Archive - Aug 1, 2011

Econophile's picture

Budget Debate Fraud Part 2





This is the fun stuff about politics. Basically our politicians are being forced to do something they don’t want to do and our job is to cut through the obfuscation to see how they are doing exactly the opposite of what they say they are doing. It is fairly obvious that despite what they are saying publicly, they aren’t making significant cuts to the budget.

 

Econophile's picture

Q2 GDP Reveals Continued Stagnation





The economy has been stagnating as we had forecast early last year. In our opinion this stagnation is not a "soft patch." The debt from the huge malinvestment in real estate during the boom cycle is resolved, we believe the economy will continue to stagnate, despite whatever steps the Fed or the government take.

 

 

Tyler Durden's picture

A Modest Proposal: Cut 15% Of The Federal Government Workforce, Save $1.4 Trillion In Ten Years





While Washington is baffling everyone with male cow manure, presenting 7-slide powerpoints full of talking points and empty of actual actionable cost-cutting proposals, while draping the melodrama in ever more evanescent haute couture of "emperor's clothing" du jour, the one true solution to all our problems is so simple that it is perfectly logical that it would have been avoided like the plague by D.C. In a nutshell: do to the government, what the privates sector has done to itself in the past 3 years, and fire 15% of the federal government workforce. After all everyone, even the government, complains about the bloat in the system. Here is the chance to fix it. And the benefits, unlike the back-end loaded and extremely loose "bipartisan plan", which happens to invoke such pseudo-totalitarian constructs as the "Super Congress", can be quantified immediately, with the applicable savings made abundantly clear to all from day one. In this case - slimming the US government ever so modestly, by just 15%, would generate savings of $117.4 billion a year, of $1.4 trillion over the next 10 years. And no, these are not reductions in future spendings: these are real actionable cuts from the day they are enacted, with fungible cash able to be used for any other, much more needed purposes, up to and including economically stimulative projects, which actually generate jobs for the private sector.

 

Tyler Durden's picture

Guest Post: Jesters, Economics, And American Dollar Supremacy





The debt debate has been going on all summer, a 2 months and running theatrical experience of court jesters parading about while the United States economy teeters on the edge. On both sides of the aisle have been ridiculous solutions that are showing the world daily, America is willing to sacrifice its citizens for the profits of the corporations. The problem is, why will the rest of the world continue to support American multi-nationals, when they have their own. As dollar supremacy begins to wane, and oil prices rise as the dollar’s value descends, maybe it is time to talk about the horrendous policy decisions of these politicians in hopes it opens up a way to point us in the correct direction. Otherwise, when August 2nd comes and the deal is passed anyway, cause it has all just been a “watch this hand” moment, we might find ourselves not understanding why the Social Security check seems meager compared to before.

 

ilene's picture

Such a Deal





Anyone who thinks that the crisis is over for the market has another thing coming.

 

Phoenix Capital Research's picture

What Happens When the US Banks Take a Hit On Their Senior-most Assets? Pt 1





What I’m trying to say with all of this is that the US welfare state, or the notion of politicians dishing out handouts in exchange for votes, is soon coming to an end. Social security, Medicare and many other government spending programs will be cut in the coming years. Regardless of your feelings regarding these programs, they are not funded and with tax receipts falling (and will fall further as the Depression deepens) the US will simply not have the money to pay for these programs.

 

4closureFraud's picture

Revolution | Can You Hear, Can You Hear Them Now, Can You Hear Them Defying (MUSIC VIDEO)





Great job by this band... It is way past time for some protest songs just like in the 60's and 70's...

 

Leo Kolivakis's picture

The President Surrenders?





Love him or hate him, Krugman has a point...

 

williambanzai7's picture

2001 A DeBT ODYSSeY (ReDuX)





I'm sorry Dave, I'm afraid I can't do that...

 

Tyler Durden's picture

Ron Paul's Statement On The Budget Control Act And On "Super Congress"





Not one but two letters today (link to prior here) from a very digusted Ron Paul, in which he once again dissects the complete farce that is the "spending" cut bill (if by spending one means slightly lowering the angle of attack on future government expenditures well over and above the revenue slope) and also adds his thoughts on the farce that is the "Super Congress."

 

Tyler Durden's picture

House Passes Debt Ceiling Vote





And like that the Congressional circus is over 269 to 161. Market reaction? ES sells off 5, then rallies 3, and now is selling off again. Next up - the Senate but that is a given. So now that we know that America is not going to file for bankruptcy tomorrow on we go to the economic collapse.

 

Cognitive Dissonance's picture

Comfortably Numb – Coping, Captured or Total Capitulation - Part 1 of 2





A lot has changed since the 60’s and 70’s. Can our altered mindset be explained away as coping with the machine, captured by drugged mind control or just total capitulation to the greed?

 

Phoenix Capital Research's picture

The Euro’s Death Knell Could Come As Early As September 2011





The political landscape in Europe dictates the fate of the Euro. And given the developments in Germany, we could see the beginning the end of the Euro's existence as early as September 2011. 

 

Tyler Durden's picture

Guest Post: Snake Oil Economics





It is of course the case that so deeply engrained are statistics such as these in the vocabulary of both the market and the voodoo of Maynardian macro-economics that it is unrealistic to expect any practitioner to avoid any reference to them whatsoever. What is absolutely crucial, however, is (a) constantly to bear in mind that these are nothing but examples of a convenient shorthand which often conceal as much as they reveal - in the same way a mean height above sea level or an average annual temperature tells us little about the topography or climate of a region, much less about how those features may be changing – and (b) that the generation of a positive change in the metric is not an end in itself (as far too many policy jockeys and talking heads seem to believe). An amphetamine junkie getting his next fix by spending the contents of the old woman’s purse he just snatched generates more instant GDP than an engineer sitting quietly at his desk, trying to puzzle out a radical new way to create more useful output with less input, but it should be fairly obvious which man is likely to do more to improve both his own material comforts and those of the people around him.

 

Tyler Durden's picture

Word War Two: After Calling Bernanke A "Hooligan", Putin Now Says America Is "A Parasite" Living Off The Global Economy





Three weeks ago Putin called Bernanke a hooligan. Since that remark came from the (allegedly) largest oil producing country in the world, it provoked nary a peep from America's foreign department. Today, he decided to ratchet up the rhetoric, and in a speech to a Kremlin youth group told his listeners what the bulk of the rest of the world thinks of America: ""They are living beyond their means and shifting a part of the weight of their problems to the world economy," Putin told a Kremlin youth group while touring its summer camp north of Moscow. "They are living like parasites off the global economy and their monopoly of the dollar."" Russia has not made its distrust of America clear in the past, and while others (ahem China) have been jawboning about selling Treasurys even as they continue buying US one-ply paper, Russia has been actively dumping its Treasury paper to the lowest in years. The reason for the unprovoked outburst? The insanity in Congress. "Thank god," Putin said, "that they had enough common sense and responsibility to make a balanced decision." The former KGBer's solution? Other, and more deserving, reserve currencies.

 
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