By All Means, Sell Your PMs!

Word of a pending "deal" between The Regime and The House sent the metals reeling this morning. This once again proves that WOPR does not have actual, human intelligence...at least, not yet.

Of course the debt ceiling is going to be raised in a package with some phased-in spending cuts and tax increases. That was never in question. The only question has been whether there would be a "plan" such as this or whether O'bottom would simply raise the ceiling by executive order. It's quite clear now what will happen. As partially discussed back on Monday, here's how this will play out:

1) The House cast a vote last night on a "Tea Party" package. It passes overwhelmingly but has zero chance of passing the Senate or receiving O'bottom's signature. No matter. It's all about "political cover". More on that later in point #4.

2) A "plan" emerges, brokered by The Regime and the Republican "leadership". 50 or so "safe seat" Repubs will vote for the plan in the House. Those 40-50 votes plus all of the Dem votes will be enough to pass the plan. All of the Senate Dems plus one or two Repubs will approve the plan in the Senate and O'bottom will sign it.

3) Problem solved. smiley

4) "Tea Party" Repubs are able to claim that they did their best. They'll be "on the record" as having voted against O'bottom but voting for their own plan. This is known as "having your cake and eating it, too". On balance, they will be safely re-elected next year and Boehner will keep his job as SOTH.

5) Every politician wins! You lose. Again. angry

So with that behind us, let's cut to the chase. The debt ceiling is going to be raised again by another $2T or so... (Don't forget about this chart!)

large_gc_1_0_0.jpg

...And it will only take about a year and a half to hit the ceiling again. With the passage of this "deal", all that will have happened is a kicking of the can down the road until early 2013. Hmmm. Early 2013. Why would that be significant?? Let's see, what happens in late 2012? I know it's something but I can't put my finger on it. Let me get back to you on that.

At any rate, the question you need to ask yourself right now is: "From where will this $2T be coming?".

I know! China! (Nope.)

Russia? (Nope.)

Japan? (Sorry.)

The EU and ECB! That's it! The owe us a few favors! (Negative.)

We'll raid pension plans and IRAs! (Someday soon but not yet.)

QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3QE3!!!!!!!

So, by all means, today's news means you should sell your gold and sell your silver. NOT! I sincerely hope all of you are wise enough now to not continue falling for the manufactured SPIN and MOPE of Washington politics.

TF

228 Comments

vinzz's picture

Third!

Or not.. Thanks Turd!

Eric Original's picture

First?? You gotta be shitting me....

whoop de do...

Vypuero's picture

Not Me

I keep my PMs and drink your milkshake

Eric Original's picture

D'oh!!!

D'oh!!!

Victory Increasing's picture

Boehner on Rush Limbaugh

He was just on Rush - said there is no deal.

Eric Original's picture

That House vote was pure

That House vote was pure photo opp.

silverbleve's picture

+1

Thanks turd good stuff as always

Violent Rhetoric's picture

Each time they announce

Each time they announce they've solved the Greek debt crisis I buy a couple more coins and take a shot of Jack Daniels. cheeky

Shill's picture

nice

Nice resistance at the $60 mark on the GDX. I'll never sell my rocks as some have called PM's.

Schwartz9546's picture

I say raise the ceiling to infinity

Let 'em raise it to infinity...PMs are sure to follow shortly thereafter.  Where are they gonna

get the $'s to spend?  Gutless Repubs!

maravich44's picture

401K Raid

Would this finally Wake-Up the sleeping masses?

Trader's picture

Of course i'm not selling

Of course i'm not selling physical bcs of this theatrical bullsh1t but where does it leave us from a trading perspective in your view?  Bullish?...

Jive Dadson's picture

Remind me again

What do WOPR and MOPE stand for?

bbdgoco's picture

Which will get resolved first?

The NFL bargaining agreement or the budget.

Short term fixes don't count.

I'm thinking it'll be the NFL.

FriedEggs's picture

Puff*puff*

pass...

Anyone?:)

Good things grow...in Ontario...

Thanks Turd.

Fried(e)

silverbleve's picture

Elections

Call me crazy, but ever since the invention of television the candidate who wins is the one that looks best on tv. Arguable exception; al gore 2000

Teach's picture

Well, I've given it a lot of thought...

NOT!!  Think I will stick with plan "A".  I never knew it was possible to dislike politicians and bankers this much.  I really, really, really hate them all. (except Ron Paul.)

LongGoldLongSilver's picture

Greek default?

So Greek default I guess we can call it?

"Euro leaders near Greek deal

Under the plan, the maturities of EFSF loans would be extended to at least 15 years from the current 7.5 years, the draft said, and the interest rate on loans would fall to 3.5%, compared with 5.5% now. A debt buyback plan that would cut the net present value of Greek bonds remains under negotiation, news reports said. Such a move would be likely to result in Greece being declared in default by ratings agencies, potentially leading the European Central Bank to follow through on a threat to stop accepting Greek bonds as collateral for bank funding." Read full article here

Doople's picture

Turd may be right but I think

Turd may be right but I think the pummeling of the gold price is all about options expiration next Tuesday and there are 20,000 calls at $1,600 USD. Gold will need to be held down until then.

MisesFan's picture

Shall we play a game?

stoneeh's picture

I only say way to go, they

I only say way to go, they once again manage to cast an air of doubt on record prices PMs. No wonder they manage to keep the public out, who would want to be in this sh.. if you don't know exactly why what is happening is happening. And I guess we do - the manipulation is extremely obvious right now, prices getting jerked around violently without the OI even changing to account for it. This market is purely manipulation right now.

- Markus

Blight Master's picture

Velocity increasing

Everything moving faster and faster, its like the entire world doesnt understand basic math. I'm guessing there aren't many math requirements for a degree in pol/sci, and by the look of things basic math isnt even a pre-requisite for a PhD in Economics.

maravich44's picture

Lowell George

Don't "Borgart that joint my friend..."

Shill's picture

Live

delric's picture

James Turk

WheelerSilver's picture

SACK!?

LOL, Thanks. My shiny metal will stay right were it is. Those politicians are ridicules, everything they do is a  play on votes. They know they can't get votes by cutting lardy programs that spend us into the third world (SSI, Medicare, Military) But to continue funding them like this would be economic suicide and morally EVIL. So what do they do? Kick the frickn can. PLEASE! Can we get some representatives with some SACK!?? 

-------------------------------

https://wheelersilver.com

tmosley's picture

The prospect of putting off

The prospect of putting off the dollar collapse for another year and a half pleases me.  I need to accumulate more metals.

Eric Original's picture

SilverBleve

YOu're not crazy.  That theory has been endlessly analyzed since 1960.  It was the year that debates were first televised.  Nixon looked like crap, Kennedy like a million bucks.

They did a lot of polling and found that those that saw it on TV went for Kennedy, those that caught it on the radio went for Nixon.

We basically been doing the same shallow shit ever since.  It's a sad, sad f*ckin commentary on JoeSixPack voter.  No wonder we got no hope whatsoever.

SilverFocker's picture

Here's some funny shit

http://www.dailyfinance.com/2011/07/21/are-gold-coins-worth-the-money/

Looks like the talking heads are needing the sheep to sleep.

OC15's picture

Free Dictionary

gold
(gomacr.gifld)

n.
1.
a. Symbol Au A soft, yellow, corrosion-resistant element, the most malleable and ductile metal, occurring in veins and alluvial deposits and recovered by mining or by panning or sluicing. A good thermal and electrical conductor, gold is generally alloyed to increase its strength, and it is used as an international monetary standard, in jewelry, for decoration, and as a plated coating on a wide variety of electrical and mechanical components. Atomic number 79; atomic weight 196.967; melting point 1,063.0°C; boiling point 2,966.0°C; specific gravity 19.32; valence 1, 3. See Table at element.
b. Coinage made of this element.
c. A gold standard.
2. Money; riches
3. A light olive-brown to dark yellow, or a moderate, strong to vivid yellow.
4. Something regarded as having great value or goodness: a heart of gold.
5.
a. A medal made of gold awarded to one placing first in a competition, as in the Olympics: won 9 golds in 13 events.
b. A gold record.
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