Latest Rumor: White House Announces $1.5 Trillion Cuts Agreement Reached

Tyler Durden's picture

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camaro68ss's picture

is that 1.5 T for this year or over 10 years. theres a difference

DonnieD's picture

The government always uses a multiplier of 10 to make everything look better. I expect the next time around that will have to use a multiplier of 100 to have an effect.

oogs66's picture

it will be over 10 years, but probably doesn't even start for 5 years....easy to cut stuff 5 year forward when it is only a projection anyways

DCFusor's picture

Yes, never believe a promise made by a politician who won't be in office by the time it's supposed to be kept.  doh!  Will Merkel still be there when it's time for Germany to finally shut those reactors down?  Nah, and by then rising prices might create a whole different attitude -- but she bought time for herself.  So simple and obvious how it works if you pay attention.

 

Same thing here, nothing to see, move along.  If anything, it's a nice way to implement Darwin on the gullibles who believe in out-year promises.  This of course isn't what they want -- they want to increase those, not kill them off, but like most schemes, this lie carries the seeds of its own destruction in it.

 

oogs66's picture

bush always knew the tax cuts would be hard to let expire, but it helped the budget at the time.  they can't help themselves, games instead of real solutions

nope-1004's picture

If the US heads the way of Zimbabwe, which some think it will, then one $1.5T dollar bill can be issued in 10 years.  There..... Debt paid!

I find it hard to believe that any of this talk about Trillions in budget numbers will actually be paid back in present value dollars.  The debt either needs to be inflated away, or the RESET button hit.

 

knowless's picture

I still don't understand how the "inflate away" theory makes any sense, wouldn't the lender nations just demand an inflation adjusted number of dollars, since the inflation was essentially fraud commited through printing?

 

StychoKiller's picture

Shhh!  No one's supposed to know about the Double-Secret Print Button™...

:>D

Dr. Richard Head's picture

In all fairness, Bush and Obama both know that buying off the big agri, financial, insurance, military, telecom, and serf industries can be expensive.  Cake for EVERYONE!!!!!!!.....except you middle-classers....your class sucks.

eureka's picture

That's right - the middle class sucks - Bernanke talks - and markets go up and down like yoyos - but who are the real yoyos ?

Could it be the middle class - for buying into it all - yoyo stocks, yoyo empire, yoyo reality?

Will the middle class ever pull the plug on the yoyo Federation?

Dr. Richard Head's picture

No, the middle-class will not pull the plug on their stocks and their reality.  I still talk to co-workers and neighbors I was screaming to about silver and gold back in 2008.  I show them receipts on the cost for my first purchase back in 12/9/2008 and then show them the prices today.  They say it is a fluke.

Just yesterday I spoke with a co-worker that she was just reading something about silver and its bull buying run was over.  She expected it to sit right where it was at for "quite some time". 

One cannot save all of New Orleans from a Katrina storm.  That energy would be better suited to saving oneself and one's family.

unky's picture

when the shit hits the fan they will remember you and your talk about PMs. Then they will come to your home and take it from you violently...

Dr. Richard Head's picture

I wish them the best of luck in locating it as well.  Plus, when the shit hits the fan, I will depart from my home immediately.  Poof - we are gone.

Plus, I have a really easy grab set up for my guns.  Considering these fucktards were not motivated enough to buy, they will simply fade away into the sunset, hungry, cold, and wishing.

fallout11's picture

I'm bullish on yoyos.

MiguelitoRaton's picture

Let me try to decode the deal:
1. $1.5T/10 years = $150B per year
2. BUT...it is back-end loaded so only $2B this fiscal year
3. BUT...that is against planned INCREASES to the budget, not against the current budget

So the actual result will be, INCREASES to the deficit and the debt without interruption and growing exponentially into the future until we hit a wall. Excellent work politicians!

maxcody's picture

That is history. This is now and time to pass Cap, Cut & Balance before

total collapse. 68% of the people disagree with status que.

TaxSlave's picture

Through the Looking Glass:
The Queen:

Sometimes I've believed as many as six impossible things before breakfast.

monkeyshine's picture

I sure was wondering what caused the market to rally back so big so fast. 

TheTmfreak's picture

Right. Not to mention the 100 billion "cut" per year is probably accounting tricks that don't actually cut anything.

DaveyJones's picture

"tricks" really is the appropriate term for prostitutes and their work

DCFusor's picture

Pure BS projection, like that one in slick Willie's adminsitration that causes his true believers to think Clinton actually had a surplus -- you see them saying on all the less intelligent forums all the time while they are blaming some bush for it all -- as if either party was not in on the scam.  Wasn't it reported here it was way back in the previous century the last time any debt was actually paid down?  Not in his administration or any other since, for sure.

 

oogs66's picture

all a scam, and all they do is play games...bush knew the tax cuts would be difficult to let expire, but by saying they expired, made the budget look better....they need to start making some hard decisions with real solutions.

TruthInSunshine's picture

is that 1.5 T for this year or over 10 years. theres a difference

 

 

The entire 1.5 trillion is over the next 42.7 years and comes exclusively from cuts in the school lunch program.

slaughterer's picture

$1.5 trillion is not enough for Moody's.  Prepare helmets for sovereign credit rating downgrade.    The US is officially on its way to insolvency and default. 

SheepDog-One's picture

Social security LOST 1.1 trillion last year.

A token 1.5 trillion 10 year fantasy 'debt all fixed' plan wont fool anyone.

cdude's picture

 

What makes God laugh?....A ten year plan.

What makes everyone laugh?....A government ten year plan.

slaughterer's picture

Just get Apple to sell "Uncle Sam  iPads" to save the government... Debt problem solved. 

Gubbmint Cheese's picture

Kabuki theatre.. nothing more.

john39's picture

agreed.  but, you have to have your head out of the matrix to understand that raising the debt ceiling was decided a long time ago.  this is all show for the sheeple, creates fear and distration... much better for control purposes...  let them go on believing that we live in a representative democracy...   more like a demoncracy.

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

More importantly the sheeple are kept in a constant state of flux which minimizes critical thought, the bane of the New World Order demons.

 

Tuco

carbonmutant's picture

Looks like Harry Reid was the source of this particular piece of BS.

According to Bloomberg TV

the not so mighty maximiza's picture

YHAY, we are saveed!!!!!

digitlman's picture

Wow.  Over ten years, that won't make a dent.

oogs66's picture

over 10 years, and starting in 5 years! 

hedgeless_horseman's picture

...with a corresponding 500B in stimulus payments to American families right before the elections and a 1T tax cut to help stimulate jobs.

karzai_luver's picture

Obamao is too stupid-why not cut taxes by 4-5 trillion?

We would grow into a surplus no doubt.

Just hold spending where it is, we will grow out of the hole at least

that's what I hear.

Hell tax holiday for the rest of the year, go for it.

 

lolmao500's picture

This is gonna be fun :

http://www.bloomberg.com/news/2011-07-13/california-may-sell-notes-befor...

At least 7,000 top-rated municipal credits would have their ratings cut if the U.S. government loses its Aaa grade, Moody’s Investors Service said.

Ying-Yang's picture

Here is what Marc Faber says about the debt debate - It is mind boggling that people would consider buying 10-year U.S. Treasurys with yields trading at around 3 percent, said Marc Faber.

http://www.cnbc.com/id/43736837 

sbenard's picture

Reminds me of a song, "Fools Rush In"!

tbone654's picture

And -- "Fools are kind of blind" -- song = write this down, performed by George Strait

hamurobby's picture

It will be a decrease in the increases planned for the next twenty years, if at all. There is noooo way they can cut spending and not collapse their system.

docj's picture

So the Teleprompter is reduced to wishcasting at this point.

Pathetic.

YesWeKahn's picture

Why bothering cutting anything, nobody cares!

Hugh_Jorgan's picture

The gloves WILL come of on this one. I wonder if Boehner and crew have any skeletons that no one but Nancy and Harry know about?

newstreet's picture

Carthago delenda est.

Catullus's picture

America est omnia in tres partes.

E. Semper ubi sub ubi

TruthInSunshine's picture
  • 1:35 p.m. est:  White House announces debt ceiling deal has been reached with Boehner, Cantor and Ghost of Ludwig von Mises.
  • 2:59 p.m. est:  Boehner denies any debt ceiling deal has been agreed upon. Neither Cantor nor ghost of Ludwig von Mises comment.
  • 3:59 p.m. est:  Boehner denies he earlier denied debt ceiling deal had either been agreed upon or disagreed upon. Neither Cantor nor ghost of Ludwig von Mises comment.
  • 4:01 p.m. est:  White House denies that they previously claimed that debt ceiling deal has been reached with Boehner, Cantor and Ghost of Ludwig von Mises.
Agent P's picture
  • 9:30 a.m. est. (T+1): Wash, rinse, repeat.