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America's New Budgetless Reality Is "Betrayal Of American Taxpayers", Says Republican House Leader John Boehner

Tyler Durden's picture


House Democrat leader Steny Hoyer will today announce that the US will not pass a budget in 2010 as “It isn’t possible to debate and pass a realistic, long-term budget until we’ve considered the bipartisan commission’s deficit-reduction plan, which is expected in December." Yet "the House has never failed to pass an annual budget resolution since the current budget rules were put into place in 1974." The real reason of course is that the budget would indicate new and unprecedented trillions in deficits, which would wreak havoc on Democrat chances to contain their upcoming mid-term election loss to just "landslide" status, instead of what is increasingly shaping up as being more in the "apocalyptic" category. Those whose memory spans longer than 24 hours, will recall that Peter Orszag resigned yesterday. Something tells us these two events may be correlated. In the meantime, we are now convinced that realizing the hopelessness of its political situation, the administration and the Fed will now create the most ridiculous, unprecedented, destructive and historic market melt up in history to preserve any chances of demonstrating just how "effective" their market manipulation, pardon, economic resurgence efforts are. If you are short, be ready to have all your shares forcibly called in over the next 4 months. At least the humor of the situation is not lost on one person: House Republican leader John Boehner has taken out a page on his website to lampoon the tragicomedy that US economic and fiscal reality has become.

From John Boehner's Website

Cancelled: There Will Be No Congressional Budget This Year

***The Following Is An Important Fiscal Health Announcement***

(Jun 22)

In light of House Majority Leader Steny Hoyer’s (D-MD) announcement this morning that House Democrats will not pass a budget this year – failing to fulfill what he has called “the most basic responsibility” of governing – the following important fiscal health warning has been issued:








Imposing the fiscal discipline economists say is needed to create jobs and boost our economy

Reining in the out-of-control spending spree that is killing American jobs

Carrying out the “most basic responsibility of governing”

Stopping middle-class tax hikes that will sock family budgets at the worst possible time

Providing the leadership on jobs and the economy that Americans say is sorely lacking

Protecting our kids and grandkids from the enormous debt burden Washington has placed on them

We reserve the right to notify you of additional consequences that may arise in light of this budget failure, which is unprecedented in the modern era.  In the interim, please brace for more spending, more debt, more tax hikes, more broken promises.

For families and small businesses looking for a government that listens
to the people it serves and respects their hard-earned money, House
Republicans are offering better solutions to cut spending now and help small businesses put people back to work.

And here are the comment from Ranking Member, and vocal budgetary farce opponent, Paul Ryan:

Ranking Member Ryan on Democrats’ Unprecedented Budget Failure

WASHINGTON – Since the implementation of the 1974 Budget Act, the House has never failed to pass a budget resolution – until now. House Democratic leaders announced this morning that they will make no attempt to even propose a budget. In response to this unprecedented budget failure and efforts to give the appearance of budgeting while sidestepping the tough decisions that budgets require, House Budget Committee Ranking Republican Paul Ryan (WI) issued the following statement:

“House Democrats have offered no budget, no priorities, and no restraints – yet the taxing, spending, and borrowing all continue unchecked. The unprecedented collapse of the budget process and lack of spending restraint undermines economic growth and job creation, fuels our dependence on foreign creditors, and accelerates our fiscal day of reckoning here at home. A clear signal is being sent to American families struggling to meet their own budgets – and to those financing this borrowing binge – that Washington still doesn’t recognize the severity of our fiscal and economic challenges. Washington needs to wake up.”

Additional key points to consider:

A “deeming resolution” is not a budget. A "deemer” does not set priorities; it does not align overall spending, tax, deficit, and debt levels; and it does nothing to address the runaway spending of Federal entitlement programs. Instead of enforceable restraints and tough decisions, the Majority intends to give a green light to the Appropriators for the spending spree to continue.

This year’s budget collapse is an unprecedented failure. Even when previous Congresses have failed to pass budget conference reports, the House always completed and passed its own budget resolution. Not only will House Democrats fail to pass a budget resolution, they will make no attempt to even propose a budget.

The latest in a string of alarming fiscal abuses. Since January 2009, the President has signed into law $1.8 trillion in new spending and $670 billion in new taxes. The Federal budget deficit has expanded to $1.5 trillion and total debt recently eclipsed $13 trillion. The Majority’s pay-as-you-go charade has been circumvented at least 14 times in the 111th Congress, adding hundreds of billions of dollars to the deficit. The abuse of the budget reconciliation process made possible the passage of the Majority’s health care overhaul.

A failure to budget exacerbates looming fiscal crisis. The Democrats’ failure to budget and get spending under control would be a disaster at any time – a staggering abdication of a fundamental act of governing. It is acutely problematic now, with the Nation facing dire fiscal and economic challenges.


h/t Stephen


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Tue, 06/22/2010 - 12:47 | 426936 Turd Ferguson
Turd Ferguson's picture

This is truly unprecedented and shameful.

It will, however, be glossed over as "politics as usual", which its not! For the US government to operate without a budget is a sign of utter capitulation. This is ultimate proof that our system of government and finance is not on the verge of collapse, it is collapsing NOW.


Tue, 06/22/2010 - 12:55 | 426966 Muir
Muir's picture


I guess I shouldn't have followed madhedgefundmanager's advice.



29.52 -0.81‎ (-2.67%‎)  Jun 22 12:51pm ET

Tue, 06/22/2010 - 13:29 | 427070 FrankIvy
FrankIvy's picture

Was his advice to sell/short BP?

Could they possible go to anywhere but zero w/out a bailout?

Tue, 06/22/2010 - 12:56 | 426973 zice
zice's picture

Well, the rifleman’s stalking the sick and the lame
Preacherman seeks the same, who’ll get there first is uncertain
Nightsticks and water cannons, tear gas, padlocks
Molotov cocktails and rocks behind every curtain
False-hearted judges dying in the webs that they spin
Only a matter of time ’til night comes steppin’ in

Time to hold tight.

Tue, 06/22/2010 - 18:16 | 427076 Rusty_Shackleford
Rusty_Shackleford's picture

"Crickets are chirpin' the water is high
There's a soft cotton dress on the line hangin' dry
Window wide open African trees
Bent over backwards from a hurricane breeze
Not a word of goodbye not even a note
She gone with the man in the long black coat.


She's gone people.

Tue, 06/22/2010 - 13:21 | 427010 knukles
knukles's picture

Got some real bad news for ya' Stennie!  "No budget, no bond buyers." sayeth the Vigilantes. 
(Kinda like "no tickie no washie" if ya'll wanna put it in Chinese laundry terms.)

What a great way to chase money off shore.  The government dissolves the rights of senior secured debt holders a la GM and Chrysler, then wants folks to buy its bonds, bills and notes with No Disclosure, No Plans whatsoever. 

Now that's new financial engineering at its best.  The perpetual blind pool debt obligation.  Marvelous, bloody marvelous.!

Tue, 06/22/2010 - 13:55 | 427139 G-R-U-N-T
G-R-U-N-T's picture

This adcministration is an absolute disaster. Bend over America cause your about to get poked again, and again, and again......

Tue, 06/22/2010 - 13:55 | 427146 G-R-U-N-T
G-R-U-N-T's picture

This adcministration is an absolute disaster. Bend over America cause your about to get poked again, and again, and again......

Tue, 06/22/2010 - 13:44 | 427111 IBelieveInMagic
IBelieveInMagic's picture

Where was John Boehner when Georgie was at the White House partying? He has found religion now?

Tue, 06/22/2010 - 14:45 | 427307 Aaron Burr
Aaron Burr's picture

Atleast with W we actually had a budget--we could have kept HIS ponzi going for a couple more decades but we got hours left in this one.-

Tue, 06/22/2010 - 15:47 | 427488 DasRipper
DasRipper's picture

No "Atleast".  I'm happy the Dems are going this route.  The solution to this whole mess is the collapse.  They are just making happen much swifter.  I say Bring It On.

Tue, 06/22/2010 - 15:50 | 427494 BS Inc.
BS Inc.'s picture

The time when that equivalence crap would have worked is long past, pal. Time to find a new schtick.

Tue, 06/22/2010 - 16:39 | 427647 IBelieveInMagic
IBelieveInMagic's picture

I would agree if we can get away from the two party circus but if all we have is these two parties to pick from, I will go with Obama any day, thank you. I am thoroughly disappointed with his performance but am also aware of the deep problems that he has to tackle -- it is easy to suggest radical solutions when you are not in position to really do anything...


Tue, 06/22/2010 - 17:16 | 427744 MsCreant
MsCreant's picture

You really do believe in magic. 


God I really hate being that rude to you but I don't know what else to do. Feels like I am bitch slapping Bambi...

Wed, 06/23/2010 - 19:24 | 430392 TheGoodDoctor
TheGoodDoctor's picture

I'd pay to see that. There is jello or pudding and a swimming pool involved right? Anyway, I digress Lenin called them "Useful Idiots". So true.

Tue, 06/22/2010 - 13:49 | 427123 svendthrift
svendthrift's picture

I've made the decision to leave the United States. I'm over it. Gotta look out for me and mine.

Tue, 06/22/2010 - 15:14 | 427406 Testicular Cancer
Testicular Cancer's picture

Where u goin? Need company?

Tue, 06/22/2010 - 15:22 | 427435 Sqworl
Sqworl's picture

Costa Rica, no extradition with US and new swiss banking world!!

Tue, 06/22/2010 - 14:52 | 427338 Cleanclog
Cleanclog's picture

I didn't think it possible, but this will make Greece look like the responsible government.

Un-"f"ing believable.  With trillions and trillions in federal, state and local government debt in the United States - we have elected legislators saying they will not build nor present a budget.  No guidance, no roadmap, no nothing.  And we pay them for this crap.

Tue, 06/22/2010 - 15:00 | 427371 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

Yes, unprecedented and shameful.

And astonishing.

This administration appears more and more every day to be dangerously incompetent and craven.

Tue, 06/22/2010 - 16:09 | 427553 Gwynplaine (not verified)
Gwynplaine's picture

For all you Mel Brooks fans out there:

He inverted that phrase though: "Hope for the best, expect the worst!" (from The Twelve Chairs).

Tue, 06/22/2010 - 17:29 | 427779 Jim Cramer
Jim Cramer's picture

Isn't this the President who insisted on transperancy and bent Bush over because he wasn't keep accounts on the budget for the war?  This is not a defense of Bush but a knock on who this guy is.  He says one thing and you can bet he'll do the other.  I absolutely expected all of this to occur during his ruling since he is not deserving of the title of President but deserves to be called a bully or better yet a mobster.  I am just shocked at the speed at which he is doing all of this..........

Tue, 06/22/2010 - 12:46 | 426938 Ragnarok
Ragnarok's picture

NEO: There is no balance sheet.



Tue, 06/22/2010 - 13:18 | 427039 MsCreant
MsCreant's picture

Never was. It all has been a fiction designed to misdirect our attention for many years now so that the machine could be left to feed on our dreams. We could debate exactly when, but I will go along with my colleagues who call the formation of the Fed in 1913 as the date.

I am an academic. I have participated in all kinds of accounting games that my bosses have demanded of me (even as I have fought it and pissed off my colleagues who just want to do it and go home). We create "units" because they ask us to, even though we don't work that way, so they can account to their higher ups. Then they come back to us and ask us which units do we feel we can cut and still be profitable. We never had the units, we only made them up on paper so that our bosses would have a narrative to take back to the government. Then we are supposed to cut units, that did not exist in the first place?

I tell this story because this crap is happening at the individual level, in families, organizations, systems, etc. It is pervasive.

There is no balance sheet. There is no balance because what we are doing is not sustainable. 

Tue, 06/22/2010 - 13:26 | 427060 knukles
knukles's picture

This is what comes when mankind ceases pretending anything is sustainable.

Tue, 06/22/2010 - 13:42 | 427107 Rusty_Shackleford
Rusty_Shackleford's picture



We've gone from having money that said 'Tis Death to Counterfeit on every note to 100% mandatory institutionalized counterfeiting.


We've gone from a country where everyone instinctively knew that there was no such thing as a free lunch, to one where we started thinking "well, maybe there really is a free lunch", and then ultimately to one now where we've actually convinced ourselves eating free lunches is a revenue generating activity.


"The worst day of a man's life is when he sits down and begins thinking about how he can get something for nothing”-Thomas Jefferson


Tue, 06/22/2010 - 13:51 | 427129 VegasBD
VegasBD's picture

Quote of the day brotha

"we've actually convinced ourselves eating free lunches is a revenue generating activity"

Tue, 06/22/2010 - 14:43 | 427290 Rusty_Shackleford
Rusty_Shackleford's picture


That particular concept has been rattling around and causing an itchy spot in my brain since they started talking about how the new ObamaCare entitlement was actually going to save money.  It felt good to form it into words and write it down.  Now I can finally stop thinking about sandpaper all the time.

I remember thinking, we're soon going to see infomercials about "getting started in the lucrative new field of eating free lunches". 

Universities will form entirely new departments and people will graduate with degrees in Liberal Arts with a Minor in Eating Free Lunches.


Hell, eating free lunches could be the next bubble!!!


By the way, I stake an Intellectual Property claim on the CEFLFE (The Chicago Eating Free Lunches Futures Exchange).

Tue, 06/22/2010 - 16:35 | 427636 onerepublic
onerepublic's picture

Government inflates healthcare costs by mandating employer insurance, crippling free market mechanisms and sees health care costs go from 4% GDP to 16% GDP. Government provides healthcare to remaining uninsured promising program will reduce costs. Then says program will actually not reduce costs. Government then claims war on oil.

Tue, 06/22/2010 - 14:02 | 427171 OldTrooper
OldTrooper's picture

Great TJ quote, Rusty.  I wasn't familiar with that one.  I'd like to add it to my collection.  Do you have a citation?

Tue, 06/22/2010 - 14:27 | 427252 Rusty_Shackleford
Rusty_Shackleford's picture

I'm sure it's fairly well established although I can't tell you exactly where he said it (hell, it may even be like his "central banks" quote and be highly contested).  I just googled it.

Tue, 06/22/2010 - 14:13 | 427204 B9K9
B9K9's picture

Rusty, I would suggest that no one has been really been convinced. Rather, politicians realized votes could be bought, non-taxpaying voters realized it was theft, but thought it was justified in light of historical grievances, and taxpaying voters paid, grumbled & waited/hoped for the system to eventually fail.

All three parties have always known the truth; our current predicament is a function of gaming calculations being made concerning a specific expiration date. Watch the rats abandoning ship - they are the tell. First Orzag, then ...?

Tue, 06/22/2010 - 15:05 | 427367 Rusty_Shackleford
Rusty_Shackleford's picture

Good points.  You know, you're probably right,... although the person would have to be functioning on a conceptual/rational level. 

However, I would venture to guess that a much larger proportion of the population is functioning on the perceptual level only(, and really is 100% truly convinced of it.  It's almost hard to hold it against them.  It has been drilled into their minds for their entire lives.

I think it goes much deeper than just vote buying. 

Hell, I would have more respect for the system if that's all it was.


Kind of like Lysander Spooner and the Highwayman.

Tue, 06/22/2010 - 21:01 | 428237 Almost Solvent
Almost Solvent's picture

I have no kids (yet)

Yet I get a $3k property school tax bill every year

State says I have to pay to educate OPK (other people's kids)

Section 8 queen with 4 kids in school pays nothing since she rents and gov't pays her rent


Tue, 06/22/2010 - 14:02 | 427174 I need more asshats
I need more asshats's picture

"Then we are supposed to cut units, that did not exist in the first place?"

Lesson learned: When asked to make up units, make more than expected. Then when the request comes in to downsize you will shine like a supernova. They'll call you the ax-lady who really knows how to take it for the team.

You'll get your big fat bonus(in academic term of course) and the kitty's will be happy while playing with their new ball of Afgani-kush premium catnip.

It is sustainable we just need the US Department of Incremental Control and Enforcement. These guys will smooth out the whipsaws and control incremental growth.

Tue, 06/22/2010 - 14:54 | 427349 MsCreant
MsCreant's picture

Lesson learned indeed. We are all Ponzi scammers now. 

Tue, 06/22/2010 - 14:46 | 427312 rapier
rapier's picture

 Of course there is no balance sheet.  Government cannot capitalize its assets. So your left with 14th century cash flow accounting.  Since there is no balance sheet, nothing on a page showing worth of assets two generations of business centric people have come to assume nothing the government has or does has 'worth'. Not dollars and cents worth and then any worth at all.

As we come closer to the dream of the Donner Party Conservatives they should consider that they are the fattest ones of all.

Tue, 06/22/2010 - 15:01 | 427377 rapier
rapier's picture

Oh yea, and all non governmental actors have been free to inflate their assets and show great balance sheets, usually, or have it reported they are great.


The false distinctions erected by todays idologies will fade away and history will construct new ones. 

Tue, 06/22/2010 - 15:26 | 427445 RichardENixon
RichardENixon's picture

MsCreant, I beg to differ with you. There is a balance sheet. Unfortunately, the Equity portion is a hundred trillion or so in the red.

Tue, 06/22/2010 - 17:21 | 427756 MsCreant
MsCreant's picture

In a newer TD post, if you have time, if you feel an inclination to do so, maybe you would post something to us (or to me) that is an on the ground NOLA situation report. Last I heard you were 20 miles away and could occasionally smell it.

Tue, 06/22/2010 - 15:59 | 427524 Cathartes Aura
Cathartes Aura's picture

brilliant post MsCreant.

the "fiction" of the amrrkn DREAM was a myth sold to the public as distraction, and as more people struggle to wake-up, the illusion gets busted.

dis-illusionment can be devastating, but waking up is preferable to being lied to. 

Tue, 06/22/2010 - 17:18 | 427753 MsCreant
MsCreant's picture

Thanks. I think I am still waking up myself, I'll get back to you on that.

Wed, 06/23/2010 - 01:21 | 428539 RichardP
RichardP's picture

Don't wake up.  There is a reason it is called the American ... Dream.


Tue, 06/22/2010 - 12:46 | 426941 mchandler@ameri...'s picture

Perhaps they should just declare the budget secret because of national security.

Tue, 06/22/2010 - 12:49 | 426946 Spaceman Spiff
Spaceman Spiff's picture

The budget is already secret.   Do you mean they should engage in double secret budgeting?

Tue, 06/22/2010 - 13:33 | 427085 PierreLegrand
PierreLegrand's picture


Tue, 06/22/2010 - 15:55 | 427512 RockyRacoon
RockyRacoon's picture

That sounds like one of the old Get Smart episode titles:

"Double Secret Secret Budgeting"

Wed, 06/23/2010 - 14:51 | 429647 RichardENixon
RichardENixon's picture

I expect Obama to bring back the Cone of Silence soon.

Wed, 06/23/2010 - 01:25 | 428542 RichardP
RichardP's picture

"The budget is already secret."

In case you are serious - no it is not.  It is printed and distributed.



Tue, 06/22/2010 - 12:48 | 426943 Assetman
Assetman's picture

House Republicans are offering better solutions to cut spending now and help small businesses put people back to work.

House Republicans had 8 years to correct out of control spending.  Now, how did that work out, Leader John?

Republicrats = Same Wolf in Sheep's Clothing

Tue, 06/22/2010 - 12:53 | 426962 Rogerwilco
Rogerwilco's picture

We've played the continuing resolution game since the 1970s, but Mr. Obama's administration is the first I can remember that is OK with this latest scheme of no budget at all. They say privately it's only through the Fall elections, but I expect this lazy bullshit will catch on and become a permanent feature of the New Normal.

Tue, 06/22/2010 - 13:21 | 427048 MsCreant
MsCreant's picture

I read yesterday New York has a "weekly" budget where it used to be an annual budget. Like living paycheck to paycheck, you just don't know if it is going to be there.

Tue, 06/22/2010 - 14:56 | 427357 mnevins2
mnevins2's picture

" read yesterday New York has a "weekly" budget where it used to be an annual budget. Like living paycheck to paycheck, you just don't know if it is going to be there."

Illinois can TRUMP EVERY STATE - the legislature, honestly, just tells the Governor "do something" and they go home and there is no budget. None.

Well, there is an outline, but the specifics, no kidding, are left up to the Governor. The Chicago Trib blasts these guys (we're run by the Democrats in Obama's state - surprise?), but we'll see if it'll make any difference in the November election.

And since Rahm and Barry and David are IL pols - this is business as usual for them!!!

Tue, 06/22/2010 - 15:01 | 427378 Attitude_Check
Attitude_Check's picture

This way they can maintain the deficit spending levels without having to actually vote on a budget.  Of course they will have to vote on the deficit ceiling increase.....

Tue, 06/22/2010 - 20:34 | 428182 Rainman
Rainman's picture

Right on almost. Don't need no steenking budget director neither. No budget means no deficit which means no ceiling. Sky's the limit.

Tue, 06/22/2010 - 12:57 | 426981 King_of_simpletons
King_of_simpletons's picture

Divide and conquer.... The only winner here is Wall Street and Washington... And they are hoarding money for the eventual cataclysm.

Tue, 06/22/2010 - 12:59 | 426990 Cursive
Cursive's picture

Yes.  Republicrats and Demicans.  Nuff said.  Hoyer and Boehner are really the same thing (i.e. politicians), just different lungs.  Oh, look, the ES is catching a bid....

Tue, 06/22/2010 - 12:59 | 426991 docj
docj's picture

That's a fair point, Assetman.  And this is particularly rich coming from Boehner.

But they never had

1) The White House

2) A 40+ seat House Majority, and

3) A 59-41 (used to be filibuster-proof 60-40) Senate majority

That one party has the WH, solid control of the House and 59-seats in the Senate, and they still can't (or, more correctly, don't wish to) pass a budget is rather, ahem, unprecedented, no?

Tue, 06/22/2010 - 13:22 | 427050 spekulatn
spekulatn's picture

+1 docj

Tue, 06/22/2010 - 13:48 | 427121 Rusty_Shackleford
Rusty_Shackleford's picture

I don't really think that it's that they "can't pass a budget".  I think it's more of an issue of "it's inconvenient to do so". 

If nothing is written down, then the budget really is, without hyperbole, infinity.

It's a win-win for the State.

Tue, 06/22/2010 - 14:12 | 427205 Apostate
Apostate's picture

Yessir. The Republicans are trading on their minority status in the hopes to get more seats at the loot trough.

Maybe after November, the entire political system will be split 50-50 for equitable access to the looting machinery.

Will the military stand for being left out from the loot-fest? Stay tuned! 

Tue, 06/22/2010 - 15:38 | 427470 mkkby
mkkby's picture

"If nothing is written down, then the budget really is, without hyperbole, infinity."

Close, but no cigar...  If there's no budget then there's less hell to pay going into the election.  It is NOT a coincidence that the report they're waiting for comes in December!

Tue, 06/22/2010 - 18:02 | 427857 Assetman
Assetman's picture

Both you and docj make really good points here-- my points about BOTH parties being irresponsible beyond belief still stands.

Here's the ultimate in hypocrisy -- what if the Dems don't pass a budget, yet somehow manage to increase the debt ceiling... AGAIN????

What's a win-win for the State, may well be lose-lose for incumbents in November.  I'd be OK with that, if it wasn't for the cliff we are heading toward at full speed.

Tue, 06/22/2010 - 14:11 | 427200 nedwardkelly
nedwardkelly's picture

Amen brother. Anyone that thinks that the Republican Party is the solution is just as brainwashed as someone that thinks the Democrats are. I think I'm going to stop referring to democrats/republics and just use your republicrats... Sounds better than demoblicans

Tue, 06/22/2010 - 15:06 | 427390 assembler
assembler's picture

Demoblicans is good too. Has a hint of the forces driving this beast.

Wed, 06/23/2010 - 09:00 | 428717 Trundle
Trundle's picture

Much worse.


Tue, 06/22/2010 - 12:48 | 426944 buzzsaw99
buzzsaw99's picture

Serious buyers know that stocks, as with residential real estate,

will eventually crash all the harder the more they try to stimulate things. They are burning their house down to stave off the onset of winter. Ludicrous speed.


Tue, 06/22/2010 - 12:49 | 426948 Muir
Muir's picture


Nobody thinks in terms of human beings. Governments don't. Why should we? They talk about the people and the proletariat, I talk about the suckers and the mugs - it's the same thing. They have their five-year plans, so have I.


Tue, 06/22/2010 - 12:51 | 426955 aint no fortuna...
aint no fortunate son's picture

Its a disgrace, no doubt... but on the other hand, really, who gives a rat's ass what boner has to say about anything either? He's one of the problems just as much as anyone else... they don't spell it CONgress for nothing.

Tue, 06/22/2010 - 12:51 | 426958 I need more asshats
I need more asshats's picture

Peter Orszag was smart huh, he knows what's in the pipeline?

Maybe he had a dream that he would commit suicide by hanging himself in his basement (ala Freddie Mac CFO David Kellerman), so he quit...

Tue, 06/22/2010 - 14:00 | 427167 sgt_doom
sgt_doom's picture

Naaah....Kellerman was an honest guy who, sadly, finally realized what was going on.

Orszag can never be accused of honesty, as he came from the Hamilton Project over at Brookings Institute (Rubin's plan to privatize anything that wasn't yet privatized -- sounds kinda like Bush, now don't it?).

Tue, 06/22/2010 - 15:59 | 427525 RockyRacoon
RockyRacoon's picture

There is an old maxim that comes to mind, something about rats leaving sinking ships.

Wed, 06/23/2010 - 01:35 | 428547 RichardP
RichardP's picture

If you study the history of political appointees, they start leaving the administration after about 18 months.  They come in full of idealistic plans to make a difference.  It takes them about 18 months to realize that they are just cogs in the wheel and won't be able to make the difference they thought they could make.  Most of the folks who leave won't make the news, but they will be leaving.  Some probably already have.  The normal exodus has to do with disillusionment, not rats leaving a sinking ship.  This time might be different.




Tue, 06/22/2010 - 12:52 | 426959 Let them all fail
Let them all fail's picture

I am ashamed for my government - this is seriously your solution?

Tue, 06/22/2010 - 13:25 | 427059 FrankIvy
FrankIvy's picture

Were you ever proud?

Once I learned about Allende, Mosadeq, Bay of Pigs, and so in, way back in college, I can't remember feeling "pride" about the government much again.

Tue, 06/22/2010 - 13:48 | 427118 Let them all fail
Let them all fail's picture

Good point, should have written "even further ashamed"

Tue, 06/22/2010 - 14:15 | 427211 Gully Foyle
Gully Foyle's picture


"Once I learned about Allende, Mosadeq, Bay of Pigs, and so in, way back in college, I can't remember feeling "pride" about the government much again."

For me it was learning about the Indian massacres. That was well before college. But then I didn't have the foundation to grasp just how invasive government is.


Actually I did.

When I was in grade school I talked a person up the block who was moving to give me his safe. Must have been five feet tall and weighed a freaking ton. A couple of friends and I started pushing it home. About six or seven blocks.

One of the fathers saw us and offered to push it with his car. Pretty cool.

He pushes a few feet and the cops pull him over. He starts ASKING QUESTIONS about why he can't help the kids.

He Fucking gets arrested.

The cops having nothing else to charge him with use disturbing the peace. Minor fine, but they win.

That drove the nail into the coffin on trust of government.

Tue, 06/22/2010 - 14:48 | 427324 QQQBall
QQQBall's picture

Today, the safe and any money in it would be turned over to HS and the father would be tried as a terrorist for "traveling" with too much cash. Any valuables in the safe would be confiscated to preserve national security.

Tue, 06/22/2010 - 15:48 | 427409 Rusty_Shackleford
Rusty_Shackleford's picture


Civil asset forfeiture. Guilty until you prove yourself innocent (and even then, 'you still ain't gettin' yo' shit back').

The contents would have long since been converted into an APC for the local jack boots so that they could keep raiding homes and killing people to keep them from smoking pot.

See?  It all makes perfectly rational sense.

Tue, 06/22/2010 - 12:58 | 426967 cowdiddly
cowdiddly's picture

Republicans sure did not have a problem voting for the trillion dollar bailouts for banks? Now they are trying to act fiscally responsible? Boener= self serving asshat. Now back to my World Cup matches, something I can at least find some joy in. GO USA and Argentina.

Tue, 06/22/2010 - 13:01 | 426994 buzzsaw99
buzzsaw99's picture


Tue, 06/22/2010 - 17:25 | 427767 MsCreant
MsCreant's picture

You got the cutest little baby face.

Tue, 06/22/2010 - 13:18 | 427037 The Merchant of...
The Merchant of Venice's picture

The majority still writes the legislation and chooses if members can vote on it.

The Democrats have controlled spending since January 4, 2007 in both chambers of the legislative branch.

Tue, 06/22/2010 - 13:55 | 427148 Let them all fail
Let them all fail's picture

We all know this is not a one-party problem, its a systematic problem - neither republicans or democrats are going to make this any better, only way is a strong independent third party or voting in individuals who actually try to act in the best long-term interest of our country, and we all know the latter won't be happening soon

Tue, 06/22/2010 - 14:27 | 427250 nodhannum
nodhannum's picture

Pray tell cowdiddly, what was the vote, pubs versus rats, on that TARP vote?

Tue, 06/22/2010 - 16:14 | 427569 mrhonkytonk1948
mrhonkytonk1948's picture

Isn't it spelled "boner"?

Wed, 06/23/2010 - 09:07 | 428726 Trundle
Trundle's picture

USA, Argentina and Greece?

Tue, 06/22/2010 - 12:55 | 426970 Dr. Richard Head
Dr. Richard Head's picture

Will this have any impact on Treasury auctions for the US?  Of course not.  Why would it?  We have plenty of primary dealers to launder Benny's monetary ejaculations.

Tue, 06/22/2010 - 13:59 | 427161 Rusty_Shackleford
Rusty_Shackleford's picture

"soooooooo much ejaculate"



(For the Metalocalypse fans out there)

Tue, 06/22/2010 - 15:00 | 427368 tmosley
tmosley's picture

Ben Bukkake

Tue, 06/22/2010 - 12:57 | 426974 jkruffin
jkruffin's picture

Here is what your bailout did, and exactly what I knew, and many here knew, it was for all along.  I even wrote my Senators, who confirmed it as well before it even started.


NEW YORK (Reuters) - The rich grew richer last year, even as the world endured the worst recession in decades.

A stock market rebound helped the world's ranks of millionaires climb 17 percent to 10 million, while their collective wealth surged 19 percent to $39 trillion, nearly recouping losses from the financial crisis, according to the latest Merrill Lynch-Capgemini world wealth report.

Tue, 06/22/2010 - 12:57 | 426979 Bam_Man
Bam_Man's picture

Don't worry.

There will be a military coup here in the US sometime within the next 12 months to "end the chaos and restore the Constitution".

Mark my words.

Tue, 06/22/2010 - 13:03 | 426998 buzzsaw99
buzzsaw99's picture

That with attendant executions is what it would take. Not advice, just sayin'.

Tue, 06/22/2010 - 13:09 | 427006 DosZap
DosZap's picture


I have been wondering why they have waited this long.........

Let the TRIALS begin.

Tue, 06/22/2010 - 13:07 | 427007 tmosley
tmosley's picture

I dunno about the second part.

I have a bad feeling, and it has been getting worse over the last two years.

Tue, 06/22/2010 - 13:12 | 427020 Shameful
Shameful's picture

Ah good, a military dictatorship!  Run by those pleasant chaps that shoot civilians overseas to get their rocks off.  And those frugal fellows that never fail to account for every penny.  My that will be an improvement.



Tue, 06/22/2010 - 16:33 | 427625 Cathartes Aura
Cathartes Aura's picture

don't forget the video-gaming drone operators Shameful. . .

like whoever is flying the jets streaming chem-trails over(my)head, no connection to the reality of humans dying below / "over there". . . just collateral damage or whatever the latest euphemism they're taught to refer to dead humans.

Tue, 06/22/2010 - 15:43 | 427475 mkkby
mkkby's picture

I'll take that bet.

Tue, 06/22/2010 - 15:58 | 427495 laughing_swordfish
laughing_swordfish's picture

+ 100

A military dictatorship (junta) led by Gen Stanley McChrystal would be just the ticket. Read the article in Rolling Stone and this guy is the second coming of Douglas MacArthur and George Patton all in one.

With a brand-new American Nationalist Party behind him he'll restore things straight away.

Just as Benito Mussolini had his March on Rome in 1919 so will he have his March on Washington, with loyal Americans behind him bringing their rifles, shotguns, pitchforks and torches with them.

And I see more than a few guillotines, miles and miles of boiled rope, and tons of tar and feathers.

It's "Heads On Pikes" and "Bodies Hanging From Trees" time.

Bring on the "Spirit of 1789 !!"


KrvtKpt. laughing swordfish

DKM Trading Division

Tue, 06/22/2010 - 16:44 | 427670 IBelieveInMagic
IBelieveInMagic's picture

So comforting!

Wed, 06/23/2010 - 01:40 | 428551 RichardP
RichardP's picture

"And I see more than a few guillotines, miles and miles of boiled rope, and tons of tar and feathers."

All going up against overhead drones??  That should work out well.



Tue, 06/22/2010 - 16:52 | 427687 Geoff-UK
Geoff-UK's picture

As a field grade officer in the U.S. military, I have to tell you you're woefully misinformed.  Unless the President claims no need for elections, the military isn't doing squat.  American voters elected this guy, they gotta wait 2 years more if they don't like it.

Tue, 06/22/2010 - 19:01 | 427988 Canoe Driver
Canoe Driver's picture

excuse me, but aren't there "field grade officers" in the U.S. military named Mary that polish a seat with their overfed butt all day?  What is the significance of rank under current rules?  that's what McChrystal is trying to say.  you don't necessarily know anything, sir.  don't you have to go kiss the cooze of a corporate official so as to ensure a cushy job on "separation?"

Tue, 06/22/2010 - 20:15 | 428152 Crisismode
Crisismode's picture



Everyone gets the government they deserve.


Tue, 06/22/2010 - 17:38 | 427805 hound dog vigilante
hound dog vigilante's picture

By not even ATTEMPTING to prepare a budget, the executive/legislative majority are practically begging for civil unrest + military response.

Of all the incredible and disgusting news/events of the past year, this no-budget federal government story is the worst... my blood is boiling right now.

This no-budget situation will not stand. I'm packing my bag and going to D.C.  I will camp on the mall and wait for 10 million of my fellow citizens to join me. Passive dissent just isn't going to cut it this time. I've just had my pitchfork moment.


Tue, 06/22/2010 - 12:59 | 426987 superman07
superman07's picture

The budget is on double secret probation..................

Tue, 06/22/2010 - 13:04 | 427001 docj
docj's picture


Tue, 06/22/2010 - 13:02 | 426988 downrodeo
downrodeo's picture

What a load of horses#!t. Our congress has deteriorated to the point where they only serve to make sure that nothing is ever accomplished. They can't even make a friggin budget. Republican v Democrat is a myth. This 2 party nonsense is a mask on a broken system.

Tue, 06/22/2010 - 13:12 | 427022 knukles
knukles's picture

It's a One Party System.  They only put on different colored jerseys for the public scrums.

Tue, 06/22/2010 - 13:53 | 427135 M. Barr
M. Barr's picture


Tue, 06/22/2010 - 13:00 | 426993 King_of_simpletons
King_of_simpletons's picture

The talking points are getting old and worn out. Same bullshit repeated over many decades and yet nothing happens. The shit gets bigger and bigger, different party each time. It is time both political parties become united and change their symbol to a giant pile of steaming dung.

Tue, 06/22/2010 - 16:04 | 427534 RockyRacoon
RockyRacoon's picture

Yep.  Who believe in "energy independence" any longer?  Won't happen so long as there are lobbyists to grease the wheels of government.

Tue, 06/22/2010 - 13:01 | 426995 Hansel
Hansel's picture

U.S. Budget for fiscal 2011: $∞
Barrack Obama

Tue, 06/22/2010 - 13:16 | 427032 Hansel
Hansel's picture

But seriously, how can we run a $1.5+ trillion dollar deficit and not pass a budget?  I guess we don't care about anything.

Tue, 06/22/2010 - 13:28 | 427065 MsCreant
MsCreant's picture

Just keep printing.......Yeee Hawwwwww!

We don't need no stinking budget.

Tue, 06/22/2010 - 15:19 | 427426 Rusty_Shackleford
Rusty_Shackleford's picture

Sorry.  It's begging for it.

Tue, 06/22/2010 - 17:26 | 427770 MsCreant
MsCreant's picture

You feel me!

Tue, 06/22/2010 - 16:06 | 427542 RockyRacoon
RockyRacoon's picture

...and just to follow up:

Tue, 06/22/2010 - 17:27 | 427774 MsCreant
MsCreant's picture

Gosh guys, I feel so supported! Sniff. Sniff.

Tue, 06/22/2010 - 14:01 | 427169 baserunr
baserunr's picture

I guess the answer is that they have finally reached the point where they just stop counting.

I imagine in a few years I'll be able to pay off the current National Debt with a week's pay.  But by then, they'll have stopped counting the National Debt as well.

Tue, 06/22/2010 - 13:01 | 426996 Paul Bogdanich
Paul Bogdanich's picture

"In the meantime, we are now convinced that realizing the hopelessness of its political situation, the administration and the Fed will now create the most ridiculous, unprecedented, destructive and historic market melt up in history to preserve any chances of demonstrating just how "effective" their market manipulation, pardon, economic resurgence efforts are."


What they will do is start a regional war to blame the subsequent economic calamity on the oil shock that will inevitably result.  Like I keep saying you err in underestimating the nefarious nature of these people.  They care for neither God nor man and believe all below them are slaves and vassals to be bought and sold at their leisure.  History is replete with them.  They are always the same. 

Tue, 06/22/2010 - 13:21 | 427046 FrankIvy
FrankIvy's picture

Paul Bog - is right.  The only move left for them, when the can can no longer be kicked, is war.  With Iran.  Gasoline goes to 10 a gallon, if you can get it, the face of the enemy is clear, and J6P never thinks the fault lies anywhere other than towelhead land.

Peak oil is the unifying theory of world politics.

(Sweet! An easy CAPTCHA - hate it when the answer is a negative, 2 digit number and I get "only 2 characters allowed in response.")

Tue, 06/22/2010 - 13:46 | 427114 ShaneAshton
ShaneAshton's picture

I am outwardly hoping that it is an oil shock that crashes this speeding trainwreck. 

I am outwardly hoping that it's NOT an environmental disaster brought on by nuking the oil leak.

Either needs to happen soon.  My garden needs attention!!

Tue, 06/22/2010 - 14:02 | 427172 Rusty_Shackleford
Rusty_Shackleford's picture

...and who will lend us the money to fight this war?

Tue, 06/22/2010 - 16:08 | 427551 RockyRacoon
RockyRacoon's picture

Those guys with the green eye shades will just crank up the presses to fill in where our "friends" are now out of patience with us.  Ain't it wonderful to have the reserve currency?

Tue, 06/22/2010 - 17:27 | 427772 KevinB
KevinB's picture

Historic market melt-up?

Colour me skeptical. They may have tried this year, but the Dow is now down for the year, and today, it dipped under its 200 day MA. That is not usually the scenario for a monster rally. Sell in May...

They might try to pump the market in the fall, but I'm thinking the Chinese are going to look at this budget fiasco and say "Hmm.. we just took a massive haircut on the billions of UST we own thanks to raising the yuan. Do we really want to buy any more from a company so f***ed up that it couldn't even make a budget?". I guessing the answer will be "Not so much". They won't cut them off completely, but their going to cut back dramatically. What will they buy? Gold, bitches.

Tue, 06/22/2010 - 13:04 | 427000 Turd Ferguson
Turd Ferguson's picture

At least the Evil Empire didn't have the audacity to sell off gold in the face of this headline.

Tue, 06/22/2010 - 13:04 | 427003 ED
ED's picture

Honestly - 'government' should be the dumbass left at home to make sure the cows dont get up to any mischief whilst the rest of society gets things done. Who let these fat-fingered Pseudologia fantastica's get into the drivers seat?

Tue, 06/22/2010 - 13:07 | 427008 superman07
superman07's picture

The budget is on double secret probation..................

Tue, 06/22/2010 - 13:10 | 427012 Gully Foyle
Gully Foyle's picture

McChrystal and his aides were publicly mocking Biden. Looks like the shit is falling all over the place.

In Rolling Stone feature, McChrystal mocks Biden while aides slam Obama

he US commander in Afghanistan mocks the vice president and denounces a top diplomat in a magazine interview, while his aides speak dismissively of President Barack Obama.

Tensions between General Stanley McChrystal and the White House are on full display in an unflattering profile in Rolling Stone of the commander of US and NATO forces in the Afghan war.

McChrystal jokes sarcastically about preparing to answer a question referring to Vice President Joe Biden, known as a skeptic of the commander's war strategy.

"'Are you asking about Vice President Biden?' McChrystal says with a laugh. 'Who's that?'" the article quotes him as saying.

"'Biden?' suggests a top adviser. 'Did you say: Bite Me?'"

McChrystal tells the magazine that he felt "betrayed" by the US ambassador to Kabul, Karl Eikenberry, in a White House debate over war strategy last year.

Referring to a leaked internal memo from Eikenberry that questioned McChrystal's request for more troops, the commander suggested the ambassador had tried to protect himself for history's sake.

"I like Karl, I've known him for years, but they'd never said anything like that to us before," McChrystal tells the magazine.

"Here's one that covers his flank for the history books. Now if we fail, they can say, 'I told you so.'"

Eikenberry, himself a former commander in Afghanisan, had written to the White House saying Afghan President Hamid Karzai was an unreliable partner and that a surge of troops could draw the United States into a open-ended quagmire.

The article revisits the friction between the White House and the military last fall as Obama debated whether to grant McChrystal's request for tens of thousands of reinforcements.

Although Obama in the end granted most of what McChrystal asked for, the strategy review was a difficult time, the general tells the magazine.

"I found that time painful," McChrystal says. "I was selling an unsellable position."

An unnamed adviser to McChrystal alleges the general came away unimpressed after a meeting with Obama in the Oval Office a year ago, just after the president named him to take over in Afghanistan.

"It was a 10-minute photo op," the general's adviser says.

"Obama clearly didn't know anything about him, who he was... he didn't seem very engaged.

"The boss was pretty disappointed," says the adviser.

The profile, titled "The Runaway General," portrays his aides as profane and intensely loyal to McChrystal, while arguing the general has seized control over the war on the military and diplomatic fronts.

The four-star general also derides the hard-charging top US envoy to the region, Richard Holbrooke, and complains about a dinner with an unnamed French minister during a visit to Paris.

"Oh, not another e-mail from Holbrooke," McChrystal says, looking at his messages on a mobile phone. "I don't even want to open it."

In a hotel room in Paris getting ready for a dinner with a French official, McChrystal says: "How'd I get screwed into going to this dinner?"

"The dinner comes with the position, sir," says his aide, Colonel Charlie Flynn.

"Hey, Charlie," McChrystal says, "does this come with the position?"

McChrystal gives him the middle finger.

Correction: Due to an editor's mistake, a headline on the front page of Raw Story incorrectly asserted that the General said "Bite me" of Vice President Biden. It was the general's aide, not the general himself.



Tue, 06/22/2010 - 13:21 | 427045 The Merchant of...
The Merchant of Venice's picture

Why would McChrystal do this?


To set up a run for President.

Tue, 06/22/2010 - 13:28 | 427069 Gully Foyle
Gully Foyle's picture

The Merchant of... 

It is confusing at this specific point in time. People are calling for him to be fired and he has a WH meeting today.

Tue, 06/22/2010 - 13:35 | 427088 Wyndtunnel
Wyndtunnel's picture

Or how about for Fearless Leader?

Tue, 06/22/2010 - 13:39 | 427097 Apostate
Apostate's picture

He could be subcommandante under Duce Petraeus. 

Tue, 06/22/2010 - 17:33 | 427790 KevinB
KevinB's picture

Moose and squirrel might object.

Fri, 06/25/2010 - 13:49 | 433943 Geoff-UK
Geoff-UK's picture

You're giving him too much credit--he could have resigned his commission.  Instead, he's been fired in disgrace for stupidity.  Rolling Stone?!


If he DID run for President, the first question is:  "As a military officer conducting a war, how stupid were you to give interviews to ROLLING FREAKING STONE?!"

Tue, 06/22/2010 - 13:45 | 427113 goldfish1
goldfish1's picture

McChrystal and his aides were publicly mocking Biden.

Easy to see how that could happen.Bitchiness in the bathhouse.

Tue, 06/22/2010 - 13:56 | 427151 sgt_doom
sgt_doom's picture

Ahhhh, an article on the "crack" military of the USA, where combat engagements consists of half of the "American" troops being private contractors --- which the US military has no command-and-control over, and are dispatched exactly based upon the private cab dispatching system found in any US city (although probably not as efficiently).

And McChrystal, special ops assassin team leader, is in control.  A most comforting thought.

And what exactly is America doing in Afghanistan?  Nobody seems to know.

Who attacked America on 9/11/01?  A bunch of Wahabist Saudis, according to the official conspiracy theory, flying hijacked American airliners as only the best Arabian pilots can fly them.

Therefore, Afghanistan and Iraq must be attacked in revenge.

Hmmmm....Steny Hoyer's sister still a director at AIPAC?

Tue, 06/22/2010 - 13:08 | 427013 docj
docj's picture

But remember, Barry is absolutely correct in trying to push the rest of the world to stay on board with his Keynesian Krazy Train into the abyss.  Right?

This is harder to watch than Amateur Night at the local comedy club.

Tue, 06/22/2010 - 13:11 | 427017 DosZap
DosZap's picture

Merkel isn't, she's taking his ass to task.

Tue, 06/22/2010 - 13:13 | 427024 docj
docj's picture

True that, Zap.  Hope she hangs tough.

All that said, I don't wish to besmirch all "Amateur Nights" as a matter of principle.  I've been to some in, uh, other types of establishments that were positively, uh, stimulating.

Tue, 06/22/2010 - 14:16 | 427218 OldTrooper
OldTrooper's picture

Many fond memories of amateur nights come flooding back.

Thanks for that, Doc!

Tue, 06/22/2010 - 14:34 | 427271 docj
docj's picture

Happy to oblige, Trooper!

And, heh, flooding back, eh?  Good on you, man.  Good on you!

Tue, 06/22/2010 - 13:09 | 427014 Shameful
Shameful's picture

Sounds very zen to me.  No budget simply take what you need from the printing press. 

Really this means less then most probably think.  It's not like they ever held to budgets they passed anyway.  Remember all those extra appropriation bills they pass?  This is just trying to not scare the American people with sticker shock.  End game is still the same, currency crisis, and all the "good times" that are associated with it.

Tue, 06/22/2010 - 15:20 | 427431 assembler
assembler's picture

Yet, more open and direct exposure of the Ponzi hastens it's collapse.

Tue, 06/22/2010 - 15:31 | 427456 Freebird
Freebird's picture

Lot of skeptism here. Take into account the massive savings achieved by deferring a budget - gubbermint workers, energy, paper, ink, hey the list goes on and on. Count yourselves lucky the USA is not Zimbabwe...




Tue, 06/22/2010 - 16:12 | 427560 RockyRacoon
RockyRacoon's picture

It would be like me if I knew I was facing bankruptcy, I'd just crank up the credit card spending to all limits, pay the minimums, and disconnect the phones.  Let 'em come after me if they want the last ounce of flesh left.  The Feds and Treas are doing just this.  Balances mean nothing any more.  It's the frenzy of the end-game.

Tue, 06/22/2010 - 17:40 | 427811 Freebird
Freebird's picture

And President Obama Mugabe knows it.

Wed, 06/23/2010 - 04:07 | 428595 StychoKiller
StychoKiller's picture

What is the sound of No Budget?!  When a Budget happens, it's Not a Budget!

Zen, so full of paradoxes.

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