Wednesday, July 13, 2011
Television Winners: Debt Ceiling Programming And The Gold Show
The American Public is once again a huge winner as the enormously popular Debt Ceiling Show enters an exciting new phase.
Reality Star Barack Obama has threatened to starve veterans and the elderly if he doesn't get new taxes on the super rich.
Top Republican Contestants John Boehner and Mitch McConnel have pledged to trash the nation's credit rating if Obama raise taxes by one red cent.
Tea Party Hottie Michele Bachman has pledged not to cooperate with anyone unless the nation's entire Health Care System gets overhauled along with the Tax Code and the Budget - all by August 2.
What will happen?
For all the fun and games the market has already figured it out. Gold is up and the stock market is mulling around in a range just off the recent highs. What does this mean? It means Gold knows nothing substantive will ever be done about the debt. And the market knows that the Republicans will all cave in at the last second.
How does the market know this? Because Republicans and Democrats alike take their orders from the banks who control the markets. They don't dare upset their masters.
But wait, wouldn't the banks want deficit reduction? Of course not. Deficit reduction means credit contraction and that's the last thing the banks want.
But don't despair. There's plenty of good television left in this fun if predictable dramedy.
EMCEE BERNANKE PROMISES QE3.
Debt Ceiling Game Show Host Ben Bernanke promised the markets QE3 today - should the need arise. But then of course he went on to imply the need was already arising as the "recovery" is slower than "anyone" could have anticipated. Surprise!