Last night, after more than two weeks of utterly embarrassing theater, the government in the Land of the Free inked a deal to kick the can down the road a few more months. And in doing so, they set a very dangerous precedent.As part of the bargain codified in HR 2775 (which President Obama signed into law), the Treasury Department is authorized to SUSPEND the debt ceiling. In other words, for all intents and purposes, there is now NO LIMIT government borrowing.This limitless borrowing authority will expire on February 7, 2014. But it sets the precedent that dismissing the debt ceiling is a perfectly viable course of action.Congress has effectively removed their handcuffs… so you can almost assuredly bet down the road that this provision will be extended, and ultimately become permanent.
This is from Simon Black of the Sovereign Man. The details of the slippery slope towards the unshackling of the debt handcuffs via HR 2775 can be found here; a summary can be found at Wikipedia. This reinforces my view that all the coming political debate on restraints on government spending will be about grandstanding, horse trading and theatrics.
No limit on government spending produced tremendous reward for those invested long the financial markets.
ReplyDeleteThe October 2013 Reopen The Government, Raise The Debt Ceiling and Fund Obamacare Rally, comes on the tailwinds of the September 2013 No Taper Rally, driving the S&P 500, SPY, as well as World Stocks, VT, to five year highs.
Investors drove the Speculative Leveraged Investment Community, consisting of the Too Big To Fail Banks, RWW, Investment Bankers, KCE, Stock Brokers, IAI, European Financials, EUFN, Emerging Market Financials, EMFN, Far East Financials, FEFN, Chinese Financials, CHIX, Regional Banks, KRE, and Asset Managers, such as Blackrock, BLK, to new rally highs, as is seen in their combined ongoing Yahoo Finance Chart, communicating Liberalism’s peak economic and investment experience.
The economic and political paradigm of liberalism stands at its zenith, as the Banker Regime has established a Washington US Dollar Hegemonic Empire, greatly rewarding investment choice providing a moral hazard based prosperity, based upon schemes of credit and carry trade investing.
Thus, the world is at an epic inflection point.
Jesus Christ, operating in the Economy of God, as revealed by the Apostle Paul in Ephesians 1:10, that is operating in the administration of all things economic and political, is pivoting the world into the economic and political paradigm of authoritarianism, where the Beast Regime will establish the Ten Toed Kingdom of regional governance and totalitarian collectivism, where diktat provides “the new normal” of austerity, based upon schemes of debt servitude.
Jordan Shilton of WSWS writes Irish Government Unveils New Austerity Budget. The Fine Gael Labour coalition has outlined new austerity measures, including €1.6 billion in spending cuts aimed at the most vulnerable.
Automatic Earth posts 880,000 People In Europe Are Slave Laborers German magazine Der Spiegel managed to get an exclusive peek into a forthcoming report from a European Parliament special committee.
The Apostle John revels in Revelation 13:1-4 that the aim of Jesus Christ is to pivot the world out of democratic nation state governance and reward for nation state investment, and into regional governance and reward of regional security, stability and sustainability, where the fiat money system is replaced by the diktat money system.
While liberalism was characterized by what Doug Noland terms wildcat finance where bankers waived magic wealth wands of credit and carry traded investing, authoritarianism will be characterized by what I term wildcat governance where nannycrats yield oppressive austerity clubs of debt servitude.