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Bipartisan Plan Summary Charts Confirm Key Deficit "Cuts" Come From Imminent Social Security Pillage

Tyler Durden's picture




 

For those who are about to get cerebral hemorrhage trying to figure out the ensuing math, don't worry: it is all based on Marx to Myth.

Chart 1: Where we are

Chart 2: Marx to Myth appears:

Chart 3: Step 1: Find a chart and photoshop it; Step 2: ..... ; Step 3: Profit!

And the culprit, Chart 4: EXCLUDES SOCIAL SECURITY SAVINGS

That's right, the Senate "Bipartisan" committee just admitted that it will be cutting Social Security, purely as a function of the change of the CPI definition and locking in COLA to the deflation in iPads. What? You can't eat or live in an iPad?

Tough.

Source: A bunch of corrupt fat and very rich assholes

 

 

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Wed, 07/20/2011 - 15:37 | 1474833 SparkySC
SparkySC's picture


The Ultimate Knock-Off: A Fake Apple Store
BirdAbroad

This article originally appeared in the China Real Time Report blog.

Apple may have opened only four stores in two cities in China so far, but unbeknownst to the company, they are already expanding elsewhere in country.

blogger in Kunming posted photos on Wednesday of a local store which, from a distance, looked just like one of the consumer electronics giants’ iconic full-service retail stores. It featred a glass exterior, pale wood display tables, a winding staircase and giant posters displaying the iPad 2 and other Apple products, plus a neatly organized accessories wall.

“This was a total Apple store ripoff—a brilliant one,” the blogger, BirdAbroad, wrote. She called it “the best ripoff store we had ever seen.” Photos show employees in blue shirts and Apple-emblazoned name tags similar to those worn by Apple Store employees in Beijing and Shanghai.

It’s unclear whether the store was opened by an authorized Apple reseller, of which the company has more than 10 in Kunming, or another retailer selling Apple products. But its address was not listed among official resellers on the company’s website and Apple currently only has Apple Stores in prime locations in Beijing and Shanghai in China. It wouldn’t be the first time the company has inspired fakes in China, however, where knock-off iPhones and iPads are on display throughout sprawling electronics markets.

Apple, which is in the midst of a plan to expand its presence in China including negotiations with the nation’s largest mobile operator China Mobile, is set to open two more stores, one each in Shanghai and Hong Kong, in the coming months. It has not announced plans to make Southwestern Kunming its next stop. Growing demand for its products over the past two years have drawn a flood of customers to its existing stores, prompting executives to hunt for bigger spaces to build their next locations.

A spokeswoman for Apple in China declined to comment on the store sightings.


Wed, 07/20/2011 - 16:55 | 1475162 tip e. canoe
tip e. canoe's picture

no worries, the $600 trillion derivatives market Timmy mentioned yesterday will cover it no problemo.

Wed, 07/20/2011 - 17:23 | 1475258 CrashisOptimistic
CrashisOptimistic's picture

Look guys, about 1 trillion in spending was added in 2009.

No one said that would destroy the world.

Now let's take off just 300-400 billion in FY2012 spending.

Don't care about taxes.  Raise them if you want.  Don't care about 10 year imagination.  That's all BS.

ALL THAT MATTERS IS CUTTING 300B OFF FY2012 SPENDING.  NOT THE DEFICIT.  SPENDING.

The rest is just crap.

Wed, 07/20/2011 - 16:17 | 1475001 r101958
r101958's picture

This has what to do with the article?

Wed, 07/20/2011 - 16:56 | 1475164 TruthInSunshine
TruthInSunshine's picture

Both pretty much stake the credible claim that we're f*cked.

I concede the connection is a round about way kind.

Wed, 07/20/2011 - 18:00 | 1475359 hannah
hannah's picture

"For those who are about to get cerebral hemorrhage trying to figure out the ensuing math, don't worry: it is all based on Marx to Myth."

 

is marx, groucho marx....ok now it make sense.

Wed, 07/20/2011 - 15:39 | 1474848 slaughterer
slaughterer's picture

What intern prepared these charts?  I detect a few errors of sound reasoning and elementary math.  

Wed, 07/20/2011 - 15:54 | 1474890 hedgeless_horseman
hedgeless_horseman's picture

What intern prepared these charts?

Exactly.  "Excludes Social Security Savings" as a 6 point footnote is so bush league. 

Our senior citizens deserve a higher quality theft...something they can tell their grandchildren about when they move in with them.

Wed, 07/20/2011 - 16:08 | 1474963 MiguelitoRaton
MiguelitoRaton's picture

At 6-point font, no seniors can read it...pure genius. I say we should put up the "Mission Accomplished" poster, turn on the teleprompter and get this party started!

Wed, 07/20/2011 - 15:54 | 1474907 Superslam
Superslam's picture

Please. Interns on Capitol Hill know what they're doing. These charts had to have come directly from a US senator.

Wed, 07/20/2011 - 16:09 | 1474972 Stuart
Stuart's picture

these are purely political slides, not economic..... The current debt is 100+% of GDP, not 69%.  That's a clear heads up it's all political theatre. 

Wed, 07/20/2011 - 16:27 | 1475040 kridkrid
kridkrid's picture

Good spot here: http://budget.senate.gov/democratic/index.cfm/contact - to provide your thoughts to the committee.  Not that they'll read them or care, but...

Wed, 07/20/2011 - 16:40 | 1475052 Urban Redneck
Urban Redneck's picture

IF the current debt (and since the US is a or above the $14T debt ceiling) is only 69% of GDP this year, then their estimate of GDP for all of 2011 must be north of $20T... That would require QE3, QE4, QE5 ... QE14 all to be executed before the end of the 2011 budget year (assuming $600B each).

Or they just eliminated all intergovernmental debt (i.e. erased the trust funds and lock boxes that never really existed anyway).

Wed, 07/20/2011 - 17:19 | 1475247 Stuart
Stuart's picture

that's exactly what they're doing, conveniently excluding all the intergovernmental debt.    Wonder if Joe sixpack is going to catch on to this... 

Wed, 07/20/2011 - 16:31 | 1475065 TempFlashback
TempFlashback's picture

They certainly saved some money by using a 12 year to put this awful presentation together.

Wed, 07/20/2011 - 15:40 | 1474855 bigdumbnugly
bigdumbnugly's picture

gramma would say thank you except she has her mouth full of dog food at the moment.

Wed, 07/20/2011 - 15:45 | 1474878 Whatta
Whatta's picture

cat food is much more easily digestible, and contains more omega 3's for the health conscious under-bridge dweller.

Wed, 07/20/2011 - 15:57 | 1474922 Moe Howard
Moe Howard's picture

Thanks for the nutrition tip.

Wed, 07/20/2011 - 15:57 | 1474923 Rodent Freikorps
Rodent Freikorps's picture

Chicken leg quarters are $0.89/lb. around here.

About half the price of cat food.

Unless you mean dry food.

That sounds like it would be hard on the dentures.

Wed, 07/20/2011 - 16:11 | 1474983 Rodent Freikorps
Rodent Freikorps's picture

They must be starving. Black dogs are the delicacy.

Wed, 07/20/2011 - 16:13 | 1474989 Rodent Freikorps
Rodent Freikorps's picture

Seniors get all the good bennies.

Wed, 07/20/2011 - 16:54 | 1475156 spanish inquisition
spanish inquisition's picture

Sure its cheaper, but her coat won't be as shiny.

Wed, 07/20/2011 - 15:58 | 1474925 earlthepearl
earlthepearl's picture

Great comment, just gave me a belly -laugh
fucking great

Wed, 07/20/2011 - 15:52 | 1474897 Whatta
Whatta's picture

..

Wed, 07/20/2011 - 16:33 | 1475072 mr. mirbach
mr. mirbach's picture

My Korean neighbors are consider real heroes for adopting a new dog from the shelter once a week.  Funny that the shelter never asks what happened to the pet adopted the previous week.

Wed, 07/20/2011 - 15:40 | 1474856 slaughterer
slaughterer's picture

Love the red-white-blue color scheme.  

Wed, 07/20/2011 - 15:54 | 1474911 andybev01
andybev01's picture

+1776

Wed, 07/20/2011 - 15:41 | 1474860 WALLST8MY8BALL
WALLST8MY8BALL's picture

A few months ago I noticed a long line of Chinese people at the Apple Store on 59th St. and 5th avenue. There seemed to be a few "Ring Leaders" with wads of cash going up and down the line. They bought up all the new IPhones etc.. It went on for about 3 weeks. Perhaps that is where the merch ended up.

Wed, 07/20/2011 - 16:26 | 1475038 sethstorm
sethstorm's picture

RICO.

Would have been amusing if that part of the line was all taken in by the cops, ring leaders and all, before the purchases were done.   Then repeated as long as possible.

 

 

Wed, 07/20/2011 - 15:41 | 1474862 SheepDog-One
SheepDog-One's picture

Charge up those Hover'rounds for the riots old folks!!

Wed, 07/20/2011 - 15:41 | 1474863 buzzsaw99
buzzsaw99's picture

someone has to pay for the fat banker bonuses and political bribes.

Wed, 07/20/2011 - 15:42 | 1474865 DonnieD
DonnieD's picture

I love the "source".

Wed, 07/20/2011 - 16:25 | 1475026 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Source is funny.  Marx-To-Myth is DAMN funny.

Wed, 07/20/2011 - 15:43 | 1474869 nah
nah's picture

running out of money cuz them damn seniors just decided

.

we owe them

Wed, 07/20/2011 - 15:43 | 1474870 Franken_Stein
Franken_Stein's picture

 

CBO alternative fia(t)sco scenario.

 

Wed, 07/20/2011 - 15:44 | 1474871 Dr. Engali
Dr. Engali's picture

Have you confirmed that source?

Wed, 07/20/2011 - 15:47 | 1474885 Ham Wallet
Ham Wallet's picture

BWAHAHAHAHAH!!!!!!!  Love the source, Tyler.

Wed, 07/20/2011 - 15:44 | 1474876 Buckaroo Banzai
Buckaroo Banzai's picture

How is this a surprise. Going after the weakest and most defenseless in society is always the coward's move.

The only reason they aren't going after Medicaid, Food Stamps, and EITC is because those folks are young, able-bodied, and potentially prone to violence.

Consumers of Social Security and Medicare, on the other hand, can be safely ignored.

I'm the last person to defend Social Security and Medicare (they are both disasters) but at the end of the day, we have made a lot of defenseless old people dependent on these programs and we owe it to them to maintain them to some degree for at least 10 years.

Our political leaders are truly a sickening and depraved bunch.

Wed, 07/20/2011 - 15:54 | 1474910 NotApplicable
NotApplicable's picture

Well, Buckaroo that's what you get for having the oxymoron known as 'political leaders.'

Wed, 07/20/2011 - 16:03 | 1474950 Rodent Freikorps
Rodent Freikorps's picture

Defenseless?

I cower in fear of pissing off a few hundred thousand HOA harridans, with all the time in the world to cause hate and discontent.

I predict a hurry-up on forming those death panels.

Wed, 07/20/2011 - 16:14 | 1474994 XenoFrog
XenoFrog's picture

As someone who will never receive any Social Security due to my youth, I am quite baffled by the desire to keep the SS ponzi scheme going. We all know it's a scam, why keep going?

 

It's like forcing Madoff investors to keep putting money in so that the people who got in early can get their full payouts.

Wed, 07/20/2011 - 16:20 | 1475011 r101958
r101958's picture

Hmmm, I've been paying into the SS fund for 30 years and haven't received a dime yet. Everybody that paid into it should have the amount returned. No?

Wed, 07/20/2011 - 16:28 | 1475048 duo
duo's picture

they owe me about $200K.  If SS is going away, those who have paid in over a certain amount should be exempt fro witholding.

Wed, 07/20/2011 - 16:31 | 1475059 saulysw
saulysw's picture

Should? Yes. Will? No.

Wed, 07/20/2011 - 16:38 | 1475090 XenoFrog
XenoFrog's picture

The money is gone. It was spent. You got scammed and now you want to scam other people so you get your money back?

Wed, 07/20/2011 - 16:46 | 1475119 Rodent Freikorps
Rodent Freikorps's picture

Other people's money. It's all the rage.

Wed, 07/20/2011 - 16:47 | 1475127 XenoFrog
XenoFrog's picture

Just further proof that we haven't learned a goddamn thing through all of this.

Wed, 07/20/2011 - 16:49 | 1475136 Cognitive Dissonance
Cognitive Dissonance's picture

I suspect the purpose is not to learn a goddamn thing through all of this.

#Winning

Wed, 07/20/2011 - 21:41 | 1475844 RockyRacoon
RockyRacoon's picture

I understand your frustration and appreciate your position.   What you say is that there is more going out than coming in -- on a cash accounting basis.   There are bonds in the SS fund that represent the IOUs for the "stolen" money.   I'd like to hear how you'd handle those bonds if SS is dissolved or eliminated.    The bonds represent the funds that have been taken by those who have involuntarily paid in.   You gonna let the Congress crooks off the hook that easily?   I'll assume you have, or are getting an education in accounting!

See the Geezer's comment below.  As long as they can keep collecting those deductions from you, they will.   You are supporting the government with your cash and they ain't gonna let that slip through their greedy little fingers.

Wed, 07/20/2011 - 20:13 | 1475672 cranky-old-geezer
cranky-old-geezer's picture

40% income tax.

23% income tax and 17% social security / medicare / medicaid "contribution" going into a "trust fund" (not).

Which sounds better?

Now you know why they continue social security.

Wed, 07/20/2011 - 16:57 | 1475166 tip e. canoe
tip e. canoe's picture

"Going after the weakest and most defenseless in society is always the coward's move."

yup

Wed, 07/20/2011 - 17:24 | 1475232 Doyle Hargraves
Doyle Hargraves's picture

What about the bastard boomers that spent the money and want it paid back on the backs of future generations? Generations not even of age of majority yet so they cannot even have a say in how their future earnings are spent? I think they qualify as the weakest and most defenseless in society. The old codgers had their say and they spent to no end...on shit like welfare programs and the warfare state. Let them deal with the consequences of their actions and remember this: The fucking those boomers receive from myself and other future generations will be equal to or greater than the fucking they tried to put on us with their profligate spending on the welfare/warfare state. This will end badly make no mistake about it. No one made these old folks depend on anything...no one said "hey don't save for your own retirement because the gubmint is gonna take care of you." They had the option to take measures to protect themselves and failed. I certainly have no illusions about social security I know every penny is going to those treasonous, hippy boomers that did nothing for this country except stoke the welfare/warfare model of economics and destroy the greatest economic engine on earth by putting sugar in its tank.

NOW JUNK ME BOOMER BITCHEZ!!!

 

http://www.youtube.com/watch?v=X8W5o5bNz4c&feature=related

Wed, 07/20/2011 - 17:24 | 1475263 tip e. canoe
tip e. canoe's picture

doyle, with all due respect, you're being triangulated.   this is exactly the type of division this proposal is trying to forment.   

Wed, 07/20/2011 - 17:43 | 1475300 Doyle Hargraves
Doyle Hargraves's picture

Yeah I may be, but the fact of the matter is, we aint got no damn money plain and simple! Raise debt limits, print trillions, keep the ponzi up? I mean broke is broke, no? What to do...I say let the whole thing fall apart and let wild west anarcho-capitalism be born. Let the chips fall where the may. I understand the two headed one party beast in Washington, I realize the divisions going on amongst people still caught in this false paradigm, but all this feel good welfare crap of the 60s to present from the left head of the beast and duelling warfare state from the right head of the beast seems to me things just cannot keep going the way they are without some serious issues being raised. I am sorry for those who gave in to the system expecting what they paid in to be given back, but short of having PMs (which includes brass, copper, and lead), there is no security or future in fiat or in trusting the government for your future. Over 5,000 years of economic reality is a testament to that one fact. I do not mean any disrespect either, but the facts are facts and a lot of people (including myself), who paid into this crap are gonna get haircuts. We can dilly dally around that fact all day and pretend it isn't so and say well we can do x or we can do y or whatever, but the fact remains a haircut is gonna happen be it overtly by someone saying your money is gone or covertly (the preferred politically expedient way) via fed printing and CPI adjustments. So you know, the talk needs to be focused on the haircut, not the how do we keep growing our hair longer short term. I appreciate your input Tip, not trying to be a tool of the beast or foment hate amongst us all, just speaking my mind on the reality of the whole situation and it is frustrating that at least as it appears to all of us up and comers, the boomers have been running this thing into the ground for decades now, and we have extreme displeasure in the results they have brought.

Wed, 07/20/2011 - 21:06 | 1475439 tip e. canoe
tip e. canoe's picture

i feel you doyle, seriously.   i'll even go one step farther and say that we were never really given a choice in the matter, outside of being a 'criminal'.   i'll even go one step farther than that and say that we were presented with this devil's bargain below the age of legal consent.  so i feel ya.

"but the fact remains a haircut is gonna happen be it overtly by someone saying your money is gone"

honestly, i'd have an ounce of respect for anyone that was willing to come out and say it.  not only that, but i'd be willing to take a 100% haircut on everything i contributed up to this date, PROVIDED i no longer have to pay in under threat of persecution.  but you & i both know that ain't gonna happen.   not yet anywho.   they think we're still children.   and i refuse to give them the pleasure of acting like a child in return.   and you seem much more prepared than i be.   hunker down, disengage from the ponzi as much as possible and stop wasting your energy raging at assholes that treat you like a child.   i say spend your energy discovering novel ways to collect energy for yourself and for others that you trust and care about, including those elders who may be suffering soon.

"Over 5,000 years of economic reality is a testament to that one fact."

agreed, maybe this is one of the revelations at the end of the 5,000 year old mayan calendar.   maybe another one is the whole myth of brother vs. brother (remember Cain & Abel?).   father vs. son, yadda, yadda, yadda.

time to turn the page, yes?

Wed, 07/20/2011 - 21:54 | 1475897 RockyRacoon
RockyRacoon's picture

I'm a "boomer" and didn't junk you.  If you had started out with the reasoned statements of your second comment you would have come off a lot better.   Your frothing rant wasn't constructive nor helpful.   You see how much influence votes have today, or how much "public sentiment" is disregarded in DC.   What makes you think that is a new phenomenon?  It's not.   My protestations at your age got me/us no place.   You can blame boomers, but your anger is misplaced.

Wed, 07/20/2011 - 22:12 | 1475929 Doyle Hargraves
Doyle Hargraves's picture

Yeah Rocky and Tip I think it is just time for self preservation mode in all of this. Trust me if I could get outta the Ponzi I would in a minute. I just got beans, bullets, and bullion and hope I can do whats right when the SHTF for my kids and I will help out whoever needs my help in my family be they young or old. What the heck is CPL talking about at the end of the month? Oh well I has teh bunkerz in teh desert so I am good...I hope! Good luck all.

Wed, 07/20/2011 - 15:45 | 1474879 YesWeKahn
YesWeKahn's picture

"A bunch of corrupt fat and very rich assholes "

 

LOL.

Wed, 07/20/2011 - 15:46 | 1474883 rosiescenario
rosiescenario's picture

Chart 2...The Inverted Hockey Stick Formation....what  a relief to see we are making progress....must be time to get out pm's and into yoga apparel makers....

Wed, 07/20/2011 - 15:49 | 1474888 Escapeclaws
Escapeclaws's picture

Domino Theory: First government pensions, then Social Security and Medicare, then private pensions, IRAs and 401Ks, then Gold and Silver holdings, then...

Wed, 07/20/2011 - 15:52 | 1474900 CrashisOptimistic
CrashisOptimistic's picture

I didn't see any mention of government pensions being touched.

Wed, 07/20/2011 - 15:58 | 1474928 SheepDog-One
SheepDog-One's picture

Although gubment pensions have recently been raided to the tune of $120 billion, at least.

Wed, 07/20/2011 - 16:22 | 1475017 mayhem_korner
mayhem_korner's picture

$206 Billion and counting as of 7/8. 

 

http://www.zerohedge.com/article/retirement-fund-plunder-update-206-billion-so-far-62-billion-left

 

They're not included because they ain't there anymore.

Wed, 07/20/2011 - 16:27 | 1475041 SheepDog-One
SheepDog-One's picture

Wow. Oh and the ridiculous part of that is Timmah promises soon as the debt is done, that money gets put back right away...in other words take out govt pension money for secret POMO operations, replace with mom and pops retirement. Just wonderful. $206 billion right off the top of any 'plan', fucking insane.

Wed, 07/20/2011 - 16:30 | 1475054 mayhem_korner
mayhem_korner's picture

So the nameplate (and not GAAP, mind you) deficit of $14.4T is actually $14.6T, plus whatever re-stocking fees Timmay has run up since QE2 "stopped."

Wed, 07/20/2011 - 16:00 | 1474935 Moe Howard
Moe Howard's picture

Timmay already looted them to finance current operations. 

Wed, 07/20/2011 - 15:52 | 1474901 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

... American's finally realise they have been buggered, and decide to do something about it? (of course, way too late by then. The time is NOW).

Wed, 07/20/2011 - 16:15 | 1474998 SheepDog-One
SheepDog-One's picture

Obama seems to be anticipating that

?Obama to add 20,000 troops to US streets in the event of Civil unrest?‏ - YouTube

Seems we have plenty of funding for troops on american streets.

Wed, 07/20/2011 - 21:56 | 1475900 RockyRacoon
RockyRacoon's picture

Looks like I better get a better scope for my Mini-14.

Thu, 07/21/2011 - 12:19 | 1475901 RockyRacoon
RockyRacoon's picture

Looks like I ought to get a better scope for my Mini-14.

Edit:  Note to self:  Why would I need two scopes?

Wed, 07/20/2011 - 15:51 | 1474892 Buckaroo Banzai
Buckaroo Banzai's picture

dupe

Wed, 07/20/2011 - 15:51 | 1474894 spear-x
spear-x's picture

The "Moment of Truth Project". I bet people are going to start waking up a little more quickly now.

Wed, 07/20/2011 - 15:57 | 1474924 andybev01
andybev01's picture

Fortunately old people don't sleep much.

They seem to be the only (non-ZHer's) people who are paying attention.

Wed, 07/20/2011 - 15:58 | 1474926 NotApplicable
NotApplicable's picture

Suuuuuure they are. More likely, they'll succumb to a different flavor of hopium, that's all.

IT'S THE MOST IMPORTANT ELECTION, EVER!!!1111!!!!!!!1

All herds are assembled for eventual slaughter.

Wed, 07/20/2011 - 16:21 | 1474985 spear-x
spear-x's picture

I wonder what the flavor will be?

Hard to spin dog food and ipads are too crunchy.

Wed, 07/20/2011 - 16:15 | 1474996 Rodent Freikorps
Rodent Freikorps's picture

Wild herds assemble for mutual protection.

Wed, 07/20/2011 - 15:52 | 1474902 lizzy36
lizzy36's picture

That is the most amusing and best source you have ever had.

Wed, 07/20/2011 - 15:53 | 1474903 Rodent Freikorps
Rodent Freikorps's picture

My public union friends were outrageously outraged they only got a 4% raise this year.

Wed, 07/20/2011 - 15:53 | 1474905 Bear
Bear's picture

Thanks God for the 99c Stores ... We'll be ok as long as they don't change their name to 1.99 Stores.

Wed, 07/20/2011 - 15:58 | 1474929 TruthInSunshine
TruthInSunshine's picture

There are a lot more Dollar Trees opening up, too:

Discounters fill in empty big-store sites
Wed, 07/20/2011 - 15:55 | 1474912 Sudden Debt
Sudden Debt's picture

Whatever!

SAVING WHICH WILL START IN 2014?!

COME ON!

We won't do it, but our succesors will. And if not, we'll blame them.

Obama wants to play the good guy by letting future presidents clean up his mess?!

IS IT THAT EASY TO BE A PRESIDENT?!

IS THAT IT WHAT IT TAKES TO "CONVINCE" VOTERS?!

 

If this passes, every American who allows this gets what's comming to him.

 

Wed, 07/20/2011 - 16:00 | 1474938 SheepDog-One
SheepDog-One's picture

We'll just coast along totaly insolvent for a few more years, then start 'saving'....hell are even avg americans dumb enough to swallow any of this crap?

Wed, 07/20/2011 - 16:01 | 1474945 andybev01
andybev01's picture

"IS IT THAT EASY TO BE A PRESIDENT?!"

http://www.vosizneias.com/wp-content/uploads/2011/02/whi56.jpg

"You're honor, since this thing started I have seen shit that would turn you white!"

-Winston Zeddemore

Wed, 07/20/2011 - 16:22 | 1475016 Diogenes
Diogenes's picture

They are getting what is coming to them now. The US govt has operated on the slick trick, the quick fix and the gimmick since Carter left town and now they are paying for it.

Am I the only one who noticed how much the US has gone down hill since 2OOO. Did no one else notice the ongoing financial crisis we have been in since 2OO7.

Wed, 07/20/2011 - 16:41 | 1475100 pods
pods's picture

Merely the slope on the debt chart increasing.  Exponents tend to do that.

pods

Wed, 07/20/2011 - 15:58 | 1474927 treemagnet
treemagnet's picture

Get ready for solid AARP tv ads.

Wed, 07/20/2011 - 15:59 | 1474931 somethingelse
somethingelse's picture

go long Scooter Store and LifeAlert!

Wed, 07/20/2011 - 16:00 | 1474936 treemagnet
treemagnet's picture

don't forget about "the clapper"

Wed, 07/20/2011 - 16:05 | 1474957 SheepDog-One
SheepDog-One's picture

Ooooo dont remind me, got that in Panama City in 2002. 

Wed, 07/20/2011 - 16:27 | 1475042 Blano
Blano's picture

Flagged as funny.

Wed, 07/20/2011 - 16:00 | 1474934 oldmanagain
oldmanagain's picture

Next up, solyent green solution. This is after the work gangs.

Wed, 07/20/2011 - 16:01 | 1474944 lizzy36
lizzy36's picture

I would like to believe that if the sheeple were aware of this, if this post was the front page of every newspaper in the country and every news show on TV lead with this post, that said sheeple would march on Washington come Saturday, with a clear message:"NO FUCKING WAY".

Wed, 07/20/2011 - 16:07 | 1474960 Caviar Emptor
Caviar Emptor's picture

They probably wouldn't. It's all their own fault anyway, y'know, so they're told. 

Wed, 07/20/2011 - 17:05 | 1475202 MachoMan
MachoMan's picture

No, they'll march...  but, it won't be to cut spending, it will be to keep spending and funding of entitlements (all of them)...  see generally, every protest in every developed country for the last 3 years.

Wed, 07/20/2011 - 16:02 | 1474946 CrimsonAvenger
CrimsonAvenger's picture

Wait - there's still a deficit as a % of GDP (chart 2), but total DEBT as a % of GDP actually shrinks (chart 3)?

I think my teeth just tried to reach around my head to eat my brain.

Thu, 07/21/2011 - 02:55 | 1476278 jeff montanye
jeff montanye's picture

it's because gdp grows so dang fast in a depression.

Wed, 07/20/2011 - 16:05 | 1474953 dogismyth
dogismyth's picture

this needs to get commercial time on all major media channels from 7pm to 8pm for about a week.

http://www.youtube.com/watch?v=yhJKGJdVTcs&feature=player_embedded

Wed, 07/20/2011 - 16:05 | 1474955 Caviar Emptor
Caviar Emptor's picture

Think of it: with the money we save from Social Security we can give BAC it's $50 billion capital cushion and go for another round of bailouts! And there'll still be money left over for raising tax subsidies to oil companies! 

It's so good to see clearheaded thinking returning to DC

Wed, 07/20/2011 - 16:09 | 1474971 SheepDog-One
SheepDog-One's picture

I think its awesome, I never imagined Id actually get Socialist Security anyway, so let em cut away! Hope the kids are preparing their bedroom for when mom and pops move back in soon, already had Biff and Buffy move back in fresh out of college with no job openings. Enjoy, america.

Wed, 07/20/2011 - 16:13 | 1474991 Caviar Emptor
Caviar Emptor's picture

Oh I think we need to plan more seriously: 3 to 4-generation houses which can simultaneously house jobless young adults returning post-college, their under-employed parents, granny and gramps moving back in due to lack of retirement funds and the great-grands who are on life support at age 120 thanks to the miracles of modern science

Wed, 07/20/2011 - 16:21 | 1475013 treemagnet
treemagnet's picture

I think you describing...."The Waltons".  Seems to me that show was also about surviving depressions, hmmmmm.  And Granny was just flat out mean, period.

Wed, 07/20/2011 - 16:31 | 1475039 LFMayor
LFMayor's picture

and Mary Ellen was smoking hot man.  Then I got to see her in a Hustler (i think, but it matters not) a few years later and DAMN, would have taken a weed eater to get through that forest.

Wed, 07/20/2011 - 16:34 | 1475078 treemagnet
treemagnet's picture

sort of surprised theres no "John Boy" avatar here at ZH -

Wed, 07/20/2011 - 16:44 | 1475112 pods
pods's picture

Can't forget the parapets and clear shooting lanes either.  Or the room for the Filas.  

pods

Wed, 07/20/2011 - 16:05 | 1474956 KrugmansChauffeur
KrugmansChauffeur's picture

Where is the chart with SS included?

Wed, 07/20/2011 - 16:10 | 1474967 Bob
Bob's picture

Seems to me that a "chained" CPI is exactly what was in use in Orwell's 1984

Am I right here??

Wed, 07/20/2011 - 16:09 | 1474970 cougar_w
cougar_w's picture

You know how I can tell these guys are clueless fucks?

They have actual working projections going out past 2015.

Anybody trying to project any of this shyt past a few years is smoking some really bad weed. No wait, past 2013. I mean, what part of EOTWAWKI didn't register with this idiots?

Wed, 07/20/2011 - 16:10 | 1474982 SheepDog-One
SheepDog-One's picture

Anyone saying theyre seeing into next MONTH with their crystal ball and reading it correctly is simply a LIAR!

Wed, 07/20/2011 - 17:10 | 1475219 MachoMan
MachoMan's picture

Maybe they have more information than you...

Wed, 07/20/2011 - 16:09 | 1474973 dogismyth
dogismyth's picture

what each person NEEDS to do is send their letters of termination of participation to the US Treasury regarding any contracts (visible or invisble) before the debt ceiling is raised again.  Put them on notice, formally and publicly, that the debt is not yours and you will no longer contract with the criminal network also known as the US Government and its affiliates.

Wed, 07/20/2011 - 16:09 | 1474974 Natasha
Natasha's picture

After the cuts start, many Seniors that aren't already on food stamps, will be.

 

 

Wed, 07/20/2011 - 16:10 | 1474980 Caviar Emptor
Caviar Emptor's picture

This is a big day for Biflation! Suck some more money out of anticipated retirement assets and reduce Medicare, and people need to allocate more of what's left to future needs. 

That's perfect! Main Street will contract some more. 

Oh and we do need to keep spending billions daily on QE lite and recapitalize Bank of America. But that all trickles down....or is it up??

Wed, 07/20/2011 - 16:48 | 1475131 pods
pods's picture

Something is trickling down on us, and it ain't raining!

pods

Wed, 07/20/2011 - 16:11 | 1474984 Beancounter
Beancounter's picture

I don't know why they just don't say fuggedaboudit no Social Security for anyone under 45.... They can turn it into a cash balance plan. 

Not like we're expecting it to be there anyway.  So long as they means test the top end, and cap my SS payments, i.e. I only have to pay X more for Y more years (or until I'm 50).  I might actually be able to live with the screwjob ponzi scheme that was SS - darn you FDR.

Wed, 07/20/2011 - 16:12 | 1474987 Beancounter
Beancounter's picture

No banker bonus tax? what? or is "banker bonus" code for "campaign contribution" source

Wed, 07/20/2011 - 16:14 | 1474992 SheepDog-One
SheepDog-One's picture

No worries, nothing to see here all is well....SO well in fact Obama just approved 20,000 troops for 'civil unrest'

?Obama to add 20,000 troops to US streets in the event of Civil unrest?‏ - YouTube

Wed, 07/20/2011 - 16:16 | 1475000 dogismyth
dogismyth's picture

20,000???  LMFAO!!!!

Wed, 07/20/2011 - 16:21 | 1475015 SheepDog-One
SheepDog-One's picture

Yea Im not worried about it at all, wouldnt even be enough for US major cities, but it shows what THEY think is coming!

Wed, 07/20/2011 - 16:36 | 1475070 spear-x
spear-x's picture

Buckle your seat belt and put on your crash helmet.

Wed, 07/20/2011 - 16:16 | 1474999 Caviar Emptor
Caviar Emptor's picture

I'm looking for partners to form a food company. We specialize in green tablets made from "organic" sources. We have a special contract with the government and funeral parlors. All inquiries will be kept confidential...

Wed, 07/20/2011 - 16:19 | 1475008 Piranhanoia
Piranhanoia's picture

Our own government is calling on the people for a violent revolution to overthrow them. Maybe they really are captive to the corporations and this is the only way to break the grip?

Wed, 07/20/2011 - 16:23 | 1475021 SheepDog-One
SheepDog-One's picture

Thats part of their plan definitely, they run away when 'the people go crazy', gives them a perfect out.

Wed, 07/20/2011 - 16:34 | 1475077 andybev01
andybev01's picture

Are you syaing that it was written by Barney Frank?

Wed, 07/20/2011 - 16:24 | 1475025 Seasmoke
Seasmoke's picture

so this doesnt hurt any politicians or public employees .........GAME ON !

Wed, 07/20/2011 - 16:25 | 1475030 Let them all fail
Let them all fail's picture

I thought step 1 was steal underpants...hmmm...

Wed, 07/20/2011 - 16:26 | 1475036 Long-John-Silver
Long-John-Silver's picture

The largest Ponzi Scheme in history continues. The winners die before it ends.

Wed, 07/20/2011 - 16:28 | 1475050 Critical Path
Critical Path's picture

HAHA, epic fail... best that can be done by 2021 is +2% from present... give me a break.

Wed, 07/20/2011 - 16:29 | 1475053 Archimedes
Archimedes's picture

Truly sad.........

Wed, 07/20/2011 - 16:38 | 1475087 Happy Days
Happy Days's picture

Fact: The gooferment, feral reserve and all their ASSociates lie. I think we can just about all agree with this.

That being true, then why would anyone believe numbers given by OMB and CBO or any other gooferment mouthpiece agency?

How does anyone know for sure the gooferment really is broke? How does anyone really know what the real balance sheet is? You are only given one side...liabilities. What about assets? What about a P/L statement? Where are these details? Yeah, like liars are going to tell the sheeple this....sure. USA, Inc. is operating at a profit...more than likely (collectively with the feral reserve). We are the employees and the top don't tell the bottom the whole story. It won't happen. It's just a show...Hollywood East production.

So to change things, the employees need to quit working. If you go to work, you support the system. Like it or not, that's the fact. We quit 11 years ago....it's time for everyone to do this or quit "complaining". Doing nothing means nothing gets done....simple solution and easy to do (yeah, I know, bills and mortgages to pay...well maybe rethink who you will pay and not pay...that should be easy to figure out).

Wed, 07/20/2011 - 16:40 | 1475095 inca
inca's picture
WE MUST SAVE SOCIAL SECURITY! by Allen W. Smith, Ph.D., Professor of Economics, Emeritus, Eastern Illinois University For the past 25 years, crooked politicians, from both political parties, have been violating the public trust, and federal law, by diverting money, collected exclusively for Social Security, to the general fund and using it for tax cuts, wars, and other government programs. A total of $2.6 trillion of surplus Social Security revenue, which was earmarked specifically for paying benefits to baby boomers, has been spent for general government operations.    On March 16, 2011, Senator Tom Coburn (R-OK) spelled out the awful truth during a Senate speech.  He said:                                         Congresses under both Republican and Democrat control, both Republican and Democrat presidencies have stolen money from social security and spent it.  The money’s gone.  It’s been used for another purpose.”   Every word that Senator Coburn spoke was absolutely true, and I have not seen any member of Congress try to rebut him.  The day of reckoning is now upon us. Since the money that was supposed to be used to ensure the payment of full benefits to the baby boomers has all been spent on other things, and no provisions have been made to repay the $2.6 trillion of looted money, politicians are now advocating benefit cuts so the looted money will not have to be repaid, and so the public will not find out about the stolen money.   We cannot allow politicians from this generation to get by with stealing from us, and from future generations.  We must expose the great Social Security theft, and we must demand repayment of the looted money.  video+ more here
Wed, 07/20/2011 - 17:12 | 1475230 r101958
r101958's picture

"A total of $2.6 trillion of surplus Social Security revenue, which was earmarked specifically for paying benefits to baby boomers, has been spent for general government operations." ....Surplus eh?

Wed, 07/20/2011 - 16:41 | 1475099 Mr. Poon
Mr. Poon's picture

Never thought I would see Tyler carrying water for the "evil conservatives and libertarians want to push Granny off a cliff" progressives, but, well, here we are.  Somebody's got to be water boy for the team, right?

The difficult reality - which surprisingly few here seem to be willing to face - is that the largest use of Federal funds is for transfer payments to the elderly and the poor.  That's why this is so incredibly difficult.  You can't get out of this mess by cutting government payroll; there aren't enough employees in all the non-DoD agencies to close the gap.  You can't even get out of the problem by disbanding the entire military, which would be foolish in the extreme.

We are borrowing on the order of 43% of what is being spent.  "Discretionary spending" - which is where most government employees work - is 20% of expenditures.  The DoD is another 20%.  You do the math.  Somewhere, somehow, that 43% of expenditures going to direct transfer "benefit" programs is going to have to take a serious cut.  And of those, entitlement programs are growing the fastest, by far.  You do the math.

So spare us the HuffingtonPost-worthy headlines.  We're not stupid.  We didn't accidentally wander over here from looking for the latest news on celebrity gossip.  We are all (presumably) adults here who understand the reality, and it's time to face it, even if the politicians won't.

Wed, 07/20/2011 - 16:53 | 1475126 hedgeless_horseman
hedgeless_horseman's picture

I agree with this:

Somewhere, somehow, that 43% of expenditures going to direct transfer "benefit" programs is going to have to take a serious cut. And of those, entitlement programs are growing the fastest, by far.

However, if it is either/or for the order of operations...

  1. cutting government payroll
  2. disbanding the entire military
  3. steal from the old and infirm

or

  1. steal from the old and infirm
  2. disbanding the entire military
  3. cutting government payroll

...I vote for the first one.  It was a government of the people, by the people, and for the people.  Not the other way around.

Wed, 07/20/2011 - 17:00 | 1475185 malikai
malikai's picture


The difficult reality - which surprisingly few here seem to be willing to face - is that the largest use of Federal funds is for transfer payments to the elderly and the poor.  That's why this is so incredibly difficult.  You can't get out of this mess by cutting government payroll; there aren't enough employees in all the non-DoD agencies to close the gap.  You can't even get out of the problem by disbanding the entire military, which would be foolish in the extreme.

I don't see anywhere in the proposal any significant cuts in military spending. Anyway, this is all irrelevant. The fact is, the solution chosen is inflation. We can hemm and haww all day long about it but that won't change the fact that inflation+military serves the plutocracy. Therefore, it will be chosen.

Wed, 07/20/2011 - 17:57 | 1475295 TruthInSunshine
TruthInSunshine's picture

Defense = 1 trillion annually

Social Security = 1 trillion annually

Medicare = 1 trillion annually

 

These are approximate figures, but close enough.

Regardless as to the whys, what's fairs, whoseys, etc., there can't be any remotely serious reduction of deficit spending, let alone chipping away at the accumulated debt, without deeply gorging these 3 sacred cows.

Wed, 07/20/2011 - 21:03 | 1475775 AmCockerSpaniel
AmCockerSpaniel's picture

Medicare..... A SACRED COW?  You are talking about life, and death here!  Kill Medicare, and the average life span will drop (if I'm dead you don't have to send me a SS check). The "ultimate solution"! Just where did you come up with that?

Thu, 07/21/2011 - 05:33 | 1476318 malikai
malikai's picture

How good will SS or Medicare be when the dollar doesn't buy a cat's turd and all their assets/payouts are in dollars?

Wed, 07/20/2011 - 17:13 | 1475233 r101958
r101958's picture

Take out the surplus SS funds and how much are we really borrowing?

Wed, 07/20/2011 - 19:34 | 1475596 hedgeless_horseman
hedgeless_horseman's picture

...surplus...

Excellent point.  The devil truly is in the details.

Wed, 07/20/2011 - 17:17 | 1475243 Tyler Durden
Tyler Durden's picture

Actually at last check it was borrowing 55% of what is being spent. And if there was a footnote discussing savings from cuts to the military or any other budget, we would have highlighted that too most certainly.

Wed, 07/20/2011 - 18:17 | 1475405 gwar5
gwar5's picture

Mr. Poon, I think your bow tie is too tight.

The social welfare entitlements were mostly liberal programs and social promises that were made to get votes and make TPTB rich, with the full knowledge by the social engineers of the day that they were subject to collapse in the future. Now that the moment of truth has arrived the democrat response has been authoritarian and disgraceful. Dem responses:

1. Rationing of healthcare and compulsory death panels to accelerate the death rates to avoid providing health care. Conveniently, this will also accelerate the collection of estate taxes. 

2. CPI and COLA gimmicks to cheat seniors and the disabled out of their fair share.

3. Inventing a fraudulent Global Warming scare to create a whole new set of "climate taxes" to prop up the social welfare Ponzi a little longer.

Massive progressive deficit spending on social programs is the primary money pump for the Wall Street banking cartel, and it's not a Win-Win. The reality for the American leftist politician (and GOP) is the whether they are going to represent the people or the banks, because it can't be both. 

At least the average Greek leftist finally realizes how their politicians and banker elites have colluded to sell them out.

 

 

 

 

 

 

 

 

 

Wed, 07/20/2011 - 20:49 | 1475754 AmCockerSpaniel
AmCockerSpaniel's picture

I don't like it (retired and trying to live on SS), but what has been done, is done (loaded up the rolls on SS and pillaged the SS piggy bank). So with out enough workers to support the elderly, we have to make some major changes. My question is; Is every group (poor, middle, & rich) going to take the same percentage of a hit? If not, we can expect real trouble.

Thu, 07/21/2011 - 01:35 | 1476231 StychoKiller
StychoKiller's picture

Real Trouble™, coming to a town near you -- soon!  (MUCH sooner than you think)

Wed, 07/20/2011 - 17:12 | 1475229 Catullus
Catullus's picture

So, they're calling this a lot things and many guest writers to ZH have alluded to this, but changing the COLA calc is defaulting on welfare and social security. The dems are simply not taking enough heat from their base on this. They have either silenced dissent, or people haven't figured it out yet.

Thu, 07/21/2011 - 04:59 | 1476312 Bagbalm
Bagbalm's picture

If it isn't on TV they have no clue.

Wed, 07/20/2011 - 17:26 | 1475271 Big Ben
Big Ben's picture

Inflation is a time-proven way for governments to default against traditional debts. But it doesn't work well for inflation-indexed debts (like Social Security and TIPS). To inflate these debts away, you need to change the inflation index so that it no longer registers the presence of inflation.

So this proposal is a logical and necessary step for any government planning to inflate away its debts. Everything seems to be proceeding according to plan.

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