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Guest Post: The Show Must Go On

Tyler Durden's picture




 

Submitted by Jim Quinn of The Burning Platform

The Show Must Go On

The Debt Ceiling Reality Show is winding down to its dramatic
conclusion on August 2. I think Fox should capitalize on the drama by
gathering the American Idol judges to vote on the best performance by a
political hack. We can have Ryan Seacrest announce on August 1 at 11:55
pm that the winner is – THE WALL STREET MONIED INTERESTS.

 

The latest round of kabuki theatre performed by the corrupt lying
thieves in Washington DC is being played out every night on the MSM. The
volume of misinformation, lies, exaggerations, posturing, and
propaganda is staggering. These vile excuses for leaders know that 80%
of the American population wouldn’t know the difference between a debt
ceiling and a drop ceiling. They use this ignorance to their advantage,
as Obama warns that old people won’t get their social security checks
and government drones won’t be paid. 

According to Gallup, Republicans and Independents don’t want the debt
ceiling raised. The poll also indicates that at least one third of
Americans don’t care. They are too outraged by the Casey Anthony verdict
to focus on the economic future of our country.

Debt Ceiling Poll

I’ll let you in on a secret. The debt ceiling will be raised. Sorry
to ruin the surprise, but this entire sordid episode has nothing to do
with our dire economic situation. It is solely about the 2012 elections.
Both parties are conducting overnight polling on which talking points
are working best in convincing the sheeple that their party is less
likely to be blamed. Posturing and polling are what passes for
leadership in America. It is a disgusting display and will contribute to
the ultimate collapse that is headed our way like a Japanese Bullet
Train.

Here is a summary of where we stand according to the MSM and the political class in Washington DC:

  • The supposedly grand compromise that would have “cut” $4 trillion
    from future deficits fell apart last week. The Democarats wouldn’t “cut”
    entitlements and the Republicans wouldn’t “raise” taxes.
  • The latest proposal was down to $2 trillion of future “cuts”, but neither side would agree to what and when.
  • Now in the ultimate Washington kick the can move, Mitch “Turtle
    Face” McConnell has proposed that Obama increase the debt limit in three
    stages, while requiring him to propose offsetting spending cuts,
    offering a potential path out of the impasse. Harry Reid loves the idea.
    I’m sure that gives you a nice warm feeling, like piss running down
    your leg.

This “solution” cuts nothing. Neither party wants to get blamed for
shutting down the government. The Republicans blinked first. Honor,
truth, and reality based solutions are non-existent in Washington DC.
Weasels can never be trusted around the chicken coop.

The humorous part of this whole disgusting episode is that the $2
trillion or $4 trillion of supposed cuts in spending were not cuts at
all. They were nothing but lower increases in future spending. They
didn’t cut the national debt. Neither party has come close to presenting
a plan to cut the national debt. Mike Shedlock presented a comparison
of Obama’s ten year budget versus Paul Ryan’s ten year budget back in
April. Take a a gander:

  

Even using ridiculously optimistic assumptions like interest rates
staying low, no new wars, ending existing wars, no recessions, and no
new programs, both of the corrupt political parties show ongoing
deficits of $500 billion to $1 trillion per year forever. Does that
sound like cuts in spending? The proposed reductions in spending
increases are like pissing in the Atlantic Ocean of debt.

And here is where the rubber meets the road. Both the Democrat and
Republican budget plans insure economic collapse within the next ten
years. Again, using ridiculously optimistic assumptions, our National
Debt would rise from $14.3 trillion today to between $23 and $26
trillion in ten years. Does that sound like cuts in spending to you?

Luckily, we’ll never reach those levels. We will hit $20 trillion in
debt by 2015. That is a lock. Total Federal government revenue today is
$2.175 trillion. We spend approximately $1 trillion per year on our
military related adventures, or 46% of our total revenue. If interest
rates are 5% in 2015, we will spend $1 trillion on interest. If rates
are 10%, we will spend $2 trillion on interest. 

Do you get the picture? An unsustainable trend will not be sustained.
We have two choices. We can proactively address the problem or just
wait for the collapse of our economic system. This debt ceiling reality
show is all the proof I need. Our leaders will choose to wait. It won’t
be long.

Since no one in Washington DC can be depended upon to do the right
thing, the only solution is to pass a Balanced Budget Amendment to the
Constitution. Special interests across the land would mobilize all their
forces to fight this idea. Deficit spending of $1.5 trillion per year
enriches bankers, bomb makers, the AARP, mega-corporations, chain
stores, restaurants, insurance companies, drug makers, etc. They will
fight for their right to suck the country dry.

No matter how you cut it, H.L. Mencken understood our form of governing:

 

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Wed, 07/13/2011 - 16:19 | 1453393 doomandbloom
doomandbloom's picture

show must go on

and it will ....

 

as i said before this debt ceiling thing is the best reality TV we will ever see....everything will work out...

Wed, 07/13/2011 - 16:36 | 1453473 max2205
max2205's picture

Mitch “Turtle Face” McConnell ....omfg!!!!!

Wed, 07/13/2011 - 16:44 | 1453489 doomandbloom
doomandbloom's picture

he IS reptilian..

Wed, 07/13/2011 - 17:23 | 1453682 CompassionateFascist
CompassionateFascist's picture

Never trust a man with no chin. Wow! yourz is in color!

Wed, 07/13/2011 - 18:33 | 1453945 CSA
CSA's picture

Yeah, that "turtle face" shit was funny.  Probably stole it from someone else, but most funny things are anyways.

Wed, 07/13/2011 - 16:21 | 1453401 Sudden Debt
Sudden Debt's picture

2015....  2021?!!

 

I AIN'T GOT THAT MUCH TIME FOR THIS SHIT TO HAPPEN!!!

THIS SERIES IS ALREADY RUNNING 3 YEARS IN A ROW!!!

 

I WANT TO KNOW THE ENDING!!!

WHO GETS KILLED, WHO GETS THE GIRL, WHO CHEATS ON WHO...

 

I KNEW THIS WAS GOING TO END UP LIKE THAT SERIES LOST....

Keeps on going and going, AND THE END, MY GOD THE END SUCKED!

 

Wed, 07/13/2011 - 16:50 | 1453535 SWRichmond
SWRichmond's picture

Already three years of 10%-of-GDP deficits.  We're dead mates.  2021 doesn't exist.

Wed, 07/13/2011 - 20:50 | 1454428 RockyRacoon
RockyRacoon's picture

What happened to the H.L. Mencken quote at the end?

Wed, 07/13/2011 - 16:22 | 1453404 Hedgetard55
Hedgetard55's picture

Gold and silver, bitchez.

Wed, 07/13/2011 - 16:32 | 1453451 Sudden Debt
Sudden Debt's picture

well, if those keep on rising for the next decade I'll just ride it out.

50% a year should do it.

 

Wed, 07/13/2011 - 16:36 | 1453469 Sudden Debt
Sudden Debt's picture

just thinking....

100% a year is better.

Wed, 07/13/2011 - 16:23 | 1453407 Piranhanoia
Piranhanoia's picture

Using the difficult to find talents of the panel of Am er.. I can, I Doll!  would be highly appropriate on politicians with difficult to find bank accounts.

 

Wed, 07/13/2011 - 16:23 | 1453409 Gold Man-Sacks
Gold Man-Sacks's picture

Word.

Wed, 07/13/2011 - 16:24 | 1453410 dick cheneys ghost
dick cheneys ghost's picture

Good Read......thanks for sharing.......

Wed, 07/13/2011 - 16:25 | 1453420 Jim Quinn
Jim Quinn's picture

It's missing the H.L. Mencken quote at the end:

”Democracy is the theory that the common people know what they want, and deserve to get it good and hard.”

 

Wed, 07/13/2011 - 16:50 | 1453539 samsara
samsara's picture

. all the odds are on the man who is, intrinsically, the most devious and mediocre — the man who can most easily (and) adeptly disperse the notion that his mind is a virtual vacuum. The presidency tends, year by year, to go to such men. As democracy is perfected, the office represents, more closely, the inner soul of the people. We move toward a lofty ideal. On some great and glorious day, the plain folks of the land will reach their heart's desire at last, and the White House will be adorned by a downright moron."

  --   H.L. Mencken  July 26, 1920, wrote in The Baltimore Sun: " .
Wed, 07/13/2011 - 17:03 | 1453594 Logans_Run
Logans_Run's picture

Oh praise for that day because we have obviously arrived!

Wed, 07/13/2011 - 17:30 | 1453713 CompassionateFascist
CompassionateFascist's picture

That's already happened about 30 times. Woodrow Wilson, erudite moron: Fed, Inc Tax, WW I.

Wed, 07/13/2011 - 18:51 | 1454000 NotApplicable
NotApplicable's picture

Seemingly it's the rule rather than the exception.

Wed, 07/13/2011 - 17:54 | 1453817 DosZap
DosZap's picture

Sure am glad we are not a Democracy......................whew.

Wed, 07/13/2011 - 18:08 | 1453862 Shell Game
Shell Game's picture

That does complete it nicely. Thanks, James, great article.

Wed, 07/13/2011 - 16:31 | 1453443 BobPaulson
BobPaulson's picture

My biggest fear has always been what the military and secret polices do when they become underfunded. When their only remaining assets are their infrastructure, they will become increasingly inclined to leverage it if paycheques stop or shrink in any painful way.

Wed, 07/13/2011 - 16:44 | 1453507 cougar_w
cougar_w's picture

Interesting point. However if it really came down to it a good part of the military is in no position to fight on home ground, and the ones that are will have to find their own way home from far away.

I am less worried about the military than I am the cops. If the ax falls in a big way the interesting turf wars will be local and may have already begun.

Wed, 07/13/2011 - 17:12 | 1453637 MachoMan
MachoMan's picture

What the fuck are you guys talking about?  The police will be too busy lobbying/protesting for entitlements to do any real work...  already saw this in my city with the last sales tax increase...  (it was a trifecta of government awesomeness: teachers, police, firemen all joined forces to get a tax hike).

You need to worry about what happens when there is a power vacuum and who fills it (it will be filled, at least in large part...  although, not necessarily immediately).  Don't worry about the guys who used to stuff kids in lockers in high school...  they'll have other shit to worry about...  and, in all likelihood, will be on your side.

Wed, 07/13/2011 - 17:20 | 1453658 BobPaulson
BobPaulson's picture

When the Soviet Union went TU, the rapid integration of the KGB and mafia was very spooky. The most armed and dangerous out there in the US are related to the "war on drugs", though many there are already rogue in spite of spin to the contrary.

I just came back from 6 months living in Mexico, and of course there the underfunded military poses a continual threat to their futile prohibition warz guided by the DEA.

A complete breakdown results in people with arms and training having to become security entrepreneurs: a devilishly grim euphemism for protection racketeers. As for the spooks with access to covert ops hardware, I can only guess what kinds of activities they will fall back to after their first paycheques are too inflated to buy a loaf of bread.

Wed, 07/13/2011 - 18:00 | 1453842 cougar_w
cougar_w's picture

security entrepreneurs

Thank you for that one.

Wed, 07/13/2011 - 17:19 | 1453661 BobPaulson
BobPaulson's picture

deleted double post

Wed, 07/13/2011 - 18:53 | 1453993 DosZap
DosZap's picture

cougar,

I (at least) am hoping hopium, that the military will end all this silliness and remove the current govt, and have a new one set up.

Constitutionally, with NO Old members allowed unless the Military leaders know them well, and trust them to actually go back to Const Gv't.

Wishful thinking I know.

However we need to be aware that orders have been given, and two major command centers w/ a minimum of 20,000 soldiers are on ready alert at each facility, at northern command center, and southern command center.

That said,I agree the turf wars have begun.

Against retailers............

The NEW PHENOM is GANG ROBBERY of stores,malls,etc.

I know you folks have seen it on the news.

Started w/30 in a convenience store, and then has already started escalating .

Last one was at least 100 in a Mall, they enter rapidly, and overcome all security by sheer #'s no violence, and take what they can carry, and leave the same way.

Look for more Monkey See Monkey Do here..............there is no reprisal.

Even if Cops were present far too many for a handful of officers to even slow up.

Wed, 07/13/2011 - 19:47 | 1454213 toady
toady's picture

this is where the automatic weapons come in. after half of 1 of these groups is gunned down they will think twice about doing it again.

this kind of stuff won't happen until the big crash though...

Wed, 07/13/2011 - 23:52 | 1454968 HungrySeagull
HungrySeagull's picture

AutoYou will do well to consider buying stuff online and having mr brown deliver it instead of going to malls and such places that these mobs gather.

If you live in a good sized town or city, now is the time to move the fuck out because with copper at 460 a pound they are stealing the shit all over. I have a few cameras watching my ground wire at the moment. Much good they will do anyway.

I expect them to go for the service drop pole and cart off the 100 pound 50 year old copper internal transformer if they survive the theft.

Wed, 07/13/2011 - 16:51 | 1453541 Dreadker
Dreadker's picture

I wouldn't be surprised if the 'lost legions' scenario arose - like happened to the romans... sorry service members... we can't afford to fly you home in a C-130 - your're all resourceful - figure it out yourselves....

And those here no doubt will sell weapons on the black market to support their families... been happening in argentina for years now ;-)

Wed, 07/13/2011 - 17:03 | 1453590 cossack55
cossack55's picture

Reminds me of Prague in 91', the poor soviets would sell you anything. Tanks, rocket launchers, RPGs, submarines, destroyers. Taking delivery and transporting to US was a problem.

Wed, 07/13/2011 - 17:24 | 1453686 ThoughtCriminal
ThoughtCriminal's picture

... wives, girlfriends, neighbors' daughters, ...

Wed, 07/13/2011 - 17:33 | 1453726 CompassionateFascist
CompassionateFascist's picture

hMMMMMMMMMMMMMMM....

Wed, 07/13/2011 - 19:05 | 1454041 DosZap
DosZap's picture

cossack,

Taking delivery and transporting to US was a problem.

 

Somehow I do not believe this, as there are SO many ports, and landing sites/small planes, and beaches, not under the eye of Sky Net.

Not enough people or equipment to stop it.

 

The fun begins when the gangs,B & C's, supplied w/FA AK's(by a  left nameless in house tax funded group).

Turn them into legalized door to door ops.

 

Of course they were set up,(dumb as a box of rocks) and are/will be cannon fodder, but it will serve two purposes.(for those that enlisted/furnished them w/hdwre)

 

If and when they are given the GO.

 

I am sure some of you are aware/remember this televised report from several years back.

Wed, 07/13/2011 - 16:35 | 1453462 Spastica Rex
Spastica Rex's picture

Are there any queers in the theater tonight? Get 'em up against the wall. There's one in the spotlight, he don't look right to me: get him up against the wall.

Wed, 07/13/2011 - 16:47 | 1453520 caerus
caerus's picture

caught waters show in houston...it was awesome

Wed, 07/13/2011 - 17:53 | 1453812 Spastica Rex
Spastica Rex's picture

I saw him in Tacoma with my 15 year old son! One of the highlights of my life.

Wed, 07/13/2011 - 17:58 | 1453834 caerus
caerus's picture

Same here!  Sounds like your son has some good taste in music

Wed, 07/13/2011 - 17:26 | 1453696 sdmjake
sdmjake's picture

"Who let all this riff-raff into the room?"

Wed, 07/13/2011 - 17:36 | 1453736 CompassionateFascist
CompassionateFascist's picture

better still. That's one group entitlement that needs to to ne quickly liquidated.

Wed, 07/13/2011 - 16:36 | 1453470 buzzsaw99
buzzsaw99's picture

end the fed, problem solved.

Wed, 07/13/2011 - 16:48 | 1453530 Dreadker
Dreadker's picture

just hand over the printing to the robo machines... they control the markets anyways... we should all just submit to skynets ultimate plans ;-)

Wed, 07/13/2011 - 16:56 | 1453556 buzzsaw99
buzzsaw99's picture

Put me in charge of dealing with bond holders:

http://www.youtube.com/watch?v=_O-QqC9yM28&feature=related

Wed, 07/13/2011 - 16:36 | 1453472 kito
kito's picture

"We can proactively address the problem"

how?

really?

how?

Wed, 07/13/2011 - 23:54 | 1454976 HungrySeagull
HungrySeagull's picture

PPhysical metals and wait a while.

 

Eventually you should be able to buy a home of your choice anywhere with a coin or two.

Wed, 07/13/2011 - 16:38 | 1453477 john milton
john milton's picture

the one who uses the mushroom cloud card first will win

Wed, 07/13/2011 - 16:45 | 1453512 cougar_w
cougar_w's picture

That's what they are all thinking, anyway.

Wed, 07/13/2011 - 16:38 | 1453480 caerus
caerus's picture

Sadly, when the ceiling is raised the few sheeple paying any attention at all will say "see...I told you there was nothing to worry about"  NFL prob back by then and everyone will be to busy with their fantasy rosters.

Wed, 07/13/2011 - 16:47 | 1453521 Dreadker
Dreadker's picture

It'll just give me more time to by my three favorite metals... gold, silver and lead ;-)

Wed, 07/13/2011 - 16:43 | 1453501 High Plains Drifter
High Plains Drifter's picture

mark levin says that  August 2, is our new July 4. I don't agree with much this guy says, but on this, he may have a point.  I hate to break the news to him, but the outcome this time will be much different.

Wed, 07/13/2011 - 16:58 | 1453561 Josh Randall
Wed, 07/13/2011 - 16:43 | 1453502 Logans_Run
Logans_Run's picture

What if OBummer's compensation were performance based?

Wed, 07/13/2011 - 17:03 | 1453586 JW n FL
JW n FL's picture

I wish I could get that Wigger out of office and drop Romney or Boner or McSame in his place.. today! that way we could have Austerity tomorrow! I wish I could do it..

Wed, 07/13/2011 - 17:37 | 1453742 Ned Zeppelin
Ned Zeppelin's picture

But none of those guys would change a thing, so why go to all the trouble?

Wed, 07/13/2011 - 18:11 | 1453869 Shell Game
Shell Game's picture

you missed the sarc.  JW is a, err, has a boner for the Dems.

Wed, 07/13/2011 - 18:26 | 1453918 JW n FL
JW n FL's picture

http://www.politifact.com/truth-o-meter/promises/obameter/rulings/promise-broken/?page=1

A Lobby Whore is a Lobby Whore is a Lobby Whore!

Death of America Movie http://t.co/wpZqChk

 

The money supply has tripled in 3 years. http://research.stlouisfed.org/fred2/series/BASE

 


Obama $656 Million LOBBY Dollars! http://bit.ly/Tu4v Obama Let the FED Print 1/2 a Trillion since Jan 1 2011 http://bit.ly/aBu9yF

 

http://www.banktech.com/articles/229700093?cid=nl_bnk_daily

Top U.S. Lobbying Banks Got Biggest Bailouts

 

1.    [PDF]

A Fistful of Dollars:Lobbying and the Financial Crisis; Financial ...

File Format: PDF/Adobe Acrobat - View as HTML
A Fistful of Dollars: Lobbying and the Financial Crisis by. Deniz Igan ...
www.imf.org/external/np/res/seminars/2009/arc/pdf/Mishra1.pdf

 

**************************************************************

You Republican only read what you want to read.. and I was very serious! about having Republicans in power.. maybe then some more people would Wake the Fuck Up!

 

**************************************************************

 

by George Washington
on Tue, 07/12/2011 - 13:06
#1448155

 

There is a scripted, pseudo-war between Dems and Repubs, liberals and conservatives which is in reality a false divide-and-conquer dog-and-pony show created by the powers that be to keep the American people divided and distracted. See this, this, this, this, this, this, this, this, this and this.

Thanks for playing ...

 

Wed, 07/13/2011 - 18:35 | 1453935 Shell Game
Shell Game's picture

You're preaching to the choir, again..  You don't get it, switching parties in and out has never and will never Wake The People THE. FUCK. UP!! 

 

Not an R, but you 'Democrats'.. only read what you want to read..

Wed, 07/13/2011 - 19:34 | 1454141 JW n FL
JW n FL's picture

do you ignore the message on purpose?

if the Republicans fuck it up some more.. then.. that base, like the democratic base will be fed up with the Lobby Whores more quickly than letting Obama finish his reign of terror.

Wed, 07/13/2011 - 19:51 | 1454231 Shell Game
Shell Game's picture

All right, let's get back to the message..

I wish I could get that Wigger out of office and drop Romney or Boner or McSame in his place.. today! that way we could have Austerity tomorrow! I wish I could do it..

You think Austerity is how they fuck this up?  How exactly will the lack of austerity NOT fuck this up?  Who's getting sucked in to the divide and conquer game now? 

We all have been had, the trap is sprung.  In all honesty, I hope you are right that something conventional wakes the People the-fuck up. I just don't see that happening.  I see the country divided in a bloody fight between those who want the status quo, and the realists..

Wed, 07/13/2011 - 18:51 | 1454001 nmewn
nmewn's picture

Thanks JW, I needed a laugh, meaning...

The always classic GW see this, this, this and this rabbit holes ;-)

Wed, 07/13/2011 - 19:32 | 1454132 JW n FL
JW n FL's picture

I was fishing for Pub's the other nite on one of his threads and he slam dunked this guy with this.. so I stole it! but I leave his name attached becuase God knows he deserves all the credit! He is a Good Sport and honestly him and a few others.. like you.. CD, make me believe we will survive it all and be the better for it. the talent is out there in the World, we as a Nation just need to get it in office serving for the benefit of the people.

 

I lack the tack needed, but I will be tacking these fuckers up until the clean up is done.. so I take comfort in the fact that I will be of good use for my fellow man.

Wed, 07/13/2011 - 16:43 | 1453503 AldousHuxley
AldousHuxley's picture

Status quo must be kept! Paris Hilton must make more money!

 

http://www.youtube.com/watch?v=whVf5tuVbus&feature=related

 

23 Things They Don't Tell You About Capitalism

Wed, 07/13/2011 - 16:44 | 1453509 Dreadker
Dreadker's picture

She makes money?  I thought her dad did that and she just did the porn?

Wed, 07/13/2011 - 16:58 | 1453564 AldousHuxley
AldousHuxley's picture

The entire family just sits on wealth their grandfather created. But daddy can always pay to get her record out or a perfume out instead of some poor artist with real talent. Then market the heck out to TV addicted uneducated consumers who actually buy her junk. She outsmarted Donald Trump labled water.

 

 

Wed, 07/13/2011 - 16:55 | 1453552 AldousHuxley
AldousHuxley's picture

I'd like to add 24th "thing": it failed.

Wed, 07/13/2011 - 17:42 | 1453766 CompassionateFascist
CompassionateFascist's picture

F-off, you egg-sucking pointyhead. Tho it does a bad job of distribution, capitalism at least creates wealth AND the economic space for political freedom. Socialism? Universal poverty - ex. for the New Class - and enforced via a Gulag. I'll take the Market over the Politburo anyday.  

Wed, 07/13/2011 - 19:10 | 1454063 gall batter
gall batter's picture

why'd you have to be so bold?

Wed, 07/13/2011 - 23:52 | 1454970 AldousHuxley
AldousHuxley's picture

haha...you think we have a market....haha. you think Fed is not a politburo?

 

you think NAFTA with 1000 product line item trade rules is free market? capitalism? we never had capitalism idiot. No country has capitalism. Capitalism is for the poor suckers like you. The rules of competition doesn't apply to the politburo. Capitalism creates wealth my ass. Soviets went to space too. North Korea has central bankers too.

 

You are one of those dumbasses who think US is also a democracy right?

Wed, 07/13/2011 - 18:36 | 1453909 Shell Game
Shell Game's picture

It didn't fail, we did.  We stopped watching D.C. - and I mean really watching - in leau of enjoying all that a life of debt and the boob tube had to offer.  History shows that democratic socialism and communism have always failed and they always will, Socialism has also slaughtered more people than any other philosophy/government.  Anarchy doesn't work either.

Importantly, you are a naive idealist if you think we even have Capitalism now, or that we've even had it in the last 20 years.  In fact, true capitalism left the building the moment our money went from being honest to being an empty fraud.

You can't have honest Capitalism without having an honest monetary system.

 

Wed, 07/13/2011 - 23:56 | 1454985 AldousHuxley
AldousHuxley's picture

That's what they said about communism. It failed due to corruption at the top. Only if the leaders practiced communism the theory. Well in real life you are going to end up with a mess. The problem was people thought perfection was achievable. Look ye here, idiots still defending capitalism AFTER it failed due to corruption just like all the other isms. It is time to move on. Come up with  a new system of governance.

 

You can't have honest capitalism because capitalism relies on greed and wealth is passed down just like back in the days.

Thu, 07/14/2011 - 19:20 | 1457913 Shell Game
Shell Game's picture

You can't have honest capitalism because capitalism relies on greed and wealth is passed down just like back in the days.

Substitute the word capitalism for humans above..  You see what the real problem is? Capitalism didn't fail, people failed..  It's the only system that is congruent with both free markets and free individuals, I'll take it over anything else that been tried on this earth - and too failed due to the human element.  You propose a better solution that doesn't create a bunch of social cripples, I'm all ears.

Wed, 07/13/2011 - 16:43 | 1453504 Dreadker
Dreadker's picture

As always its not a cut... its at best a freeze on spending with the hope that GDP continues at 3%... until we hit our old friend the exponential doubling effect.... the reasoning being that if the deficit is still $1.5t in 20 years that the USA will produce x times more stuff/jobs/ipads/reality TV shows and mcdonalds workers make $1million a year... then $1.5t seems nothing...

Kick that can baby!  Kick it!

Wed, 07/13/2011 - 21:15 | 1454518 bigwavedave
bigwavedave's picture

"USA will produce x times more stuff/jobs/ipads/"

 

Thats funny. Fat-Assed Yanks could not produce an iPad if they tried....

Wed, 07/13/2011 - 16:50 | 1453536 I think I need ...
I think I need to buy a gun's picture

we can alway print entitlements we just can't guarantee the value of entitlements

Alan Greenspan

Wed, 07/13/2011 - 16:54 | 1453549 rsnoble
rsnoble's picture

What if we've hit the wall?  It could be that point in time we tell China to stick in their fucking ass and just take the middle east oil.  The way things are going 2012 better hurry up and get here.

Also.......I have figured out the reason for a premature QE3 announcement: Please view bank charts. LMFAO.  "oh our precious rich bankers we must save you at any and all cost!"

 

Wed, 07/13/2011 - 17:33 | 1453728 ThoughtCriminal
ThoughtCriminal's picture

"...tell China to ... just take the middle east oil."

 

Already in progress

Wed, 07/13/2011 - 16:57 | 1453559 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

Looking for some pointers here.  A ... uhhh... friend of mine has a mortgage and sees his big risk being a large sudden spike in interest rates.  He's looking for a product that would allow him to short long term bonds in the form of a derivative product.  Something that would work like insurance giving him a huge percentage return if rates spike and nothing if they don't.

 

Thoughts?

Wed, 07/13/2011 - 17:03 | 1453587 rsnoble
rsnoble's picture

Sounds to me like if he's smart enough to be talking about shorting bonds and derivatives his house should be paid off.  I'm sure there's some kind of etf crap for that as they have one for everything including how many personal jack off sessions I have in one day but im not looking into it.

Wed, 07/13/2011 - 17:04 | 1453600 rsnoble
rsnoble's picture

In other words if he can afford mostly dead money pay off the house.

Wed, 07/13/2011 - 17:20 | 1453672 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

Well, it seems like the big risk with derivatives is that when you win, you'll never collect anyway so the whole idea may be unworkable. 

 

Just seems like so many or so sure that rates will stay down for so long that a guy could get good odds betting the opposite.

Wed, 07/13/2011 - 21:18 | 1454530 bigwavedave
bigwavedave's picture

TBT

ProShares UltraShort 20+ Year

 

Wed, 07/13/2011 - 17:02 | 1453581 Salah
Salah's picture

O U T S T A N D I N G  !

They've already trivialized it with their utterly, irredeemably feckless performances to date, so why not go all the way?

 

 

Wed, 07/13/2011 - 17:03 | 1453588 johnnyblade
johnnyblade's picture

ot:  puking

Wed, 07/13/2011 - 17:12 | 1453633 JW n FL
JW n FL's picture

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

 

Did Positive Thinking Wreck the Economy? - Barbara Ehrenreich

Wed, 07/13/2011 - 17:13 | 1453638 McUSA
McUSA's picture

Mitch 'Turtle Face' ....omfg X 2

Wed, 07/13/2011 - 17:25 | 1453689 HungrySeagull
HungrySeagull's picture

Drama Drama Drama.

 

40 fucking years ago all the Government's 12 Budgetary requirements were voted and passed without hardly any notice from anyone.

I am just about sick about the Drama necessary to save the day. What a tragic WASTE.

 

Wed, 07/13/2011 - 17:30 | 1453710 ThoughtCriminal
ThoughtCriminal's picture

USA likes "Exporting Democracy" so, export all 535 DC "experts" with next shipment (Syria  can really use these 535 "geniuses")

Wed, 07/13/2011 - 17:35 | 1453725 slewie the pi-rat
slewie the pi-rat's picture

WE NEED TO START DOING THE RIGHT THING,  FISCALLY, NOT START A PARADE ABOUT A COUNSTITUTIONAL AMENDMENT. 

STOP THE DEFLECTIONS INTO POLITICAL POSTURING.

ADDRESS THE PROBLEM WITHIN THE FRAMEWORK WE HAVE, WITHOUT CHANGING LAWS, RULES, AND AMENDING THE DAMNED DICTIONARY, TO FORCE SOMEONE ELSE TO DO WHAT YOU WANT. 

IN CASE YOU HAVEN'T NOTICED, WHAT WE WANT AND WHAT IS A GOOD IDEA DOES NOT MATTER.  SO, WHY NOT JUST ASK SANTA? 

THE APPROACH TO THE CONSTITUTION SHOULD NOT BE BASED ON WHAT PREZ0 AND BARNEY FRANK DID THIS WEEK, OR THE FAILURE OF THE TEA PARTY.

THIS DUMBASS IDEA IS NOT ONLY A WASTE OF TIME, IF IT EVER BECAME LAW, IT COULD ADD RISK TO CHANGES THAT ARE ACTUALLY FUKING NECESSARY, IRRESPECTIVE OF DETAILS.  

oh, so that's how you fix that! 

i found the "only solution"!

Wed, 07/13/2011 - 19:15 | 1454073 gall batter
gall batter's picture

pop those caps, s the pi-rat.

 

Wed, 07/13/2011 - 20:29 | 1454358 slewie the pi-rat
slewie the pi-rat's picture

hey, g_b:  can you handle a gatling gun?  nice old brass one? 

if you can understand this :  Something More Important than the Debt Limit  ,you can have the job!  James Turk, trying to express the need for a fuking PARADIGM SHIFT regarding the role of goobermint in our thinking (Paste): 

GDP is a measurement of spending in the economy.  In many respects it is a flawed measurement.  For example, when a tornado levels a town, wealth is destroyed.  Re-building the town boosts GDP, but this positive GDP enhancement does not arise from the creation of new wealth.  After all, the wealth, i.e., the destroyed houses already stood, and re-building what already existed is not creating new wealth.  There are other problems with GDP too.

...and (Paste):  I look at the spending measured by GDP but focus on the other side of the coin because it shows that the private sector is creating the nation’s wealth, which is non-government spending plus the trade balance.

...along to (Paste): The feathers are being plucked from the goose at a record rate.  Government spending has become an even bigger force in the economy than when the US was on a war-footing during World War II.  Never before has government consumed so much of the private sector’s wealth creation.

slewie again:  these numbers will not work, sports fans!  look at what is happening.  the banksters and the pols are taking turns feeding us bullshit re: The Big Whatever.  while they clean us out! 

but addressing the problem in a way that imposes a "balance" on the backs of the elderly and poor while ignoring the parasite/waste/nepotism/salary & benefit ("union") problems is just not gonna fly as long as i can type a SENTENCE. 

the idea that these fuktards can help us fix the political system is precisely as absurd as believing the banksters will show us what we need to do to stop them. 

this is not that complicated!

Wed, 07/13/2011 - 21:01 | 1454464 gall batter
gall batter's picture

no, guns for me.  gatling or plastic.  no guns, ever.  

i agree with you.  the pols and the banksters are entwined, circle jerking.  we have a one-party systemic failure, controlled by multinational corporations. they will not fix anything but our low incomes. IT IS NOT COMPLICATED. 

Wed, 07/13/2011 - 23:14 | 1454882 slewie the pi-rat
slewie the pi-rat's picture

me either--no guns.  but i still fire of a cannon now & then on zH. 

the fix is in!  (nice shot?)

Wed, 07/13/2011 - 21:08 | 1454491 dumpster
dumpster's picture

anal remarks about the caps ,, into every crowd an anal talks

 

who gives a RATS ,, just a over used bone head

Wed, 07/13/2011 - 22:10 | 1454705 gall batter
gall batter's picture

i concede.  anyone named dumpster is a higher authority on anal everything.

Wed, 07/13/2011 - 23:27 | 1454909 slewie the pi-rat
slewie the pi-rat's picture

actually, dumpster, as far as the remarks abt the caps go, yours are the only anal ones. 

Thu, 07/14/2011 - 02:50 | 1455179 Yen Cross
Yen Cross's picture

 Slewie I'm sure you will captua this. I picked up 1000 shares of GE, for a family member, while traveling abroad. I figure we are trading in the high 19's when I get back.  Heck I spent 2 dollars. Low and behold the Tool is on CNBS talking jobs and the stock is in the 18's?

Mr Immelt and I are going to have some ! on !...   That is Otools Playboy? Not that 2  dollars matter. I feel the need to dig.... CNBS STYLE. I might even call Rupert...

Wed, 07/13/2011 - 17:35 | 1453734 Ned Zeppelin
Ned Zeppelin's picture

Email your favorite CONgress Critter and urge them to call the other side's bluff.  Tee hee.

Wed, 07/13/2011 - 17:39 | 1453750 ThoughtCriminal
ThoughtCriminal's picture

CONgressMAN and CONgressMEN

CONgresswoman -? got it; CONgressARTIST

Wed, 07/13/2011 - 21:02 | 1454469 gall batter
gall batter's picture

like this would be productive???

Wed, 07/13/2011 - 17:40 | 1453754 Ned Zeppelin
Ned Zeppelin's picture

Oh, and by the way, we are de-fin-ite-ly fucked.

Wed, 07/13/2011 - 17:48 | 1453783 ThoughtCriminal
ThoughtCriminal's picture

What better way to destroy one's enemies!

No more Armed Forces required.

Just deploy the 535 CONgressMen  - they'll destroy damn near everything beyond any expectations (for psywar-effect call it "freedom and democracy" campaign).

Wed, 07/13/2011 - 18:58 | 1454024 Rogue Economist
Rogue Economist's picture

The rhetoric from the Gold Bugs is spinning up again here as the Lug Nuts on the Bus Wheels become ever looser. Ron Paul “grilled” Helicopter Ben with the “devastatingly” tough questions of whether Gold is Money and Why do CBs have Gold?

I haven’t watched the Vid (slow net connection), but at least according to the Gold Bugs on Zero Hedge, Bernankenstein answered like an idiot, denying that Gold is Money. Which as Chairman of the Chief Fiat producuer of the world, he pretty much has to do.

However, the whole question of whether Gold is Money simply misses the point here. Right now on the markets it is trading like a currency, not a commodity. So in this sense it certainly is money. It also forms the base of an inverted pyramid of monetary instruments the Gold Bugs like to use to demonstrate the traditional role of Gold in a monetary schema.

http://i30.tinypic.com/1zmkpj5.jpg

As you can see from the pyramid, the further up you go, the more complex the monetary instrument, the topmost ones only recently “invented”. So the argument goes, as the upper instruments fail, everyone reverts down to Gold as the FINAL form of “money”. There are numerous problems with this argument.

First off, as you can see diagrammatically from the inverted pyramid, everything above it is leveraged up on top of it, so if the topmost forms of money begin to fail, how could Gold contain all the value above it? It cannot, because the value contained above represents some sort of debt that must be extinguished. Most of the money is notional money based on debt, not gold, and to absorb all that notional money including the CDS, Gold would likely have to go to $1M/oz, or some other outrageous figure. If you look at all the rest of the asset values out there, this would mean that for instance 1 Gold Eagle in your possession would buy you a nice McMansion, a Mercedes, a nice Sailboat and a few Plasma TVs at the very least. Get your Gold Eagle today if you buy this reasoning.

If/when the monetary instruments above Gold in the pyramid collapse, the value of all other asset classes with respect to Gold will have to adjust to the amount of Gold actually available for commerce, which ain’t much. Most people got no gold, which would make it impossible to buy a Mcmansion or even some raw land, but does this mean if you show up with a Gram of Gold somebody who holds title to 1000 Acres of prime bottomland will hand it over to you for a Gram of the Yellow Metal? I suppose its possible, but I consider it highly unlikely.

Even more important than the relative valuations of hard assets to Gold is the issue that this inverted pyriamid is completely ignoring what gives ANY of this money its value, which is of course ENERGY to drive your society forward and enable commerce in STUFF. What is REALLY at the bottom of the pyramid? Oil of course, except Oil isn’t money because it burns up. It trades as a commodity, not as money.

The essential question here is NOT what Gold trades at relative to other money like the Dollar or the Euro, but what Gold trades at relative to a barrel of Oil. How much Gold will it take to buy a barrel of Oil after the rest of the monetary instruments crash? What happens to commerce when all the Gold flows to the current holders of Oil under their property, and you have no Gold left to buy Oil from them? How much Gold do these folks really need or want to have in their basement safe to keep exchanging their Oil for your Gold? When (as is likely) they run OUT of Oil for you to buy with your Gold, exactly what will you need Gold to buy, at least in the Industrial sense? You’re not going to be in the market for Carz produced in China to drive on the Eisenhower Interstate powered by Saudi Oil, that is for sure.

Most certainly, the Fiat as functioning money is crashing here, and crashing rapidly. As it crashes, there is the recidivist tendency to try to convert your holdings in all the topmost monetary instruments into that traditional “store of wealth” and “flight to safety” instrument of Gold. However, you have to consider what happens when everything above Gold is a smoldering pile of incinerated Toilet Paperand all you are left with is a Pile of Gold Bricks and an increasingly limited source of available energy upon which to drive your industrial society? How much VALUE will the gold itself retain then, and what exactly will you buy with it?

It is unclear how long it will take for the entire inverted pyramid above Gold to fail here, and during the period it is failing Gold is likely to hold a better value than most of the trash above it, so if it takes a decade for the Oil infrastructure to completely crash, its likely a better wealth storage medium than fiat, but its not going to be nearly so fungible as time goes by here. Its going to be hard to use it in trade, even if there are not laws passed against that or direct confiscation. It has its own set of risks attached.

Money is failing here to be sure, and the underlying reason for that is that the energy conduit of Oil is failing. Gold as a currency medium, wealth storage medium and intermediary in trade can only function for a while here as alternative money to the fiat you normally use for these purposes, and it has a lifespan limited by available energy for the population. At this point, I still recommend Dollars above Gold for their fungibility in the event of a fast crash scenario. However, hedging for a slower crash, a portion of your savings in Possessible Gold is probably a wise idea, so long as you are otherwise prepped up with the usual, Food, Guns and Ammo. Keep your Powder Dry, because the spin down is picking up pace rapidly.

RE

Wed, 07/13/2011 - 19:53 | 1454176 Shell Game
Shell Game's picture

I too find the dynamic between energy, industry and gold to be fascinating.  My immediate thought is that all forms and stores of money will be dramatically affected in your scenario of an all out end of oil.  But, even with an end of oil there will evlove energy alternatives and the need to barter is unquenchably human.  Thus, gold has ever been and will always be the timeless and stable medium to store weath and bridge human crises.  The $US, on the other hand, is in a transient Reserve role and, arguably, in the winter of its cycle..

You might like this essay on oil, gold and money:
http://fofoa.blogspot.com/2009/07/gold-oil-and-money-in-free-market.html

As to $1M/oz, here's a good article on a more realistic valuation:
http://fofoa.blogspot.com/2010/06/how-can-we-possibly-calculate-future.html

 

Wed, 07/13/2011 - 19:53 | 1454238 Rogue Economist
Rogue Economist's picture

I've read most of FOFOA's stuff, as well as about everything Antal Fekete has written in the last 5 years.  I'm an avid follower of the collapse dynamic as pertains to fiat, gold, oil and the industrial dynamic.  Suffice it to say, I do not think Gold will maintain itself as a viable monetary instrument during the kind of spin down I think we are set up for.

I am always up for chats about this though with others interested in the dynamic.

http://tech.groups.yahoo.com/group/reverseengineering/

RE

Wed, 07/13/2011 - 20:07 | 1454289 Shell Game
Shell Game's picture

I think I understand your preference for $US in a fast collapse and gold in a slow collapse.  But, even with regard to a fast collapse, there would follow either a fast or slow transition to something else - which will not favor $US.  In this world of global finance and globally linked economies, I just don't see any other viable answer to the problem of a reliable monetary store of value through a crisis. 

Thx, I'll check out the link.

Wed, 07/13/2011 - 20:28 | 1454353 Rogue Economist
Rogue Economist's picture

It is entirely unclear what the transition medium will be when the Fiat fails here across the board.  Its in cascade failure mode at the moment, weakest and smallest currencies will go first is certain.  It is unlikely for sure the Dollar crashes before the Euro or Yen, and Renminby is a joke.

I suspect Price Controls and Dual Internal/External currencies will become part of the mix in highly developed economies. In the medium term, international commerce will definitely take a beating, and how Gold values locally will be determined by local political factors, not the least of which is whether order can be maintained through the society.

Far as the likelihood of alternative energy sources replacing Oil in the medium term, I am not sanguine on the likelihood of that one.  If anything will replace Oil in the energy and transportation schema, its going to take far longer for that to happen than the crash in the monetary system will take to Avalanche downward.

RE

Wed, 07/13/2011 - 23:45 | 1454952 Shell Game
Shell Game's picture

Good thoughts. No doubt central banks will attempt to intoduce a new monetary medium that they control.  However, the coming monetary transition will come with much baggage and an unpredictable momentum.  Confidence (widespread) will be required of any new system if it is to have staying power, or.... an escalation in totalitarianism of western governments to implement and keep a new, faulty system.

As to the energy alternatives, I completely agree and though I stated it simply, I am nowhere near sanguine on that future.  Devastating loss of industrial output is a given, shortages of all those consumables people have taken for granted.  My point is that people will always 'move on', basic commerce will move on and take shape in the new reality.  A bartering medium, money, will always be required and I can think of none better, with more universal acceptance and confidence, as gold.  Somewhere in there the western government bubble will burst, imho.  This will also be positive for gold holders.  Seriously stretching the limits of my crystal ball here...  ;)

Have a good evening..

Wed, 07/13/2011 - 21:11 | 1454503 dumpster
dumpster's picture

save it for a book lol   or condense into 3 sentences . 

Thu, 07/14/2011 - 02:16 | 1455149 Rogue Economist
Rogue Economist's picture

Why should I save it for a book?  Who will have any money to buy the book?  Would you spend your Gold Eagles to buy this book?  If you bought it from me with your Gold Eagles, what would I buy with the Gold Eagles I get from you?

I see no reason to save this up for a book. If you can give me a good reason for saving it up for a book, I'll consider it.  Far as condensing it into 3 sentences is concerned, I see no good reason to do that either.  If your attention span is limited to 3 sentences, go watch a sound bite on the MSM.

 

RE

Thu, 07/14/2011 - 18:53 | 1457881 Shell Game
Shell Game's picture

'Run along home now little Starling..'

Thu, 07/14/2011 - 05:37 | 1455270 Rogue Economist
Rogue Economist's picture

One more thing here before bed time in response to Shell Game's conclusion that some form of money will always be required as an intermediary in a barter system.

That is to an extent true as long as you run a large enough system complete with the possibility of savings of hard goods, aka warehouses full of grain and so forth.  You have to have an accounting system for savings liek that, its why money developed in the first place.  However, the ability to save up ANYTHING on an aggregate scale here is highly questionable on a global scale, because of overshoot.  Can't save Food, can't save Oil, its all getting consumed just as fast as it gets produced on a global level.  Not to say some places cannot save while others starve, that is certainly possible and in fact likely here and already occurring.  In aggregate though, there is no savings and no real surplus.  there cannot be as long as there is a mismatch between total pouplation size and total per capita energy production.

If you have no real surplus globally, you cannot have a global monetary system either, because there is no savings to acount for.  That is why global financial instruments are failing, they are based on nothing but debt and the expectation of future production and growth that will never come.

Far as Gold becoming a local instrument of representing savings in areas that do have surplus, this would depend on how much Gold they have to function this way.  Say you live in Iowa where there is the possibility for growing much corn and many pigs, but about nobody has any Gold, and there is none in the ground to dig up either.  Does gold really function in such an environment as a likely form of money in the medium term?  Not likely, direct barte without an intermediary is more likely.

It wil take a while to play this whole game out here, but what must be realized is the civilization is in overshoot and there is no capacity for savings really on the aggregate level until a new balance is achieved with a lower population that can work without the bonus of energy derived from fossil fuels.  Until that process is complete, no form of monetary instrument will work, and that includes Gold and Silver.

RE

Thu, 07/14/2011 - 20:27 | 1457876 Shell Game
Shell Game's picture

Playing devil's advocate (because it's more fun that way..). What about those who live where gold is but corn and pigs aren't so much?  I think that farmer will accept gold for some of this crop, haven't they always in the past? pre-industrial revolution and oil?  Those who live and breathe barter understand that weather and disease can wipe out wealth.  I think they understand that a portion of their wealth in gold is a hedge against biological and meteorlogical vulnerabilities. 

One of the things in our conversation that I may need to be clearer on is the difference between store of value, and medium of exchange.  I actually agree with you on the latter, that it will take years for that to play out and that a monetary unit would not be required in the interim.  Also, under those conditions I would not choose gold as a medium of exchange - and therein is the accuracy in the cliche, 'you can't eat gold!' - a fair description of the acute stage of a currency crisis.

With that said, I do think silver will do better in exchange than you suggest, simply by sheer numbers of those who believe in it - sometimes the herd tell's us how it is... ;)  While, gold's role is one of storage of value, it provides safest passage of wealth (extra wealth, or, savings) through human crises.  imho.  cheers, friend.

Wed, 07/13/2011 - 19:32 | 1454135 r101958
r101958's picture

Very well done JQ. One note; TPTB probably prefer the devil that they know to the devil they don't know. That is one reason Obama has a leg up on any possible contenders for election (same goes for the last two Presidents and is most likely why they got re-elected). You might notice that any contender that might actually have a conscience is readily marginalized (not given air time, shuffled to the periphery). No way will they be given a chance. Everything is orchestrated including the Dem vs Repub battles as these set the electorate against each other and results in divided allegiance. This is one very successful way to ensure the populace does not morph into one group that might actually demand the same thing. Currently, the people crying 'Dems this....', 'Repubs that....' are taking the bait and not thinking any further out than the tip of their nose.

Wed, 07/13/2011 - 21:42 | 1454616 bigwavedave
bigwavedave's picture

seems to me that Obama can end this stalemate with a very simple offer.... "Raise the debt target by 2.5T and I will not seek a 2nd term"

Wed, 07/13/2011 - 22:53 | 1454841 topcallingtroll
topcallingtroll's picture

This is not kabuki theater.  This is the real deal.  I am not prone to chicken little-ism.

The republicans cannot cave on their tax pledge to Grover.  It will not happen.  Obama has now said he won't sign a temporary increase or a plan without tax increases.  Obama can't back down now or he is the next Jimmy Carter.  He may be the next Jimmy Carter anyway even if he shows resolve.

There will be no debt ceiling increase by the deadline.  I am sure of it now.

Thu, 07/14/2011 - 00:08 | 1455004 AldousHuxley
AldousHuxley's picture

aint' that the truth?

 

Republicans = raise taxes and spend on their crony military industrialist oil complex friends.

Democrats = raise taxes and spend on their crony we-do-it-for-the-kids-education/help-the-poor with $1000 asprin medical/where's-my-rights (in spanish) illegal immigrant/sex-sells-who-cares-about-morality media and worst of all capitalism-for-you-socialism-for-me bankster complex.

They get elected to funnel money to their special interests. Only the best liar wins.

Thu, 07/14/2011 - 02:45 | 1455184 Yen Cross
Yen Cross's picture

  Have you ever seen a (Boomerang)? Find a hole, and film it..

Thu, 07/14/2011 - 19:22 | 1457943 Shell Game
Shell Game's picture

We may not agree on the proper economic model, but we are in accord here..

Do NOT follow this link or you will be banned from the site!