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Is The Budget Deal On The Verge Of Collapsing?

Tyler Durden's picture




 

Something rather troubling for the "kick the bankrupt (and only modestly radioactive, still way below the unrevised legal threshold though) can down the street crowd"- Commentary Magazine reports that the "Budget Deal", won after so much theatrics, soap opera, and Razzie nominations, may in fact collapse shortly. "The big news today is that the $38.5 billion in
budget cuts announced with such fanfare on Friday night mostly aren’t
real. A good deal of it involves money from previous years and previous
budgets that hasn’t actually been spent." Commentary refers to an AP article in which it is made clear that the proposed legislation is one 'financed with a lot of one-time savings and cuts that officially "score" as savings to pay for spending elsewhere, but that often have little to no actual impact on the deficit...cuts to earmarks, unspent census money, leftover federal construction
funding, and $2.5 billion from the most recent renewal of highway
programs that can't be spent because of restrictions set by other
legislation. Another $3.5 billion comes from unused spending authority
from a program providing health care to children of lower-income
families." And once the more vocal fringers realize they have been cheated once again by both parties, it is possible that the whole thing could just as easily fall apart, and just in time for the US debt ceiling to be breached within 1-2 weeks tops.

The bottom line is that even the woefully inadequate number of cuts previously cited, as great success for the GOP, is big fat lie:

The total amount actually cut appears to be somewhere between $8 and $14 billion.

The politics here are very complicated now. On the one hand, polls suggest the public is overwhelmingly in favor of there having been a deal, around 60 percent or so. On the other, politically engaged people on both the Right and the Left are profoundly upset by what they take to be unprincipled caving on the part of the leaders of the two parties.

That profound concern is likely to spur a populist revolt this week, over the next 72 hours, before the vote is taken. Already there are indications that a great many House members are going to vote against the deal. What we don’t know, or can’t know, is whether grass-roots velocity has sped up to such a degree over the past several years that we could be looking at a major meltdown of support when the votes are cast, as Republican members honestly balk at the clear deceit of the negotiators in making non-existent cuts in federal spending—and as they fear the wrath of the voters (particularly tea partiers). Meanwhile, Leftist Democrats who feel betrayed by Barack Obama and Senate Majority Leader Harry Reid might also decide to teach them a lesson by withholding support.

And then, all of a sudden, there will be a shutdown. And no plan to end it. And make no mistake—the public will blame the GOP.

Those who wish to replicate the math can do so using the GOP Summary of the Continuing Resolution.

Republican Budget Deal Summary

 

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Tue, 04/12/2011 - 15:49 | 1162748 RobotTrader
RobotTrader's picture

Obviously, the debt ceiling doesn't matter today.

TLT and TIPS both experiencing voracious demand.

TIP is now paying 6.4%, probably pretty attractive while risk assets are imploding again.

Tue, 04/12/2011 - 15:50 | 1162763 max2205
max2205's picture

Try 2.68% RT...gezzzz

Tue, 04/12/2011 - 16:06 | 1162836 IBelieveInMagic
IBelieveInMagic's picture

OT, Tyler or any reader, any perspective on the feverish BRICS meeting in China tomorrow in advance of G7 meeting this month? Does it look like positioning for some serious negotiations on new financial order? Any thoughts?

Tue, 04/12/2011 - 17:19 | 1163070 Imminent Crucible
Imminent Crucible's picture

RT is looking at the yield on Barclay's TIP bond fund, not the actual TIPS yields. The current top rate for TIPS is the 3 7/8% April 2029 30yr, issued in April 1999.

The TIPS rate is set when the bond is auctioned and stays the same to maturity. The inflation-indexing is accomplished by adjusting the principal due (but you don't get that back until maturity). So, rest assured that your 30-year investment with the USG will be returned (eventually) in inflation-adjusted FRN's, with the rate determined by the same guys who model owner's-equivalent rents and the edibility of iPads.

Tue, 04/12/2011 - 17:55 | 1163151 Piranhanoia
Piranhanoia's picture

30 years. Two radioactive products, a bond and the half life of cesium 137.  Both quite poisonous.

Tue, 04/12/2011 - 19:26 | 1163371 Misstrial
Misstrial's picture

Not sure why you were junked, however what you post is true.

~Misstrial

Wed, 04/13/2011 - 00:36 | 1164151 RockyRacoon
RockyRacoon's picture

Looks like an influx of RoboTrolls junking anything that makes sense.  What this joint needs is a Thumbs-Up button.

Tue, 04/12/2011 - 15:52 | 1162772 Cdad
Cdad's picture

Robo,

You mean the TLT is doing a light volume melt up....just like everything else in this Ponzi market.

Tue, 04/12/2011 - 16:05 | 1162811 baby_BLYTHE
baby_BLYTHE's picture

You don't quit You cannot just print up all this play money, put it into the economy and expect zero consequences. We are all going to pay dearly just so an egg-head academic can go around giving speeches on how he saved the entire world from certain implosion World wide Benocide is just getting started. We are about to enter an inflationary Depression that will look and feel worse than any economic collapse in history. If you don't have gold. Get some now along with a firearm to protect ur family.

Tue, 04/12/2011 - 16:13 | 1162858 Cleanclog
Cleanclog's picture

We issue $6 Billion a day in debt but Congress can't figure out $38 Billion in REAL cuts?  Sham. Gonna get super ugly  on next round and next year's budget.  

Can't help but laugh every time I hear one shill or another talk about how this or that will be okay by 1225 budgetarily.  Really?

Tue, 04/12/2011 - 16:15 | 1162865 slaughterer
slaughterer's picture

Make way for "Budget Deal 2".  Coming to a vomitorium near YOU!

Tue, 04/12/2011 - 18:38 | 1163251 nmewn
nmewn's picture

Hey!...they'll only spend 1.4 trillion >>>more<<< than they actually have in revenue this year...LOL.

I remember when everyone freaked over a trillion dollar budget...instead of a trillion dollar budget deficit.

The lunatics are running the asylum.

http://www.youtube.com/watch?v=T1bgxfxchkQ

Tue, 04/12/2011 - 16:03 | 1162820 Clamdigger
Clamdigger's picture

That all-new avatar is totally throwing my game off.

Tue, 04/12/2011 - 16:09 | 1162843 Robot Traders Mom
Robot Traders Mom's picture

Thanks Robo. I'm surprised the football team let you out of the locker.

Tue, 04/12/2011 - 19:42 | 1162983 Zero Govt
Zero Govt's picture

Oh Good, Clown Show The Sequel in 2 weeks... they'll be putting NBC out of the entertainment and comedy business if this continues with Ronald Obumma McDonald as cheif red nose and size 19 shoe wearer leading the circus ...simply can't wait for his budget speech tomorrow, should be non-stop comedy start to finish   

Tue, 04/12/2011 - 17:04 | 1163028 SheepDog-One
SheepDog-One's picture

LOL Robo youre such a poor troll.

Wed, 04/13/2011 - 00:10 | 1164106 Ying-Yang
Ying-Yang's picture

Robo... I bet when you eat salty popcorn at the Saturday matinee, your crabs get thirsty and they get up to go get a drink of water, you hop up and change seats.

Tue, 04/12/2011 - 15:47 | 1162750 max2205
max2205's picture

SHOCKED!!!! You can't make this shit up...Tea Party is going to be all over this like Barnney Frank at a chuckie chesse

Tue, 04/12/2011 - 16:04 | 1162823 mynhair
mynhair's picture

More like Chucky Schmucky over a TV camera...

Tue, 04/12/2011 - 15:50 | 1162751 CPL
CPL's picture

Three Card Monte for the win!!

Tue, 04/12/2011 - 15:56 | 1162754 hedgeless_horseman
hedgeless_horseman's picture

And then, all of a sudden, there will be a shutdown. And no plan to end it. And make no mistake—the public will blame the GOP.

Nobody blames anyone for a blessing. 

We give thanks and praise!

  1. Shut the Federal Government down.
  2. Shrink it to at least 1/5th its current size.
  3. Reap the thanks and praise.

http://www.youtube.com/watch?v=YYjBQKIOb-w

Tue, 04/12/2011 - 15:56 | 1162786 NOTW777
NOTW777's picture

usually they blame Bush first then Palin

Tue, 04/12/2011 - 16:22 | 1162894 Rick Masters
Rick Masters's picture

Do you believe in trimming the defense budget by say a $100 billion? or is that off limits?

Tue, 04/12/2011 - 16:25 | 1162901 mynhair
mynhair's picture

Only after DOE, DOA, NIH, DHS, DOS, HHS, and ED are eliminated.

Tue, 04/12/2011 - 17:19 | 1163066 HeadintheGame
HeadintheGame's picture

WTH's wrong with including DOD equally weighted with all those other bloated bureauracies ?  Just because killing people is the most efficient thing we do in government, shouldn't give it a free pass.

Tue, 04/12/2011 - 16:35 | 1162933 hedgeless_horseman
hedgeless_horseman's picture

Do you believe in trimming the defense budget by say a $100 billion?

I am all for it, but it would take a miracle.  Bring 'em all home. 

Tue, 04/12/2011 - 16:46 | 1162969 Backspin
Backspin's picture

Cut defense by 100B?  Shoot, there's as much bloat and inefficient beauracracy there as in any branch of government.  I believe that any reasonable person should be able to trim at least 300B without much trouble.

Think that's crazy?  Then cough up 300B, please.  It's just not there, people.  Not there.  I'm thinking about this thing called Reality, that most politicians ignore.

 

Wed, 04/13/2011 - 00:40 | 1164165 RockyRacoon
RockyRacoon's picture

I've been disenchanted with the military budgets since 1971.  My Air Force job was electronic tech and we used a "bench stock" for small parts for repairs.  Each little bin had the price on it as well, as a measure proposed to let us know how much of the taxpayer money we were using in our work.   Simple shit like common resistors and capacitors (not mil-spec) were priced at $8 to $15 each.  When we were out we'd run over to Radio Shack and buy them out of pocket for a ten cents to a quarter.   I was never fooled again.

Tue, 04/12/2011 - 18:57 | 1163295 nmewn
nmewn's picture

Rick,

"Do you believe in trimming the defense budget by say a $100 billion? or is that off limits?"

You could take all of it (680 billion in 2010) and not even get half way to the deficit...let alone the debt outstanding.

That's how big the numbers are.

They have a spending problem not a revenue problem.

Tue, 04/12/2011 - 15:52 | 1162760 bob_dabolina
bob_dabolina's picture

I'd rather live in total anarchy than watch this never ending bullshit.

Our government is so useless 

Tue, 04/12/2011 - 16:01 | 1162787 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

"Our government is so useless"

- Not true, they are brilliant. They couldn't have executed this plan any better really. They have managed, for their masters, to steal vast amounts of wealth from the majority of citizens and place it in the hands of the few. Not too mention the fascism they have managed to impose in such a sort amount of time...

... most people don't even realise what the government has done to them, let alone do anything to oppose it.

A big standing ovation for a masterful government puppets, their owners must be very pleased with the progress made so far in enslaving the populous with as little resistance as possible.

Bravo i say, slaughter the sheep.

Tue, 04/12/2011 - 17:21 | 1163073 SheepDog-One
SheepDog-One's picture

The govt is brilliant compared to the stupid neandersheeple public.

Wed, 04/13/2011 - 00:43 | 1164172 RockyRacoon
RockyRacoon's picture

I'll agree that Fascism may be the result, but I'd argue that it was not the original intent.  It is a normal offshoot of the type of greed being demonstrated, tolerated, and encouraged in certain government and financial quarters.

Tue, 04/12/2011 - 16:11 | 1162845 andybev01
andybev01's picture

 

an·ar·chy

[an-er-kee] –noun
1.
a state of society without government or law. 2.
political and social disorder due to the absence of governmental control: The death of the king was followed by a year of anarchy. 3.
a theory that regards the absence of all direct or coercive government as a political ideal and that proposes the cooperative and voluntary association of individuals and groups as the principal mode of organized society. 4.
confusion; chaos; disorder: Intellectual and moral anarchy followed his loss of faith.  I'm not seeing a difference here...
Tue, 04/12/2011 - 16:44 | 1162931 Zero Govt
Zero Govt's picture

the dictionary definition of anarchy, like the definition of capitalism, is academic bullshit

so-called 'anarchy' is usually applied to extremely brief (a few days) times when Joe Public lop the heads off the delusional parasitical elite. This is of course not anarchy, but clearing the parasites and a return to social (natural) order

Anarchy is not the result of no Govt or Law, it is in fact a state of Govt and Law (tyranny). Both are Totalitarian controls over a free people (try not paying your tax to feel terror)

We have been well and truly brain-washed to accept a persistent state of elite parsitical control. We have truly forgotten what actual freedom is and how much of our wealth and liberty is robbed every day of every month by the Govt

We are living in a State of anarchy where the parasites are running riot across societies (not nations, they do not exist either but are pure political fabrications to border and then tax and control us)

We were born free... from that point on we are systematically tagged, bullied, coralled and robbed (and lied to) by the State, by parasites

Tue, 04/12/2011 - 17:23 | 1163077 HeadintheGame
HeadintheGame's picture

+1

Wed, 04/13/2011 - 03:43 | 1164398 StychoKiller
StychoKiller's picture

Sorry, o confused one:  Anarchy != Chaos

Tue, 04/12/2011 - 15:50 | 1162762 Cdad
Cdad's picture

Well, then there will be a shutdown...because the Dems actually want one.  However, there must be a mistake in the article because it says, "make no mistake, the public will blame the GOP."  Ummmm...the writer must have meant that the public will "give the credit to the GOP."

Am I missing something here?  

But anyway, like radiation, I'm sure it's all super uber bullish...

 

Tue, 04/12/2011 - 17:28 | 1163095 SheepDog-One
SheepDog-One's picture

Politicical jockeying bullshit. Yea made me mad too seeing that in this article, we should all be WAY above the 2 heads of the 1 political party bickering and squabbling to place blame for what they all do on 1 or the other. All total bullshit for suckers.

Wed, 04/13/2011 - 00:51 | 1164184 RockyRacoon
RockyRacoon's picture

Sure it is, you are right.  But the blame will go to the Party that wants to "starve the orphans", regardless of which Party it actually is.  The lumpen proletariat will blame anyone with any idea that involves change.   And that blame will be directly proportional to the boldness of the change involved.  The article would be correct in this case.

Tue, 04/12/2011 - 15:52 | 1162764 Milton Waddams
Milton Waddams's picture

Congress is where you go when you come to the realization that the business you started / inherited / graduated into is better off in the hands of more capable operators.  

Tue, 04/12/2011 - 15:55 | 1162774 Misean
Misean's picture

"Another $3.5 billion comes from unused spending authority from a program providing health care to children of lower-income families."

How is that even possible?!?! Don't they care about the chiiiilllllddrrrreeeen?!?!?

Tue, 04/12/2011 - 15:56 | 1162785 LFMayor
LFMayor's picture

we already have a surplus of lower income families... shouldn't there be even more unspent monies in this program?

Tue, 04/12/2011 - 15:53 | 1162777 pazmaker
pazmaker's picture

Let's hope it does collapse!

Tue, 04/12/2011 - 15:53 | 1162778 6 String
6 String's picture

...And to think, with such favorable conditions that the market almost went down 1% today (well, I know there is 5 minutes left but the despots can't allow for a 1% or more decline now can they? while POMO is still on).

 

Tue, 04/12/2011 - 15:55 | 1162781 topcallingtroll
topcallingtroll's picture

Then shut it down and default.

This will prevent politicians and the parasites from adding further debt for our children to pay.

If we default on just one treasury that would be enough to stop big government in its tracks.

Tue, 04/12/2011 - 15:55 | 1162782 oogs66
oogs66's picture

They really can't help themselves, can they?  They just lie, lie, lie, spin, congratulate themselves and expect us all to be happy with them?  I hope it is starting to catch up to them, and not just at places like ZH which have always been questioning their lies, but even more mainstream sites.  They have to be called out on this!  Barry, all grinning, and self congratulatory, and they couldn't come up with $38 billion or real cuts?  

Tue, 04/12/2011 - 16:41 | 1162945 EscapeKey
EscapeKey's picture

Very rarely do I agree with user comments on BusinessInsider, but today there was one which hit the mark:

An analogy for the recent budget compromise in D.C.: "We have a family that is spending $38,200 per year. The family’s income is $21,700 per year. The family adds $16,500 in credit card debt every year in order to pay its bills. After a long and difficult debate among family members, keeping in mind that it was not going to be possible to borrow $16,500 every year forever, the parents and children agreed that a $380/year premium cable subscription could be terminated. So now the family will have to borrow only $16,120 per year."

Read more: http://www.businessinsider.com/why-the-budget-deal-is-collapsing-2011-4#ixzz1JLMAZ56A

Tue, 04/12/2011 - 18:22 | 1163219 sleepingbeauty
sleepingbeauty's picture

+1

Tue, 04/12/2011 - 15:58 | 1162788 beastie
beastie's picture

I was wondering why both parties were so quiet about their "victory".

Fucking idiots. Shut it down.

Send all the non essentials home and not to come back. That includes the Post Office.

Tue, 04/12/2011 - 16:02 | 1162808 Misean
Misean's picture

There are "essential" government drones? Really?!?! Can't think of one...

Tue, 04/12/2011 - 16:42 | 1162956 Milton Waddams
Milton Waddams's picture

Ah the post office.  The information age's make-work program.  I may serve time in prison were I to flood your email with worthless spam yet I can lawfully stuff your mailbox with an endless stream of ground-up lumber.  Yet as a society we are encouraged to be environmentally concious.  The hyprocisies abound.

Tue, 04/12/2011 - 18:07 | 1163179 SME MOFO
SME MOFO's picture

I don't care what you say, I love the Post Office!  Hooray Flat Rate Boxes!  Props to all those peeps out there in the snow. rain. and dark of night (?) etc etc.

word.  Peace out.

Tue, 04/12/2011 - 21:07 | 1163675 superflyguy
superflyguy's picture

Buy a wood stove and collect that paper, it's excellent for starting fire. I especially love the spam from the local grocery stores, nice thin but large paper. Just squish it a bit from each side and put kindling underneath and light it up... wonderful. Can't do that with e-mail! :-)

Tue, 04/12/2011 - 15:58 | 1162790 Id fight Gandhi
Id fight Gandhi's picture

Money honey says stocks are down but off their lows... She can blow me...

Fraud, close the damn thing down already. Just close the fucking thing.

Tue, 04/12/2011 - 15:59 | 1162791 NOTW777
NOTW777's picture

if this is true PMs should fly

Tue, 04/12/2011 - 16:00 | 1162792 apberusdisvet
apberusdisvet's picture

This article plus the one in Rolling Stone should be on 60 Minutes, but of course they won't be; CBS is of for and by the GubMint, just like all the rest.

Tue, 04/12/2011 - 15:58 | 1162794 RobotTrader
RobotTrader's picture

Says 6.4% here....

Tue, 04/12/2011 - 16:08 | 1162837 max2205
max2205's picture

so much for yahoo

Tue, 04/12/2011 - 16:00 | 1162795 zeek
zeek's picture

...just another reason for the O to ask the Fed to "make me look good" via a reduced POMO until we can change that pesky ceiling...

Tue, 04/12/2011 - 16:01 | 1162798 NOTW777
Tue, 04/12/2011 - 16:57 | 1163015 Miss Expectations
Miss Expectations's picture

The images in that video are chilling.  Have we forgotten everything?

Tue, 04/12/2011 - 19:38 | 1163410 Zero Govt
Zero Govt's picture

Yes by the looks of it ....this is the pervert end of Bush Statism for 'national security' followed seemlessly by Obummas 'Change you can believe In' ...fuking State perverts

Tue, 04/12/2011 - 15:59 | 1162799 Shell Game
Shell Game's picture

Market on the verge of a plummet, government about to close....a nicely orchestrated set-up for the QE3 pill.

Tue, 04/12/2011 - 15:59 | 1162802 squexx
squexx's picture

Those "non-essential" government employees should stay laid off!

Tue, 04/12/2011 - 15:59 | 1162803 trav7777
trav7777's picture

nobody seriously expected the GOP to actually cut did they?

Tue, 04/12/2011 - 16:05 | 1162822 Shell Game
Shell Game's picture

even less likely than an American uprising.

Tue, 04/12/2011 - 16:09 | 1162833 Cdad
Cdad's picture

nobody seriously expected the GOP to actually cut did they?

 

I don't know....did anyone think Jefferies was actually buying Apple today with their glowing remarks...or do folk understand that if the NASDAQ is not fueled each day buy the flames of yet another criminal syndicate Wall Street bagholding firm torching its cred, the whole Ponzi falls?

Which?  I dunno.  I did not buy Apple today, but the politics of the budget debate suggest that the GOP is about to lose a lot of its members on the vote...and the Dems want a shutdown to pin on the GOP...so who cares about the actual budget.

Do folks really think that the government will adhere to congressman Ryans 10 year plan.  LOL!

...oh, sorry....you were being existential.  Never mind.

Tue, 04/12/2011 - 16:19 | 1162877 earnyermoney
earnyermoney's picture

You mean the fascists masquerading as democrats and republicans? NO.

Tue, 04/12/2011 - 16:33 | 1162921 centerline
centerline's picture

LOL.  Like a shark that needs to keep swimming to live.  Such a joke.  Actually, it reminds me more of that movie, Crank.  If they cut back anything serious it would be game over even sooner.  The script has already been written.

 

 

Tue, 04/12/2011 - 16:02 | 1162807 SilverBaron
SilverBaron's picture

Shut er down!

Tue, 04/12/2011 - 18:06 | 1163165 Rainman
Rainman's picture

 ...yes and do it now. The Great Agitator is setting everybody up. His handlers tell him the jackasses in the GOP have no winning hand on the debt ceiling issue. Then by the time the '12 budget talky-talky comes around the equities markets tank, Ben restarts the crank, and Obami gets mo fiat to stimulate us again. Winner !!  

Tue, 04/12/2011 - 16:04 | 1162815 OS2010
OS2010's picture

I suspected they picked Thursday for a reason:  They couldn't keep the charade up any longer than that.  May not have been long enough....

Tue, 04/12/2011 - 16:03 | 1162817 Dr. Porkchop
Dr. Porkchop's picture

I have a brainstorm for retooling PETA.

Prevention of Econonomic Terrorism in America

Slogan:

Central Banking is Murder.

Tue, 04/12/2011 - 16:07 | 1162842 slaughterer
slaughterer's picture

An event for a perfect OPEX week "happy ending."  This is what Hatzius got back for killing oil this week.

Tue, 04/12/2011 - 16:16 | 1162875 chistletoe
chistletoe's picture

do you mind if I rephrase that?

 

"Central Banking is a a capital offense!"

Tue, 04/12/2011 - 16:41 | 1162951 Dr. Porkchop
Dr. Porkchop's picture

I like it.

Tue, 04/12/2011 - 16:04 | 1162825 silvertrain
silvertrain's picture

Belgium hasnt had a government in a long ass time...

Tue, 04/12/2011 - 16:04 | 1162826 themiestro
themiestro's picture

Oh my!  That could be ugly couldn't it?

Tue, 04/12/2011 - 16:08 | 1162827 GOSPLAN HERO
GOSPLAN HERO's picture

The Union Is Dissolved! ... has a nice ring to it.

 

Tue, 04/12/2011 - 16:11 | 1162850 Misean
Misean's picture

+50

Tue, 04/12/2011 - 18:14 | 1163190 redguard
redguard's picture

+ 150

Tue, 04/12/2011 - 16:09 | 1162828 SilverBaron
SilverBaron's picture

These bums need to start voting like Ron Paul or they are going to find themselves joining the ranks of the unemployed.

Tue, 04/12/2011 - 16:18 | 1162874 oogs66
oogs66's picture

Their jobs are protected for anywhere from 2-6 years!  They get fed by lobbyists.  They have great pensions.  They believe we work for them.  UGH!

Tue, 04/12/2011 - 16:07 | 1162839 Misean
Misean's picture

I'm not going to get into a teeth lashing lather about this stupid drama, because, as readers here know, a mere 0.25% rise in interest rates wipes any of these real or imagined cuts.

This is all just a tempest in a tea pot to keep the rubes pointing at each other and shouting obscenities.

Tue, 04/12/2011 - 16:08 | 1162847 DonnieD
DonnieD's picture

Who forgot to cut unused Revolutionary War cannon balls from the 2011 budget? The Gov't could have saved some real money and proven to the sheeple how fiscally sound they are.

Tue, 04/12/2011 - 16:09 | 1162849 RobotTrader
RobotTrader's picture

First time we have had 4 down days in a row since November 2010.

Tue, 04/12/2011 - 16:12 | 1162855 Shell Game
Shell Game's picture

Red candles are the sugar to help the medicine go down...

Tue, 04/12/2011 - 16:29 | 1162908 economessed
economessed's picture

Oh, I DO LOVE those red, melty candles -- burn baby, burn.

Tue, 04/12/2011 - 16:11 | 1162856 Misean
Misean's picture

And the dollar is still below 75...

Tue, 04/12/2011 - 16:51 | 1162986 Arkadaba
Arkadaba's picture

Its interesting isn't it - the game might be changing (but while I'm smart enough to see the change - not smart enough to see what the new game is)

Tue, 04/12/2011 - 16:09 | 1162852 GOSPLAN HERO
GOSPLAN HERO's picture
"Stripped of all its covering, the naked question is, whether ours is a federal or consolidated government; a constitutional or absolute one; a government resting solidly on the basis of the sovereignty of the States, or on the unrestrained will of a majority; a form of government, as in all other unlimited ones, in which injustice, violence, and force must ultimately prevail." JCC
Tue, 04/12/2011 - 16:12 | 1162853 Catullus
Catullus's picture

So.... How did they keep the government from shutting down on Friday? Are they paying people with SCHIP money?

Tue, 04/12/2011 - 16:12 | 1162854 Bagbalm
Bagbalm's picture

Shut it down and fail to ever get it back up - it couldn't be worse than what we have now. If there are non-essential parts of government why do we HAVE them?

Tue, 04/12/2011 - 16:13 | 1162861 pazmaker
pazmaker's picture

meanwhile....$20 million to Pakistan to air Sesame street...

Tue, 04/12/2011 - 16:15 | 1162864 Seasmoke
Seasmoke's picture

They should keep funding planned parenthood so they can Shut this abortion down for good

Tue, 04/12/2011 - 16:17 | 1162871 bob_dabolina
bob_dabolina's picture

Yes I also wish the government would abort itself. I would even cover the co-pay personaly.

Tue, 04/12/2011 - 16:15 | 1162866 GOSPLAN HERO
GOSPLAN HERO's picture
"A power has risen up in the government greater than the people themselves, consisting of many and various powerful interests, combined in one mass, and held together by the cohesive power of the vast surplus in banks."  JCC
Tue, 04/12/2011 - 16:17 | 1162867 UnRealized Reality
UnRealized Reality's picture

They will pass it as soon as they bribe, suck, fuck and beg all the whores to vote yes

Tue, 04/12/2011 - 16:17 | 1162872 Spalding_Smailes
Spalding_Smailes's picture

What's collapsing ???? Off like pong ...

 

 

Silver History Look it up, truth hurts .... And yes, I will repost this until its under $20.00

1900 - $0.80

1910 - $0.70

1920 - $1.70

1930 - $0.50

1940 - $0.42

1950 - $0.90

1960 - $1.00

1970 - $2.00

1980 - $48.00 ( Two months later below $10.00 )

1990 - $6.00

2000 - $5.00

2003 - $5.00

2006 - $8.50

2009 - $12.00

2010 - $18.00

Today = Bubbleicious

 

Tue, 04/12/2011 - 16:39 | 1162938 Shameful
Shameful's picture

So when can I expect to see the bubble in car prices that has been going up for decades? I look forward to my loaded out new luxury ride for 5k. Or gold, I want my $20.67 an ounce, when can we expect that to go down to it's 100 year low? Because clearly it's impossible for the USD to loss value, everything else is just a bubble.

Tue, 04/12/2011 - 17:09 | 1163048 Pool Shark
Pool Shark's picture

OMG!!!

Lawn Mowers are in a bubble! Today they cost hundreds, but were only $1.98 in 1912!

http://www.gti.net/mocolib1/prices/1912.html

And vacuum cleaners MUST be in a bubble; a Regina cost only $12.00 in 1912.

I guess we can expect prices to return to 1912 levels in ALL bubble commodities (not).

 

Tue, 04/12/2011 - 16:39 | 1162940 lieutenantjohnchard
lieutenantjohnchard's picture

NYSE History Look it up, truth hurts .... And yes, I will repost this until its under 10,000

1987, 1997, 2000, 2008, 2010 flash crash, 201X.

Tue, 04/12/2011 - 16:47 | 1162952 Sudden Debt
Sudden Debt's picture

:) You really have no clue he :)

 

Be my guest, you can even post it daily.

BUT!!

You must give me you Put price, entry price and amount of contracts.

In that way, I can answer you daily about your losses without you having to look to your trading account.

 

 

or are you full of crap? :)

 

Tue, 04/12/2011 - 16:45 | 1162965 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

NOMINAL. 

Tue, 04/12/2011 - 16:52 | 1162991 bothsidesnow
bothsidesnow's picture

Cost of blue jeans and silver look it up

http://thesheepletimes.com/2011/04/08/the-road-to-freedom-is-paved-with-silver/

No bubble smailes, you shoud have smoked the dank with Carl and Ty, you would have a better game.

Tue, 04/12/2011 - 16:57 | 1163005 Shell Game
Shell Game's picture

Buying power of the USD in 1900 = $1.00

Buying power of the USD in 2011 = $0.04  

now THAT is the truth that hurts...

Tue, 04/12/2011 - 17:14 | 1163058 Spalding_Smailes
Spalding_Smailes's picture

So why was silver under $10.00 over that 90 year span of the dollar plunge .... ? You should have seen 90% growth, but, but, but .... It was not priced in at the time the market waited until 2011 .... LOL"

Tue, 04/12/2011 - 17:26 | 1163075 Shell Game
Shell Game's picture

For the first eight decades of the century:  Velocity, my friend (remember all that silver 'junk' in circulation?).  The last few decades?  Too much cornering and fractional reserve gaming for me to speculate upon.  But it sure is one hell of a reversion to the mean, no?  HaHaHa!!

Tue, 04/12/2011 - 17:28 | 1163092 topcallingtroll
topcallingtroll's picture

I hope you are right cuz i only.got one box of eagles left. Im just keeping it around for shits and greens. My kids like playing with it. Otherwise all cash. Even sold my.ewz.

Tue, 04/12/2011 - 17:38 | 1163115 Pool Shark
Pool Shark's picture

So why was silver under $10.00 over that 90 year span of the dollar plunge .... ? You should have seen 90% growth, but, but, but .... It was not priced in at the time the market waited until 2011 .... LOL"

Because, you fool, US dollars (silver certificates) were freely convertible to silver bullion; keeping the price of silver near $1.00/oz, until the silver window was closed on June 24, 1968.

 

Now go back to your parent's basement and leave the conversation to the grown-ups...

 

Tue, 04/12/2011 - 18:16 | 1163200 Richard Head
Richard Head's picture

People that are really dumb, like smailes and robo-faker, have no clue how pathetic they are.  It's embarrassing.

Tue, 04/12/2011 - 21:20 | 1163699 Spalding_Smailes
Spalding_Smailes's picture

So what was the price in 70, 72, 74, 76.... you dumb fuck. What about 1990, 2000 ... Pin drop ....

Thu, 04/14/2011 - 03:54 | 1168036 d_senti
d_senti's picture

You made your point. You think silver is in a bubble. Now STFU and we'll talk again in a year, see where the price is. Then we can do it all over again.

Tue, 04/12/2011 - 16:16 | 1162873 Zymurguy
Zymurguy's picture

I made a comment about this on MarketWatch today... essentially, most of these "cuts" are simply stopping future spending and other pet projects that have been planned for but haven't been implemented yet.

There are no real cuts here - as shown here on ZH the government racked up way more than this amount in debt just last week.

This has got to end and never again should we allow a central banking system to operate a fractional reserve lending system using a baseless fiat currency.  Our founding fathers fought (and I mean litterally fought) to prevent this.

Tue, 04/12/2011 - 16:34 | 1162925 JLee2027
JLee2027's picture

There are no real cuts here

Unfucking believable. Damn that pisses me off.

Tue, 04/12/2011 - 16:48 | 1162974 Arkadaba
Arkadaba's picture

sarcasm on I hope?

Tue, 04/12/2011 - 18:19 | 1163213 SME MOFO
SME MOFO's picture

very kind of you to keep us abreast of your thoughts by summarizing your comments on other web sites here at ZH. Are you tweeting yet?  It may be easier for us if you set up one of them there twitting accounts. I, for one, look forward to hearing more about what you are doing in other sections of your day in as close to real time as possible. 

Tue, 04/12/2011 - 16:19 | 1162880 mynhair
mynhair's picture

What, no cuts in the "Free Condoms for Kindegartners" Program?

Shut 'er down, and let me bury it.

Tue, 04/12/2011 - 16:18 | 1162882 Encroaching Darkness
Encroaching Darkness's picture

Liars, thieves, confidence men, tricksters, frauds, conniving losers, cheats, thugs, forgers, counterfeiters, drug dealers, .....

Did I miss any Departments or Agencies? Defund them all by 10% per year until a balanced budget is achieved, one way or another!

Tue, 04/12/2011 - 16:22 | 1162884 mynhair
mynhair's picture

Missed the Moron Dept.   Oh wait........

Tue, 04/12/2011 - 16:21 | 1162886 pazmaker
pazmaker's picture

you forgot murderers

Tue, 04/12/2011 - 16:29 | 1162914 Trillax
Trillax's picture

What exactly is your avatar a picture of? ;)

Tue, 04/12/2011 - 16:21 | 1162889 drink or die
drink or die's picture

Did anyone actually expect anything to get cut?  There is no way out of this mess.

Tue, 04/12/2011 - 16:22 | 1162893 outamyeffinway
outamyeffinway's picture

"Dedicated" to cutting the budget.

Tue, 04/12/2011 - 16:28 | 1162904 LostWages
LostWages's picture

This is another fine clusterfuck you've gotten us into (DC).

You got some splainin to do.

Already on Drudge...  http://apnews.myway.com/article/20110412/D9MI4KNG1.html

Expect Fox to be all over this tonight.

Tue, 04/12/2011 - 16:31 | 1162909 mynhair
mynhair's picture

'Laser-like focus"......on the next set of ribs.

Tue, 04/12/2011 - 16:31 | 1162911 macholatte
macholatte's picture

If all they did was to stop the automatic increases in various line items, hold spending to exactly what it was FY 2010 for 5 years, they would accomplish a whole lot more than they did. Instead, they choose to haggle over which shell to hide the pea under. But you knew this.

Contrariwise, if it was so, it might be; and if it were so, it would be; but as it isn't, it ain't. That's logic.
Lewis Carroll

Tue, 04/12/2011 - 16:51 | 1162985 macholatte
macholatte's picture

 

Budget deal axes 'czars' already gone

http://www.politico.com/news/stories/0411/53001.html

 

Boehner-Obama Deal Leaves FY11 Spending $773B Above FY08 Level—About as Big an Increase as Obama’s Stimulus

http://www.cnsnews.com/news/article/boehner-obama-deal-leaves-fy11-spending

 

Tue, 04/12/2011 - 19:37 | 1163391 RichardP
RichardP's picture

Bush kept the cost of Afghanistan and Iraq out of the budget.  So the 2008 budget was lower by at least these costs.  Obama put those costs into the budget and made them visible.  That fact goes a long way toward explaining the $773B difference between now and 2008.  That also probably explains why the recent budget deal contained no real cuts.  As a percentage of the total budget, there isn't much in the discretionary spending column.  So the budget cutters truely do not have much to work with while they avoid slashing sacred cows.

Perhaps Obama will put the war costs back off budget.  And will then be hailed as a hero for having the courage to make draconian cuts.  Probably most folks wouldn't even understand what had happened.

Tue, 04/12/2011 - 20:40 | 1163606 maximin thrax
maximin thrax's picture

The official deficit in 2007 was $161 Billion, but real deficit was about $500 Billion including off-budget expendatures. If off-budget spending was indeed $340 Billion, and since the 2010 budget was $1.1 Trillion larger than in 2007, even by accounting for wars we've still seen a net Three-quarter Trillion dollar increase in spending since '07, much of that "stimulus". Pair that with the $400 Billion decrease in revenue and now it's $1.15 Trillion in additional deficit spending since '07 just from those two factors.

The budget contained no real cuts because net cutting came out of projected increases. In DC when Congress contemplates a spending increase of $2 it doesn't have, but instead increases spending by only $1 it doesn't have, it's cut the budget $1 in its mind.

I doubt Obama would take the wars off-budget. When the deficit was smaller and there was more revenue and social security cash to raid, spending could go on without hurting the average American's lifestyle. But now that SS is in deficit, revenue is down and borrowing requires printing money, hiding debt won't stop the inflation in essential things that Americans are feeling as a result of the debasement of their currency.

NPR asked Pence why the urgency to reign in spending now but not during the Bush years. The correct answer is that we're having to monetize the debt today.

Wed, 04/13/2011 - 02:51 | 1164357 Rule of 72
Rule of 72's picture

I junked you because that's bullshit.  Provide a source.  Daily Kos doesn't count.

The only off-budget items, as far as I know, are the unfunded liabilities of entitlements and whatever junk paper that The Bernank buys from European banksters.

Wed, 04/13/2011 - 05:26 | 1164448 RichardP
RichardP's picture

What is bullshit?  Perhaps you misunderstood me?

First, I claimed that Obama brought items that had previously been off-budget (the cost of the wars) onto the budget.  I was not discussing current off-budget items.  Next, I claimed that discretionary spending is a small percentage of the total budget.  You think that one or both of those claims is bullshit?

Thu, 04/14/2011 - 02:08 | 1167989 Rule of 72
Rule of 72's picture

Provide a source that states that any part of DOD outlays were kept off-budget, specifically for the two wars.

Yes, that is bullshit.  Discretionary spending is rather small, I agree.

Tue, 04/12/2011 - 16:31 | 1162913 Millennial
Millennial's picture

I embrace the mess. It reminds me of this mess I was involved with free candy, hookers, small children, cocaine, and sex toys. Thankfully Bernanke fixed it in 15 minutes for me.

 

 

Tue, 04/12/2011 - 16:33 | 1162919 mynhair
mynhair's picture

Damn, got any video?

Tue, 04/12/2011 - 16:31 | 1162915 JLee2027
JLee2027's picture

Let the public blame the GOP, who cares.

President Washington 200 years ago warned against political parties. I don't think political parties survive the system crash, as both will be blaimed, and both should be. Maybe they'll be outlawed, I don't know. But clearly the current system, which deviated from the Founding Fathers, has FUBAR'ed things to death.

Tue, 04/12/2011 - 17:17 | 1163064 SheepDog-One
SheepDog-One's picture

Thats right! This 2 headed 1 party system designed to placate the people and make them feel like theyre on a 'team' that then goes on to 'win something' is the GREATEST invention ever to keep the moron neandersheeple happily captured and calm and stupid in either their Demican or Republicrat neandersheeple pen!!

Tue, 04/12/2011 - 16:32 | 1162916 Peak Everything
Peak Everything's picture

profoundly pathetic

Tue, 04/12/2011 - 16:32 | 1162918 mynhair
mynhair's picture

Wow, Tyco buyout, that should fix everything.

Tue, 04/12/2011 - 16:35 | 1162932 Truthiness
Truthiness's picture

TPTB have gotten so good at manipulation that these charades could go on for YEARS! There isn't going to be any crash, or cliff we fall off, or armegeddon...just a long, slow, controlled burn while the sheeple play doodlejump and farmville and eat delicious chipotle burritos. 

Tue, 04/12/2011 - 16:39 | 1162936 Sudden Debt
Sudden Debt's picture

I wonder if there where people still questioning that :)

 

on the other hand.... 99% doesn't even know there's a debt problem at all....

 

 

 

Tue, 04/12/2011 - 16:38 | 1162942 gall batter
gall batter's picture

tragic, esp. since republicans declared boner the winner and democrats called it for bomber.

Tue, 04/12/2011 - 16:41 | 1162944 RobotTrader
RobotTrader's picture

Looks like they have commodities in a straight jacket for now.

Algo/Igor/Robo programs will all be shorting, in an attempt to game another possible "Midnight Massacre".

Tue, 04/12/2011 - 16:50 | 1162981 lieutenantjohnchard
lieutenantjohnchard's picture

the only thing in a straight jacket is your mind, it not being able to think outside the dusty, dingy, ever collapsing walls of your los angeles apartment.

btw, are you going dutch with your dates given your shrinking widows and orphans portfolio?

 

Tue, 04/12/2011 - 17:40 | 1163118 mynhair
mynhair's picture

Get real, check AVL and REE.  Will you ever trade?

Tue, 04/12/2011 - 16:41 | 1162947 bothsidesnow
bothsidesnow's picture

Interesting article on the budget hocus pocus.

http://thesheepletimes.com/2011/04/11/federal-government-deficit-reduction-hocus-pocus/

We should all be able to balance our accounts in this manner!

 

Tue, 04/12/2011 - 16:47 | 1162948 falak pema
falak pema's picture

 

Is The Budget Deal On The Verge Of Collapsing?

This statement says it all in today's world. "On the verge of..." That is such an exciting state of existential drama in suspended limbo...On the verge of falling in love...on the verge of falling off the cliff...on the verge of...and the winner is...But over 'the verge' is the natural  human urge to know what is beyond...that keeps us hanging on to the edge...like watching Alfred Hitchkock at work. Now that Fukushima mon amour is bubbling out of control and the economy goes from orange to red on radar control...we are once again faced with recurrent trauma of...on the verge of...QE-3? Royal wedding spree? Q-daffy victory? Oil spike to history? China goes viral on monetary supremacy threat and hyperinflation flu?

EU tanks on PIGS farm issue or step jumps USD thanks to Yuan/Cruzeiro Support. Its a mad world that's getting more and more a sad world. One that will never come back to norm as the very definition of norm changes with each accumulated Becquerel-Sievert in stratosphere as in moralitysphere.

The worst possible of worlds would be one where "on the verge off" would be like going to the Roman Coliseum like nerveless, senseless sheeple; to watch the next horror sequel on the road to living decadence.

 

 

Tue, 04/12/2011 - 16:50 | 1162982 hardcleareye
hardcleareye's picture

Thoughtful, couldn't agree more.

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