An Absolute Farce

Back in August, we were all treated to some "political theater" entitled "The Great Debt Ceiling Debate of 2011". What's the old line? Oh, yah..."Fool me once, shame on you. Fool me a couple hundred times, shame on me."

Seriously, this would be comical if the stakes weren't so high. The United States of America, the world's largest debtor and provider of the world's reserve currency, is insolvent and bankrupt. Its leaders are brazenly corrupt. However, its citizenry has been dumb-downed to the point of ambivalence. Therefore, the following has been allowed to pass without so much as a whisper of complaint as if its nothing but "business as usual" in Washington.

1) The "debt ceiling law" was written in 1917 (deltabravo #1 Woodrow Wilson was POTUS) ostensibly to provide a limit to the borrowing power of the federal government.

2) For almost 100 years, every time the "ceiling" is approached, Congress simply votes to raise it. Some ceiling, huh?

3) This past August, "fiscal sanity" suddenly seemed to emerge as "tea party" republocrats were going to "hold the president's feet to the fire" and halt the growth of the national debt.

4) The "crisis" was averted when a "deal was struck" that would only raise the debt ceiling by an equivalent amount of tax hikes and spending cuts.

5) However, tax hikes and spending cuts are too scawey fo little o congwessmen to debate. So, they violate the Constitution by granting special powers to a "Super Committee", conveniently comprised of legislators from districts and states whose seats are deemed "safe" due to years of gerrymandering, fundraising  and other ill-begotten political benefits.

6) The Super Committee would meet in private and be tasked with the job of finding a "grand compromise" which would include new tax hikes and spending cuts. We were assured that, if the committee could not reach an agreement by November 21, "draconian" budget cuts would immediately be implemented.

7) These supah-scawey cuts would, undoubtedly, serve as the ultimate inspiration for The Super Committee to reach their "grand compromise".

8) The budget would be saved. The U.S. fiscal house would be in order. Nirvana, peace and utopia would reign for the next thousand years.

Hmmm. Not so much.

We find out today that The Super Committee has failed..."punted", as they say. Oh, you must be wondering, I wonder whose "ox is about to be gored" by those "draconian cuts"? Ahhh....no big deal. We also find out today that there were never going to be any "draconian cuts". It was all just a ruse. There are no cuts until 2013. No tax hikes until 2013, either.

Hold on a minute. Wait just a second. If we go back to August, the only way that the debt ceiling was going to be raised was on the promise that The Super Committee would negotiate a settlement. The fact that there would be a "settlement" was ensured by the pending "draconian cuts". Now you're telling me that the committee has failed to reach an agreement and that's OK because there are no cuts or tax hikes until 2013 anyway? Nothing changes? All is well?

HUH?!?!?!?!

And there's no outrage? No one cares that the citizens of the U.S. were sold a bill of goods back in August, all in the name of political expediency? Am I the only one who is incredulous at this? Just because this is "business as usual in Washington" means that this is no big deal?

Well, I got news for you. It is a big deal! This country is doomed! Soon, the undeniable, rapidly-accelerating spiral of debt will unleash heretofore unseen myriad of financial disasters upon this planet. Your only financial protection against this apocalypse is physical precious metal. Period. Buy it now while you still can. 

TF

181 Comments

punchbowl's picture

Completely Correct Once Again

Yup blows me away too.  Absolute joke.

stepman's picture

Outraged

Yeah, I feel your pain.  We just had the least attended elections ever.  You would think all was well here in NJ.  Blah, blah, blah is all you hear.  Now Christie wants to borrow 8 billion to fix the roads?   Time for OUR voices to be heard and not just ignored.  We who may be the 1% or 5% or 50% need to stop being slapped around and demand that OUR politicians respond to OUR demands.  They work for us, we are not subservient to them!

stepman's picture

Outraged and ready

Double post.

RedRover's picture

Russell Napier's - Market Bottoms/ Printing Money/ West vs East

BostonMatrix's picture

Raise the roof

It will be interesting to see if tomorrow's media picks up on this or whether it will be heads in the sand time.

Gramp's picture

Raise!

...In taxes.  They are going to shove some nasty new taxation programs down our freakin' throats. The public has already been "conditioned" to accept, w/  funding threats to such high profile programs as Medicare, ect.  Now, CONgress is being worked on w/ threats about Military Budget cuts... So when the "New Deal" is unveiled, everyone will have had plenty of "Koolaid" to help wash down what is certain to be a very Bitter Pill for us all.

small_potatoes's picture

I gave up on America and

I gave up on America and Americans  getting it right years ago. All I'm interested in is taking care of my own and try to weather the storm.

silverbleve's picture

Not yet

Their failure isn't official until tomorrow. Surely the news will be bullish for pm's. I think the smack down last Thursday was a prep for this. Last time debt ceiling news hit the mainstream gold went from 1600 to 1900 real quick. Jmho of course.

TheGoodDoctor's picture

I found a 1960 quarter in my

I found a 1960 quarter in my change jar. Cool huh? laugh

Oh and Turd. I have "outrage fatigue" it is now what I would call it. Not that I don't care but that it doesn't shock me anymore. The bigger question is how will Obama get his jobs bill passed without some sort of agreement? He's got to buy those votes for next year.

We know what is on the horizon. We just have to be ready for it. That is really all that we can do now. Nothing will change until it happens. What "it" is, well that is just the fun of it all now isn't it? Will it be a European event? Will it be a MENA event? Will it be a US driven event? Or perhaps a Wild Card? You know Uno World Order? LOL. Just get some popcorn ready. That is about it really.

Dr G's picture

Yep, the USA. It's a

Yep, the USA. It's a $hitfest.

Hold over's picture

The decision to delay the

The decision to delay the decision was decided by two thirds decision ,decidedly

I think that statement now qualifies me for public office!!

Hold on, if you  listen close, you can  hear a can be kicked down the road.  

Dr G's picture

...and of course the metals

...and of course the metals are DOWN now that electronic trading has opened, because, uh, they went up too high on Friday, uh, and stuff.

What a farce.

Silver down over 1% in 10 minutes. I always say Sunday evening Globex doesn't matter...except when it does, like the May massacre. Beware.

f's picture

Super Farce

As Ron Paul pointed out in this interview conducted yesterday, the Super Committee will fail at their already tepid task, which was not even to cut spending, but to lessen future spending increases.  Paul further states that the so-called automatic cuts are a farce as well, because there is a coalition of both Democrats and Republicans that are prepared to introduce a resolution to block any automatic cuts to pet programs like the military.

Watch at the 58:40 mark for comments on the Super Committee.

http://www.youtube.com/watch?feature=player_embedded&v=W-3Hb2v8ZXw

It would seem that we are stuck in a roughly 3-month cycle of faux-fiscal conservatism.  We had the debt scare in May and then the bigger scare/credit downgrade in August.  We are now in Nov. and the cycle is about to start all over again.  Perhaps another downgrade? Certainly more attention will be given to the debt temporarily, and everyone will be all about cutting spending again, at least for a couple weeks. Absolutely more pandering and blaming will be coming along the way.  Those of use who pay attention all the time, not just at the quarterly choke-points are like the musicians on the Titanic.  We know what is coming, we try to help out and inform, and comfort, as long as we can. But at some point we're just all going to end up saying "Last, song, good luck chaps."

Warren Peace's picture

No question about it

The EE and western powers have set a course to meet every crisis with the digital equivalents of the printing press. And the media will tow the line. Why didn't more news outlets report the facts of this super committee sooner???  Cause they only needed to subdue the public for a while. If we get too 'tea party-ish' again, they will coordinate another large scale budget cutting shock and awe program that in the end will be a dud....... again. And we will all just take it...... again, because we are afraid of the IRS and miscellaneous other spooks.

The best way to fight them is to avoid being financially destroyed by them. This means putting a very large portion of one's portfolio into gold and silver.... in your possession. And enough supplies to last you though some sure to come system shocks. Don't forget the equipment to protect yourself if it comes to that. Try to avoid being a target by living simple, and hiding things..... use discretion.

Hard to see what the best way to fight them will be in the future, but if you stay in the paper system much longer, there's a good chance you will be wiped out..... unable to fight them, or help anyone else, much less yourself...

Boardwalk's picture

@cpn

Where were you this weekend?

http://news.yahoo.com/thieves-off-two-trains-switzerland-200744316.html

Is that axle grease on your sleeve?

Shill's picture

(No subject)

Warren Peace's picture

Black Swan Report

Looks like we are back to 2008/2009 levels for these European gems.... Here we go!

aurum argentum's picture

Corruption

There is nothing anyone seems to be able to do about it except whine...So hang onto your non violence while the people get "raped".  I'm sure the government will figure out a way to screw people with gold and silver. No one will beat the system.

Random Blowhard's picture

Kick the can until it detonates - the ONLY solution on the table

The stupor commitee was NEVER going to reach an agreement. There is NO political willpower anywhere (Ron Paul the only exception) to actually CUT the spending and get the gluttonus blob that is the Federal government under control.

It doesn't matter anyway, the United States spends 42% MORE than it earns and this number is increasing at an increasing rate, the debt to GDP ratio has shot past 100% and the downward economic spiral continues. I believe the technical term is "Doom Loop".  We will even hit the debt ceiling before the next election. 

Every country that has gone down this path has ended up insolvent and defaulting on their debts, so will the United States.

When the time comes, I'm betting on the Argentina playbook being used, mass confiscation of assets, bank balances, 401k's combined with the introduction of a new currency (Fedbucks) and 100% default on ALL the governments debt.

It is also the ONLY politically acceptable solution - Argentina's socialist government was re-elected (with a solid majority) 10 years after they "strip mined the wealth" in the 2001 hyperinflationary collapse. The initial political fallout will be heavy, but a nation of goldfish brains will soon forget and business as usual WILL resume shortly after.

Change you can believe in indeed... sad

Kick the can until it detonates has bi-partisan support, nothing else does. Plan accordingly.

Boardwalk's picture

Jeff Nielsen. . .

iceman321's picture

A Floor for gold and silver?

Does anyone think we a floor in gold of $1525 and $27 in silver?  Central banks continue to increase their demand...

http://wallstcheatsheet.com/gold/gold-demand-increases-as-central-bank-purchases-jump-556.html/

I Run Bartertown's picture

If...

someone took action, angry

We'd all be here talking about how tragic and misguided that action was. broken heart

Until that changes, we should all go long K-Y [or Wet (+++++ rating)]. crying

Agnostic's picture

Vultures circle MF Global’s stake in LME

I posted this on the arse end of the last thread too but it's more likely to be seen here.

Google the subject title. That gets you through the FT wall.

JPMorgan rumoured to be interested amongst a few other interested parties.

Surprise, surprise, surprise.

Brotha Bob's picture

For you educational

For you educational enjoyment. http://m.youtube.com/#/watch?v=7y4gwAQdr20

Because, this is what is to come.

TheGoodDoctor's picture

He who devalues first, wins.

He who devalues first, wins. That is their only way out at this point is to revalue VS gold. Or outright default or hyperinflation. Their egos are getting in the way. The latter two will be too painful for them.

And BTW it will be a global revaluation of currencies all at once. I can't think of any other way out.

Shill's picture

Great post Turd. The system

Great post Turd.

The system is burnt out,  our banking system yes. But the service economy is moving along strong here in the North East.

The Weather man just told me so :)

infinite_easing's picture

the perception of

the perception of market confusion mixed with hope (greed) and despair (fear) will increase as we move to the final resolution. No matter what the elites are saying, just buy the metal and stay calm.

Matt Foley's picture

Silver

......will never get above $40/ounce again.......Never.

aurum argentum's picture

Matt Foley

is a troll. Trying to get folks's dander up but is too ignorant to state a thesis defending his inane statement... Go back to your  VAN DOWN BY THE RIVER.

Brotha Bob's picture

I am disgusted!

I am disgusted. Do TPTB is Washington think we are all stupid! Or, there are to few that see what's going on! We have been screwed by our so called leaders. They have robbed me. They make promises they can't keep. See Rhode Island, see Detroit; which is just a start. They play accounting games; see California, New York, Illinios, US Congress, And expect to fool us!

But, what I can't stand, is that they have robbed my daughter. A child, who has no idea about these things. The world that will be when she comes of age is going to be nothing like it should have been. And, why? Because these political leaders have traded her future to be elected. They have sacrificed every American; their liberty and freedom for what? The power to do what they are about to achieve. The total destruction of the last best hope for freedom.

They fool themselves, and screw us. The arrogance, and stupidity is amazing. Not one of them will do what is necessary because they don't want the other side to gain politically. Because of this, all is lost.

And us? The masses. We elect these bone heads. We expect political animals to solve economic problems. Yea, that's working out so well in Europe right about now

Hello down grade. Hello 1929. Hell banana republic status.

May God have mercy on us all.

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