And The Kickers In Reid's Proposed "Deficit Cutting" Plan Are...

Following hot on the heels of the proposed Boehner rehashed plan, we get the first details of where the bulk of the $2.7 trillion in proposed savings will come from. Are you ready for this? REID PLAN SAID TO HAVE $1 TRLN SAVINGS FROM WINDING DOWN WARS. That's right. In some parallel galaxy far, far away, lack of expenditures, on America's 6 front wars to be sure, is now considered a "saving"? Front lobe hemorrhage to commence in 5 seconds. And the other migraine-inducing details of the Reiid plan are...

 

 

The Drama Is Back: Boehner To Hold Press Conference At Market Close

For a day that was supposed to be full of drama, fury, margin calls and overall bloodshed, newsflow is so boring, for a second we wanted to demand our money back from management, or the kleptocracy, whoever it is that prints these things nowadays. However, some excitement may yet be salvaged now that Boehner has just called for a news conference precisely on the closing bell at 4pm. We assume this will be to present details of his two-tiered plan, which we touched upon earlier, and which Fox News now provides some additional details on. Suffice to say, if Obama were to accept the terms contained herein it would be complete embarrassment for the head executive, as Boehner is literally demanding everything, up to and including a balanced budget amendment, that Obama swore he would not cede.

 

 

Details Of Boehner's Plan Emerge

Submitted by Tyler Durden on 07/25/2011 - 12:27 Slowly details of the shape of Boehner's two-step plan are emerging:

• BOEHNER'S FIRST STEP WOULD BOOST DEBT LIMIT INTO FEBRUARY
  
• BOEHNER PLAN SAID TO SEEK DEBT BOOSTS OF $1 TLN AND $1.6 TLN
  
• BOEHNER'S PLAN WOULD HAVE COMMITTEE IDENTIFY SPENDING CUTS

It is unclear if this approach is a non-starter considering that every democrat has made it clear in the past 24 hours that a partial debt increase of $1 trillion would not even be discussed as it would reach just through February or March at the current cash burn rate.

 

Boehner Just Took Debt Ceiling Negotiations Back Five Steps, Calls Obama's Request "Blank Check", Invokes Visions Of Hank Paulson

In a posting on his blog, Boehner just managed to snag any progress in the debt ceiling negotiation, saying that the president "is trying to set up a no-win situation for taxpayers: either he gets his $2.4 trillion blank check, or America defaults", generatinged much despised PTSD visions of Hank Paulson' staccato threats in Congress, and in doing so making any compromise he may have been pursuing with the Tea Party virtually impossibly and certainly nearly unpracticable with just 3 days before the absolute legal deadline this Thursday. Perhaps that is just the reason why bonds suddenly ripped. Remember: bonds will be bought if sendng is curtailed and no incremental debt will be layered... to a point. Should the US default, buying will turn to selling, first very slowly, then very fast.

Italy Cancels August Bond Auction

Citing the most hilarious explanation we have ever heard for not daring to approach the capital markets, Dow Jones reports that following a comparable announcement from Austria earlier, none other than clutch euro Domino Italy, whose bonds surged by about 40 bps today, has decided to take a sabbatical from accessing capital markets, and will not issue medium and long-term bonds in August. Of course, the real reason is that the spreads are prohibitively high but that's a story for another reason. The problem for Italy, however, is that it will end up burning through a lot of cash over the next 45 days and then far more will depend on the successful passage of the country's auctions in the following month, when the next scheduled medium term auction is on September 13 (full auction schedule is here). Amusingly, while all of Europe complains that the Greece, Ireland and Portugal have no capital markets access, some of the better of PIIGS make the voluntary decision to avoid price discovery. We fail to see how this can possibly result in anything than another loss of credibility in the eurozone rescue package.

Running Out Of Runway

July 25, 2011, at 10:13 am
by Greg Hunter in the category USAWatchdog.com |  Print This Post |  Email This Post

Greg Hunter’s USAWatchdog.com

Dear CIGAs,

It looks like even the mainstream media (MSM) can see a calamity if we are right on top of one.  Finally, the dire debt ceiling negotiations between Congress and the White House were covered wall-to-wall on all the major media outlets yesterday.   No comment better describes the frightful situation America faces over its debt problem than what Treasury Secretary Tim Geithner said yesterday on FOX, “. . . we’re running out of runway.  I never thought they would take it this close to the edge and let politics get in the way of demonstrating we will pay our bills on time.”  To extend that metaphor, even if the debt ceiling is reached just before the August 2nd deadline, doesn’t mean the government can get enough altitude to clear the trees.  It will take some time to implement the new bill, and time is very short.
Meetings in the nation’s capital yesterday did not produce a bill that can garner approval of the House, Senate and President.  At the open of the Asian markets overseas, gold was up $20 an ounce in the first hour of trading.  It hit another record high (with many more to come.)  Who knows if the yellow metal will hold onto the gains, but that amounts to a giant vote of no confidence from overseas consumers of our dollar and debt.  Remember, there are $12 trillion in liquid assets (treasury bonds and dollars) held outside the country.  A panic over the stalled debt talks in the United States could cause massive selling of those assets.  Interest rates would spike and the value of the dollar would plunge.  It would cause immediate pain for U.S. consumers and could disrupt markets worldwide.  The stakes in Washington D.C. couldn’t be higher.  What has been called a “cloud of default” could start hurling thunder bolts and producing torrential rain in the global economy.
To say the Democrats and Republicans are not on the same page is an understatement—they’re not on the same planet.  The argument between raising taxes and cutting spending has morphed.  It now includes a “must do” deal to take negotiations on raising the debt ceiling out of 2012 elections.  When the idea of a short-term debt increase was posed to White House Chief of Staff Bill Daley on “Meet the Press” yesterday, it was soundly shot down.  Host David Gregory asked, if “The President would veto a plan if it does not extend the debt ceiling into 2013?”  Daley quickly said, “Yes.”
More…

Confused Why ES Is About To Break Out Into Green Territory? Here's Why

Submitted by Tyler Durden on 07/25/2011 - 11:31 GETCO
Yep. As expected volume just died, which means the algobots are in control and the vaporvolume melt up is imminent. Obama's horribly mistimed plan to crash the market has just been foiled by a few trillion vacuum tube equivalents courtesy of Getco.

Mr Pink Is Back: Dan Loeb Joins Steve Wynn, Launches All Out Attack On Classwarfaremongerer-In-Chief

Ah, it sure is good to have good old Mr. Pink back "The budget is not the only thing in deficit today, as a paucity of leadership has left the country without a stable framework in which businesses can conduct business, investors can invest, and consumers can consume without a high degree of uncertainty and fear. Politically charged statements and brinkmanship have served to deepen divisiveness between the parties and led to confusion and fear among citizens. There has been much said about who is allegedly the "adult in the room," but President Obama has yet to speak to Americans as adults, insisting instead on his preferred technique - stirring up class warfare. Scaring senior citizens about the possibility of not receiving their Social Security and Medicare checks, lambasting the corporate jet industry, and calling for higher taxes on managers of private partnerships is not a constructive approach to handling a complex multi-trillion dollar problem that will have a multi-generational impact." Read on below.

Guest Post: Gold And Silver: We Were Right – They Were Wrong

Only now, after three years of roller coaster markets, epic debates, and gnashing of teeth, are mainstream financial pundits finally starting to get it. At least some of them, anyway. Precious metals have continued to perform relentlessly since 2008, crushing all naysayer predictions and defying all the musings of so called “experts”, while at the same time maintaining and protecting the investment savings of those people smart enough to jump on the train while prices were at historic lows (historic as in ‘the past 5000 years’)....Those who instead listened to the alternative media from 2007 on have now tripled the value of their investments, and are likely to double them yet again in the coming months as PM’s and other commodities continue to outperform paper securities and stocks. After enduring so much hardship, criticism, and grief over our positions on gold and silver, it’s about time for us to say “we told you so”. Not to gloat (ok, maybe a little), but to solidify the necessity of metals investment for every American today. Yes, we were right, the skeptics were wrong, and they continue to be wrong. Even now, with gold surpassing the $1600 an ounce mark, and silver edging back towards its $50 per ounce highs, there is still time for those who missed the boat to shield their nest eggs from expanding economic insanity. The fact is, precious metals values are nowhere near their peak. Here are some reasons why…

Murray Pollitt: End price suppression and let gold rise to reliquify world

Greece Is Fulfilling Our Predictions Of Default Precisely As Predicted Well Over A Year Ago - Yet EU States Are Still Unprepared







MERS, GMAC, Stephan, US Bank, Fraudclosure | Supreme Court AFFIRMS Homeowners VICTORY in U.S. Bank N.A., v. Christine Kimball

Posted by: 4closureFraud

Post date: 07/25/2011 - 11:42

"While we are sympathetic to the desire to avoid wasteful and duplicative litigation, the source of the unnecessary proceedings in this case was not an overly wooden application of the rules, but...

Two Chinese Fighter Jets Repelled US Spy Aircraft In Taiwan Strait Last Month

Submitted by Tyler Durden on 07/25/2011 - 11:42 China SPY China continues to flex its wings, in this case literally. The FT reports that last month two Chinese Su-27 jets crossed the middle line in the Taiwan Strait to repel a US spy aircraft. "This marks the first known encounter between US and Chinese military aircraft in mid-air since a US reconnaissance aircraft collided with a Chinese fighter jet in 2001 and was forced to land on Hainan island, sparking a crisis that severely damaged bilateral relations." And while this is certainly not the first such incident, it is the first one disclosed publicly, with the sole purpose of humiliating the US. Furthermore, recent tensions in the South China seas (profiled previously here) have become a big sticking point for the US administration so it should not be surprising that China will do everything in its power to embarrass America before the global community, a task in which it has just succeeded.