Cantor Announces House To Vote On "Cut, Cap And Balance Act" Tomorrow 

Just out from Eric Cantor: "Tomorrow, the House will vote on Cut, Cap and Balance, a common sense proposal that will cut and cap federal spending to ensure that Washington begins to live within its means and put in place a Constitutional balanced budget amendment that will make balancing our budget the rule, not the exception. No one wants to default on our debt, and that is why House Republicans are bringing forth this plan to meet the President’s request for a debt limit increase with the necessary safeguards to make sure that we don’t continue to kick the can down the road. With millions of Americans out of work, we need to get the economy growing again and control spending here in Washington, and Cut, Cap and Balance is a path forward to do just that. As President Obama has not put forth a plan that can garner 218 votes in the House, I’d caution him against so hastily dismissing Cut, Cap and Balance.”

Ron Paul On "Debt Ceiling Drama" "We Need To Stop Allowing Secretive Banking Cartels To Endlessly Enslave Us" 

The barrage of political statements on the debt ceiling is reaching a crescendo. Following Eric Cantor, here is Ron Paul: "The debt ceiling debate is providing plenty of opportunity for political theater in Washington. Proponents of raising the debt ceiling are throwing around the usual scare tactics and misinformation in order to intimidate opponents into accepting more debt and taxes. It is important to distinguish the truth from the propaganda...Perhaps the most abhorrent bit of chicanery has been the threat that if a deal is not reached to increase the debt by August 2nd, social security checks may not go out. In reality, the Chief Actuary of Social Security confirmed last week that current Social Security tax receipts are more than enough to cover current outlays. The only reason those checks would not go out would be if the administration decided to spend those designated funds elsewhere. It is very telling that the administration would rather frighten seniors dependent on social security checks than alarm their big banking friends, who have already received $5.3 trillion in bailouts, stimulus and quantitative easing...We are headed for rough economic times either way, but the longer we put it off, the greater the pain will be when the system implodes...We need to stop allowing secretive banking cartels to endlessly enslave us through monetary policy trickery.

 

 

 

 

 

Silver Surge #2 Imminent? 

Here it comes again, courtesy of Google Trends. We will shortly start taking bets how many hours will pass before the CME hikes silver margins by another 100%, despite not lowering them once in the price drop from $50 to $32. 

 

 

 

 

 

Rosenberg Explains "Why We Should Be Worried" 

While we politely disagree with David Rosenberg on what is the ultimate flight to safety "security" (in our insolvent day and age perhaps the very word at the heart of capital markets needs to be changed), with him believing in bonds, predicated by a fear of an eventual deflationary crunch, while we ignore any instrument that is used a policy tool by the central planners and instead prefer precious metals, we always are impressed by his ability to synthesize reality in a few succinct bullet points (even if according to Eni's Recchi itself is irrelevant after saying that "Italy’s bond yields don’t reflect reality"). That is most certainly the case today when in his latest Breakfast with Dave letter to clients, Rosie summarizes the 7 reasons why "we should be worried." 

 

 

 

 

 

 

Phone Hacking Scandal Turns Tragic: NOTW Whistleblower Found Dead 

The Guardian reveals a stunning development in the NOTW phone hacking aka MurdochGate case: "News of the World phone hacking whistleblower found dead: Sean Hoare, the former News of the World showbiz reporter who was the first named journalist to allege Andy Coulson was aware of phone hacking by his staff, has been found dead, the Guardian has learned. Hoare, who worked on the Sun and the News of the World with Coulson before being dismissed for drink and drugs problems, is said to have been found dead at his Watford home." For now there appears to be no evidence of foul play... for now: "The death is currently being treated as unexplained, but not thought to be suspicious. Police investigations into this incident are ongoing." Alas, as the full scale of this scandal unravels we are worried that this may be just the first of many tragic conclusions to what is rapidly becoming the biggest media scandal of the 21st century. 

 

 

 

 

 

 

As Obama Says He Will Veto Any Republican "Cut, Cap" Deficit Bill, Long Bond "Dragged To Slaughter House" 

Just because someone is dead set on making Apple the only flight to safety in the world (and Gold of course, but unlike the iPad one can't really eat this particular tradition), around the time (10 minutes ago) Obama threatened he would veto the Republican proposed vote to raise the debt ceiling coupled with a cap on spending and balanced budget amendment to the constitution, the selling off spilled over to Treasurys, which as the chart below demonstrates are broadly lower across the curve, but most emphasized at the 30 Year spot, which as Russ Certo says (see below) is being "dragged to the slaughter house." Alas, judging by bank trading today the 2s30s steepening is completely irrelevant for bank stocks, for the simple reason that i) nobody needs any new mortgages and ii) nobody actually pays their mortgages. This is the second day since last week in which there is coordinated selling in stocks and bonds. Expect much more bond weakness with each day there is no bond deal. 

 

 

 

 

 

Guest Post: Four Charts: Shanghai, S&P 500, U.S. Dollar And The Dow 

Here are the Status Quo's most important investment "stories:"1) China will continue booming for decades
2) U.S. equities will continue soaring as profits continue rising
3) The U.S. dollar will continue heading down because Bernanke wills it to do so

I would love to believe these magical tales, but the charts cast a skeptical pall on the happy stories. Beauty and uptrends alike are in the eye of the beholder, so maybe you see uptrends in equities here; I don't.

Another Warning Sign

Posted by: thetechnicaltake

Post date: 07/18/2011 - 12:28

Looks like Mr. Market is up to its old tricks of hurting the most participants.

 

 

 

 

 

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