Guest Post: Austerity And Critical Mass

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Wed, 05/18/2011 - 13:56 | 1287981 legal eagle
legal eagle's picture

How about this, austerity for the rest of the world - cut our foreign aid in half.  Another light bulb, bring our troops home and end the madness.  Yeah, that's the ticket....

Wed, 05/18/2011 - 14:05 | 1288032 BigJim
BigJim's picture

Cutting our foreign aid means cutting our control over the foreign satraps who receive it.

It WILL happen, eventually, but not by our 'leader's' choice.... we'll just wake up to a morning one day when everyone has realised there's no money.

Wed, 05/18/2011 - 14:10 | 1288049 desgust
desgust's picture

Foreign aid!!! HaHaHa!

You are an idiot! Except Israel who receives "foreign aid"?

Go make your homework, moron!

Wed, 05/18/2011 - 14:37 | 1288233 WhiskeyTangoFoxtrot
WhiskeyTangoFoxtrot's picture

I suspect you're a troll, but in any case you're a fucking dumbass.

http://www.census.gov/compendia/statab/2011/tables/11s1298.pdf

Wed, 05/18/2011 - 15:16 | 1288421 Holodomor2012
Holodomor2012's picture

It has been argued that much of our aid to ME nations "other than Israel" is actually still done to support Israel.  That census link shows Egypt, Iraq and Afghanistan among some of the higher recipients.

Wed, 05/18/2011 - 14:43 | 1288260 legal eagle
legal eagle's picture

No substance, no citations, just name calling.  Sounds impotent to me.

Wed, 05/18/2011 - 16:18 | 1288667 LFMayor
LFMayor's picture

Okay desgust, it won't bother you in the slightest if it is cut then.  Remind us of this when the starving masses are pouring over your borders, like two legged locusts.

we should weaponize the food.  Make those ingrates dance for their suppers. That, or convert those hills of corn (so fucking much we have to store it on the ground here, under tarps) to ethanol, drink it and burn it in our cars.

I've mentioned it here before, but in case you're new... did you know we actually make kitty litter out of whole kernel corn?  That's right, so those pampered, free loading ass-lickers can shit all over it at their pleasure. 
We have so much damn food that all but waste it.

Cut it off, no exports,  then we'll see what the market rate is for a litter box full of used corn after a week. 

Make Uncle Sam take a pull at that little brown jug marked "bad".  You've all forgotten what a son of bitchin mean drunk he really is, haven't you?

Thu, 05/19/2011 - 14:49 | 1292681 BooMushroom
BooMushroom's picture

I figured you HAD to be full of shit on this one.  Kitty litter from corn?  No way!

But it's true :(

http://www.worldsbestcatlitter.com/

From their page: 

BIODEGRADABLE AND FLUSHABLE CAT LITTER

World's Best Cat Litter™ isn't made from mined, drilled, or artificially made ingredients. It's milled from renewable whole-kernel corn and is biodegradable.1And because it disperses in water, it's also septic-safe and flushable!2

Yeah, we're screwed.

Wed, 05/18/2011 - 14:07 | 1288052 jus_lite_reading
jus_lite_reading's picture

Look at whats going on in spain today!!!

Wed, 05/18/2011 - 14:10 | 1288068 Joe Davola
Joe Davola's picture

Sorry, all the light bulb plants are closed.

 

http://www.pittsburghlive.com/x/pittsburghtrib/business/s_699116.html

Wed, 05/18/2011 - 14:24 | 1288159 smlbizman
smlbizman's picture

i cant afford another light bulb at 50. a pop

Wed, 05/18/2011 - 14:47 | 1288221 Aquiloaster
Aquiloaster's picture

United States Agency for International Development (USAID)'s budget is less than .25% of the national budget. So you are proposing reducing spending by .012% (about a tenth of a penny on a dollar). How did correctly complete the math question required to post that dumbass comment?

Wed, 05/18/2011 - 14:51 | 1288277 legal eagle
legal eagle's picture

I never said it would solve any of our hefty problems, only that by logical necessity reducing foreign aid is austerity - for them.  So, you are the dumbass for imputing a conclusion I did not state and then refuting it.  That, my friend is called masterbation.

Wed, 05/18/2011 - 15:22 | 1288430 Aquiloaster
Aquiloaster's picture

You never said it because your comment trailed off into an ellipsis, rather than saying what 'that' is a 'ticket' to. Ellipses...are easy to type with only one hand free...

Wed, 05/18/2011 - 18:57 | 1289259 legal eagle
legal eagle's picture

You are a dysfunctional narcissist.  You bend reality to suit your needs just like Bernake.

Wed, 05/18/2011 - 15:25 | 1288466 Absinthe Minded
Absinthe Minded's picture

It doesn't sound like much does it, .012%. Oh yeah, the national budget is $4,700,000,000,000. That comes to $564 million. That's chump change. In fact why don't you pay for it out of your pocket money. Seeing as we give Pakistan alone $2 billion a year I'd say your statistics might be off a little. With this kind of thinking it's no wonder our debt is at $14T and climbing.

Thu, 05/19/2011 - 05:09 | 1290588 earnulf
earnulf's picture

First off, the budget is 3.7 Trillion, not 4.7.    Second your computations are off by at least a decimal point and most likely two as State and other international programs was 49.8 Billion in 2010 (CBO Table S-11, 2011 Budget)    Multiplying 3.7 Tril by .012 renders about 44 billion, not 564 million.

Wed, 05/18/2011 - 16:41 | 1288751 pasttense
pasttense's picture

US AID is a small percent of our foreign aid. Most of it is military aid.

Wed, 05/18/2011 - 15:00 | 1288317 AnAnonymous
AnAnonymous's picture

How about this, austerity for the rest of the world - cut our foreign aid in half.  Another light bulb, bring our troops home and end the madness.  Yeah, that's the ticket....

 

How is that strange? It is classical to an extortion scheme. The extorter tries to fasten the extorted's belt as much as possible to better the day. That is indeed the ticket.

But the numbers show that not that much is to be recouped, than it wont bring that much more to the US table.

The current situation is plain to see: exhaustion of the extortion scheme. The US has saturated the world and there is not that much left to be extracted from the exterior to the US.

Wed, 05/18/2011 - 18:17 | 1289112 Yankee.go.home
Yankee.go.home's picture

agree

Wed, 05/18/2011 - 13:56 | 1287982 SilverIsKing
SilverIsKing's picture

QE∞

Wed, 05/18/2011 - 13:55 | 1287986 Lets Hang Parliament
Lets Hang Parliament's picture

Austerity is mathematically impossible

Complacency rules yet again...

Wed, 05/18/2011 - 13:58 | 1287988 Imminent Collapse
Imminent Collapse's picture

The question is not whether we can afford austerity, but can we afford not to have austerity.  More to the point, we won't be asked. 

It is coming, bitchez!

Wed, 05/18/2011 - 14:14 | 1288081 Hugh G Rection
Hugh G Rection's picture

Yup

 

They're already coming after the pensions, public or otherwise.  The morons on the left are being told we need to tax more, the morons on the right are being told we need to go after unions.

 

How about the bankster elites and the corporate oligarchs that pay nearly 0% tax.

 

Guillotines Bitchezz!

Wed, 05/18/2011 - 14:20 | 1288143 JW n FL
JW n FL's picture

when the debt ceiling is not raised.. that is forced austerity.. upon the poor..

 

it's all good.. when the poor start burning shit down in your neighborhood.. or when the poor snipe you from your own back yard because they are hungry and you have a nice house with the Bar-B-Que running!

 

No worries! You want Austerity! and here it comes! and that will be the end of some of you at the least! better hope the U.S. Army Troops can make it to your house before the Hungry Poor do!

 

Force Majeure' Austerity! which is incorrect because anyone with a brain knows that hungry poor people will act a certain way.. so it really cannot be considered an “Act of God” because this behavior of Austerity will bring about a premeditated response from the hoards! The hoards may not know what they will do, but we know what they will do.. and since we allow the Forced Austerity, we bring the end results upon ourselves!

 

Got Ammo Bitchez?

 

Wed, 05/18/2011 - 15:02 | 1288336 centerline
centerline's picture

Its a catch-22 for sure.  Either way, those most dependant on the system are the ones in line to lose the most.  Sick and hungry is the coming new normal for many.  You are right on.  And it is already happen, allbeit a lesser scale.  Whoever junked your post is an idiot... make that 2 idiots.

 

Wed, 05/18/2011 - 16:12 | 1288653 JW n FL
JW n FL's picture

Thanks Bro..

the thing that really pisses me off.. and maybe the junks get some over flow of the anger.. is!

 

1%.. Less than 1% of what has been printed was used to help those who need it.. less than 1-fucking-%!

$30 PLUS Trillion Fucking Dollars! and Nothing goes to Americans who need help!

I pay Taxes.. I want my Taxes to help My Fellow Americans and I dont fucking mean more Wall Street Welfare Subsidies!

I want my Taxes to help people who are in Need! My fellow Americans who need a Hand! in this Government Debacle fueled by Lobby Dollars!

I want real people to have real help!

I dont want Corporations getting help when they dont do shit to deserve it or put the monies back to work to the benefit of the Country! Fuck them!

$30 Fucking Trillion Dollars was fucking printed and less than 1 fuckign % went to help the people! Fuck the Government Lobby Whores and Fuck Wall Street for bribing them ALL!

Thu, 05/19/2011 - 00:51 | 1290384 StychoKiller
StychoKiller's picture

Better that you should hang onto those clownbux yourself and donate them to charities of YOUR choice, rather than allowing the Govt to give it to "charities" of their choice!

Wed, 05/18/2011 - 16:21 | 1288677 Pool Shark
Pool Shark's picture

 

Make that 3 idiots...

 

Wed, 05/18/2011 - 13:56 | 1287995 oogs66
oogs66's picture

Sadly I believe you are correct, that we will prime the pump until it explodes because austerity is too painful for politicians to deal with

Wed, 05/18/2011 - 14:16 | 1288117 dmger14
dmger14's picture

Absolutely true.  Anyone who believes we will have protracted and deep deflation underestimates human nature.

Wed, 05/18/2011 - 15:29 | 1288475 Hugh_Jorgan
Hugh_Jorgan's picture

I fully agree that the Fed will prime and prime, but just like a junkie and his smack it will require moreand more junk and give less and less effect. We already have the beginning of protracted deflation, and further deflation is guaranteed in my mind.

For all they have spent, we haven't even been able to keep economic output on an even keel much less show any growth. Plus, the results we have seen in the last 2 years is with the economy holding its breath, treading water hoping that things will turn around. I don't see any turnaround for at least 10 years, economic and geo-political events will ensure this.

So, at some point there is another collective shoe that will drop as the US economy "capitulates". That will put us into a deflationary pit that no amount of priming will ever stimulate us out of and the act of trying will bring runaway hyperinflation. This will be much worse than any austerity measures could ever be. Hyperinflation hurts all but the uber-rich, where auterity only hurts the poor and the entitlement classes. (Although, BHO and Co. are working overtime to expand the entitlement class because they think it will keep them in power and will foment a crisis that they can solve with radical changes to governance in the USA. Seems like that plan might be working, eh?)

 

Wed, 05/18/2011 - 14:00 | 1287999 TruthInSunshine
TruthInSunshine's picture

QEx is already here. It's ZIRP for as long as The Bernank doesn't get mutinized (and not by other Fed Board Members, either, who will never mount an insurrection - it will be by Congressional Incumbents, prodded to throw their hands up by senior citizens, the most fearsome voting block in history).

So, ZIRP is all Ben's got left.

Until that can't be maintained, which might be already sooner rather than later.

Austerity? Austerity can't happen, you say?

We'll all see it.

The reality is that QE3 or QEx, involving anything remotely close to past iterations, will only exacerbate the problems confronting The Bernank, and further, it will actually hurt Wall Street (and I do think the reality is that retailers are already screaming at the Fed and Congress behind closed doors, and that no one can deny that the U.S. and Europe are just too damn big on the consumption scale to be able to sacrifice on the altar of continued levels of inflation without Wall Street getting what someone else referred to as "boomeranged") - Whew...run on sentence.

Bernank can't merely kick the can, again. There's a giant and sturdy wall at the end of the road he's come to.

When you get to the fork in the road, take it, Bernankincide.

The race to save the day is a slow simmer, and this boiling pace The Bernank has created has already dug his grave. Ben Bernanke is already a casualty, and he even probably knows it.

Cue massive campaign year theatrics and a big USD rally soon.

And cue Bernank's replacement. He wants to spend more time with the family, or teach again, or, whatever.

Wed, 05/18/2011 - 14:08 | 1288034 dizzyfingers
dizzyfingers's picture

TEACH?!!

 

GOOD GOD, STOP HIM BEFORE HE DOES THAT!!!

Wed, 05/18/2011 - 14:46 | 1288256 alexanderstollznow
alexanderstollznow's picture

no, QEx is not here, and no changing the definition of QE will change the fact that, contrary to the views vociferously expressed on certain discussion forums, QEx is not likely at all, let alone anytime soon.

Wed, 05/18/2011 - 14:58 | 1288314 Jonas Parker
Jonas Parker's picture

TEACH? No, he wants to get to somewhere far, far away before being "Ceausescu'ed" by the American people.

Wed, 05/18/2011 - 14:00 | 1288013 imapopulistnow
imapopulistnow's picture

A Japanese style deflation inflation cycle for twenty years is perhaps the best case scenario that we are facing.  Both alternatives that you wrote of would be a disaster.  I can only hope our policy makers don't screw it up by going too far in either direction (hyperinflation or austerity)

Wed, 05/18/2011 - 14:12 | 1288060 TheTmfreak
TheTmfreak's picture

They set sail in the extremes awhile back now.

Wed, 05/18/2011 - 14:03 | 1288014 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

What austerity measures is the privately held Federal Reserve willing to take in this scenario?  That's what I thought.  None!

 

Yes, they will print the money.  Death of the addict by overdose as opposed to withdrawal but death just the same!

 

Tuco Benedicto Pacifico Juan Ramirez

Wed, 05/18/2011 - 14:06 | 1288025 TruthInSunshine
TruthInSunshine's picture

The irony of fractional reserve banksters having to do the opposite of what they desire to do with every fiber of their being and existence will be incredible to see, as it will be the only way to temporarily save their entire dogma, if that is at least one of their important goals (i.e. self-survival).

Wed, 05/18/2011 - 14:12 | 1288091 Korrath
Korrath's picture

You wrote a decent rebuttal, but I still have an incredibly hard time believing that TPTB are going to allow the economy to slide backward into a sinking deflationary cycle which can only end in The Great Depression part 2...in the year before a major election.

Wed, 05/18/2011 - 15:23 | 1288457 Oh regional Indian
Oh regional Indian's picture

Korrath,

COnsider the possibility that there may be no major election in 2012.

ORI

http://aadivaahan.wordpress.com

Wed, 05/18/2011 - 16:06 | 1288626 MrSteve
MrSteve's picture

ORI, consider that during the 4 year Civil War in the USA which killed 600,000 people, the US held elections. No mater what happens, people will go to the polls to choose representatives and a President. Without elections, the government will have ZERO legitimacy, regardless of your opinion about it now.

Wed, 05/18/2011 - 16:51 | 1288794 KickIce
KickIce's picture

Take freedom for granted much?

Wed, 05/18/2011 - 18:17 | 1289106 Green Leader
Green Leader's picture

I am not expecting elections in 2012--as that is part of the plan...

Wed, 05/18/2011 - 16:26 | 1288698 TruthInSunshine
TruthInSunshine's picture

Guys, I'm as cynical as one can be about the true goals of those in power, including our very own (or not, as it is not part of our government, but a proxy organization that is more quasi-governmental, if just a little, when it claims it is - but I digress) Federal Reserve.

However, the math is the math, and that's the fly in the Bernank's ointment.

Whether those who claim QE as we now know it, in form and size, will effectively end, are correct or not, we do have some empirical data proving that it really was a net loser of a program, and implementing it thus far has probably severely damaged the real economy, and thwarted any organic recovery.

History would be kind to call QE a failure, when it's recorded in the books and expounded upon, IMO.

It may wind up as a case book example of what not to do for future students of economics.

Wed, 05/18/2011 - 14:06 | 1288029 buzzsaw99
buzzsaw99's picture

Austerity will never apply to Wall Street.

Wed, 05/18/2011 - 15:25 | 1288452 Shell Game
Shell Game's picture

Agreed. But more importantly, austerity will never apply to city, state or government 'leaders'.

Wed, 05/18/2011 - 14:05 | 1288035 LawsofPhysics
LawsofPhysics's picture

Haircuts all around eventually.  Got something physical to offer or exchange for the fiat du jour and/or the things you will need to survive?  Where are we all heading?  Think of what Russia went through after the fall of communism in the late 80's and throughout the 90's.  America is coming to the same conclusion (with similar racial and state's rights issues - will state leave the union?  maybe) just coming at it from a much steeper angle. 

Wed, 05/18/2011 - 14:10 | 1288038 TruthInSunshine
TruthInSunshine's picture
Think about these two 'proclamations,' regardless as to whether you believe the assertion, and why they are being asserted.

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