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Budget talks collapse; debt limit increase in doubt
CaptHenway
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Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
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If Congress refuses to raise the debt limit ceiling by August, the Federal government will likely be forced to delay or deny redemption of its existing bonds. This may cause the value of the bonds to decline, but it will not necessarily impair the value of actual spendable dollars if the supply of these is not increased.
If government gridlock brings U.S. money creation to an abrupt halt, a wave of deflation could result, which would be bearish for the price of gold and silver, at least temporarily.
My Adolph A. Weinman signature
Small businesses need to be taxed more
Short and worth the read just to get a clue on the mentality of T "hey, did he ever pay his taxes?" G. Put him in with the "I don't understand" Bernak and we got a real show. The Chinese ought to be asking for their money back pretty soon. Debt limit increase...If you were a bank, would you give them another loan realizing that you were not very likely to be paid back?
<< <i>Well the solution is clear, we need to tax small business more to save the nation. These guys must have a 'shroom stash somewhere.
Small businesses need to be taxed more
... >>
"...so the gov't won't shrink..."
Im not so sure this is correct. Although it certainly makes sense that a slowdown/stoppage of new money should cause the value of metals to decline......im thinking that as soon as the U.S. defaults on the very 1st bond, there will be a FLOOD of investors running from treasuries and into hard assets like metals.
Give Me Liberty or Give Me Debt
A banker parks his brand-new Porsche in front of the office to show it off to his colleagues.
As he's getting out of the car, a lorry comes speeding along too close to the kerb and takes off the door before zooming off.
More than a little distraught, the banker grabs his mobile and calls the police.
Five minutes later, the police arrive. Before the policeman has a chance to ask any questions, the man starts screaming hysterically: "My Porsche, my beautiful silver Porsche is ruined. No matter how long it's at the panel beaters, it'll simply never be the same again!'
After the man finally finishes his rant, the policeman shakes his head in disgust.
"I can't believe how materialistic you bloody Bankers are," he says. "You lot are so focused on your possessions that you don't notice anything else in your life."
"How can you say such a thing at a time like this?" sobs the Porsche owner.
The policeman replies, "Didn't you realise that your arm was torn off when the truck hit you?"
The Banker looks down in horror.
"BLOODY HELL!" he screams. "Where's my Rolex?"
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<< <i>"If government gridlock brings U.S. money creation to an abrupt halt, a wave of deflation could result, which would be bearish for the price of gold and silver, at least temporarily. "
Im not so sure this is correct. Although it certainly makes sense that a slowdown/stoppage of new money should cause the value of metals to decline......im thinking that as soon as the U.S. defaults on the very 1st bond, there will be a FLOOD of investors running from treasuries and into hard assets like metals. >>
I agree that under this scenario there will be a flight from Treasury bonds, but people might want to stay in cash rather than invest in metals or anything else - especially if the shortage of U.S. dollars precipitates another credit freeze.
The world economy has gotten used to, and depends upon, a constant stream of newly created dollars to grease the wheels of commerce. If the presses are suddenly halted, demand for dollars will overwhelm supply, as massive quantities of dollars will still be needed to fulfill private and public contracts worldwide. (The dollar still *is* the world's reserve currency.) This demand/supply imbalance will cause interest rates to spike, and will make it attractive for investors to loan money to creditworthy borrowers rather than purchase precious metals (which most people don't understand anyway).
I think that ultimately the U.S. will have to resume creating dollars out of thin air again, so I expect gold and silver to do just fine in the long run. But there could be rough going in the short term if gridlock continues for much longer.
My Adolph A. Weinman signature
Box of 20
I just heard Claire McCaskill say the exact same thing this week. There must be an internal talking point memo from the central committee. They always seem to equate the top 2% incomes with small business owners. I've never heard so much crap.
Now they want to punish people for working hard, saving and taking risks. I'm not one of those top 2% income earners, but it is abundantly clear to me that when they say "top 2%" they really mean "taxpayers".
The politicians and bankers - they've become rich by stealing from the middle class. These elitists aren't paying their own taxes, they hand out $billions to crooked banker cronies, and they recruit the poorest among us to become dependent on *their* handouts of *our* money.
The middle class is their biggest obstacle, and they know it.
I knew it would happen.
Box of 20
Give Me Liberty or Give Me Debt
June 2002: Congress approves a $450 billion increase, raising the debt limit to $6.4 trillion. McConnell, Boehner, and Cantor vote “yea”, Kyl votes “nay.”
May 2003: Congress approves a $900 billion increase, raising the debt limit to $7.384 trillion. All four approve.
November 2004: Congress approves an $800 billion increase, raising the debt limit to $8.1 trillion. All four approve.
March 2006: Congress approves a $781 billion increase, raising the debt limit to $8.965 trillion. All four approve.
September 2007: Congress approves an $850 billion increase, raising the debt limit to $9.815 trillion. All four approve.
Why did you stop at 2007?
<< <i>Why did you stop at 2007? >>
Ha, Because that's when you have to stop saying "it's all Bush's fault" like so many like to still do.
<< <i>Both parties will compromise and make a last minute agreement. This is how this circus operates. Neither party wants to commit financial suicide. >>
That strategy is not working well in California.
<< <i>ThinkProgress compiled a breakdown of the five debt limit increases that took place during the Bush presidency and how the four Republican leaders voted: >>
ThinkProgress is a media outlet for the Center for American Progress (CAP). Center for American Progress is really the "Center for Socialist Progress" and receives major funding from George Soros. George Soros is one of the biggest enemies for any true American progress. CAP is very influential in appointments to the Obama administration. Soros and his many public policy research and advocacy organizations are slowly taking control of this country. Here's just one example:
Soros meddles in courts, attempts to buy Leftwing judges
Give Me Liberty or Give Me Debt
<< <i>
<< <i>ThinkProgress compiled a breakdown of the five debt limit increases that took place during the Bush presidency and how the four Republican leaders voted: >>
ThinkProgress is a media outlet for the Center for American Progress (CAP). Center for American Progress is really the "Center for Socialist Progress" and receives major funding from George Soros. George Soros is one of the biggest enemies for any true American progress. CAP is very influential in appointments to the Obama administration. Soros and his many public policy research and advocacy organizations are slowly taking control of this country. Here's just one example:
Soros meddles in courts, attempts to buy Leftwing judges >>
Are you claiming the numbers given in the article are not correct? ,
<< <i>Would it be an America at all without a middle class. Once the middle class goes, so does this country I believe. Rich and poor, Lords and Serfs-95% of the population against 2% wont last very long. >>
No, to answer your first sentence. At that moment we will be known as Amerika. A Marxist enclave where elitists manage our lives, never mind the success of managing their own, and bog us down with mountains of regulations. No hope, lots of change and despair. In his own words Karl said Marxism is the confiscation of private property. Who holds 95%+ of our country's home loans? The steps have been laid.
<< <i>
<< <i>
<< <i>ThinkProgress compiled a breakdown of the five debt limit increases that took place during the Bush presidency and how the four Republican leaders voted: >>
ThinkProgress is a media outlet for the Center for American Progress (CAP). Center for American Progress is really the "Center for Socialist Progress" and receives major funding from George Soros. George Soros is one of the biggest enemies for any true American progress. CAP is very influential in appointments to the Obama administration. Soros and his many public policy research and advocacy organizations are slowly taking control of this country. Here's just one example:
Soros meddles in courts, attempts to buy Leftwing judges >>
Are you claiming the numbers given in the article are not correct? , >>
Not at all, I am sure they are correct. I am claiming that your source is a mouthpiece for George Soros and his agenda: socialism. You won't find them mentioning that the current president voted against raising the debt limit when he was a senator. Nor will you find them discussing the many broken promises he has achieved. You will find them discussing anything that furthers their socialist cause.
Those that think our problems are a result of one particular party are missing the big picture: They are all responsible for our current economic condition and are all offering us the same end result.
Give Me Liberty or Give Me Debt
GET Gold
<< <i>I believe that this is going to be a very polarized subject and there is ample opportunity for us forumites to get crosswise amongst ourselves over this issue. Not saying I have been a non-partisan angel here but be aware this is a poisonous topic and proceed with caution lest our political beliefs get in front of our collective comradarie (sp?). If we were all the same, this journey would be no fun at all. There is plenty of room to enjoy and jab our differences but consider that we share a common bond.
GET Gold >>
well said. It is unfortunate that economic issues have become completely under the control of politicians. It is at times hard to separate the two. My hope is that all with an interest in economics will realize it is not a partisan issue. Everyone in Washington is responsible and things will remain the same until voters realize that fact. I also hope we return to a time when economic direction is set by true market forces.
Give Me Liberty or Give Me Debt
Is the debt limit constitutional?
My Adolph A. Weinman signature
Yogi Berra
I'm going to raise your taxes
Big businesses have to pay more in taxes
Small businesses have to up the ante
I'm going to raise the unemployment rate
I'm going to cut spending for Medicare and Medicaid
I'm going to force you into bankruptcy
etc
etc
ect
They all, 100% of them, got elected on the bashing of the incumbents. Or:
Under my watch unemployment will drop like a rock
I'll lower the tax rate
I'll never raise taxes
I will never touch the social programs
I will give everyone a raise
They'll be a chicken in every pot
I'll stop all involvement in every war
I'll bring our troops home
etc
etc
etc
They are politicians and as soon as you realize that you are not one and therefore treated differently
than one, the better off you will be.
Get back to the basics. Let the states govern the people. Let the people govern the states. If it means
going through a depression for twenty years and coming out on the other side safe and SOUND then that
is what it should be. IF it means going back to silver or gold as a backing of our dollar in order to accomplish
the goals of the people then so be it.
bob