$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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thefatasswilly's picture

Peaceful revolution? lol.

"Power grows out of the barrel of a gun."

There is a reason the second ammendment exists, and it sure as fuck isn't for hunting or to provide for a militia.

TheAkashicRecord's picture

I am in your generation as well, and do that daily (except the screwdriver is scotch and the other is Volcanoized).  Healthy?  No.  Necessary to deal with all of this sht? Yes.

baby_BLYTHE's picture

I prefer my reefer, but find it next to impossible not to drink with all the sh*t that goes on in this country on a daily basis. On top of that, being on a college campus in the campus party dorm where alcohol is essentially served with every meal :]

Here is a toast to the 21st century... we will be working until we are 90!

Dave's picture

Hard times call for hard liquor.

goldfish1's picture

Create your own...reality.

No drugs needed.

Diamond Jim's picture

"We won't get fooled again......"  New anthem for the Tea Party advocates.......

Long-John-Silver's picture

They need the house, senate, and presidency plus a willingness to stand on stage as the MSM throws rotten vegetables at them to do anything about this cluster fuck. Personally; I've hedged for the day we become Zimbabwe.

bob_dabolina's picture

It ruptured.

Off to the hospital.

myTPisUSD's picture

The red fascists and the blue fascists can't stop spending because expansionary monetary requires ever increasing spending. That coupled with the fact that they don't want the gravy train to end. The banks are endlessly passing bags of shit around while playing musical chairs, the fed is giving them an endless amount of bags of shit to pass around, and the American people are humming the musical chairs theme song while watching dancing with the stars on their Ipad2.

ghostfaceinvestah's picture

Even more accurately, our debt-based monetary system needs ever increasing debt to prevent collapse.  Given the reduction in real private debt via mortgage defaults, the government needs to step up and expand their debt, or whatever debt they can offer via student loans, quasi govt entities like GMAC, etc.

willien1derland's picture

I know there must be some lawyers in the audience - Does the American public have ANY recourse to stop elected officials (<-- that is a crock of sh$t) from blatant misrepresentations of activities? I know this is a stretch but MY GOD there seems to be no end to this criminal behavior!

VisualCSharp's picture

We, the citizens of these united States, already have that right.


Of course, those that control the money and the guns will say otherwise, and are most likely willing to back it up with force were citizens to actually rise up.

MachoMan's picture

Well...  do you mean legal recourse?  If so, the second amendment is probably out...  I would say the answer to your question is yes, impeachment...  quite possibly the most efficient process, ever.

Rick64's picture

Efficient? This has to be started by the House of Representatives then if passed it goes to the Senate. The Senate it has been argued isn't subject to impeachment because they are not civil officers of the federal government. The Senate has repeatedly voted down impeachments.

gall batter's picture

You have no voice unless you have Inc. after your name.

ghostfaceinvestah's picture

No problem, Benocide printed another $5B today, I think another $5B or so tomorrow...

Why do we even pay taxes?  Let Benocide just print the money we need.

trav7777's picture

GOP probably took some polls and found blame for their shutting things down.  Bama still owns media friends.  The whole "oh no the soldiers won't get paid" was just too much.

bulbar's picture

I just decided to cheat on my taxes.  I will claim zero W-2 income.  Fuck em

VisualCSharp's picture

Don't view it as cheating; instead, view it as retaining the fruits of your own labor.

MachoMan's picture

You realize your employer reports that income to the IRS right?  I would strongly suggest figuring out how to find deductions to reduce your otherwise taxable income.  If not, I suggest putting all assets in the names of other parties who do not expect to have any tax liens...  and let the statute of limitations run...  presuming of course they do not go after you for criminal evasion.

goldfish1's picture

They'll just lien your bank account. Do it the legal way and write of your income with legal deductions.

LostWages's picture

Best one of all today....Joe Biden falls asleep during Nobama speech.



Auricle of Omaha's picture

Obviously he was merely calculating the efficacy of Obama's plan in his head.

Misean's picture

Collecting a Billion or so in bribes requires a lot of palm greasing. It would make anyone tired.

RockyRacoon's picture

Biden was just resting up for the hard job ahead -- or the head-job hard?

RichardENixon's picture

I was noticing that he wasn't the only one falling asleep in that video but then I fell asleep.

RockyRacoon's picture

W-w-w-what?  Is he done yet?  Sorry -- dozed off there.

Misean's picture

If I actually had even the slightest hope that the lying sacks of shit in Warshington had an iota of truthiness, my blood pressure would be an issue. It isn't.

Auricle of Omaha's picture

Selling all my PM's since it appears Obama has this deficit problem under control

The Alarmist's picture

There's only one reason why Obama and crew would double down on spending like they did the last two years and the Republicans would continue to go along with it with nary a whimper ... 2012 is real. 

Asteroid, moon popping out of orbit, Yellowstone magma dome exploding, first contact with flesh-eating aliens, whatever ... they know we're toast and they are partying like its 2009.

RichardENixon's picture

You left out massive solar eruption wiping out the power grid, the one disaster that might actually do us in next year.

Pool Shark's picture


You forgot:

"Cats and dogs living together; mass hysteria..."


Long-John-Silver's picture

It's none of that. A virulent disease will wipe out Cotton (Paper money is actually made from cotton) and as we all know oil is about to be completely gone (Plastic is made from oil). This eliminates all forms of money except metals. We all know metal money is a barbarous relic not to be trusted. Yes; the banksters world will come crashing down without paper and plastic.

Shameful's picture

Yawn, no surprise.  I've always stated that the Fed Gov will not cut or do austerity.  They know that the Fed transferring funds is a huge % of the GDP and one of the prime drivers of the ponzi.  If they cut the thing explodes, if they don't cut it explodes.  So it's the path of least resistance and allows for the most loot and pillage.  It's not rocket science.

Misean's picture

Uh, yup. 'Bout the gist of it.

RichardENixon's picture

Yes. They should replace "In God We Trust" on the currency with "Damned if you do, damned if you don't"

Cthonic's picture

And place silhouettes of Buridan's ass and Morton's fork in the watermark.

Atch Logan's picture

These lies are not going away here--ever.  How do people in countries that have been around centuries (China, Greece, Italy, etc.), who must be used to this shit handle it? 

Do they vote?  After a point does despair set in?  Or, do you just tune everything out and go about your life.  What else can you do?  I am an old man, and when we had schools that taught, we learned about the Bill of Rights, the Constitution, Emerson's self reliance, and as we grew up we tried to lead our lives on the principals of these.  Well, hello, NOT. 

I take care of myself (not having ss) and get along okay. Others don't.  But I feel like a stranger in my own land.  I have lived all over the world, and in many countries I believe that life would be far better.

If I were young, I would get out now.  But, when you are relatively old, it is hard to let go of one's heritage.   


ConfusedIdiot's picture

Not so hard. FT housekeeper and cook. Dish, hi speed internet, 3BR, 3B, in town , perfect weather, 8000 expats, lots of restaurants, doctor next door, TEC 100 Hospital, 100% health insurance, beaches, mountains, prop tax $200/yr.  Narco Fears keep the prices low, low , low. Regards CI

topcallingtroll's picture

Where are u?

Ive seriously thought about it. Spent time in latin america and love the latinas and speak good spanish.

giocatoli's picture

hola vecino! Soy un gringo suelto en QRO!

ConfusedIdiot's picture

Hola, mismo. Uno gringo in Bajio esta mejor que uno qringo en Norte, Si?

topcallingtroll's picture

There are still a few of us in the smaller isolated areas who believe in the traditional american ways.

T.S. Elliot once wrote that no cause is ever completely lost because no cause is ever fully won.

We can take america back.