Why Are Geithner and Bernanke Trying to Panic Financial Markets with Debt Limit Demagoguery?

Breitbart.com ^ | 4/15/11 | Dan Mitchell

[yup2394871293]

By taking advantage of  “must-pass” pieces of legislation, Republicans have three chances this year to restrain the burden of government.  They didn’t do very well with the ‘CR fight” over appropriated spending for the rest of FY2011, which was their first opportunity. I was hoping for an extra-base hit off the fence, but the GOP was afraid of a government shutdown and negotiated from a position of weakness. As such, the best interpretation is that they eked out an infield single.

The next chance to impose fiscal discipline will be the debt limit. Currently, the federal government “only” has the authority to borrow $14.3 trillion (including bookkeeping entries such as the IOUs in the Social Security Trust Fund). This is a very big number, but America’s gross federal debt will hit that limit soon, perhaps May or June.

[yup2394871293]

"Too big to fail" marches on and tramples everything else, including democracy.

[allmost]

A calm, cool, collected look at them would most likely lead to life in prison. Just a guess.

[KoRn]

NO debt ceiling increase!!!

Cut spending now, and service existing debt with tax revenue!

[TigerClaws]

You didn’t see the MSM stories about the “government shut down”?

NO NATIONAL ZOO!!!!!

“Never let a crisis go to waste.”

Create the crisis. Use the crisis as the basis to expand power. That’s how government works.

If the government shut down for a while, the farce would be up. State government can handle roads. Local government can handle local issues. All we needs from the feds is national defense and to get out of the way.

Dismantle the monstrosity of the federal government.

Outsource government services.

Whatever candidate says that AND DEMONSTRATES THE BALLS to follow through has my vote.

[kabar]

The demagoguery is meant for the domestic political audience. It is meant to demonize the opposition in general and specifically, the GOP. The message is don’t stand in our way or we will destroy you. After the debt ceiling is raised, they will use the same rhetoric on the 2012 budget, i.e., any major cuts will put the fragile recovery at risk.

[Thane_Banquo]

Question: How does one get certified by the DHS as a "right-wing extremist"? Is there a lot of red tape and paperwork, or does simply buying a copy of the Federalist Papers do the trick?

[taxtruth]

Simple,these idiots are trying to shake down the US with phony money.It’s time someone calls this crap and puts these asswipes in jail along with the federal no reserve.
We owe these idiots NOTHING!

[mlocher]

The interest rate on 30 year treasuries have been falling the last several weeks. The market believes that we are getting our spending under control, the market is paying no attention to Geithner, or the gov't spending situation in the rest of the civilized world is much worse than it is here in the US. That is, we have problems, but our situation sucks less than elsewhere.

Of course, raising the debt ceiling enables to the gov't to siphon free market capital to pay its bills that would otherwise be used for job creation. That is the unreported crime in gov't spending.

[Let's Roll]

Because they are evil. I can’t speak further on what should happen to them without being banned.

[Palter]

Because all parties do the same crap.

[Army Air Corps]

Oh, I think that saying, “Ya know, that Obama isn’t all that smart” should be enough to do it.

[yup2394871293]

Good link.

[dalight]

They are doing this because if the Debt Limit isn't extended by June 30, 2011 they have to shut down the printing press. And, five minutes later the wheels fall off of this most horrendous scandal in American History, the wholesale rape of the American economy.

However, if the Debt Limit is increased, this will pretty much happen just the same. Foreign governments and businesses will refuse contracts in Dollars and the currency glut will drive hyper-inflation like occurred in Argentina in the 1970-1990's.

CRB Index for the last 6 months.. (Future Freepers Sorry, this is a snapshot URL) this post won't make sense a month after the current date.)

This exactly matches the chart presented by Russ Winter at Minyanville.

The last 40 years have nothing to do with the current situation because folks had the good sense to go Ape Sh%$t when Nixon gave up the Gold Standard. What they are doing now.. the BASELESS STANDARD, the NOT EVEN GREEN ANYMORE.. standard.. heck.. it isn't even paper. Just electrons representing lies that our children have to make real by living in bondage.

If the Debt Ceiling is increased, the Fed will do QE3 to keep Treasury auctions from failing. Something immediate and substantial needs to be done, and Congress just punted.

Some say, "If interest rates on Treasuries skyrocket then everyone, including China and Saudi will jump back into dollars with wild abandon." But, more likely, there will be no takers for $100 Billion per month.. but the interest rates may rise anyway.. rather... it is much more likely that QE3 occurs for the same reasons as QE2 but the situation is more desperate.

The problem with that.. is that the US is deep into short term borrowing which means that the Deficit will balloon insanely the minute interest rates begin to rise..

You get into a trap, there is no interest rate high enough that overcomes the real likelihood of loss of the original principle. Equity works because it based on the analysis of the risk vs reward of appreciation or loss of the capital investment. Bond work on the assurance that the capital invested is safe, over a certain level of risk, they are considered junk because they are inherently not safe.

What foreign companies will do is use the fake dollars we have given them to purchase real US assets leaving us in an inflationary spiral and vassals in our own land. They will at some point soon, months, insist that all of our borrowing be done in their currency rather than ours and this is when our goose is cooked.

This is a story as old as Joseph, the Pharaoh and the 7 years of famine. It ended with all of Egypt in Slavery including the Israelites whom only God could save.

What is sick is that Beck warned of this 6 months ago and we just couldn't see it back then.. but now it is obvious.. and yet we are not doing anything to stop it.

There comes a point in every PONZIE scheme where the new members cannot sustain the deal and it all comes tumbling down. Social Security is the Ponzie scheme and we all know it. It has failed we are selling our very lives and putting our children into the fire of slavery and death and oppression. This has to end worse than Greece and Obama and crowd know it and are cheering with the torches in their hands. This is the Cloward-Pevin crisis they have been working for, but we don't have to go there.

First and foremost, people have been lied to and they are not ready for dealing with the reality of this. Beck and Palin see Trump's big mouth as a distraction but people are sick of lies. I am.

It starts here first. We quit lying to ourselves. I saw the charts that I posted here this weekend and they made me sick. The guy at www.endofamerica93.com has seen this for a while.. and unfortunately decided to make this a sales pitch with a 20 minute clouded presentation at the beginning.

The crisis doesn't come from "Bankruptcy" as Hannity keeps saying.. but the loss of "Reserve Currency Status" and the meetings are going on around the world to get this accomplished. I am sure they would like to do this without destroying the value of the dollars they already have.. but QE3 will destroy this value anyway.. so after June 2011, a crisis is assured soon no matter what if the DEBT CEILING IS INCREASED without substantial immediate and draconian cutting and a mechanism to absolutely end the deficit borrowing in 24 months.

Go outside, look around, do we love this country? If we do, we have only about 2 months to do something.

[Safrguns]

I think maybe the libs are a bit frustrated they were not able to get the country to default well before now.

They are feeling the heat of a failed agenda, and it’s coming home to roost... they feel their anticipated short term rule slipping away, and are doing everything they can to put us into chaos to maintain control.

[Happy Rain]

“Please don't squeeze the dollars!”

If the mint would print them on two-ply paper they could be worth something.

[taxtruth]

I would like to know the total amount the federal reserve crooks have made on the backs of the American people since 1913.

[Thane_Banquo]

Then with all the stuff I’ve said about that corrupt Teleprompter Pilot, I’m probably #1 on the DHS waatch list.

[Army Air Corps]

Teleprompter Pilot - I am going to “borrow” that one!

[Army Air Corps]

You too?

[43north]

If I were to say what I really think I would be on every gubbmint sh!t list there is. I’ll paraphrase for those gubbmint agents that have been to publik skrool:

Short rope, lonnnggg necks.