Debt Resolution

I would think they are gong to want to get this done before Asia opens, certainly before the
US opens.

However just think about the signals we've been getting the last week or so and think about the useless puppet show in the House in which they schedule a vote, reschedule t and finally take a vote that they already know has ZERO chance of being taken up by the Senate. In the end it appears that we are right back to where we were last weekend with the only thing separating the House and Senate being the method of enforcement of cuts. It seems to me this whole thing was most likely worked out earlier this week and the week has been used for political posturing to play up to constituencies.

I'll predict this right now, if the Republicans don't get behind Ron Paul in 2012, which I think they likely will not, look for Paul to head to the Tea Party and the Tea Party to break ranks with the Republicans, starting a 3rd and viable party.

If you look at this deal, one thing s for sure, they are laying all of the burden at the feet of those n office in 2012, the most likely candidate to  deal with this is Ron Paul and I think Americans will see this. Usually members of Congress make poor candidates as they simply have too many votes out there and many are votes they would have supported, if it were not for a poison pill, but in the age of 30 second soundbites, it's hard to defend against, "He didn't vote to support the troops", when in actuality there was a poison pill in the legislation.

Ron Paul is one Congressman who has shown remarkable consistency over the years. Look for hm to be a major player in 2012. As for Congress' solution, it's typical, let the people in charge in 2012 make the hard decisions because this Congress is NOT making them, it's called kick the can down the road and Obama has done a fabulous job at it, making sure this debt dilemma will not come up again before the 2012 elections.

Here are two interesting charts for you that I got from ZeroHedge, if you wonder why I'm bearish and leaning toward a secular bear market in equities, you don't have to look much further then this.

They should also see this. We will shortly update where this chart will be by the 2012 election, somewhere around 120% of GDP.

And for those requesting it, here again is the log scale chart.

Source: NYT