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Thursday, October 17, 2013

Why the Debt Ceiling Kabuki Magically Got Resolved: A More Detailed Answer

Today we start with a quote from the National Association of Retailers:

"As we head into the holiday shopping season, retailers and consumers need stability and certainty from policymakers in Washington and assurance that the economy will not implode due to their actions or more important, lack thereof..."

This really more than any reason was why the debt ceiling fight was can kicked until the dead of winter...

There was too much retail uncertainty in the air..
Store chains had a lot of their merchandise still on the docks yet to be inspected then transported due to the furloughs.  Of course if they still had factories domestically making the products, they wouldn't have had this problem would they??

Also stores could not accurately gauge how many holiday temp hires to bring into the fold..

Those Black Friday mad dashes into the stores may look chaotic but everything about a retail business is carefully controlled, especially the illusions of getting a 'sale' or finding a good value for the money

And every $100 spent on holiday toys and bric-a-brac is $100 less in the pocket when the government cuts the value of Social Security, welfare checks or food stamps benefits received to come up with the money to pay creditors during a sincere Feb '14 impasse..

There are four things we as people are meant to do according to the construct of this Matrix-like society we inhabit:
Work.. Pay Taxes.. Obey the Law.. Consume

Pretty much anything else one does with their life the System does not care about

And as long as your grievances are kept on an individual level and no not develop into the mutuality of a group which can potentially become a movement, one is free to stew or vent and gripe into the blogosphere or their pillows as much as they wish

The whole last two weeks have been contrived just perfectly by the powers to be..  Its so amazing, we needed some extra time to really understand the theater played before all of our eyes.

A lot of this we addressed in the last posting but we wanted to expand a tiny bit and present other realizations...
1)  As we said before, by coming to a magic last-second agreement to really agree on nothing, both corrupt sides were able to ensure that every American would put all this stuff about the US being a deeply indebted i.e. broke nation out of their minds by the weekend

Did you know that when this whole ceiling battle re-occurs in February 2014, our national debt will have risen from $15.7 to around $17 Trillion?

$1.3 Trillion ceiling raise to cover 3 months... That adds up to $5 Trillion/year in borrowing at our current rate.. Took 210 years to reach our first Trillion.

So to repeat, people will shop and spend and embrace the secular side of Christmas then find themselves in a world of hurt worse than imagined in Feb.
2)  Unless something unexpected happens, the partial shutdown of government will resume in mid January.  And this time the government is spared the humiliation of seeing WWII vets resume their protests and the temptation of shooting them.

Baby, its cold outside.. Brrr..

Its important the government figure as many ways of inflicting pain upon the populace without that suffering truly impacting the day to day running of the country

The WWII vet situation was becoming a PR nightmare and really the only rally point the Republicans had during this Pickett's Charge like shutdown battle..

3)  The one thing those Wall Street blood suckers did not want is tapering of the $85 billion monthly into that cesspool called the stock market. In order to ensure this, they needed controlled chaos.

Originally the goal was to manipulate statistics to show an economy economically fragile borderline stalling while still pushing the recovery lie..  Ultimately the Big Boys realized the Dem-Rep fight could be used as a tool to show how vulnerable the market is to political turbulence.
Think about how this fight evolved:

It started with a faction of Reps wanting to use a partial shutdown to prevent Obamacare from being enacted..  Then when that fight turned into a farce, the shutdown was about the debt issue and the US spending too much

Sorta like the US Civil War.. one bullshit reason after another.. Fight for Union.. when enlistees didn't seem to care and wanted to stop fighting, the war magically became a moral one about Slavery.. No one ever admitting it was about one region needing to exert total complete economic control over another.

And that what this was about.. the Fed needing to exert total complete control over the 'if', 'when' or 'if ever' questions regarding tapering of QE Infinity...
The Reps pushed the lie upon their constituents they would not settle.. not back down..  Then their milquetoast piece of shit House Speaker John Boehner said publicly on the record a week prior he'd capitulate before the 17th making the whole fight a sham.

But it had to go on 10 days.. anything less and people would not notice or pay attention and the Fed needed that political cover to resume its policies.


4)  There really is no opposition to raising the ceiling by either party.  It all just depends on who's the party controlling the Presidency and in what ways can the opposition party hold this as hostage.

Democrats did this when Bush was in office and you'll see these games played indefinitely...
Why else is the ceiling raised piecemeal in dribs & drabs?...

18x now in 20 years.

If everyone was sincere in Congress and the White House (Ha!), the debt ceiling would be raised to let us say $30 Trillion with yearly fixed caps as to how much the Treasury could spend.

This would ensure the ceiling would not be debated for say 10 years in which time fresh faces would have to vote on a re-raise rather than the same stale, tired garbage.

You also have to remember when you put aside the (D) or (R) next to these vile creatures' names, they're all basically the same egotistically vain power hungry animals who believe they are the only entities who can run the nation.
These politicians congregate together...socialize and laugh together..  Play golf and bridge and poker together..

Pretty much all of them are millionaires including the President and that $$ isn't just sitting in paint cans in their collective garages..

Its tied up in investments.. Wall St specifically...

Why ever pass policies or take lingering stances that hurt the artificially inflated value of the stock market which would be akin to killing the goose laying all them golden eggs??
So it all was a carefully contrived, brilliantly orchestrated ruse.

No one in a position of power really believed we'd default.. We certainly didn't.. And yet the corporate propaganda media was used Brilliantly to spread misinformation and fear of potential Armaggedon-like catastrophe if we went 5 seconds beyond zero-hour without an agreement..

And the misinformed, 'who cares about anything outside myself' public gobbled it all up like fat turkeys.
Next on the political and financial agenda?

Trumpet consumer confidence on the rise and manipulate more employment data to show things better than they are so people will feel in the proper mood to shop in 5-6 weeks...

The truth can wait until January 2nd.