America's Latest Proposal To Deal With Its Insolvency And Pursue Stealth Dollar Devaluation: Change The CPI

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Wed, 06/22/2011 - 09:38 | 1391432 ElvisDog
ElvisDog's picture

Wow, all that and a deficit reduction of $22B a year? What a deal.

Wed, 06/22/2011 - 09:43 | 1391449 SheepDog-One
SheepDog-One's picture

Thats like 1 day of Bernanke POMO.

Wed, 06/22/2011 - 09:51 | 1391472 baby_BLYTHE
baby_BLYTHE's picture

everytime budget cuts less than 100b are discussed that is always the first thing that comes to my mind.

Wed, 06/22/2011 - 10:28 | 1391617 hedgeless_horseman
Wed, 06/22/2011 - 16:56 | 1393162 mkkby
mkkby's picture

Let's just get this over with.  Let Goldman decide what each person should pay in taxes, and let them collect it directly for themselves.

Wed, 06/22/2011 - 10:31 | 1391636 Hugh G Rection
Hugh G Rection's picture

Who uses food and energy anymore?

 

New CPI needs to be based on Ipads and dildos

Wed, 06/22/2011 - 10:34 | 1391668 krispkritter
krispkritter's picture

DPI: Dil-dough (i)Pad Index...

Wed, 06/22/2011 - 13:08 | 1391952 TruthInSunshine
TruthInSunshine's picture

My advice to the Bernank, NerObama and CONgress if they really want to swing for the fences (aka keep on doing what they've been doing, only harder - destroying the economy):

Get the BLS to Adjust the CPI in the following ways -

1) Remove anything that is digestable.

2) Remove anything that is tangible.

3) Remove anything that constitutes a service.

4) Remove anything that has any relationship to or involvement with 'energy.'

5) Remove anything that is derived from commodities of any kind (see 2 above).

6) Remove anything containing High Fructose Corn Syrup (HFCS), now known as Corn Sugar (contained in most Americans products).

7) Remove anything that is produced, manufactured, processed, designed, engineered, assembled, planned, or filmed, in whole or in part, either in the United States or in any other nation.

 

 

That should fix the inflation problem rightful concerns over inflation growing far more serious a problem in the coming months/years, and get Amerika back on track.

Wed, 06/22/2011 - 16:20 | 1393025 Djirk
Djirk's picture

Not to mention fjuking buyers of TIPS....no worries the FED will destroy the dollar and buy up all the debt since no one else will....I smell a yard sale coming

Wed, 06/22/2011 - 10:43 | 1391718 Vagabond
Vagabond's picture

It says 220b not 22.

Wed, 06/22/2011 - 10:47 | 1391731 Broomer
Broomer's picture

The proposal could lower federal spending by around $220 billion over the next decade

Which is the same as

a deficit reduction of $22B a year

Thu, 06/23/2011 - 17:33 | 1396617 Vagabond
Vagabond's picture

aha, thanks.

Wed, 06/22/2011 - 10:03 | 1391515 Ferrari
Ferrari's picture

America runs on bullshit.

Wed, 06/22/2011 - 10:11 | 1391560 nowhereman
nowhereman's picture

Just finnished reading "Atlas Shrugged" again.  Whatever you think of Ayn Rand and her outfit, it is still quite unnerving in it's accuracy of the description of the "powers that be" and  their manipulation of the unthinking masses.  I think it is now more important than ever to be asking "Who is John Galt?", or more precisely "Do we deserve him?"

Wed, 06/22/2011 - 10:32 | 1391656 MiguelitoRaton
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Tyler Durden = John Galt

Wed, 06/22/2011 - 10:36 | 1391680 Oh regional Indian
Oh regional Indian's picture

nowhere man, please listen.....

Did that get your attention? ;-) A very purrrrrtinent question yuo ask in the end, and I'[ll take it that it is not rhetorical.

Do we deserve him? I say we are John Galt. I am John Galt.

It's going to take a collective initiative behind a seriously enlightened movement/person to turn this ship around  or find a safe place, ark like, for next. 

Cometh the hour, cometh the man/collective, eh?

ORI

http://aadivaahan.wordpress.com/2011/06/21/thunder-perfect-mind/

Wed, 06/22/2011 - 10:57 | 1391784 Rhodin
Rhodin's picture

Excepting here, and a few other places on the web, I see very few "John Galt" types around today.  Unfortunately, the character types portayed in Rand's earlier novel "We the Living" are much more common.

Wed, 06/22/2011 - 12:55 | 1392207 RafterManFMJ
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Been doing some re-reading as well...just started Fight Club for the third time - will have to re-read Atlas as well as The Fountainhead.  Rec. Fountainhead if you've not already partaken.

Wed, 06/22/2011 - 10:12 | 1391567 nope-1004
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Biden and Obama leading the parade..... or, rather, charade.

Wed, 06/22/2011 - 10:22 | 1391610 Temporalist
Temporalist's picture

They are going to tax that next...fuel tax on bullshit.

Wed, 06/22/2011 - 10:30 | 1391623 Cash_is_Trash
Cash_is_Trash's picture

tax on bullshit.

Taxes on bullshit have been proven to close federal deficits since the beginning of human history in a matter of hours.

Chuck Norris retired from this job at the end of the gold standard.

Wed, 06/22/2011 - 11:11 | 1391817 Arrowflinger
Arrowflinger's picture

This joins FASB 157 as an example of:

Trying to lie our way back to prosperity.

 

Wed, 06/22/2011 - 15:48 | 1392494 RockyRacoon
RockyRacoon's picture

From the latest issue of The Privateer:

How did a US government “govern” a nation of 92 million people with an annual budget of $US 0.7 Billion and a TOTAL (funded and unfunded) debt of $US 2.7 BILLION one hundred years ago? The answer is very simple. For the most part, they didn’t. And because they didn’t, they didn’t indulge in economic make believe. They had no income tax to “fund” them and no central bank to print more money - if necessary.
Today, the US government “GOVERNS” 310 million people with an annual budget of nearly $4,000 Billion and a TOTAL (funded and unfunded) debt approaching $US 100,000 Billion. It takes about 5400 times as many Dollars and about 37000 times more debt to “govern” about 3.35 times as many people as it did a century ago. Why? The answer is equally simple. Today, the US government “governs” everything. It is all pervasive. It has taken over the economy from its people.
At the same time, the present government reassures the governed that the cost involved is not theirs to bear but can be perpetually shifted to future generations if only they will continue to go along with economic make believe. Officially, this is known as the “full faith and credit” of the US government.

 

Wed, 06/22/2011 - 13:05 | 1392051 TruthInSunshine
TruthInSunshine's picture
by Ferrari
on Wed, 06/22/2011 - 10:03
#1391515

 

 

America runs on bullshit.

Agreed. Who couldn't/wouldn't agree?

Stated somewhat differently:

Enron Ad: Why?

Wed, 06/22/2011 - 12:24 | 1392095 YHC-FTSE
YHC-FTSE's picture

+1

And deflection. In the course of an ordinary hour on the msm, there isn't a country which isn't blamed for their woes except of course theirs. 

 

It's an old and worn solution. If the facts are bad, change the facts and the way it is reported. 

Wed, 06/22/2011 - 10:42 | 1391695 MiguelitoRaton
MiguelitoRaton's picture

This is all part of their plan for FINANCIAL REPRESSION they claim inflation is 2% when it is 6-8%, they get more in taxes, pay less in benefits, next on the docket will be forced allocation of "safe" treasuries in pensions and retirement accounts, because the sheeple cannot handle the manipulated fluctuation inherent in the market. Throw in some capital controls and we are off to the races.

Wed, 06/22/2011 - 09:39 | 1391434 Atomizer
Atomizer's picture

If you can't dazzle them with brilliance, baffle them with bullshit.

Wed, 06/22/2011 - 09:59 | 1391516 financeguru500
financeguru500's picture

Don't forget, if people are driving less because of high gas prices they must be walking more. All that exercise means they will live longer and social security should be pushed back to age 65 for eligibility. I am sure they already thought of this but won't implement it until after the CPI change. These guys are total douche bags.

Btw. I'm a vet using the gi bill to go to school. They are putting through sweeping changes to the gi bill now to where if a student has a hard time with a class required for a degree and doesn't pass it the first try, the gi bill will not pay for you to retake the class even though the gi bill is only limited to 3 years of use anyways. That means all those kids who joined the military because they didn't have the grades to get scholarships for college will now find themselves losing thei gi bill they earned from 4 years of military service too. The system is so fucked up.

Wed, 06/22/2011 - 10:08 | 1391531 Troll Magnet
Troll Magnet's picture

Hey man (or lady),

thanks for your service and best of luck to you. 

Wed, 06/22/2011 - 10:07 | 1391545 financeguru500
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Thanks

Wed, 06/22/2011 - 10:13 | 1391572 Cash_is_Trash
Cash_is_Trash's picture

I've seen the faces of the kids that joined the Armed Services. They are just kids. 18 and 19 years old, that don't have the money to pay for artificially high tuition caused by the federal student loans.

Recourse of many young people is to join the Armed Services in hopes of someday receiving an education for the sake of having a decent job.

Too bad, there is no recovery for jobs and those returning home won't find decent pay.

Reminds me of the last scenes from the movie 'Jarhead'.

Wed, 06/22/2011 - 10:29 | 1391620 Temporalist
Temporalist's picture

Teach them to kill, destroy their ability to learn something else (not that they'd learn something new in college necessarily), then put them on the streets with no chance of getting a job.

Wed, 06/22/2011 - 10:25 | 1391621 financeguru500
financeguru500's picture

I'm in that exact scenario you refer to. My parents couldn't afford to put me through college so I joined the armed services to get the gi bill. Trouble is the original gi bill couldn't cover the cost of tuition at most colleges and the new gi bill is modified to where students can easily lose it. This will mean many vets taking out student loans while going to school and the loans can't be dropped even through bankruptcy. I'm beginning to think the people who never went to college to begin with are better off than those of us who took the chance.

At the point we are currently at, I feel those who still have a job or unemployment income are playing a game of musical chairs hoping they won't be left without a chair the next time the music stops. Though each time the music stops there are less and less people left that are still gainfully employed, the only ones outspoken are the ones who've lost their chair and let's face it, no one cares about the homeless people. They have a stigma attached to them that they purposely put themselves in that situation.

Wed, 06/22/2011 - 10:38 | 1391673 tip e. canoe
tip e. canoe's picture

did you learn a useful skill in the military?

Wed, 06/22/2011 - 10:47 | 1391732 Temporalist
Temporalist's picture

1001 ways to kill someone with dental floss.

Wed, 06/22/2011 - 11:34 | 1391924 Silver Dreamer
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I joined way back in 1989.  The National Guard then paid about 9K for GI Bill.  It was used within a couple years and did not help much at all.  Grants, scholarships, and lots of loans later I finally finished my degree with the help of my employer in 2005.

The money you get for joining today is not worth it in my opinion however.  When joining as an Enlisted gets you paid enough to not be on welfare, then we can talk.  Until then it is a complete insult.  How much does an E-1 make take home a month now?  When I was in Basic Training, it was about $640 a month.  Woo hoo!

Wed, 06/22/2011 - 12:47 | 1392185 NotApplicable
NotApplicable's picture

Hey, $9k was a whole lot more than the $5.4k had you joined back in '84. Also, you had to contribute $2.7k just to get it.

At least they let you have your money back, so I liquidated mine for truck down payment (back in the crazy days when they still had down payments).

Wed, 06/22/2011 - 10:44 | 1391702 Stuck on Zero
Stuck on Zero's picture

In this area we have large numbers of Navy and ex-Navy.  My observation is that useless, idiot kids who have spent 14 years in public education learning nothing become excellent workers after just two to four years in the Navy.  CPOs are extremely prized and we have hired many as technicians because of their acquired skills and perserverence in a task.  Our observation is that college grads have attitudes and no work ethic and ex-military have no attitude and a strong work ethic (and more colorful expletives).

Wed, 06/22/2011 - 13:54 | 1392421 RockyRacoon
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FuckinA

Wed, 06/22/2011 - 17:03 | 1393185 mkkby
mkkby's picture

Yes, thanks for your service.  Hope you enjoyed the free agent orange, depleted U and experimental drugs/vaccinations.  If you get sick, they'll deny treatment for 25 years until it's too late for most.

I hope you guys/gals turn on your leaders and free this country from the REAL terrorists and traitors.  The rest of us will cheer you on.

Wed, 06/22/2011 - 11:31 | 1391895 Sgt.Sausage
Sgt.Sausage's picture

==> social security should be pushed back to age 65 for eligibility

 

Whatchu talkin' 'bout Willis?

It's already 65 for current retirees (unless you take the "early option" for a significantly reduced benefit).

My age cohort is 67.5 for eligibility.

 

 

Wed, 06/22/2011 - 11:13 | 1391820 GeneMarchbanks
GeneMarchbanks's picture

Reminds me of the recent book/article by Harry Frankfurt On Bullshit. What a great read, all Americans should keep it in their glove compartments at all times. You know... just in case.

Wed, 06/22/2011 - 09:44 | 1391437 traderjoe
traderjoe's picture

Happy ZH anniversary to me!

Thanks for the sanity Bitchez.

Thanks for the site TD(s)!

Wed, 06/22/2011 - 11:12 | 1391831 nedwardkelly
nedwardkelly's picture

..and here's to many more!

Wed, 06/22/2011 - 11:16 | 1391834 GeneMarchbanks
GeneMarchbanks's picture

You're Welcome! Now please, work the shaft a little.

Wed, 06/22/2011 - 09:41 | 1391441 lieutenantjohnchard
lieutenantjohnchard's picture

funny but predictable that tptb use gasoline sales (in the sales data) as indicative of a booming economy, but then change the cpi for gasoline hedonics to show less inflation.

Wed, 06/22/2011 - 09:46 | 1391443 101 years and c...
101 years and counting's picture

sounds like they are gearing up for QE3....$6 gas and $5 bread. 

"see, since gas is $6, you are driving less (since you no longer have a job), which means there is no inflation.  and since you sold 1 of your kids, your food bills are flat even with $5 bread and $7 milk."

Wed, 06/22/2011 - 10:16 | 1391570 Zymurguy
Zymurguy's picture

and lots of government cheese.

go long on comfy walking shoes... you'll need them while standing in soup lines.

Wed, 06/22/2011 - 10:19 | 1391585 Cash_is_Trash
Cash_is_Trash's picture

Damn, I should start buying stools and cushions, and when the soup lines get nice and long, sell them to the masses.

Wait, that won't work cause if you're in a soup line, you are flat broke and so is everyone else.

Wed, 06/22/2011 - 09:42 | 1391444 Greenhead
Greenhead's picture

Lies, damn lies and statistics.

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