CBO's Revised Budget Sees 2011 Deficit Rising By $500 Billion To $1.5 Trillion; $4 Trillion In Deficit Through 2013 Guarantees QE3+

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Wed, 01/26/2011 - 11:14 | 905990 HelluvaEngineer
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QE3 is guaranteed and we are stunned that the market continues not to realize this.

Wtf are you talking about - the market just ramped.  Party time! Dow 12000!  Next stop: 36000.

Wed, 01/26/2011 - 11:15 | 906000 Ragnarok
Ragnarok's picture

Happy Dow 12000!  I'm going to go take out a Mega Mortgage with no money down.

Wed, 01/26/2011 - 11:21 | 906024 Johnny Lawrence
Johnny Lawrence's picture

Yes!  300 points higher than we were in January 2000!  I'm maxing out my credit cards today!

Wed, 01/26/2011 - 11:20 | 906020 bonddude
bonddude's picture

These mutha Fukas here's hillary clinton talking about some banksta muthas


and just announced shareholders revenge


Wed, 01/26/2011 - 11:20 | 906021 Hedgetard55
Hedgetard55's picture

That was a nice little juicing there of the market, huh? Must be warm feelings from Soetoro's speech last night.


FWIW this CBO report is worthless. Deficits will be twice as large as projected IF the system hasn't crashed before then.

Wed, 01/26/2011 - 14:13 | 906616 traderjoe
traderjoe's picture

"As the recovery continues, the economy will add roughly 2.5 million jobs per year over the 2011–2016 period, CBO estimates. "

Wow, did they sacrifice a goat to read its entrails for this prediction?

"under those assumptions and with a continuing economic expansion, revenues as a share of GDP are projected to rise steadily—from about 15 percent of GDP in 2011 to 21 percent by 2021."

So, the economy's going to gain 2.5 million jobs per year all while the share of revenue of the economy received by the government is going to go up by 35%?

Stunning. Simply stunning. 

Wed, 01/26/2011 - 11:49 | 906129 I Am The Unknow...
I Am The Unknown Comic's picture

I've found in life that when things make no sense, then I am operating under false assumptions and wrong information.  "We are stunned that the market continues to not realize this" and behold we also break Dow 12K.  "It's all good" says CNBC.

So, this report and todays activity is the final nail in the coffin, convincing me that my assumptions are false.  In other words I have accepted that THERE IS NO "MARKET" anymore.....

So, let's not play it like it is.  Nothing of truth matters anymore.  There is no rule of law.  Just BTFD while completing an exit strategy to get the fuck out of this country.  This is madness to the power of madness, or at least madness squared.  I hope they bring on both QE3 and QE4 in the next 6 months....the faster this shithouse crashes down the better.  We'll dig another hole and build another shitter. 

Wed, 01/26/2011 - 12:46 | 906343 CH1
CH1's picture

A fast, hard crash is about the only hope we have left. :(

Wed, 01/26/2011 - 13:25 | 906477 Caviar Emptor
Caviar Emptor's picture

Oh baby! You're on my wavelength: 

We're living in The Matrix now (as foretold in the movie);

Spoon boy: Do not try and analyze the market. That's impossible. Instead... only try to realize the truth. 
Neo: What truth? 
Spoon boy: There is no market. 
Neo: There is no market? 
Spoon boy: Then you'll see, that it is not the market that moves, it is only The Bernank

Wed, 01/26/2011 - 14:11 | 906609 Cash_is_Trash
Cash_is_Trash's picture


Wed, 01/26/2011 - 18:22 | 907522 Rule of 72
Rule of 72's picture

I've been feeling that for a while.  Every time I watch the bull-tards on CNBC, actually.  When I tune in I think to myself, "Tell me a story, CNBC.  None of this shit is real, anyways."

I nominate the banksters to play the parts of the machines, BTW.

Wed, 01/26/2011 - 16:08 | 907032 Triggernometry
Triggernometry's picture

I must agree with my fellow engineer. The limit of QE(t) as t approaches infinity equals infinity.

Wed, 01/26/2011 - 11:14 | 905993 LongSoupLine
LongSoupLine's picture

and the Dow celebrates by punching through 12,000 like a chainsaw through rice paper.

Wed, 01/26/2011 - 11:23 | 905994 hedgeless_horseman
hedgeless_horseman's picture

...meaning that over the next 3 years the US will need to issue about $5 trillion in debt. Which means further debt monetization is guaranteed as foreign investors have now fully withdrawn and the Fed is all alone in gobbling up every dollar in gross issuance. QE3 is guaranteed and we are stunned that the market continues not to realize this.

Stunned?  I call feigned ignorance.  The Fed is the market, and the bank shareholders that control it realize exactly what they are doing.

Wed, 01/26/2011 - 11:15 | 905997 Jason T
Jason T's picture

China is going to throw their inflation right in the face of every American consumer.  A Rudolf Havenstein policy disaster.

Long gold and  silver and Chinese stocks.


Wed, 01/26/2011 - 11:16 | 905998 Sudden Debt
Sudden Debt's picture

Like Saint-Bernanke would say:






Wed, 01/26/2011 - 11:15 | 906001 Turd Ferguson
Turd Ferguson's picture

Austerity, schmausterity...

Wed, 01/26/2011 - 16:15 | 907046 patience...
patience...'s picture


Wed, 01/26/2011 - 11:16 | 906002 lizzy36
lizzy36's picture

Dow 12,000.

Party like it is June 2008.

Drink enough absinthe so one forgets how that party ended.

Mazel Tov to The Bernank.

Wed, 01/26/2011 - 11:22 | 906030 Salinger
Salinger's picture

La Fée Verte

Wed, 01/26/2011 - 11:18 | 906007 CrashisOptimistic
CrashisOptimistic's picture

There simply has to be an analysis performed on the amount of money disappearing from the universe from each mortgage default.

It is at least possible that Bernanke buying all this deficit PLUS munis may not exceed money destruction due to ongoing real estate collapse.

Wed, 01/26/2011 - 11:58 | 906161 cxl9
cxl9's picture

Hypothetically, I have a home mortgage on which I will pay out a total of $1M in principal and interest over a 30-year period. I default. Bernanke prints up $1M and purchases 30-year government bonds with the money. You're saying what? That these two events somehow cancel each other out? Or that Bernanke's action is not inflationary?

Wed, 01/26/2011 - 12:17 | 906224 ColonelCooper
ColonelCooper's picture

"It is at least possible that Bernanke buying all this deficit PLUS munis may not exceed money destruction due to ongoing real estate collapse."

The problem with that theory is the the defaulted upon house is still sitting on a balance sheet at pre-crash levels in order to keep the banks solvent.

Wed, 01/26/2011 - 11:18 | 906011 Jason T
Jason T's picture

Oil exporting nations to the US in 1 year:  "We don't want your Ben confetti from Washington."




Wed, 01/26/2011 - 11:21 | 906027 IBelieveInMagic
IBelieveInMagic's picture

Do they want to be Iraqified?

Wed, 01/26/2011 - 12:32 | 906285 Bubbles...bubbl...
Bubbles...bubbles everywhere's picture

I think the correct term is "liberated".

Wed, 01/26/2011 - 11:19 | 906015 vote_libertaria...
vote_libertarian_party's picture

How the F*** is the 10 yr rate not > 20%???


I don't care how much the Fed is buying.  I would be unloading any Fed bond > 3 months in duration.

Wed, 01/26/2011 - 11:22 | 906022 hedgeless_horseman
hedgeless_horseman's picture

Fed lifts bid, and rates go down.  Sad how few understand the inverse relationship of price and rates.

Wed, 01/26/2011 - 11:21 | 906028 CrashisOptimistic
CrashisOptimistic's picture

It is possible that the destruction of money due to mortgage default (ongoing) exceeds the money he's adding.

Wed, 01/26/2011 - 11:21 | 906016 Cognitive Dissonance
Cognitive Dissonance's picture

Image of the life being sucked out of America.

Notice the handy carrying case for the banksters to exit stage right with the loot.


Wed, 01/26/2011 - 11:23 | 906035 papaswamp
papaswamp's picture

..I don't know what to say here.....shit! I just drooled on my keyboard.

Wed, 01/26/2011 - 11:26 | 906044 bingaling
bingaling's picture

That's hilarious ......the size of that monitor on the desk makes me think this has been going on for a very long time .

Wed, 01/26/2011 - 12:25 | 906260 -Michelle-
-Michelle-'s picture

Yes, women have been lactating for many years now.

Wed, 01/26/2011 - 12:47 | 906347 Cognitive Dissonance
Cognitive Dissonance's picture


THE oldest occupation in the world.

Wed, 01/26/2011 - 11:28 | 906050 Sudden Debt
Sudden Debt's picture



Wed, 01/26/2011 - 11:29 | 906055 Turd Ferguson
Turd Ferguson's picture

+++++, CD. lol stuff

Wed, 01/26/2011 - 12:07 | 906191 Cognitive Dissonance
Cognitive Dissonance's picture


It looks like your prediction on your blog of gold needing to make a double bottom in the 1321ish range is being tested here and now.

See...I do read your blog. You do an excellent job and you're a natural writer and communicator. :>)

Wed, 01/26/2011 - 12:28 | 906267 gaoptimize
gaoptimize's picture

How I wish she and her baby were mine.  Why do people post pictures like that here?  I'm trying to work.

Wed, 01/26/2011 - 12:28 | 906268 gaoptimize
gaoptimize's picture

How I wish she and her baby were mine.  Why do people post pictures like that here?  I'm trying to work.

Wed, 01/26/2011 - 11:23 | 906033 Spalding_Smailes
Spalding_Smailes's picture

Gold/Silver " Off " like pong ~ A waterboarding ....

Wed, 01/26/2011 - 11:29 | 906056 bingaling
bingaling's picture

You didn't hear ? LEADER has proclaimed the end of the great recession , if he said it on TV it must be true .

Wed, 01/26/2011 - 11:30 | 906060 spartan117
spartan117's picture

In percentage terms, your AIG is down even more.

Wed, 01/26/2011 - 11:36 | 906075 Spalding_Smailes
Spalding_Smailes's picture


Thats the great thing about being up 25% on your call even a stop out gives you 10 % ...


Fuck, you seen my NVDA i'm up 44% since early dec .... LOL' Made my quarter ... Lol'

And US Steel off and running .... Front running.

Wed, 01/26/2011 - 11:54 | 906149 Astute Investor
Astute Investor's picture


Thats the great thing about being up 25% on your call even a stop out gives you 10 % ...

= 6.5% after-tax

Wed, 01/26/2011 - 12:03 | 906157 Spalding_Smailes
Spalding_Smailes's picture

Thats right ....

And whats that double monkey hammer tax thingy for gold again ?

And the yield thingy ...



* Great video on China -

Roach Says China Inflation Borders on `Serious Problem'




Wed, 01/26/2011 - 12:05 | 906185 Astute Investor
Astute Investor's picture

Only relevant if you sell at a profit.  I treat it as a store of wealth, NOT an investment.  Represents a fixed % of my net worth with a Buffett-esque holding period - forever.

Wed, 01/26/2011 - 12:15 | 906210 Spalding_Smailes
Spalding_Smailes's picture

But alas, many,many,many,many traders must deal with the tax issue ... The paper trading boom that has grown over the past few years ... A frenzy'

Coin sales up 200% in a couple of years ... A frenzy'

Wed, 01/26/2011 - 13:49 | 906535 Astute Investor
Astute Investor's picture

Alas many, many, many, many traders are idiots.  It just proves once again that seemingly similar nominal return streams are not necessarly equal.  Real net return is the only the only relevant metric (i.e. after management fees, carried interest / profit participation, commissions, storage costs, taxes and inflation).

Wed, 01/26/2011 - 11:28 | 906037 Robslob
Robslob's picture

But since the Fed is now all alone thou shall not have extra funds to ramp the markets 300 points like the good ole days...instead 30-50 point daily ramps will have to suffice.
Meanwhile: there will be no need for hedge funds or advisory services as the cartoon characters advice are all that is required...now everyone can just BTFD....

Goodbye Wall Street...we hardly knew ya...

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