By All Means, Sell Your PMs!

228
154
Thu, Jul 21, 2011 - 3:04pm

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.

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.

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!)

...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

About the Author

Founder
turd [at] tfmetalsreport [dot] com ()

  228 Comments

vinzz
Jul 21, 2011 - 3:06pm

Third!

Or not.. Thanks Turd!

Eric Original
Jul 21, 2011 - 3:06pm
Eric Original
Jul 21, 2011 - 3:07pm

D'oh!!!

D'oh!!!

Vypuero
Jul 21, 2011 - 3:07pm

Not Me

I keep my PMs and drink your milkshake

Victory Increasing
Jul 21, 2011 - 3:08pm

Boehner on Rush Limbaugh

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

Eric Original
Jul 21, 2011 - 3:10pm

That House vote was pure

That House vote was pure photo opp.

silverbleve
Jul 21, 2011 - 3:11pm

+1

Thanks turd good stuff as always

Violent Rhetoric
Jul 21, 2011 - 3:13pm

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.

Schwartz9546
Jul 21, 2011 - 3:15pm

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!

Shill
Jul 21, 2011 - 3:15pm

nice

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

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