$38 Billion In Cuts? Make That $353 Million

Tyler Durden's picture

Warning: people on blood pressure medication are urged not to read this.

Yesterday the media had a field day when it was uncovered that the hard fought $38 billion in budget "cuts" which almost caused America to shut down were in reality $14 billion. We, thus, can't wait to find out what the response will be when it is uncovered that the actual cuts were... $353 million. Yes: the ongoing functioning of the government was a pawn in a soap opera whose benefit to the US debt is $353 million, or about what Goldman's trading desk makes in less than one day.

From Washington Post:

A new budget estimate released Wednesday says that the spending bill negotiated between President Barack Obama and House Speaker John Boehner would produce less than 1 percent of the $38 billion in claimed savings by the end of this budget year.

The Congressional Budget Office estimate shows that the spending bill due for a House vote Thursday would pare just $352 million from the deficit through Sept. 30. About $8 billion in cuts to domestic programs and foreign aid are offset by nearly equal increases in defense spending.

The House began debate on the measure Wednesday with a test vote slated for the early afternoon. The measure appears on track to pass the House and Senate this week before a stopgap spending measure expires Friday at midnight despite opposition from some of the GOP’s most ardent budget cutters.

The budget deficit is projected at $1.6 trillion this year.

The CBO study confirms that the measure trims $38 billion in new spending authority, but says many of the cuts come in slow-spending accounts like water-and-sewer grants that don’t have an immediate deficit impact.


Republicans say they wish the measure would cut more but that the cuts negotiated by Boehner are about as good as can be expected giver that Democrats hold the Senate and the White House. In his February budget, Obama pressed a freeze on domestic agency accounts.

“We continue to push this president to places he never said he would go,” said House GOP Whip Kevin McCarthy of California. “The president said he would freeze spending. Our Speaker negotiated, outnumbered 3-1. We have cut spending.”

Speechless yet? You should be. And for those confused how B.H.O. picked the arbitrary number of $4 trillion in "cuts", John Lohman summarizes it best.

How Washington Cuts $38 Billion in 5 Simple Steps:

1.    Announce spending bill that claims $38 billion in cuts
2.    Wait for CBO to announce it only cuts $353 million1
3.    Realize you only do 0.0093% of what you say2
4.    Divide $38 billion by 0.0093% to get necessary target3
5.    Round to the nearest trillion and announce result

1 : Source: Washington Post, April 13, 2011
2 : $353 million divided by $38 billion
3 : $38 billion divided by 0.0093 = 4.1 trillion




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The Alarmist's picture

Reminds me of the old cartoon where scientist one points to a box in the middle of his equation, and the caption of the box reads, "Then a miracle happens."


redpill's picture

The cartoon it reminds me of is this: http://media.giantbomb.com/uploads/0/2639/1220584-fffffuuuuuu__super.jpg

The whole thing is an insult to dog & pony shows.

tmosley's picture

Christ, you just keep blabbering even though you have no fucking clue what you are talking about.  

When you own gold or silver, physical, in your hand, no-one can steal from you without physically taking it.  Your kind love fiat money because you can steal as much as you want via dilution and no-one is the wiser.  You then proceed to claim that anyone who points out the theft are "sheep" for some reason.

How do you keep from drowning in the shower?

Edit:  Did someone delete a bunch of posts in this thread?  I am now replying to someone that I was not replying to previously.  This was directed at Mark McGoldrick, along with another "pure gold" reply.  

redpill's picture

Yes, occasionally when things get too ridiculously trollish and OT, they get "disappeared" - I knew who you were talking to, though now you may get undeserved junks because the continuity was fractured.


tmosley's picture

I would guess it was a server error, otherwise my above reply would be gone too--they wouldn't leave one non-troll reply while deleting a bunch of others.

marc_hanes's picture

A good policy is when you think a post you are responding to may be "disappeared" state in the first line who you are responding to. As in: @tmosley

This should help eliminate ambiguity.

Arkadaba's picture

Nope - happened to me around a week ago. My comment was left in place but the comment I was responding to got disappeared. Looks like if a comment gets over 45 - 50 junks, it gets deleted. 

Edit: Not surprising - the comment was by that Mark MacGoldDick guy

andybev01's picture

Oh, thank god; I thought you had a stroke.

tmosley's picture

Random thought--an epitaph for Charlie Sheen:

Died of a stroke...OF GENIUS!

In hindsight, I should have put my edit at the top of the post rather than the bottom.

long juan silver's picture

When you own gold or silver, physical, in your hand, no-one can steal from you without physically taking it.

Except when you sell it. Or when you buy it. Or when you store it. Or when when the the government starts 1099-ing it, or when you transport it to/from overseas &c, &c, &c.


You're a blubbering ass. You type before you think. It's a real personal flaw of yours and I'll bet you talk the same way. When you do that your 600 daily posts start to real like an Ed, Edd & Eddie script.

tmosley's picture

I thought you sounded like a 12 year old, Willy the Dumbass.

Popo's picture

So few people see the ass-reaming of government metals transaction-taxes on the horizon.  The real trick is not going to be just holding physical.  The real trick is going to be getting your physical off shore.

I suspect we're going to hear about people with trunk-loads of silver getting busted on the way into Canada soon...


rocker's picture

Sorry, but they will get you off shore too. Unless you plan to leave and live there.

On the topic, that's why the FED has a printing press. 

This is good for Gold, Silver, Platinum, Palladium, Rhodium, Rare Earths and very good for Ink Futures.

                                         Dam, there are no ink futures. GS has that in a private account. Hmmmm. 

Michael's picture

Thank God Congress did not disrupt my complete and total economic collapse scenario.

FreedomGuy's picture

You can do the same thing with stocks, too. However, unlike government companies don't want the value to go to zero.

DoctoRx's picture

TD's post says it is "updated" - wonder if that led to the (numerous, I think) comment deletions.  


krispkritter's picture

Mark McTrollDick is kinda tiresome...'How do you keep from drowning in the shower?' Obviously by blowing himself...heard those spineless types excel at that. No visual needed, just take a beer off the wall...

Obummer's picture

Ladies and gentlemen, kind folks of America, friends and global citizens, I come to you today to speak of the future.  The future is out there, it is waiting for us.  And we are going to win it.  We are going to win the future.

Some say the future has yet to happen, that the future is not a war, that it is not "winnable".  You and I, fellow Americans, know better than that.  You know as I do that the future has always been bright for America, for the American people.  The future is ours to grasp, right in front of us.  The future is there in the air, like the brass ring on a merry-go-round at the county fair.  All we have to do is reach out our hands and the future is ours.  We will win the future.

Now, winning the future may not be easy.  It may require some sacrifice from all of us. Others may seek to grab the future from us, to pull it back, out of our grasp.  This will not happen, not as long as I am President of this great nation.  We will not allow anyone to pull that brass ring out of reach.  We will hold it in place, and then we will reach out and take it.  The future is America's, and we will win it. The future is America's new manifest destiny.

This is not to say that we will win the future alone.  There is plenty of room for our friends and allies in the international community to also win the future with us.  Together, we can all be winners.

I have heard of some attempts within our ranks to discredit the idea of winning the future. This is not right.  This is not the America I love. Clearly these attempts have been orchestrated by the terrorists that we have been fighting for so long.  You see, the terrorists also want to win the future, and they have infiltrated the very heart of American society. Even as I speak they are in our living rooms and our bedrooms, waiting for their moment to strike. Rest assured that I will do everything in my power to ensure that these terrorists are unable to grab our brass ring.  They will not win the future.  America will win the future.  Thank you, good night, and God bless America.

Mach1513's picture

if only we could lose the past...

then the future that we win might be worth something....

Carpe Diem's picture

Beautifully written. Watch him shuck and jive. And he fiddles better than Nero.

This great viral tune says it all.

It's the new matra for all of us tired of the political charade.



goldfish1's picture

Sounds like the speech writer for the semi literate BushII.

Excellent plagiarism.

That Peak Oil Guy's picture

I'm not sure there's much of a future left for us to win...



Rodent Freikorps's picture


That "Some say" strawman just never gets old, does it?

Dave's picture

Interesting. Win something that is not a contest and does not yet exist. So, how does one win it and what happens if you do?

Michael's picture

I see your lips moving but your not actually saying anything. Good Obama diatribe.

willien1derland's picture

Love the Far Side  - Would love to see Gary Larson's take on this fiasco

EscapeKey's picture

Even Gary Larson couldn't come up with shit this hilarious.

sterling effort's picture

Love the Far Side  - Would love to see Gary Larson's take on this fiatsco

Fixed it for you

Cognitive Dissonance's picture

I had forgotten about this one until you mentioned it. The caption is just as funny because no one in Congress or the White house will want to be explicit. Just accept it when we tell you it's $4 Trillion by 2024.


Michael's picture

I can't wait to fire hundreds of incumbent senators and congressmen in 2012.

dogismyth's picture

do you think that will solve the problem?

Michael's picture

Firing those people over and over again and again, yes.

$100 billion in spending cuts means 100,000 democrat jobs and votes lost. That's why they don't want to cut spending period.

I will deploy my secret weapon on them soon.

A complete and total economic collapse of the USA will fix this country in the end. 

redpill's picture

Shh, all your talking makes it hard to hear the band.  Don't worry, they told me this ship can never sink.

Dr. Richard Head's picture

And wouldn't you know it, but JP Morgan was behind that damned ship as well?

 1902, J. P. Morgan & Co. financed the formation of International Mercantile Marine Company, an Atlantic shipping combine which absorbed several major American and British lines.  One of IMM's subsidiaries was the White Star Line, which owned the "RMS Titanic". The ship's famous sinking in 1912, the year before Morgan's death, was a financial disaster for IMM, which was forced to apply for bankruptcy protection in 1915. Analysis of financial records shows that IMM was overleveraged and suffered from inadequate cash flow that caused it to default on bond interest payments. Saved by World War I, IMM eventually reemerged as the United States Lines, which itself went bankrupt in 1986.[18] Morgan lost heavily on the deal.[19]

- Wikipedia

Fucking JP Morgan.  The story hasn't changed. Will it ever?

redpill's picture

Doubtful, the banksters are already playing for the next chapter.  You can be sure that they'll do whatever is necessary to get in early on the next "system" when this one finally dies.

"This will be the 6th time we have destroyed Zion, and we have become exceedingly good at it."

--The Architect 

Carpe Diem's picture

And here is the band playing the new matra for all of us tired of the political charade.


dogismyth's picture

Voting them out again will do nothing.  Are americans really that ignorant? I guess so.  And if that doesn't work we can go to Plan B...defecate on their front lawn.

Voting is a right.  Just like a shareholder...which you are....in the USA, Inc.  And guess what your only entitlement is that never changes....paying the piper.


kito's picture

rotate the oligarchy

j0nx's picture

HAHA good luck with that there sparky. The fine citizens of Nevada and the SanFran area see fit to keep returning Reid and Pelosi to us election after election so something tells me there won't be too many sociopaths fired next year. At least not the ones who matter anyway.

walküre's picture

Firing them is only 50% of where you want to be.

Not replacing them is the other 50% of the deal.

Get the deal done!

goldfish1's picture

Diebold doesn't fire the incumbents who tow the line.

Professor Hindsight's picture

What did you expect from god believing dumbasses that run this country?

takinthehighway's picture

The only god these people worship is the one they see in the mirror.

topcallingtroll's picture

They scare me too. They really dont believe we have to control popylation or address sustainability to save the future because jesus is coming and he will wave a magic wand and.fix everything for us.

mtomato2's picture

...and so is yours.  To be fair, I junked you, too.

cranky-old-geezer's picture

They ... [believe] jesus is coming and he will wave a magic wand and.fix everything for us.

They better hope he doesn't come back.  They'll be in really deep shit if he does. They're not gonna like what he tells them.