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--- SYSTEMIC MELTDOWN ALERT ---

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Does anyone seriously think they won't conjure up a fix at the 11th hour? Tempted to go long equities to catch the bounce.

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PD - Nice image.

 

I read a comment along the lines of softening up the public for more cuts. Makes sense

to have the public desperate to avoid financial armageddon and willingly agree/beg to

have spending cut across the board. Except for military of course.

 

Not sure I agree but it is more like I hope the writer is correct.

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I had this crazy dream last night where Apple Corp had more cash than the US Government and the Smurfs opened the New York Stock Exchange.

 

Hang on a minute, it wasn't a dre.....

 

Apple holding more cash than USA

 

"Apple now has more cash to spend than the United States government.

 

Latest figures from the US Treasury Department show that the country has an operating cash balance of $73.7bn (£45.3bn).

 

Apple's most recent financial results put its reserves at $76.4bn.

 

The US House of Representatives is due to vote on a bill to raise the country's debt ceiling, allowing it to borrow more money to cover spending commitments.

 

If it fails to extend the current limit of $14.3 trillion dollars, the federal government could find itself struggling to make payments, and risks the loss of its AAA credit rating.

 

The United States is currently spending around $200bn more than it collects in revenue every month.

 

Apple, on the other hand, is making money hand over fist, according to its financial results.

 

In the three months ending 25 June, net income was 125% higher than a year earlier at $7.31bn."

 

 

!

 

Smurfs open the New York Stock Exchange

 

"The Smurfs rang the opening bell at the New York Stock Exchange on Friday, but there was little humor to be found after the government reported that the economy was in worse shape than many had expected.

 

110729-smurfs-hmeda-7a.photoblog900.jpg

 

Smurfette, Papa Smurf, and Clumsy Smurf, left to right, ring the opening bell of the New York Stock Exchange, Friday, July 29."

 

 

 

!

 

Perhaps the Smurfs could be put to better use helping Obama and Boehner with their negotiations.

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I had this crazy dream last night where Apple Corp had more cash than the US Government and the Smurfs opened the New York Stock Exchange.

 

Hang on a minute, it wasn't a dre.....

 

Apple holding more cash than USA

 

"Apple now has more cash to spend than the United States government.

 

Latest figures from the US Treasury Department show that the country has an operating cash balance of $73.7bn (£45.3bn).

 

Apple's most recent financial results put its reserves at $76.4bn.

 

The US House of Representatives is due to vote on a bill to raise the country's debt ceiling, allowing it to borrow more money to cover spending commitments.

 

If it fails to extend the current limit of $14.3 trillion dollars, the federal government could find itself struggling to make payments, and risks the loss of its AAA credit rating.

 

The United States is currently spending around $200bn more than it collects in revenue every month.

 

Apple, on the other hand, is making money hand over fist, according to its financial results.

 

In the three months ending 25 June, net income was 125% higher than a year earlier at $7.31bn."

 

 

!

 

Smurfs open the New York Stock Exchange

 

"The Smurfs rang the opening bell at the New York Stock Exchange on Friday, but there was little humor to be found after the government reported that the economy was in worse shape than many had expected.

 

110729-smurfs-hmeda-7a.photoblog900.jpg

 

Smurfette, Papa Smurf, and Clumsy Smurf, left to right, ring the opening bell of the New York Stock Exchange, Friday, July 29."

 

 

 

!

 

Perhaps the Smurfs could be put to better use helping Obama and Boehner with their negotiations.

:lol:

Too soft by far for the hard-headed hard-money Tea Partiers. Who wulda thunk they could throw such a spanner in the works. <_<.... certainly not those that were lapping up what the scare-mongerer Bernanke was feeding them.

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LOL on the news last night I saw some guy dressed as Captain Amercian talking like a superhero at a protest against the lack of

agreement. Maybe Disney will join in shortly.

 

And to support that this is all a ruse to gain public compliance I found this article Quote:

Most Americans would like to see a mix of spending cuts and tax increases be part of a deal to raise the debt ceiling, a new poll finds, aligning the majority with President Barack Obama’s position.
Hmmm....

 

Tick...

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Does anyone seriously think they won't conjure up a fix at the 11th hour? Tempted to go long equities to catch the bounce.

I still sense a lot of complacency. It is a typical survival situation: some run, some are frozen and just can't believe what is coming right at them.

 

This is a classic stalemate. If Obama accepts a solution that just brings the problem back to him right before the election, he is gonna be what I predicted anyway: a one-term president. On the other hand, the Tea Party has had it with exponential debt growth and tax increases, and they have been elected on this ticket. This is a giant power struggle, and none of them can really cave in. I guess Obama could sacrifice his presidency "for the people". But will his ego allow this?

 

Meanwhile on planet Fed:

 

http://www.reuters.com/article/2011/07/28/usa-debt-fed-idUSN1E76R26H20110728

"We would do what we could to preserve the operationality of the system," Bernanke said. "But I want to eliminate any expectation that the Fed through any mechanism could offset the impact of a default on the government debt."

:o

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I still sense a lot of complacency. It is a typical survival situation: some run, some are frozen and just can't believe what is coming right at them.

 

This is a classic stalemate. If Obama accepts a solution that just brings the problem back to him right before the election, he is gonna be what I predicted anyway: a one-term president. On the other hand, the Tea Party has had it with exponential debt growth and tax increases, and they have been elected on this ticket. This is a giant power struggle, and none of them can really cave in. I guess Obama could sacrifice his presidency "for the people". But will his ego allow this?

 

Meanwhile on planet Fed:

 

http://www.reuters.com/article/2011/07/28/usa-debt-fed-idUSN1E76R26H20110728

 

:o

It's like the struggle between the monetary forces of inflation and deflation is now playing out in the political sphere. ;)

 

Listened to the lady from the NakedCapitalism site this morning on the radio. A liberal [a demonized word in the Tea party camp] was pretty much bewildered as to why a nation running it's own currency system couldn't just issue more of it..... the Tea Partiers she labeled as "psychotic". Well, turns out the US can't just do what many thought they could... printy printy... because there are real political forces standing in the way.

 

Listening to the program, you can see why a compromise is so difficult to come by; both sides hold their own radically different philosophies [and philosophy of money]. They lack the common terms and vocabulary needed to communicate properly [bit like here really :lol: ]. The liberals see nothing wrong with a managed inflationary fiat system while the Tea Partiers are hard money advocates. They may as well speak different languages.

 

Though posters on this forum often disagree, there is something that most have in common... that government will not do what we think they ought to. On the one side, many think along Tea Party [and libertarian] lines that government should cut spending [and printing] and introduce austerity. On the other, some think government should do all the can to avoid a deflationary collapse... along Keynesian lines. The wishes of the first group are looking more likely to be fulfilled at the moment..... even if a compromise is found and some time bought. The question now is what will happen to the dollar. An erosion from ongoing capital flight..... or a deleveraging spike due to a period of short-covering.

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It's like the struggle between the monetary forces of inflation and deflation is now playing out in the political sphere. ;)

 

Listened to the lady from the NakedCapitalism site this morning on the radio. A liberal [a demonized word in the Tea party camp] was pretty much bewildered as to why a nation running it's own currency system couldn't just issue more of it..... the Tea Partiers she labeled as "psychotic". Well, turns out the US can't just do what many thought they could... printy printy... because there are real political forces standing in the way.

 

Listening to the program, you can see why a compromise is so difficult to come by; both sides hold their own radically different philosophies [and philosophy of money]. They lack the common terms and vocabulary needed to communicate properly. The liberals see nothing wrong with a managed inflationary fiat system while the Tea Partiers are hard money advocates. They may as well speak different languages.

 

Though posters on this forum often disagree, there is something that most have in common... that government will not do what we think they ought to. On the one side, many think along Tea Party [and libertarian] lines that government should cut spending [and printing] and introduce austerity. On the other, some think government should do all the can to avoid a deflationary collapse... along Keynesian lines. The wishes of the first group are looking more likely to be fulfilled at the moment..... even if a compromise is found and some time bought. The question now is what will happen to the dollar. An erosion from ongoing capital flight..... or a deleveraging spike due to a period of short-covering.

 

Hi RH,

 

I have always thought you gave fair, well thought out arguments to many threads, but I have to ask (honestly question).

 

Don't you think it's more a case of the Tea Party Republicans playing the long (ish) game, to get to the next election and pleasing their (limited) hard-line supporters?

 

Personally, I think they are stabbing themselves in the foot by playing politics with, what could turn out to be, the future of the global economy. (Always believing a deal will be done over the weekend).

 

The Republicans fell over themselves to increase the ceiling for Bush etc. This is just cynical posturing and attempting to hold (potentially) the world to ransom, just so they can get more votes in the future.

 

I think it is dangerous, irresponsible, childish behaviour, from the very people that should be the cream of the crop, from the most powerful nation on earth.

 

I despair!

 

Rant over.

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Hi RH,

 

I have always thought you gave fair, well thought out arguments to many threads, but I have to ask (honestly question).

 

Don't you think it's more a case of the Tea Party Republicans playing the long (ish) game, to get to the next election and pleasing their (limited) hard-line supporters?

 

Personally, I think they are stabbing themselves in the foot by playing politics with, what could turn out to be, the future of the global economy. (Always believing a deal will be done over the weekend).

 

The Republicans fell over themselves to increase the ceiling for Bush etc. This is just cynical posturing and attempting to hold (potentially) the world to ransom, just so they can get more votes in the future.

 

I think it is dangerous, irresponsible, childish behaviour, from the very people that should be the cream of the crop, from the most powerful nation on earth.

I despair!

 

Rant over.

 

Congress critters in the pay of lobby groups and other dark corrupt forces are not my idea of "the cream of the crop". But that's just me.

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Hi RH,

 

I have always thought you gave fair, well thought out arguments to many threads, but I have to ask (honestly question).

 

Don't you think it's more a case of the Tea Party Republicans playing the long (ish) game, to get to the next election and pleasing their (limited) hard-line supporters?

 

Personally, I think they are stabbing themselves in the foot by playing politics with, what could turn out to be, the future of the global economy. (Always believing a deal will be done over the weekend).

 

The Republicans fell over themselves to increase the ceiling for Bush etc. This is just cynical posturing and attempting to hold (potentially) the world to ransom, just so they can get more votes in the future.

 

I think it is dangerous, irresponsible, childish behaviour, from the very people that should be the cream of the crop, from the most powerful nation on earth.

 

I despair!

 

Rant over.

I've never liked what the Tea Party stands for politically because I dislike all forms of Puritanism. That said, I've always thought they would be a political force to reckon with.... because of the deep-seated grain of puritanism that runs through American culture [this doesn't mean to say that there aren't certain truths to "austerity", running a balanced budget, etc].

 

Thread title, systemic alert. Systemic alert indeed.... the political system is at stake here. The US can maintain a divided political system as long as Americans have some modicum of shared views, culture, etc. Now it looks so fundamentally divided and split into tribal-like "camps".......

 

Yes, I'm sure there is the cynical politcal posturing going on.... but then some of these guys believe in austerity with religious fervour. Political life, especially for those in office, should be heavily salted with pragmatism.

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Congress critters in the pay of lobby groups and other dark corrupt forces are not my idea of "the cream of the crop". But that's just me.

It amazes me how much time is exchanged in debating how hard PUNCH hits JUDY.Its a total charade their posturing and apparent flexing of political muscle is a contemptuos charade,all for public consumption so as to make the SHEEPLE think party politics and their vote has some sort of meaning and real value.The FED and its SHADOW CABAL are the deciders of the fate of the US not PUNCH and bloody JUDY.Lets talk about the REAL POWER PLAYERS not sound like the BBC stifling the debate about THE TRUTH.It is inevitable that this sort of playout would occur,ORDER OUT OF CHAOS,is the real name of the tune,and TPTB plays it like the London Symphony Orchestra bloody beautifuly.

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Gentlemen, what fine posts. My respect.

 

Oh dear, the newest toy has been hurled from the senate pram, by order (of course)

 

Power tripping young souls just love their manufactured fear spreading

(& I love to completely ignore it, but that's another story)

 

 

http://www.telegraph.co.uk/news/worldnews/us-politics/8672196/Default-fears-worsen-as-US-Senate-blocks-debt-ceiling-bill.html

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Hi RH,

 

I have always thought you gave fair, well thought out arguments to many threads, but I have to ask (honestly question).

 

Don't you think it's more a case of the Tea Party Republicans playing the long (ish) game, to get to the next election and pleasing their (limited) hard-line supporters?

 

Personally, I think they are stabbing themselves in the foot by playing politics with, what could turn out to be, the future of the global economy. (Always believing a deal will be done over the weekend).

 

The Republicans fell over themselves to increase the ceiling for Bush etc. This is just cynical posturing and attempting to hold (potentially) the world to ransom, just so they can get more votes in the future.

 

I think it is dangerous, irresponsible, childish behaviour, from the very people that should be the cream of the crop, from the most powerful nation on earth.

 

I despair!

 

Rant over.

 

These are not republicans, they are tea partiers who were specifically elected on their government shrinking credentials - and that is exactly what they're doing. You may not like it, but this is actual democracy working for a change.

 

If Boehner had been dealing with the standard bunch of GOP exploiters this would have been over by now. The debt ceiling would have been raised and the US would have ticked along, until the next raise and the next one and the next one. The only reason there's a debate going on at all is because those tea party candidates are delivering on their election promises. Principles in politics eh, how dare they.

 

Oh and how do you know their support is limited? They won the election didn't they? Without representation of truly different views in government (some of which you may not like) no meaningful change will ever come about. Your posting history suggests you believe political struggle (or indeed any kind of struggle) is futile and I'd agree most of the time. Consensus often rules to the point of insanity.

 

The course of nations, political thought, in fact history itself, is often only changed by small groups of highly motivated people. For better or worse, times like these will bring those people to the forefront and I seriously doubt consensus will be the objective.

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These are not republicans, they are tea partiers who were specifically elected on their government shrinking credentials - and that is exactly what they're doing. You may not like it, but this is actual democracy working for a change.

 

If Boehner had been dealing with the standard bunch of GOP exploiters this would have been over by now. The debt ceiling would have been raised and the US would have ticked along, until the next raise and the next one and the next one. The only reason there's a debate going on at all is because those tea party candidates are delivering on their election promises. Principles in politics eh, how dare they.

 

Oh and how do you know their support is limited? They won the election didn't they? Without representation of truly different views in government (some of which you may not like) no meaningful change will ever come about. Your posting history suggests you believe political struggle (or indeed any kind of struggle) is futile and I'd agree most of the time. Consensus often rules to the point of insanity.

 

Outstanding post Marceau. I agree with this. JD does often spout the mainstream view.

 

The course of nations, political thought, in fact history itself, is often only changed by small groups of highly motivated people. For better or worse, times like these will bring those people to the forefront and I seriously doubt consensus will be the objective.

 

 

Agree with this also, after all you probably can beat a broken system.

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Crisis averted. Everything is super.

 

 

 

 

 

For now....

 

 

Brill!

 

''President Barack Obama announced on Sunday that Democrats and Republicans leaders have reached an agreement to reduce the U.S. deficit and avoid default.

 

Obama said the agreement will cut about $1 trillion over 10 years..''

 

 

 

 

Gosh 1 Trillion, over 10 years. I dont think that will change anything really. Gold down 10 dollars. is that it? Is that the buying opportunity? Hardly worth waiting for.

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Brill!

 

''President Barack Obama announced on Sunday that Democrats and Republicans leaders have reached an agreement to reduce the U.S. deficit and avoid default.

 

Obama said the agreement will cut about $1 trillion over 10 years..''

 

 

 

 

Gosh 1 Trillion, over 10 years. I dont think that will change anything really. Gold down 10 dollars. is that it? Is that the buying opportunity? Hardly worth waiting for.

Eh? so they are raising the debt limit by 2.1 trillion and have agreed to 1 trillion in cuts over 10 years....I don't see that having any affect on this chart which has gone up by 2 trillion last year and 2 trillion the year before....Its all a show to appear they have financial displine.

 

US_National_Debt_Chart_2010.gif

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I can't believe the Tea Party will like this deal. So for now:

 

Tick...

 

Tock...

 

Tick...

 

Tock...

 

Tick...

 

Tock...

 

Tick...

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Do I sense a (wallpaper) pattern emerging Gf? :unsure:

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I can't believe the Tea Party will like this deal. So for now:

 

Tick...

and then they can be blamed for crashing the economy

 

the debt junkies on wall street rule until people wake up

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I’ve been waiting for a sudden economic correction for years but I’m gradually coming to the conclusion that there won’t be one; what will probably happen is there will be 40 years or more of very slow decline. The tin can will be kicked down the street until it’s slowly ground down to powder..

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