Since "Terror Alerts" worked for Bush in 04 - Boehner uses "Asian Markets Crash"

[FreakinDJ]

Terror Terror Terror - Orange - Red - Yellow - PURPLE

Haven't we ALL seen this before in the lead up to the 04 Election ?

Up or down Boehner will scramble Monday morning to take credit for it.

The DJI has been on an "Up Tick" for the last week and the unstable nature of a "Wall St Recovery" lacking the US consumer base is shaky at best. What is actually news worthy is the exceptionally short memory of the American voter who had to endure the "Duck Tape and Visqueen" mentality of the Bush Terror Campaign.

[nadinbrzezinski]

1. Actually there is some truth to this

think of trains and how connected they are.

As much as many in the RW and LF think this is not connected or could be serious... I hate to point this out, it is.

Now Boehner is using it, but it is.

A manufactured crisis has now morphed into a real crisis. And that is the problem with manufactured crisis.

[FreakinDJ]

2. Markets need consumers and everyone knows Unemployment is growing

at an increased rate

No one is spending

[Amonester]

3. Correction: A lot of people are spending....

in India, China.

They're BOOMING.

Where do you think all these pepsicos and boingos made their record profits?

[FreakinDJ]

5. Might be buying cheap Chinese made stuff

but that doesn't represent profits for American Companies

Besides - Off Shore Profits are not based on Foreign Consumption - they are made from American Consumption and how the Corps are allowed to avoid paying taxes on their profits

Here is a paper written by the Peterson Economic Institute discussing moving the USA to a Territorial Corp Tax Structure - it outlines all the CURRENT Loopholes and how US Corporations are using them to avoid paying taxes on sales made here in the USA

http://www.piie.com/publications/chapters_preview/4051/06iie4051.pdf

[Amonester]

11. Link not working.

For me anyway (dunno why)

This one may: Asia's growth drives U.S. corporate profits

[FreakinDJ]

15. Sorry - don't know what happened to their link

Here is the Congressional Testimony by the Institute

http://www.iie.com/publications/testimony/testimony.cfm?ResearchID=1861

[FreakinDJ]

24. Link working now

don't know why - but I had to reboot my browser to get it to work

http://www.piie.com/publications/chapters_preview/4051/06iie4051.pdf

[Angry Dragon]

12. Perhaps we should question where the information comes from

http://crooksandliars.com/karoli/who-peter-g-peterson-and-why-should-we-trus


Peterson Foundation staff members served as staff to Erskine Bowles and Alan Simpson. Peter G. Peterson is founder of Blackstone Group, an investment group that made him billions during his Wall Street tenure. He is a fiscal conservative, a deficit hawk and he and his foundation are on a mission to tell us that we should all sacrifice and suffer to pay off the national debt while letting Wall Street completely off the hook.

Erskine Bowles is also on Wall Street's payroll, so it's not too much of a surprise to discover that he might have "forgotten" to pay attention to Wall Street responsibility for our current economic woes.

[FreakinDJ]

22. Don't get me going on Peterson Institute

The Free Trader Scumm 100%

But was important is they were laying out all the tax schemes in this paper. Naming names and telling exactly by the numbers how the Corps were skirting taxes and how it was hurting the US work force. They also included what they thought were appropriate measures to correct it but mostly it was a move to a Territorial Corp Tax system

Now I'm getting a "Tin Foil Moment" as to why the link isn't working because I posted it in a couple forums earlier today and it was working then

[nadinbrzezinski]

4. And a major even threat of a default

could lead to the kind of panic reaction none of us wants to see.

This is why this game, and it was one, has become a true crisis.

If we manage to get this out of the coals...

Now don't get me wrong. the stim package was too small and directed at the wrong things... but currently what you are seeing is what could lead to a real panic.

Sorry, but that is the truth. And a faux crisis has now become a real one.

I will thank Hartman since I did not realize this. We TECHNICALLY defaulted during his presidency. That was one of the causes that the interest rates went through the roof. That was for twelve hours or so. They are trying a similar tactic. Problem is if we default it will lead to the kind of REAL crisis most people in this country have no clue about. That is the rank truth.

Why I said, a faux crisis has become a real one... and the perception right now, and perceptions drive a lot of the market. is that we have children in DC playing with fire.

[FreakinDJ]

6. "IF we default" is a far cry from Boner claiming "The Markets the Markets"

Wall St had a pretty good uptick last week amongst all the Doom and Gloom Jobs reports and Unemployment reports. You were right here at DU reading and commenting along with me. What was the basis for the up tick ?

If we have a DJI 200 point correction monday I would say it was right inline with reality

<on edit> Now I remember - they were tossing around a proposed "Tax Holiday" for Corp Tax on Off Shore Profits in the Senate proposal. So now that proposal is dead ....

[nadinbrzezinski]

7. It is not just the Dow that should worry you

and the Asian markets have been a lot more finicky over this (and Europe, the Euro Zone is on the edge of a crisis for OTHER reasons).

As I said, this game has become a real crisis. Boehner is stoking the flames, but I will give him this... it is now a real crisis. That said... he is responsible for that, and his tea party caucus is completely out of control. They also live in this fantasy where a default might even be good for all.

And I will add this... we have people living in this fantasy on BOTH SIDES.

[FreakinDJ]

8. Asian countries have a lot more Treasury Bonds in their reserves

Yes a downgrade would trash their economy

But I'm thinking a 150pt downgrade in DJI was due anyway and the most likely outcome monday

[nadinbrzezinski]

10. We might still see 200 point drop

depends on what happens...

As to T-Bills, most of them are actually not owned by Asian economies, surprise... but by us. Another piece of trivia, and DC is off the rails on this, our debt is not even that high by percentage of GDP... again fantasy.

But in this case fantasy and lack of knowledge has driven this.

Oh and if this crisis goes all the way... 600-1000 point correction on DJI will not surprise me.

[FreakinDJ]

13. Here is a breakdown of who is holding Treas Bonds

http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt

[nadinbrzezinski]

14. Notice something interesting

look at China for example...

There has been a sell out of them, quietly mind you, for over a year.

As I said, it is coming here... in fact one of the largest owners domestically... IS the social security Administration. They are followed by many a retirement fund.

[FreakinDJ]

17. The Time Line is right to left / not left to right

they actually hace increased their holdings

And speaking of Asia - China, Japan, Taiwan, Hong Kong all in the top 10

[nadinbrzezinski]

19. Here, one of many stories on this

no I did not imagine this

http://www.dailymail.co.uk/news/article-1394315/China-unloads-97-cent-short-term-U-S-Treasury-debt-owns-1-2TRILLION-American-deficit.html

[FreakinDJ]

23. What 2006 - 2008 China tells Asian economic summitt to divest Dollars

and the Philippines jumped on the bait. Their economy grew for a while then suffered as China held the currency value down

now look

Moves to make yuan trade currency in Philippines underway
http://www.china.org.cn/business/2011-06/09/content_22748872.htm

part of me wants to say the austerity measures that swept Europe and are now coming home to roost here in the USA is more of a World Currency fight.

[nadinbrzezinski]

26. In some ways, and sends shivers down my back

it is Hooverism on the rise again and we both know how well that ended.

[FreakinDJ]

27. Yep - instead of Tariffs the various countries are using Tax Incentives

and don't look for it to end any time soon

80% of US MNCs (MultiNational Corps) paid ZERO 0% in taxes on Foreign Profits

http://www.gao.gov/new.items/d08950.pdf

Just like a Tariff in Reverse

[lunasun]

21. yep we owe ourselves and might burn ourselves too

[chill_wind]

9. That reportedy came first from Geithner, who was at the WH meeting

warning Obama and Congressional leaders, both.

The only aides attending the White House meeting were budget director Jack Lew and Treasury Secretary Tim Geithner, who emphasized the concern about Asian markets.

http://economictimes.indiatimes.com/news/international-business/us-debt-crisis-deal-sought-to-head-off-global-stock-plunge/articleshow/9341948.cms

http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/07/23/bloomberg1376-LOR9PD6KLVR401-0D6T4CVR8PDO6HOA9R1TAM2OFG.DTL

[EFerrari]

16. Excellent catch. n/t

[FreakinDJ]

18. Sorry - all the media claimed it was Bohner

Probably was Geithner but Bohner been making political hay out of all across the News today

[EFerrari]

20. Yep, he has. You brought up a good point. n /t

[chill_wind]

25. Maybe not so much making hay as finally figuring out

this is all about to get hung solidly around his and his party's neck, and he's in a sweat trying to signal an appearance "to the markets" of taking it seriously, while trying to justify himself to his party's base for whatever concessions he might be getting ready to make. Not that they won't crucify him anyway.

But he sees where the finger is being unmistakenly pointed:

"The Tea Party is effectively playing Russian roulette with the bond market and they will, with certainty, lose," Cooper said. Jefferies is one of 20 primary dealers that trade with the U.S. Federal Reserve.

(which is not to say there is anything sincere about what he is up to, because god knows what he will or still won't do tomorrow).