Every one who is discussing the “debt ceiling crisis to come” says: “well, congress isn’t going to allow the country to default on its debt. That’s just crazy.” My question to these fine chaps is: why are you so sure and what has congress ever done to make you feel confident? We’re going full nutso and very soon.
The only time these bozos act fast is when they want to bomb a country.
The GOP is embedded in a belief system that says “TARP was bad. Bailouts are evil. Government is the devil. And, we should treat the treasury like a check-book and balance it.” This is the mind-set of an idiot 10 year old school boy.
There’s also a boy cried wolf aspect to these whole “crisis to come”, in that the sequestration “crisis” proved to be nonsense. Many of our GOP leaders do not believe in mathematics and will joyfully place the fate of the country into the Lord’s hands.
In other news, the YEN is +0.6% and TLT is lifting higher, classic “risk-off” behavior. The only oddity is the rise in yields of 1 mo government bills–based upon the wild eyed idea that the government might not make good on their short term interest payments.
Oh, the BDI is up again this morning, +31 to 2115. DRYS is getting hammered this morning because they will be issuing new shares to raise capital. Remember, I told you this was a real danger for many dry bulk stocks, which is why I am long the one who will not issue new shares–because they don’t need to. Ultimately, this is healthy for the industry and the long term prospects are looking good.
If you enjoy the content at iBankCoin, please follow us on Twitter
VVUS…go long the fat ass americans trend
Serious question – please explain how failure to raise the debt ceiling constitutes a default?
Federal revenue is ~2.7 trillion annual tax recepts.
Federal debt service is ~ 400 billion annually.
It seems like the only way a default is possible is if the asshats who run the Treasury deliberately decide to not make the payments?
Flux
It won’t be a ‘real’ default of course. We take in 250bill per month and interest expense is about $30 bill. HOWEVER, we’d need to slash a lot of other things in order to prioritize the interest payments. That will be detrimental to US GDP.
Understood. Blue Team has successfully redefined “spending cuts” as equivalent to “defaulting on the national debt”.
Actually, no.
Only one person in DC has the power to pass the required bill, and that is Boehner. Trying to pass the responsibility to do that onto Obama because he won’t acquiesce to blackmail is disingenuous.
Funny, what used to be called “negotiation” is now “blackmail”.
The required bill, of course, must meet 100% of the demands of President Temper Tantrum and Blue Team. Otherwise, they spend the mortgage money on hookers and coke, and blow up the economy.
Threatening to blow up the US economy unless your demands are met fits the definition of blackmail. Considering that the motivation is fueled by religious fundamentalism it could be argued that what is happening is closer to economic terrorism.
Religious fundamentalism? Obozo is a Fascist, not a Muslim. Let it go.
Fascist???
Everybody says that God is on their side but the Tea Party actually believes it.
Boehner and has supporters need to accept responsibility for what they are doing. Trying to blame others for their own behaviour is not acceptable.
SMH etf, TXN, LRCX,KLAC are all a go on the long side here.
Obama will have to throw the Repub’s a bone. Give them Keystone Pipeline for a debt deal. The arguments against the pipeline are ridiculous anyways.
agree, build the pipeline. Thank God it doesn’t go through my state
I wish it went through my State.
I would sell them an easement to go through my property.
The Bears and Coyotes would like it.
“…Obama will have to throw the Repub’s a bone…”
=====================
Yea, but you got to be real carefull here… 😀
http://tinyurl.com/k673ngd
Now that Washington has closed down, I nominate V.King as America’s first King.
Thank you for your support.
(Oh, and, USD/JPY cup & handles. Diddos to PM and Senator)