA standard. Of course you’ll pay the carbon credit fee because who will be able to afford $10k or more in upgrades prior to selling??? It’s all one huge scam that Obama’s friends will be making billions. And you know Obama will be employed by them shortly after leaving office, just like Rahm Emanuel was making $3.5 million in a job he had zero experience after his stint with Clinton. It’s all a sleazy game with these people.

There has been WAY too much focus on what the markets would do if the weekend went by without a deal. The “markets” do not move at the command of pundits. August 2 is still more than a week away and the “markets” are not as stupid and devious as politicians who simply refuse to be honest about debt ceiling versus default. The odds of a default are very small, at least as it relates to the near term consequences of failing to raise the debt limit by August 2.

On the other hand, the chances of a a downgrade of US sovereign debt from AAA is a virtual certainty since there is only one plan on the table, CC&B and because of Obama’s insistence on massive tax increases, even that plan has been modified to be a short-term “kick the can down the road” plan. The markets have already factored that in. It wouldn’t necessarily be a catastrophe. After all, who actually believes US credit is AAA anyway? It hasn’t been for at least three years now.

The futures are pointing to a modest decline at the open tomorrow (maybe 1% on the S&P 500) but that happens almost every Monday lately. The thing to look out for is a high-volume sell-off of 1000 points on the DOW or in this computer-driven market, flash crashes of key ETFs. In the spirit of exempting Fannie Mae and Freddie Mac from new regulations designed to prevent the financial meltdown that they were central players in creating, the SEC exempted ETFs from the new regulations designed to prevent flash crashes caused by the ETFs during that famous 1000 point drop in ten minutes a couple of years ago.

Don’t get me started about how the big banks embraced the key trading practices of Enron and Long Term Capital. It’s all part of how our entrenched criminal class of elected weasels think and talk in this new upside down world.

I’d bet that Soros has shorted treasuries (or purchased put options, or sold naked call options) on a massive scale. Now he wants his payoff.

donsmith7777 | July 24, 2011 at 11:20 pm

If the Tea party were not involved there wouldn’t EVEN BE talks about our looming debt crisis. The Tea party has done a great job in focusing on this county’s debt.

JimMtnViewCaUSA | July 25, 2011 at 1:01 am

Gold is up $10 in Asian trading
Kitco.com/market

Reading I, Claudius by Robert Graves I am struck by the similarities of the antics, rapaciousness and insanity of Caligula and Obama’s actions and demeanor since elected.

I greatly fear for this Nation unless someone or some group can rein in this monster and his ego.

The Democrats are too feckless and the Republicans are too weak.

Excellent article:

AEI’s Arthur Brooks on the Debt Ceiling in the WSJ
CARPE DIEM:
http://mjperry.blogspot.com/2011/07/aeis-arthur-brooks-on-debt-ceiling.html

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