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

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  228 Comments

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Eric Original
Jul 22, 2011 - 9:49am

Miners! Get Your Miners!

Here's an article from seekingalpha, basically saying get some miners now before it's too late.

https://seekingalpha.com/article/280687-the-time-for-picking-up-gold-bar...

duckwomanloulouferretflat
Jul 22, 2011 - 9:48am

Thanks ferretflat

Had a look at the website and have ordered the book. Thanks!

Lou

ewc58
Jul 22, 2011 - 9:47am

Lou

With deepest respect: in this one area, divorce idealism and what you find "comfortable" from the need, however remote, to be able to defend your family from anyone who, in a state of utter desperation, may decide it's a good idea to take what's yours. Like it not, trendy or not, the reality is this: responsibility to your family BEGINS with home defense.

See, if an intruder has a piece of metal that fires lead projectiles and you do not, you lose. Possibly everything. Whether they take your supplies or do worse, where will you be then? Their whims become your fates, and why? ONLY because that person has a gun, and you (quite unwisely) do not. On the other hand, if that person sees you're armed and serious about defending what's yours, chances are they move on to some silly twit who doesn't know what I just told you. You're overlooking Deterrence as a key benefit of gun ownership. You can't really afford to do that. The best thing about having weapons is NOT having to use them.

I worked for BT for 1o years and and am completely aware of the cultural and other biases against legal gun ownership in England. Of all the internationals I've worked with, the Brits easily win the Booby Prize for the being THE most mind-f*cked people in the world toward gun ownership. This unfortunate (some say self-hating) stance is ever so trendy in the UK and ever so impressive to blather on about at cocktail parties. But we're not talking cocktails here, now are we?

Stop living in a PC dreamworld or you may be directly responsible for horrifying events that you'll never erase from memory. Get an equalizer, or take your chances in what may come. If the uglier scenarios come to pass, just who or what is it that you're currently assigning the tremendous responsibility of protecting you and yours? Unarmed Bobbies? The local Constable perhaps? You should consider what manner of cultural programming has led you to so carelessly give away this primary responsibility to someone other than you or your partner. The fact is this: to do so is utter madness. To continue to be mired in that level of cognitive dissonance (even at this late date) simply indicates you still don't really "get it".

With respect: get real. Then get armed.

Shill
Jul 22, 2011 - 9:38am
Violent Rhetoric
Jul 22, 2011 - 9:37am

Gold up. Bernanke & Buffet

Gold up. Bernanke & Buffet must be buying.

Endzeit
Jul 22, 2011 - 9:35am
Endzeit
Jul 22, 2011 - 9:33am

What's up? Absolutely no raids yet?

I don't trust the silence.

ferretflatduckwomanloulou
Jul 22, 2011 - 9:25am

Surviving in Argentina

Duckwoman,

I you want a glimpse of the future after a bank collapse read https://ferfal.blogspot.com/ about what happened in Argentina in 2000. The stuff from the early days in especially fascinating. The reality is quite different, and in some ways, even worse than you might anticipate.

debtlessSterling
Jul 22, 2011 - 9:17am

Happy Hat Tip!

Sterling. Enjoy.

Sterling
Jul 22, 2011 - 9:15am

Today is my birthday

Today is my birthday and all I want is a FUBM....

and maybe a few hat tips

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