Charting America's Brief Trip In And Out Of Austerity... And Onward To Complete Disaster

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Sat, 07/16/2011 - 20:15 | 1462854 NuckingFuts
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Eat your peas, bitchez

Sat, 07/16/2011 - 20:40 | 1462887 Mr Lennon Hendrix
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People do not deserve any wealth, only bankers deserve wealth.  Bankers rule!

Sat, 07/16/2011 - 20:54 | 1462911 NuckingFuts
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Bankers can have the Lima Beans, I hate that shit.  I want my fucking peas!

Sat, 07/16/2011 - 21:03 | 1462921 Anonymouse
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Works for me.  I like peas and lima beans (tip:  cook them with ham and make a sort of gravy.  You're probably eating them too dry).


Too bad the budget is harder than your lima beans.  Still, it seems to me if spending went up by about $1.5T per year since 2008, why is it supposedly impossible to cut it back to 2008 levels.  I mean, they are speaking of "reducing" (that is, reducing projected increases) spending by not much more than that over 10 years.


Clearly, they are not trying too hard.  This is all kabuki.

Sat, 07/16/2011 - 21:13 | 1462936 snowball777
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No, I'm not eating them 'too dry'...they just remind me of when I was a kid and we had to eat them for weeks on end because they were affordable. Never again. ;)

Sat, 07/16/2011 - 21:38 | 1462961 duo
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Lima beans, from Lima, Ohio, or Lima, Peru?

Sat, 07/16/2011 - 23:07 | 1463081 DoChenRollingBearing
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Peas and beans ARE tastier in Peru than here.

Sun, 07/17/2011 - 08:56 | 1463379 FEDbuster
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Soon some will long for the days when they had a choice between peas and beans.  Haitian mud pies may be all that those relying on government support for their existence will have to eat.  Our local food bank is currently "overwhelmed" by the number of families seeking assistance.

Sun, 07/17/2011 - 11:03 | 1463494 grey7beard
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>> Haitian mud pies may be all that those relying on government support for their existence will have to eat.

I don't think the military is going to be very happy eating Haitian mud pies.

Sun, 07/17/2011 - 18:02 | 1464691 knowless
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then they defect and go to where the money is (drug cartel style?)

Sat, 07/16/2011 - 22:07 | 1462994 BeansBulletsBandaids
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Everything's better w/ a little pork added to it - especially in DC.....

Sun, 07/17/2011 - 00:27 | 1463180 Oh regional Indian
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Instant classic. 

And I say that as a vegetarian. ;-)


Sun, 07/17/2011 - 00:16 | 1463167 WakeUpPeeeeeople
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mushy peas rock!!!!!!

Sun, 07/17/2011 - 08:12 | 1463355 GubbermintWorker
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Boil em, mash em, put em in a stew!

Sun, 07/17/2011 - 00:00 | 1463146 Frankie Carbone
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Bankers?Puh! Let them eat steak.

Sat, 07/16/2011 - 21:23 | 1462942 macholatte
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Can somebody please explain this to me:

If the Fed "owns" $1T+ of "debt", why not just wipe that out? Just take an eraser to the books and be done with it. The Treasury would have been paying interest to itself anyway.

Who gets hurt?

Sat, 07/16/2011 - 21:56 | 1462982 Manthong
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My guess is that those reserves have somehow been synthesized, securitized, collateralized, pledged, loaned, leased, insured, reinsured, swapped, conduited, shafted, chopped, chromed and toasted eight ways to Sunday and some other multi-mega-trillion dollar world of hurt is held hostage to the flow that paper represents.

I dunno, is that thinking off in left field?

Sun, 07/17/2011 - 00:29 | 1463181 Oh regional Indian
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Actually it's much worse manthong and left field is a vast endless space chock full of "revelations"!


Sun, 07/17/2011 - 02:56 | 1463288 Goatboy
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I checked out of curiosity and spent 2 hours reading as hypnotised.


Sun, 07/17/2011 - 07:22 | 1463340 Oh regional Indian
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GoatB, you have no idea how multi-contextually nice it was for me to read what yuo wrote. Thanks.


Sat, 07/16/2011 - 21:59 | 1462987 sitenine
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Moral hazard.

Isn't humanity a bitch?

Sat, 07/16/2011 - 22:58 | 1463067 JW n FL
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RSA Animate - The Empathic Civilisation

Sun, 07/17/2011 - 09:32 | 1463409 dogbreath
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he doesn't include the psychos' amonst us who will want to run the show no matter what you call it.

Sun, 07/17/2011 - 09:39 | 1463418 JW n FL
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he exactly comments on those who are separated from their natural actions.

Sat, 07/16/2011 - 22:17 | 1463012 Raymond Reason
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Sat, 07/16/2011 - 23:00 | 1463071 JW n FL
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more gold! I agree.. dont forget silver.. it purifies dirty water.. clean water is a great thing to have, regardless of what else is going on! whats clean drinkable water worth?

Sat, 07/16/2011 - 23:51 | 1463139 tyler
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Ask some people from Africa, I'm pretty sure clean water is priceless.

Sat, 07/16/2011 - 23:00 | 1463072 AldousHuxley
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Basically that's a suicide for the Fed.


Sun, 07/17/2011 - 09:43 | 1463424 JW n FL
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How about a "Suicide by FED"?

We ALL are offing ourselves!

Sun, 07/17/2011 - 00:11 | 1463159 Anonymouse
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Ignoring the who Ponzi issue for the moment, the USTs and other Fed assets support the dollar.  If the debts were canceled, there would be less supporting the dollar, and the implication is that it would be done again.  Monetize debt (not that the Fed would EVER do that) then cancel it --> more and more currency backed by fewer and fewer assets

Sun, 07/17/2011 - 00:23 | 1463176 Dr. No
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The fed is separate from the treasury. Whats in itfor the fed to forgive the debt??

Sun, 07/17/2011 - 01:51 | 1463230 cranky-old-geezer
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If the Fed "owns" $1T+ of "debt", why not just wipe that out?

Erasing debt (forgiving debt) is THE cardinal sin among bankers. 

Debt is how bankers make money.  You might say debt is the product bankers offer to the public.  

Erasing debt off their books (forgiving debt, writing debt off) is like GM giving cars away, or Coka-Cola giving Coke away, or some other company giving their products away. 

Its like you working for free, giving your labor away.   Would you do that?

Granted, it doesn't cost bankers anything to produce their product.  Money they lend out is created out of thin air. Bankers have no cost basis in their product.  Interest they earn on debt is pure profit.

Yes bankers have overhead expenses.  But there's no cost-of-sales. Gross profit on debt is 100%.

If the Fed forgave the 1 trillion or so debt owed by the US Treasury, it wouldn't solve the real problem.  The US government would continue borrowing and spending like a drunken sailor. 

If the Fed forgave the 1 trillion or so debt owed by the US Treasury, it would set a dangerous precedent.  The US government would expect the Fed to continue forgiving debt.

If the Fed forgave the 1 trillion or so debt owed by the US Treasury, it would set a clear hyperinflationary trend.  There's no way that money created out of thin air and loaned to the government could ever be clawed back and taken out of the money supply.

If the Fed forgave the 1 trillion or so debt owed by the US Treasury, it would create fear and panic among other holders of US Treasury debt.  They would fear the US government might simply choose to not pay back the debt they hold

...which would cause the value of US Treasury debt to collapse overnight

...which would make banks around the world holding large amounts of US Treasury debt  insolvent overnight

...which would precipitate a crash of the banking system worldwide

...which would precipitate a crash of the financial system worldwide.

It would also cause the US dollar to crash and lose its world reserve currency status overnight

...which would cause the US government to collapse overnight

...which would cause the Fed to collapse overnight.

So no, The Fed isn't going to write off one dollar of US Treasury debt.  No fucking way.

Actually the US dollar collapsing, and the US government collapsing, and the Fed collapsing, would be the REAL solution to America's problems.  All of them. 

Just wanted to mention that.

Sun, 07/17/2011 - 02:50 | 1463285 mophead
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There are a lot of reasons why the debt can't be forgiven. The real reason is IMO is a currency collapse. All debts are being forgiven, btw... through inflation.

Sun, 07/17/2011 - 10:30 | 1463457 j0nx
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Sheeeit. Is your paycheck getting bigger? Mine sure as shit isn't and hasn't for 3+ years. We are NOT experiencing inflation right now and won't be for the indefinite future. We are experiencing biflation on our way to hyper-biflation. The things you need (gas, food, ammo, PM, other commodities) are going wayyy up in price and the things you own or don't really need are going down in value. Your paycheck is dropping or is remaining flat if you are lucky. Kinda hard to have your debt burden become easier when your paycheck is stagnant and your expenses are going up 20% a year....

Nope, we get the WORST possible outcome imo mostly due to globalization. Globalization makes it impossible for the effects of inflation to filter down into your paycheck when some little guy in China or India will do your job for 1/3 the wage or less.

Sun, 07/17/2011 - 11:39 | 1463583 Dr Zaius
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I remember when we used to say some guy in China or India will do your job for 1/10 your wage or less. I guess we are getting to parity faster than we think.

Sun, 07/17/2011 - 08:50 | 1463375 cossack55
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Please forgive repeats but this is still germane at 0:57.

Sun, 07/17/2011 - 09:03 | 1463387 FEDbuster
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"When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes... Money has no motherland; financiers are without patriotism and without decency; their sole object is gain."
- Napoleon Bonaparte, 1815

Same old shit, different century.

Sun, 07/17/2011 - 09:47 | 1463427 JW n FL
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A History of Money and Banking in the United States (Part 1, 2/4) by Murray N. Rothbard

Sun, 07/17/2011 - 11:43 | 1463595 moronsreign
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Sounds like just what we need. Push the reset button,endure the consequence for some undetermined period and start over. Beats a shooting revolution or war which we will get as things are going now.

Sun, 07/17/2011 - 12:49 | 1463804 mr. mirbach
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What would occur if CONgress revoked the FED's Charter? Could we "erase" the debt then?


Sun, 07/17/2011 - 02:33 | 1463274 piceridu
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It's about Balance Sheets! Every dollar that comes into the system comes in as an asset to the Banks and a Liability to the's just that simple. The Private Capital Holders need their continuous pound of flesh from the people...ROC cancelling debt is out of the question.

Sun, 07/17/2011 - 02:35 | 1463275 piceridu
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Sun, 07/17/2011 - 03:58 | 1463309 straightershooter
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Say, your mom (the Fed) borrows a million from you to loan it to your faineant elder brother (the Treasury). So far, so good. Your mom owns an asset ( from your elder brother) and owes a liability to you. Still with me?

Now, you are proposing that since it all happens in the family, why not wipe it all out?

Nobody get hurts, right?

Sun, 07/17/2011 - 03:59 | 1463310 straightershooter
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Say, your mom (the Fed) borrows a million from you to loan it to your faineant elder brother (the Treasury). So far, so good. Your mom owns an asset ( from your elder brother) and owes a liability to you. Still with me?

Now, you are proposing that since it all happens in the family, why not wipe it all out? N

Nobody get hurts, right?

Sat, 07/16/2011 - 20:20 | 1462857 FunkyMonkeyBoy
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Austerity in America is not going supersize on those fries and only have the basic cable package.

Sat, 07/16/2011 - 20:22 | 1462860 NuckingFuts
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+1, or having a phone that only makes phone calls.  OH THE HUMANITY!!!!

Sun, 07/17/2011 - 00:49 | 1463192 Oh regional Indian
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+2 for you and Funkymonkey above.


Sun, 07/17/2011 - 01:45 | 1463235 AldousHuxley
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+1, either American idol or America's got talent, but not both.

Sun, 07/17/2011 - 11:14 | 1463515 grey7beard
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>> Austerity in America

Sounds good, but unfortunaly the folks in the center of the austerity target are the least well off.  There are plenty of seniors just barely getting by.  Don't forget, those are also the folks who have been the most hurt by the zero interes rate policies of the Fed.  If they were to target the gluttonous consumption segment of America, I'd not protest, but celebrate a needed adjustment to attitude. 

Sat, 07/16/2011 - 20:24 | 1462858 SwingForce
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"Which is why, more than anything, nobody in DC can possibly demonstrate the political will, which also equates to immediate career suicide, to do the right thing - in this case just say no to more debt - as it would mean one thing and one thing only: putting the fate of their country over and above their own career prospects.

And as is well known, no career politician has ever cared enough about their country enough to actually see their own future as merely secondary to that of the United States."


Truer words were never written, thank the very patriotic Zero-Hedge to print them. Thank you.


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