Logan’s Run: The Averted Government Shutdown, The Debt Ceiling And The Long-Term Fiscal Situation Of The United States

Tyler Durden's picture

A good compilation of the dead end America finds itself in, how we got there, and one possible interpretation of where we may be going, via Michael Cembalest of JPMorgan.


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Rahm's picture

JPMorgue to the rescue.  Or to the bankrupt court, either way.


LOL, they want to double FICA taxes, are they FICAing nutz?

NewThor's picture

How do you pay off a $15 trillion dollar debt?

What happens when ZIRP goes away?

How do you reward criminals with trillions of dollars and then hope they will change?


ARE 'people too'?



Doña K's picture

The ultimate revenge. Buy Gold and Silver

I am Jobe's picture

Calm down will you.Americans still have MLB and NFL, take away the entertainment and they will cease to exisit. America is the MOB they love their TV crap

JLee2027's picture

Uh Huh. That'll stop the rioting. Worked in Rome, didn't it?


Manthong's picture

Instead of killing off all those over 30 because you have to, like in "Logan's Run" just send them all to internment camps because they are uncool - like in "Wild in the Streets".

And boy, if this is the best we can do for economic commentary at the highest levels of finance, we are in worse condition than I thought.

Barry Freed's picture

Surrogate input contrary to established facts.

Michael's picture

Let me see if I get this strait. Speculators who work for and are employees of investment banks, are taking the money handed to them on a silver platter at zero interest rates by the Federal Reserve Corporation, and are using that money to drive up commodity prices causing worldwide inflation. Did I get that right?

slewie the pi-rat's picture

well, i read this piece 0' shit and i don't think it was in the pile of utter bullshit.  not sure, tho!  lol!

ya know what else was missing?  the idea that it's time to send about 60% of all our fukin goobermint employees home.  bye bye!   if you read this crap, the idea might begin to fetish like green hair or mouse ears!  hopefully, not like tyler!

MisterAmbassador's picture

How do you pay off a $15 trillion dollar debt?

You don't.

When you owe someone $1,000, you have a problem.  When you owe someone $15 trillion, they have a problem.

We would literally need to suspend the Constitution and put in place a dictator with absolute power to make the real changes in the tax code and spending code to stop this ship from sinking.  It would have to be a noble dictator who did what was best for the country and not himself.  Absolute power corrupts absolutely, though.  So, that debt will never be repaid, at least not with American dollars worth more than what they're made of or without selling land or territories.  That debt wasn't even run up by most Americans.  Our governmental system was hijacked and our Constitution interpreted in ways that were never intended.  Americans got comfortable in the abundance and didn't pay much attention to what was really going on.  The Federal Reserve enabled all of this.  Going off the gold standard allowed Nixon to pay for Vietnam without raising taxes, at least not literally.  The inflation under Carter, though, was the tax raise to pay for the Vietnam war.

America will go down as a myth, a legend, a time of unprecedented prosperity, abundance, and technological achievement.  Empires rise and fall.  That's just the way it is.  Human nature prevents us from solving problems that built up over 100 years.  Normalcy bias.  Our system corrupted, but I suppose that was inevitable.  Nothing is built to last.  If anything, our system was too successful.

We'll probably see another world war soon as oil and fresh water become more and more precious or as payment on our debts, and that will be the ball game for most of us.

Selah's picture


All previous attempts to base money solely on intangibles such as credit or government edict or fiat have ended in inflation and disaster. Although Gold and Silver are not by nature money, money is by nature Gold and Silver.

Gold and Silver will remain money long after the dollar, euro, and yen are forgotten...


MisterAmbassador's picture

Ron Paul would be a good dictator.  He would end the Fed.  I wouldn't even trust him with absolute power for more than a month or two, though.


The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered.


-Thomas Jefferson

baby_BLYTHE's picture


Kentucky Sen. Rand Paul thinks his father is going to run for president - which means that the tea party favorite may not take the plunge himself.

Paul said he didn't know whether his father, Texas Rep. Ron Paul, would make another run for the GOP nomination - but he said that signs were pointing to a likely run.

"I get every indication from looking at his schedule and hearing what he’s doing that I think he probably will," the younger Paul told POLITICO. "But that’s his decision to make."


Ron "Father America" Paul > Donald "Limelight" Trump


Hot Shakedown's picture

And Barack "Ain't Got No Berf Cerfiticket" Obama

Sathington Willougby's picture

Mr. "I got through skool on a foreign student scholarship with the name Barry Soetero but Barack is my black nom de guerre so I used that for all my politicking." Obama

Cheap identity fraud and no one called the fool on it.  America is NOT a nation of laws.  It's a nation of crime and slaves.

MisterAmbassador's picture

It doesn't matter if Obama was born in the United States or on Mars.  He's not going to be impeached; instead of putting Michelle Bachman and Sarah Palin on TV (both complete idiots, btw), they should focus on Marco Rubio or Chris Christie; however, that would show that Republicans aren't racist bigots who have no logic behind their ideas, so it won't happen.  Barack Obama is the President of the United States of America, like it or not.  Pursuing "birther arguments" is pointless.

slewie the pi-rat's picture

really?  ron paul running for president?  whodathunkit?  thanks, randy! now you both look like fuking morons!

MisterAmbassador's picture

Whether or not Ron Paul runs is irrelevant.  Our system was deliberately designed to make tyranny impossible, even during times that call for tyranny (tax, entitlement, pointless war and spending reform).  Besides the fact he wouldn't win, it's too late to stop what's headed our way.  The time to fix this was during the boom of the 1990s.

The Founding Fathers didn't design the fourth branch of government - the Fed.  When you control a nation's money, its laws and Constitution do not matter.

MisterAmbassador's picture

I don't know if anyone will read this far, but I have another point to make.

Our system as designed by the Founding Fathers would have been forced to deal with these problems over time if the Fed hadn't been there do enable us to borrow and kick them down the road.  We wouldn't be faced with a collapse, if it hadn't been for the Fed.

Our system was the most brilliant system ever designed.  It would have worked for thousands of years if our money was sound and based on something real.

John Law Lives's picture

Ron Paul has zero chance to be the GOP nominee.  Zero.

Rand Paul would have zero chance to be the GOP nominee if he ran.  Zero.

goldfish1's picture

Good comments except this:

If anything, our system was too successful.

I disagree. The corrupted misallocation of resources  was greatly if not solely responsible of the breakkdown of the family and our society.

MisterAmbassador's picture

Yes, but that wouldn't have happened if the Fed hadn't been there to enable that corrupted misallocation.  Our system would have been forced to deal with those problems and many others like entitlements and playing "world police" over time instead of delaying them all until now when they are impossible to solve all at once and leave no option other than draconian cuts or imminent collapse.  The Fed isn't part of our system or wasn't supposed to be, anyway.

Urban Redneck's picture

No they aren't FICAing nutz, but the only plan I have personally seen is eight pages of economic heresy to any academic with a Nobel prize or politician in the pockets of big business.  However, it is also the only structuring that actually corrects the cost curve.  The model is viable because it actually aligns revenue structure with cost structure, but immigration is needed to overcome the demographics of an aging workforce.  As an added bonus, the FICA approach does away with the perverse profit incentive for a business to hire 1 worker to do the work of 2, and thus counter-intuitively promotes job creation while raising FICA taxes.  However, the plan is impossible since it would actually require bipartisanship.      

Rahm's picture

Bipartisanship isn't the roadblock to doubling FICA, it's the American worker.  Give a person, claiming exempt, a $1,000 paycheck minus $76.5 for their share of FICA.  They can accept that.

Now give that same person a $1,000 paycheck, minus $153, and see how they take it.   For what? Out of control spending?...unfunded liabilities?  There would be a revolt..... unless American Idol was on that night.

You are correct regarding decreasing demographics resulting in immigration, but do you think abortion has anything to do with that?  What would 53million people paying into the system do, 53 million buying all sorts of good stuff like baby bottles, formula, shoes, their first cars, first homes, their iPad2s, etc...

Urban Redneck's picture

But it would take bipartisanship to pass legislation that raises FICA.  The proposal I saw actually wasn't as simplistic as doubling FICA.  The components were 1) eliminating both the wage & accrual caps 2) progressive rates increases on the employer half of FICA over the current cap (not the employee half), while introducing relief for the double-taxation of the self-employed 3) means testing benefits 4) phasing in an indexing of the retirement age to life expectancy. 

Of course on top of that, you then must actually cut both discretionary and defense spending, fix medicare & medicaid, and the restructure both the tax code and executive branch regulations to repatriate domestic operations and profits and attract new foreign investment.

Perhaps it isn't the lack of bipartisanship, but a LACK OF BALLZ, since Washington would need a much bigger collective pair to even entertain the idea.

Meanwhile, they continue to spend the nation to death.



nah's picture

i vote bullshit

Doña K's picture

Yes, but buy gold and silver also. The ultimate revenge for those who have a few shekels left. 

lolmao500's picture

JPMorgan... those who helped create the crisis... they shouldn't be making analysis, they should all be in jail.

Moonrajah's picture

Oh, it's quite all right for them to do an analysis... IF they do it behind bars.

Rahm's picture

Don't insult Martin Armstrong like that.  To the guillotine they go!

tickhound's picture

in other words... "QE3, or else"

Oh regional Indian's picture

Two things keep the United States "Solvent".

1. Global Reserve currency

2. Global bully military

Oh, and a socially engineered, deer-in-headlights populace.

All the rest is thin veneer on ugly truths.



JLee2027's picture

 a socially engineered, deer-in-headlights populace.

Come on dude. You aren't that fucking stupid.

Dr. Porkchop's picture

You can't come out of 50 years of cold war propaganda conditioning unscathed. I don't know if you can see it from the inside. When you live in another country and observe the American media and political dialog, the narrow range of acceptable viewpoints is glaring.

JLee2027's picture

Oh horseshit.  The American media and the current thuggery in office is not America, it's a bunch of propoganda peddlers.

Dr. Porkchop's picture

I don't know. Perception tends to be reality. How do most people percieve their country and the world? Through the world of screens, and it's been that way a long time.

Count the small percentage of contrarian types that come to ZH and places like it out. We aren't the mainstream, we're domestic terrorists.

Harlequin001's picture

it's what you voted in, it is America...

JLee2027's picture

So?  Entitlements grab a lot of votes. That is a consequence of the free extra money floating with fiat currency and thuggery that follows as I said.

Learn to read son. 

Sweet Chicken's picture

No offense but you sound extremely dellusional.

JLee2027's picture

Good!  Was I talking to you? Why would you want to talk to a delusional person?

Sweet Chicken's picture

Dear god man are you in fifth grade?!

goldfish1's picture

it's what you voted in, it is America...

One word for ya: Diebold.

Bicycle Repairman's picture

"You can't come out of 50 years of cold war propaganda conditioning unscathed."

There is the MIC propaganda and a whole lot of social engineering as well.

"a socially engineered, deer-in-headlights populace"

Absolutely correct.

JLee2027's picture

Wrong. Absolute foreign invented bullshit.

Bicycle Repairman's picture

I'm an American.  This kind of thought originates right here in the good old USA.  You should check out what some of America's "think tanks" have been up to over the past 100 years.  It is downright UnAmerican.

JLee2027's picture

You are no American. An American doesn't need to say he's American. Stop trying to fool people.

Bicycle Repairman's picture

There is certainly no fooling you, JLee.  However, I did check my files and my birth certificate is still there.  No, you can't see it.


goldfish1's picture

Are you trying to prove "thinking makes it so"?

Dr. Porkchop's picture

The irony; that the USA spent so much time 'fighting' the cold war, spent so much trying to remain the sole superpower post USSR, has sacrificed so much in the name of security. In the end the people will realize that they aren't free after all. At least in Soviet Russia, they people knew it was all lies, and they lived in spite of it.

Still, I try to take the long view. Perhaps this is only a dark chapter in the story of American liberty. The founding fathers had a pretty good start, and I think that the notions of liberty as originally conceived were something to aspire to. It seems America didn't heed Jefferson's advice to refresh the tree of liberty with the blood of tyrants and patriots.