An Absolute Farce

Sun, Nov 20, 2011 - 5:44pm

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"? 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?


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.


About the Author

turd [at] tfmetalsreport [dot] com ()


Nov 20, 2011 - 6:34pm

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...

I Run Bartertown
Nov 20, 2011 - 6:35pm


someone took action,

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

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

Nov 20, 2011 - 6:35pm

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
Nov 20, 2011 - 6:36pm

For you educational

For you educational enjoyment. Because, this is what is to come.

Nov 20, 2011 - 6:39pm

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.

Nov 20, 2011 - 6:44pm

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 :)

Nov 20, 2011 - 6:44pm

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
Nov 20, 2011 - 6:45pm


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

aurum argentum
Nov 20, 2011 - 6:51pm

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
Nov 20, 2011 - 6:54pm

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.

Subscribe or login to read all comments.


Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 10/14

10/15 8:30 ET Empire State Fed MI
10/16 8:30 ET Retail Sales
10/16 10:00 ET Business Inventories
10/17 8:30 ET Housing Starts and Bldg Perms
10/17 8:30 ET Philly Fed MI
10/17 9:15 ET Cap Ute and Ind Prod
10/18 10:00 ET LEIII
10/18 Speeches from Goons Kaplan, George and Chlamydia

Key Economic Events Week of 10/7

10/8 8:30 ET Producer Price Index
10/9 10:00 ET Job Openings
10/9 10:00 ET Wholesale Inventories
10/9 2:00 ET September FOMC minutes
10/10 8:30 ET Consumer Price Index
10/11 10:00 ET Consumer Sentiment

Key Economic Events Week of 9/30

9/30 9:45 ET Chicago PMI
10/1 9:45 ET Markit Manu PMI
10/1 10:00 ET ISM Manu PMI
10/1 10:00 ET Construction Spending
10/2 China Golden Week Begins
10/2 8:15 ET ADP jobs report
10/3 9:45 ET Markit Service PMI
10/3 10:00 ET ISM Service PMI
10/3 10:00 ET Factory Orders
10/4 8:30 ET BLSBS
10/4 8:30 ET US Trade Deficit

Key Economic Events Week of 9/23

9/23 9:45 ET Markit flash PMIs
9/24 10:00 ET Consumer Confidence
9/26 8:30 ET Q2 GDP third guess
9/27 8:30 ET Durable Goods
9/27 8:30 ET Pers Inc and Cons Spend
9/27 8:30 ET Core Inflation

Key Economic Events Week of 9/16

9/17 9:15 ET Cap Ute & Ind Prod
9/18 8:30 ET Housing Starts & Bldg Perm.
9/18 2:00 ET Fedlines
9/18 2:30 ET CGP presser
9/19 8:30 ET Philly Fed
9/19 10:00 ET Existing Home Sales

Key Economic Events Week of 9/9

9/10 10:00 ET Job openings
9/11 8:30 ET PPI
9/11 10:00 ET Wholesale Inv.
9/12 8:30 ET CPI
9/13 8:30 ET Retail Sales
9/13 10:00 ET Consumer Sentiment
9/13 10:00 ET Business Inv.

Key Economic Events Week of 9/3

9/3 9:45 ET Markit Manu PMI
9/3 10:00 ET ISM Manu PMI
9/3 10:00 ET Construction Spending
9/4 8:30 ET Foreign Trade Deficit
9/5 9:45 ET Markit Svc PMI
9/5 10:00 ET ISM Svc PMI
9/5 10:00 ET Factory Orders
9/6 8:30 ET BLSBS

Key Economic Events Week of 8/26

8/26 8:30 ET Durable Goods
8/27 9:00 ET Case-Shiller Home Price Idx
8/27 10:00 ET Consumer Confidence
8/29 8:30 ET Q2 GDP 2nd guess
8/29 8:30 ET Advance Trade in Goods
8/30 8:30 ET Pers. Inc. and Cons. Spend.
8/30 8:30 ET Core Inflation
8/30 9:45 ET Chicago PMI

Key Economic Events Week of 8/19

8/21 10:00 ET Existing home sales
8/21 2:00 ET July FOMC minutes
8/22 9:45 ET Markit Manu and Svc PMIs
8/22 Jackson Holedown begins
8/23 10:00 ET Chief Goon Powell speaks

Key Economic Events Week of 8/12

8/13 8:30 ET Consumer Price Index
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Labor Costs
8/14 8:30 ET Philly Fed
8/14 9:15 ET Ind Prod and Cap Ute
8/14 10:00 ET Business Inventories
8/15 8:30 ET Housing Starts & Bldg Permits

Recent Comments

by lakedweller2, 7 min 33 sec ago
by Turd Ferguson, 14 min 29 sec ago
by Turd Ferguson, 16 min 41 sec ago
by kkingchiro, 17 min 7 sec ago
by DeaconBenjamin, 24 min 1 sec ago

Forum Discussion

by Solsson, Oct 15, 2019 - 3:22pm
by my mothers keeper, Oct 15, 2019 - 1:41pm
by UncleFester, Oct 15, 2019 - 1:25pm
by zman, Oct 15, 2019 - 12:34pm
by Solsson, Oct 15, 2019 - 7:56am