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Presenting The Complete Generic Fluff That Is The "Gang of Six Plan To Reduce Our Nation's Deficit"

Tyler Durden's picture




 

Well it's not a 3 page term sheet. It is a 5 page talking point bulletin full of ridiculous fluff with nothing substantial.

Here is the only immediately actionable prerogative which comes from, you guessed it, Chained CPI and Social Security:

Enacting a $500 billion down payment that would secure immediate deficit savings, while establishing a fast track process for the committees in Congress to specify further savings

  • Impose statutory discretionary spending caps through 2015.
  • Implement numerous budget process reforms.
  • Shift to the chained-CPI (a more accurate measure of inflation) government-wide starting in 2012, along with the following specifications for Social Security: (1) exempt SSI from the shift for five years, and then phase in the shift over the next five years; and (2) provide a minimum benefit equal to 125% of the poverty line for five years. (According to CBO, the shift to chained-CPI would result in the annual adjustment growing, on average, about 0.25 percentage points per year slower than the current CPI.)
  • Repeal the CLASS Act.
  • Enact concrete policy changes that lock-in additional savings, including freezing Congressional pay and selling unused federal property.
  • Require GAO and the Department of Labor to report to Congress on establishing a more effective unemployment insurance trigger.

Gangofsix Plan

h/t Crown Thomas

 

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Tue, 07/19/2011 - 13:38 | 1470957 SheepDog-One
SheepDog-One's picture

Sure dad I understand....but do you think mom will buy it? 

Good talk Rusty.

Tue, 07/19/2011 - 13:41 | 1470982 Rusty_Griswold
Rusty_Griswold's picture

I've only been a man a few days, dad.

Tue, 07/19/2011 - 13:56 | 1471060 PaperBugsBurn
PaperBugsBurn's picture

Police State, bitches!

Region - Regional actors sign agreement to strengthen airport security

At a meeting in Washington, DC on 11 July 2011, representatives from the United States, Mexico, and Central American countries signed an agreement to exchange information to strengthen airport security. U.S. Secretary of Homeland Security Janet Napolitano hosted representatives of Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Mexico, and Panama to discuss the implementation of standard airport security procedures and information sharing to monitor the movement of wanted criminals throughout the region

Tue, 07/19/2011 - 15:27 | 1471492 OpenEyes
OpenEyes's picture

Belize, Costa Rica, Panama... aren't these the current favorite locations to become an ex-pat?  Seems to me that the 'strengthening' isn't so much airport security as 'we'd like you to help us keep track of our taxpayers'.  After all, USA and North Korea are the only countries in the world that track down their citizens who have re-located to continue to collect taxes from them on any money they earn while living overseas.  Hooray USA!

Tue, 07/19/2011 - 17:14 | 1471920 The Alarmist
The Alarmist's picture

That snapping sound is the rubber glove going on over the giant "We're Number One" finger that is about to ream you good ...

 

Tue, 07/19/2011 - 14:27 | 1471206 NotApplicable
NotApplicable's picture

Lol

Tue, 07/19/2011 - 15:12 | 1471425 redpill
redpill's picture

The next one of these fucking Authoripublicrat assholes that utters the words "new revenue" when they mean raising taxes deserves a punch in the face.

Tue, 07/19/2011 - 15:58 | 1471606 jmc8888
jmc8888's picture

"How do you use a (statistical) magazine?"

"I was getting to that.  Ya see this (wall street statistical dogma) guy taught me something really neat (about the CPI) last year."

A more effective trigger for unemployment? Gee, less payouts and/or faster way to rid the people from the charts.  Higher confidence = Bigger dip....

Glass-Steagall not shard of glass up the middle class...

 

Tue, 07/19/2011 - 16:12 | 1471665 Doyle Hargraves
Doyle Hargraves's picture

"How do you use a (statistical) magazine?"- By loading it with (statistical) bullets and putting it in the magazine well. The best round (statistically) to use especially for long distances is a .308 and the preferred platform is the M-1 Garand. Open fire bitchez!

Tue, 07/19/2011 - 13:38 | 1470959 camoes
Tue, 07/19/2011 - 13:51 | 1471030 ServingMyKing
ServingMyKing's picture

Not funny.

Tue, 07/19/2011 - 14:52 | 1471365 TBT or not TBT
TBT or not TBT's picture

We already reached "Inversion" in 2008 when The One, a person of zero accomplishment and hidden academic qualifications on top of it, but two auto-biographies full of rage at the US and western civilisaton in general, nevertheless blathered his way to the top of the Democratic ticket then the worlds' largest organisaton...merely with weightless speechifying. What is happening now is just the continuation of that. Obama has proposed no plan of his own, and has not disciplined the Democrat controlled Congress to even produce a BUDGET in over two years....which the basic law of the land, that Constitution thingy, holds that they must do...and he's up there trying to act like the cool one, the adult, frickin King Solomon...except that cutting the baby in half is something he would gleefully do.

Tue, 07/19/2011 - 15:00 | 1471388 Buckaroo Banzai
Buckaroo Banzai's picture

Oh I wouldn't say that Obama has accomplished nothing. There are two specific things he has done:

1) Ordered a sniper to shoot a pirate in the head
2) Ordered some SEALs to shoot some dude* in Afghanistan in the head

See a pattern?

*allegedly Osama bin Laden

Tue, 07/19/2011 - 16:11 | 1471658 Commander Cody
Commander Cody's picture

Let's not forget that he won the Nobel Peace Prize.  That was an accomplishment.  Surprising though, given the facts.

Tue, 07/19/2011 - 17:45 | 1472044 XitSam
XitSam's picture

He's credentialed, not competent.

Tue, 07/19/2011 - 17:57 | 1472070 Freewheelin Franklin
Freewheelin Franklin's picture

What about Obamacare?

Tue, 07/19/2011 - 13:40 | 1470961 TruthInSunshine
TruthInSunshine's picture

I would like to add a bullet point:

  • Make America Everything That It Can Be & All That It Should Be, Because The American Middle Class, Senior Citizens, Children, Veterans & Puppies/Kittens Deserve Nothing But The Best.
Tue, 07/19/2011 - 13:41 | 1470984 camaro68ss
camaro68ss's picture

let me add to that. U-S-A! U-S-A! U-S-A! U-S-A! U-S-A!

there thats better

Tue, 07/19/2011 - 15:40 | 1471553 hedgeless_horseman
hedgeless_horseman's picture
  • Implement a "debt ceiling" that legally prevents the government from spending too much.
Tue, 07/19/2011 - 16:37 | 1471747 sumosamurai
sumosamurai's picture

Implement a debt ceiling that requires the immediate execution of any person

demanding the ceiling be breached.

 

Solves a lot of other problems too.

 

Tue, 07/19/2011 - 13:43 | 1470991 Jeff Lebowski
Jeff Lebowski's picture

replace "Make America Everything That It Can Be & All That It Should Be"

with

"Winning the future"

and I think you've got something...

 

Tue, 07/19/2011 - 13:56 | 1471057 Bay of Pigs
Bay of Pigs's picture

Thousand Points of Light...

George H. W. Bush 1/20/89

Tue, 07/19/2011 - 14:10 | 1471128 cosmictrainwreck
cosmictrainwreck's picture

GHWB was a real visionary, weren't he? the douche

Tue, 07/19/2011 - 14:16 | 1471149 knukles
knukles's picture

Oh come on now, Georgie Boy had a redeeming quality.
If he fucked it up or expalined it wrong, he didn't bother to go back and fuck around with it a second time. 

Tue, 07/19/2011 - 15:24 | 1471481 cosmictrainwreck
cosmictrainwreck's picture

"read my lips...."

Tue, 07/19/2011 - 17:19 | 1471939 The Alarmist
The Alarmist's picture

"Winning the Future" ... WTF.

They really are so clever, and they really do think we are that stupid that we do not hear them laughing at us.

 

 

Tue, 07/19/2011 - 13:50 | 1471026 Iriestx
Iriestx's picture

You forgot 'Amen, God Bless America, Amen."

Tue, 07/19/2011 - 13:38 | 1470962 eureka
eureka's picture

Blah blah blah

Tue, 07/19/2011 - 13:40 | 1470970 So Close
So Close's picture

Ting ting ting....  sound of can as it rolls down the road after being kicked.

Tue, 07/19/2011 - 13:40 | 1470974 RobotTrader
RobotTrader's picture

Wow, gold just tanked and bank stocks are taking off.

I guess a deal was reached.

And check out IBM, up $8 to lifetime highs.

Tue, 07/19/2011 - 13:48 | 1470999 cosmictrainwreck
cosmictrainwreck's picture

transitory... a swing trade, Mr. "Trader" PS...TLT +1.3%

Tue, 07/19/2011 - 13:44 | 1471000 Robot Traders Mom
Robot Traders Mom's picture

I'm not going to lie. I thought for sure by now you would have met some people in real life and found something better to do with your time then troll.

 

Tue, 07/19/2011 - 13:58 | 1471077 kito
kito's picture

hes not trolling. hes your conscience.

Tue, 07/19/2011 - 17:30 | 1471983 mkkby
mkkby's picture

You must be so proud.

Tue, 07/19/2011 - 14:06 | 1471106 Threeggg
Threeggg's picture

Chanting while clicking heals together:

There is no POMO

There is no POMO

There is no POMO

Tue, 07/19/2011 - 14:41 | 1471295 tarsubil
tarsubil's picture

I kept my worthless dollars in and was crossing my fingers for another buy opportunity for gold and silver. Soon I'll cash in and go full armageddon prep. God is giving a lot of people late to the game time to prepare. Better get on board soon.

Tue, 07/19/2011 - 17:31 | 1471986 mkkby
mkkby's picture

Thanks again for telling us what happend yesterday.

Tue, 07/19/2011 - 13:40 | 1470976 Juice Box
Juice Box's picture

Why should we care?  Its not like this debt will ever get repaid.  

Tue, 07/19/2011 - 13:41 | 1470979 mmlevine
mmlevine's picture

They are talking about Billions like I talk about Twenties.

Tue, 07/19/2011 - 13:41 | 1470985 Manzilla
Manzilla's picture

Welcome to America. What did you expect? An actual solution?

Tue, 07/19/2011 - 13:42 | 1470987 JW n FL
JW n FL's picture

 

The Gang of 6 Raising the Retirement Age & Reducing Social Security Benefits http://goo.gl/Aix0y / http://goo.gl/m8QMq All for YOUR! Social Security Surplus Money!

 

Sen. Ben Nelson[D(ick)-Neb.]

Gang of 6 Member Nelson, Ben (D-NE) $14 Million Dollar Lobby Whore http://goo.gl/i29tJ  And! who owns him http://goo.gl/DvBWP  

 

Sen. Mary Landrieu[D(ick)-La.]

Gang of 6 Member Landrieu, Mary L (D-LA) $24 Million Dollar Lobby Whore http://goo.gl/dwFxO And! who owns her http://goo.gl/tM3bG

 

 

Sen. Ron Wyden[D(ick)-Ore.]

Gang of 6 Member Wyden, Ron (D-OR) $23 Million Dollar Lobby Whore http://goo.gl/GnQKf And! who owns him http://goo.gl/zNRvN 

 

 

Independent Dick Sen. Joe Lieberman, from Connectidick

Gang of 6 Member Lieberman, Joe (I-Conn) $49 Million Dollar Lobby Whore http://goo.gl/C7tSk And! who owns him http://goo.gl/XospA   

 

Sen. Olympia Snowe [R(eally big dick)-Me.]

Gang of 6 Member Snowe, Olympia J (R-ME) $10 Million Dollar Lobby Whore http://goo.gl/5ArgP And! who owns her http://goo.gl/zj2JJ

 

Sen. Susan Collins [R(eally big dick)-Me.]

Gang of 6 Member Collins, Susan, M (R-ME) $14 Million Dollar Lobby Whore http://goo.gl/X8I73 And! who owns her http://goo.gl/1dcLY

 

Know Your Lobby Whore(s)!

Tue, 07/19/2011 - 13:48 | 1471013 Turd Ferguson
Turd Ferguson's picture

Thanks, JW. Never forget that Nelson of Nebraska is the cheap whore who gave us Obamacare.

All of this is bullshit. It would never, ever pass the House. Of course, once the House grants themselves political cover by voting on their own worthless measure, they'd probably vote for anything.

At any rate, any plan crafted by these 6 douchebags and O'bottom is destined to be a complete failure.

Tue, 07/19/2011 - 13:57 | 1471052 JW n FL
JW n FL's picture

we need to stop trying to give Health Care to the Poor who can Not afford it and give the same Money in the form of Tax Breaks and Subsidies to Job Creators that would have been wasted on the Poor!

 

Give Job Creators Tax Cuts!

Give Job Creators Subsidies!

 

The Poor never had Health Care so they wont miss not having it now!

 

People Suck (especially the Poor) and Corporations Rule (Especially the kind with Huge Lobby's, T.V. Money and P.R. Money to come up with $logans like Help "Job Creators" with Corporate Welfare).

 

Note* All $logans are market tested and approved before being fielded! Thanks 5th Ave Advertising Agencies and "K" St. Lobbyists!

Tue, 07/19/2011 - 14:43 | 1471308 tarsubil
tarsubil's picture

Personally, I find your schizophrenia adorable.

Tue, 07/19/2011 - 13:58 | 1471071 slaughterer
slaughterer's picture

The big question: will the rating agencies accept it without downgrading?  I think the answer is NO!

Tue, 07/19/2011 - 14:20 | 1471169 cdskiller
cdskiller's picture

I nominate JW's post as the most useful post of the week in the blogosphere.

Tue, 07/19/2011 - 13:42 | 1470992 Archimedes
Archimedes's picture

The plan:

Cut the deficit by 500 billion  (how?)

Make Heathcare more efficient (how?)

Cut security and non security over ten years (how?)

 

I have been half joking ove the past few years but now I am actually scared. Our leaders have no F**king clue what they are doing or how to tackle this issue. My 6 month old could have wrote this tripe!

I already have a second freezer. Time to go and purchase that Beneli I have been looking at. Seriously....

Tue, 07/19/2011 - 13:56 | 1471058 scatterbrains
scatterbrains's picture

root cellars, homebrew and guns bitches! oh and bicycles

Tue, 07/19/2011 - 17:52 | 1472055 XitSam
XitSam's picture

Bicycles with frickin' lasers, man!

Tue, 07/19/2011 - 14:01 | 1471067 docj
docj's picture

Well said - here's my somewhat shorter version...

The Bipartisan, Totally Awesome 3 Step Plan to Save America, Apple Pie and Government Motors

1) Make-up some pretty sounding numbers, pull them out of our respective backsides or pull them out of the air, and put them on paper

2) Uh?

3) WIN!

Tue, 07/19/2011 - 14:26 | 1471201 EscapeKey
EscapeKey's picture

What are you on about? They are exceedingly efficient at releasing press releases, which moves the markets in the short term - thereby fixing the problem, once and for all.

Tue, 07/19/2011 - 15:14 | 1471435 Andy_Jackson_Jihad
Andy_Jackson_Jihad's picture

Saiga12s and 00 buckshot, bitchez!

Tue, 07/19/2011 - 15:15 | 1471438 Andy_Jackson_Jihad
Andy_Jackson_Jihad's picture

Saiga12s and 00 buckshot, bitchez!

Tue, 07/19/2011 - 15:16 | 1471442 Andy_Jackson_Jihad
Andy_Jackson_Jihad's picture

Saiga12s and 00 buckshot, bitchez!

Tue, 07/19/2011 - 16:40 | 1471767 RockyRacoon
RockyRacoon's picture

I recommend 3" buck-and-ball with that Saiga 12.  Mine loves the heavy stuff.

Tue, 07/19/2011 - 15:20 | 1471446 Andy_Jackson_Jihad
Andy_Jackson_Jihad's picture

Saiga12s and 8balls of coke, bitchez!

*Not a multi-post error.  I'm just that excited!*

Wed, 07/20/2011 - 03:59 | 1473036 Smiley
Smiley's picture

Snortin coke off a hooker's ass bitchez!

Tue, 07/19/2011 - 13:42 | 1470993 DonnieD
DonnieD's picture

They are going to eliminate the AMT which brings in 1.7T and that will save 1.5T. Somebody help me here.

Tue, 07/19/2011 - 13:51 | 1471028 Jack Kreuz
Jack Kreuz's picture

Either way, it will be over the next one thousand years. haha.

Tue, 07/19/2011 - 13:44 | 1471001 ServingMyKing
ServingMyKing's picture

No thanks, cold turkey is the only way to beat our spending addiction.   Continuing forward with anything that remotely resembles current federal spending is unbalanced.

Tue, 07/19/2011 - 13:45 | 1471002 Turd Ferguson
Turd Ferguson's picture

I think this headline is more significant:

07-19 13:27: Iran says installing new nuclear centrifuges - NY Times

Tue, 07/19/2011 - 13:58 | 1471078 JW n FL
JW n FL's picture

The Corporate Jew Owned News Paper is pumping how dangerous Iran is???

 

noooooooooooooooo!!!!!!! cant be??????

Tue, 07/19/2011 - 14:22 | 1471184 cdskiller
cdskiller's picture

I nominate this post by JW as the most UNnecessary post of the week in the blogosphere.

Tue, 07/19/2011 - 15:49 | 1471587 Pool Shark
Pool Shark's picture

 

Which has less significance, an unnecessary post or a commentary on an unnecessary post?  ;-)

(...or a reposte to a commentary on an unnecessary post?...)

 

 

Tue, 07/19/2011 - 17:10 | 1471897 ViewfromUnderth...
ViewfromUndertheBridge's picture

I think that is why Robert Baer is predicting Israeli attack by Sep.

Tue, 07/19/2011 - 13:51 | 1471003 Construct
Construct's picture

.

Tue, 07/19/2011 - 13:46 | 1471007 Archimedes
Archimedes's picture

The algos seemed to like it!

 

Tue, 07/19/2011 - 13:50 | 1471022 TradingJoe
TradingJoe's picture

Yes they do! Volume nowhere to be found:)))!

Tue, 07/19/2011 - 13:59 | 1471084 cougar_w
cougar_w's picture

The defeat of Debtron makes the world safe for Queezlon.

QE3 is on the way.

Tue, 07/19/2011 - 13:47 | 1471010 Superslam
Superslam's picture

THIS is the reason gold is selling off? You've got to be joking.

Tue, 07/19/2011 - 13:49 | 1471015 Bastiat
Bastiat's picture

Like all bullshit, this too will pass.

Tue, 07/19/2011 - 13:49 | 1471020 cosmictrainwreck
cosmictrainwreck's picture

yes....the worls is safe again! (whew...that was a close one) /sarc

Tue, 07/19/2011 - 13:50 | 1471023 Turd Ferguson
Turd Ferguson's picture

Gold is selling off because the Forces of Darkness were unable to raid it during Comex hours. Copper, crude, grains too strong to be overcome. Instead, the assholes wait until after the Comex closes and everyone goes home. Then they raid. Pussy shit.

Tue, 07/19/2011 - 13:52 | 1471034 TradingJoe
TradingJoe's picture

Short term overbought Turd, this won't last long as we not know! :)))

Tue, 07/19/2011 - 13:57 | 1471070 Bastiat
Bastiat's picture

Yep, 1600 and 40 held all day and into the close. This is all about what Sinclair calls MOPE (management of perception economics).   Now the word will be stocks up strong and gold down on the great budget/debt ceiling compromise.    Ass-clown festival (for a day or two, if that).

Tue, 07/19/2011 - 14:18 | 1471145 Bay of Pigs
Bay of Pigs's picture

Some of the shit going on at the COMEX is just outrageous.

And yet the Chinese gov't, by allowing their citizens to freely buy gold and silver now in banks, looks far better than what is happening with these fucktards running the Clown Show in Wash DC. 

 

Tue, 07/19/2011 - 14:49 | 1471336 Turd Ferguson
Turd Ferguson's picture

I hear ya, Bay. What a completely upside-down world we live in.

The only ones we look to trust now are the ChiComs! It's like living in a parallel universe.

Tue, 07/19/2011 - 15:38 | 1471545 cossack55
cossack55's picture

But Turd, you're old enough to know that you can almost always trust a commie. I mean they are honest about who and what they are. That's why the whole cold war thing was so successful for so long.  I trust a good old commie over everyone, except about 8, of those useless pieces of shit in DC.

Tue, 07/19/2011 - 13:58 | 1471075 scatterbrains
scatterbrains's picture

is it possible that chained cpi will allow fuel prices to double and tripple and thus crush pm's... mix in some higher lending rates ?

Tue, 07/19/2011 - 13:49 | 1471016 TradingJoe
TradingJoe's picture

...And the algos go ape:)))

Tue, 07/19/2011 - 13:51 | 1471031 RobotTrader
RobotTrader's picture

As I predicted, money now fleeing gold and piling into beaten down bank stocks.

Tue, 07/19/2011 - 13:56 | 1471061 equity_momo
equity_momo's picture

You couldnt predict yesterdays weather , muppet.

Tue, 07/19/2011 - 14:13 | 1471142 cosmictrainwreck
cosmictrainwreck's picture

no, but he can give you yesterday's charts... the best rear-view mirror, 20/20 hindsight commentator i've ever run across

Tue, 07/19/2011 - 15:20 | 1471462 francis_sawyer
francis_sawyer's picture

he'll gladly tell you what happened in stocks yesterday for a hamburger on Wednesday...

That said, I can't argue with the BKX bounce around here... Broken clock syndrome & all...

So if you're a dickhead trading fiat for equity... You're king of your castle of cards for a day or 3...

Tue, 07/19/2011 - 14:11 | 1471137 kito
kito's picture

where im sitting, bac and gs still quite in the red. 

Tue, 07/19/2011 - 13:53 | 1471043 Neezer
Neezer's picture

Stocks went vertical on this drivel? Seriously?

Imagine if Obama announced a new IPhone 6?

Tue, 07/19/2011 - 13:56 | 1471065 cougar_w
cougar_w's picture

Really?!!? When does he announce the iPhone 6?? Gawd I wish I had a Obama-endorse iPhone 6 paid for with leverage. And a pony. One of those too.

Tue, 07/19/2011 - 16:21 | 1471691 John Rotten
John Rotten's picture

Obviously you don't get his Twitter feeds.

Tue, 07/19/2011 - 13:54 | 1471047 Johnny Lawrence
Johnny Lawrence's picture

So basically, the only thing they're doing is changing the CPI?  No spending cuts in any other areas?

Tue, 07/19/2011 - 14:08 | 1471120 r101958
r101958's picture

Smoke and mirrors. Visit shadowstats.com for a more complete view. Has been going on for years now.

Tue, 07/19/2011 - 13:55 | 1471053 cougar_w
cougar_w's picture

They left one off:

  • Make illegal all negative numbers. Oh and the number zero except when it supports democracy and freedom.

Tue, 07/19/2011 - 15:24 | 1471479 francis_sawyer
francis_sawyer's picture

Make illegal all negative numbers. Oh and the number zero except when it supports democracy and freedom...

What? & shut down Zero Hedge in the process? How would anyone ever pass any math questions?

Tue, 07/19/2011 - 15:24 | 1471482 Andy_Jackson_Jihad
Andy_Jackson_Jihad's picture

After 14 weeks of back and forth a compromise was reached where e will be legally changed to 2.5 to prevent debt from compounding as fast.  Thank god because if Obama had his way it would be 2.0 and Mitch Daniels only wanted it truncated to 2.7.  Democracy works!

 

Tue, 07/19/2011 - 14:09 | 1471066 Bob
Bob's picture

(2) provide aminimum benefit equal to 125% of the poverty line for five years.

What's this?  According to HHS, the federal income limit for "povery" is $10,890 for a household of one:

http://aspe.hhs.gov/poverty/11poverty.shtml

Of couse, 125% would be $13,612. per year. 

I don't know the annual benefit distribution for SS recipients, but something tells me it is weighted very heavily in the "under $13,612." category.

This will represent a "raise" for a hell of a lot of people, me thinks.  They better party hearty for those five years . . . they'll be dropping like flies after that. 

Wonder what AARP will have to say. 

 

Tue, 07/19/2011 - 13:59 | 1471068 poor fella
poor fella's picture

This was probably sitting in a file cabinet at the Fed gathering dust - and after the wireless marionettes officially break it out - they'll be on vacation. Well done, back-slapping all around. (throw in a couple "Heil Geithner"'s)

Tue, 07/19/2011 - 13:58 | 1471074 glenlloyd
glenlloyd's picture

I didn't expect to see anything substantive, it's just more of the same.

Tue, 07/19/2011 - 14:33 | 1471241 NotApplicable
NotApplicable's picture

Are you kidding? Why it's both comprehensive and balanced!

Do you have any idea what that means?

Tue, 07/19/2011 - 13:59 | 1471080 ThirdCoastSurfer
ThirdCoastSurfer's picture

Reduce but not eliminate "Tax Expenditures" like the mortgage deduction and, sadly, health care expenses!?! I didn't know that deducting health expenses over 2.5% of AGI was creating such a drain while Obama Care is on the horizon and a HCSA will still be Ok.

On the other hand I'm all for the $30b cut of Homeland Security but I'll believe all of it when I see it.  This whole thing reads like we're kicking a hornets nest down the road.  

Tue, 07/19/2011 - 13:59 | 1471085 DavidC
DavidC's picture

Meanwhile the Debt and default tsunami works its merry way from Europe.

Raising the debt ceiling? Solutions? Hmm, NFPs on Friday at 18k, Fukushima still there, Europe problems still there. And the TWADDLE is supposed to solve the US's problems?

DavidC

Tue, 07/19/2011 - 14:05 | 1471101 poor fella
poor fella's picture

All bullish!  =D

Tue, 07/19/2011 - 14:03 | 1471095 earnulf
earnulf's picture

This is nothing more than putting off the hard choices for six months and then expecting congress to actually come up with crap that will make a difference.

BS

Smoke and mirrors boys and girls, smoke and mirrors

 

Tue, 07/19/2011 - 16:46 | 1471801 RockyRacoon
RockyRacoon's picture

Tea Party Republicans are wrangling for a way to have a vote against raising the debt ceiling so they can satisfy their electorates.  All the rest is kapok.

Tue, 07/19/2011 - 14:04 | 1471096 FedNoGoldYes
FedNoGoldYes's picture

I just shake my head at the stupidity of the masses; and thank them as I buy the dips.

Tue, 07/19/2011 - 14:04 | 1471097 RobotTrader
RobotTrader's picture

Wow, utter collapse in Treasury yields on the announcement.

TLT back up to the highs.

Tue, 07/19/2011 - 14:10 | 1471125 lieutenantjohnchard
lieutenantjohnchard's picture

must be a slow day in the "our bank" / "my bank" customer lobby for you to be able to check all the market indexes and post at your favorite web sites. i guess since the bank spent so much money on state of the art systems (per you) they can't afford managers to supervise what appears to be the laziest, most ethically challenged employees in the usa. all internet surf. no work. but be sure to pay me.

Tue, 07/19/2011 - 14:44 | 1471311 JohnG
JohnG's picture

Fuck off pest.  Your shit for brains "all time world record high" sounds like a broken fucking record.  Just do all of us a favor and go jack off, better yet, kill yourself.

 

See how to rip your own head off from yesterday, study carefully (it might take some time to sink in to that fecal matter you have in your head, then proceed.

And FUCK YOU.

Tue, 07/19/2011 - 15:16 | 1471440 hardcleareye
hardcleareye's picture

Junked you for being vulgar and crass.  I hope for Robo Traders Mom doesn't hear you talking to her son like that! ;)

Tue, 07/19/2011 - 14:05 | 1471100 Neezer
Neezer's picture

In order to get 2 republicans to join the bipartisan Gang of Six, the plan must add the statement, "AMERICA, F@CK YEAH!" as the final bullet point.

Tue, 07/19/2011 - 14:09 | 1471115 cougar_w
cougar_w's picture

i LOLed

Tue, 07/19/2011 - 14:09 | 1471121 Bastiat
Bastiat's picture

Gang of Six Fluffers

Tue, 07/19/2011 - 15:28 | 1471498 francis_sawyer
francis_sawyer's picture

I was gonna say... when you collide "fluffers" & "gang" in the same sentence, you've embarked on a slippery pathway...

Tue, 07/19/2011 - 18:11 | 1472105 Bastiat
Bastiat's picture

Clusterfluff !

Tue, 07/19/2011 - 18:12 | 1472112 Bastiat
Bastiat's picture

Great name for a TSA secuirty checkpoint.  

Tue, 07/19/2011 - 14:10 | 1471126 bardian
bardian's picture

Oh good, we have a debt-ceiling-raise-with-no-strings-attached "fail safe" measure.  Gotta pass the house though, come on Boner!!!!

Tue, 07/19/2011 - 14:10 | 1471127 gjp
gjp's picture

Obama rolls over like Wall Street's dog again.  This compromise involves cutting taxes after all that posturing about a tax hike?  All with the (unbelievably not yet throughoughly discredited) Reaganite justification that the economic growth stimulated by tax cuts will raise taxes in the future.  And Wall Street, thrilled with another best-in-show performance, shows its appreciation by bidding up all assets.  Disgusting.

Tue, 07/19/2011 - 14:29 | 1471196 Bob
Bob's picture

Barry even gave a special call-out to Mr. Market during his short speech. 

I'll remember this as his "Mission Accomplished" moment.  Now he is completely "outted." 

Tue, 07/19/2011 - 14:28 | 1471215 cdskiller
cdskiller's picture

Obama is their bitch, totally and willingly. He is a liar in every other way but that. He actually believes in trickle down economic theory. He is not even as intelligent as Reagan. But he will get Alzheimers when he is older, just like Reagan, because no brain can contain that much contradictory shit for so long and not fall apart.

Tue, 07/19/2011 - 14:14 | 1471144 the not so migh...
the not so mighty maximiza's picture

When  does it pass?

Tue, 07/19/2011 - 14:16 | 1471151 sabra1
sabra1's picture

china should downgrade tonite!

Tue, 07/19/2011 - 14:17 | 1471159 optionswriter
optionswriter's picture

Before we get too excited about this gang of six plan, lets consider who the 6 are.  We have 3 dems, a former dem, and 2 rinos.  Not exactly what I would call bi-partisan, notwithstanding party affiliation.  These folks are nothing like the more conservative R members of the Senate or the much more conservative House members.  While all of this may make for fun in the media I don't see it as a very workable solution.  The House leadership has been pretty clear that they will not accept tax increases period.  While Boehner may be a little squishy on this, Cantor, who represents the Tea Party wing, is not.  Further, the Constitution is clear that all spending bills must come from the House.  Not the Senate.  So the Dems and the liberal R's can dance about and make as much noise as they please.  This is going nowhere IMHO.

Tue, 07/19/2011 - 14:18 | 1471161 optionswriter
optionswriter's picture

Before we get too excited about this gang of six plan, lets consider who the 6 are.  We have 3 dems, a former dem, and 2 rinos.  Not exactly what I would call bi-partisan, notwithstanding party affiliation.  These folks are nothing like the more conservative R members of the Senate or the much more conservative House members.  While all of this may make for fun in the media I don't see it as a very workable solution.  The House leadership has been pretty clear that they will not accept tax increases period.  While Boehner may be a little squishy on this, Cantor, who represents the Tea Party wing, is not.  Further, the Constitution is clear that all spending bills must come from the House.  Not the Senate.  So the Dems and the liberal R's can dance about and make as much noise as they please.  This is going nowhere IMHO.

Tue, 07/19/2011 - 14:21 | 1471177 gjp
gjp's picture

I see tax cuts, not tax increases, in this proposal.  What am I missing?  The Tea Party crowd will love this even if it doesn't eviscerate the social safety net to the degree they would like ...

Tue, 07/19/2011 - 14:28 | 1471218 DonnieD
DonnieD's picture

"Reduce marginal income tax rates and abolish the $1.7 trillion Alternative Minimum Tax."

Is this not a massive tax cut for everyone if implemented? What am I missing?

Tue, 07/19/2011 - 14:38 | 1471271 optionswriter
optionswriter's picture

There are currently laws on the books that insist that tax cuts be "revenue neutral."  That is to say for every tax dollar cut there must be some area where revenue is raised.  While in the real world we recognize that these things work in a dynamic way, in Washington, these things work on a static model.  In other words, there is no incentive to work harder and bring in additional revenues as a result of a lower tax rate according to the static DC model.  So there will have to be offsetting revenue enhancers to make up for the alleged "lost" revenue.

Tue, 07/19/2011 - 14:38 | 1471272 optionswriter
optionswriter's picture

There are currently laws on the books that insist that tax cuts be "revenue neutral."  That is to say for every tax dollar cut there must be some area where revenue is raised.  While in the real world we recognize that these things work in a dynamic way, in Washington, these things work on a static model.  In other words, there is no incentive to work harder and bring in additional revenues as a result of a lower tax rate according to the static DC model.  So there will have to be offsetting revenue enhancers to make up for the alleged "lost" revenue.

Tue, 07/19/2011 - 14:34 | 1471248 optionswriter
optionswriter's picture

There are a few things that may not be self evident.  First, bear in mind where this is coming from.  Left leaning and liberal members.  There are no conservatives in the Gang of Six.  That should be a huge red flag right off the bat.  Secondly, while there is talk of what you view as tax cuts, this is really a misnomer.  In order to lower the marginal rates, so called loopholes will have to be closed.  What are these loopholes?  Oh things like the mortgage deduction being eliminated.  Finally I reject the notion that the Tea Party crowd is looking to eviscerate the social security net.  I remember 20 years ago and more watching people go to their local SS office and begin collection money from the system even though they'd never paid in to it.  I am not a Tea Pary member.  But I am a thinker.  I'd say, we can mandate that the system only be made eligible to those who have paid into the system a minimum time period.  Say 10 years.  I'd further mandate that money paid into SS must be segregated from the general fund and may not be used for any purpose other than paying SS benefits.  Lastly, I'd mandate that those 47 1/2 or younger will not be eligible for any benefits before age 68.  Those 35 and younger will not be eligible for any benefits before age 70.  Run that through acturarially and I bet you come pretty close to making the fund solvent for a long time.  Any takers?

Tue, 07/19/2011 - 16:51 | 1471820 RockyRacoon
RockyRacoon's picture

We talk a lot about moral hazard amongst the banker class but little is said about the same concept in the common folk.   Give them a "guarantee" of income in later years and people don't save nor invest sufficiently.   I'm 62 and just got a SS check some months ago.   I do NOT, however, depend on this measly check to pay for much of anything.   Too many do/did/will.

Tue, 07/19/2011 - 14:35 | 1471253 docj
docj's picture

How may generations of people have to utilize a particular government program as their sole means of income before said  program is no longer considered a "safety net"? Four? Five?

Tue, 07/19/2011 - 14:42 | 1471296 gjp
gjp's picture

The comment about the safety net was a little bit tongue in cheek.  Massive spending cuts and tax hikes are required and even that may not be enough.  What I see here is a compromise just as ZH predicted.  Weak cuts to spending (and all piled on the most disadvantaged) and no taxes increases.  I don't think America can afford too many more compromises.

Tue, 07/19/2011 - 14:50 | 1471350 docj
docj's picture

No worries, gjp. Thanks.

Yeah, pretty weak-sauce "compromise", at that. Best case is we're still doubling the debt over the next decade - so more rent for the Squid, less money for everyone else. Typical.

Tue, 07/19/2011 - 16:52 | 1471823 RockyRacoon
RockyRacoon's picture

It's not a safety net, it's a hangman's noose.  See my moral hazard comment above.

Tue, 07/19/2011 - 15:34 | 1471518 francis_sawyer
francis_sawyer's picture

Before we get too excited about this gang of six plan, lets consider who the 6 are...

"Before we get too excited about this gang of six plan, lets consider who the 6 are...

6 jackass politicians"

---

There... fixed it...

Tue, 07/19/2011 - 14:21 | 1471162 Doyle Hargraves
Doyle Hargraves's picture

Sounds like these bastards have been hanging out in kaleefornya with the gov and legislature...smoke,mirrors, rape the regular people with CPI adjustments, accounting gimmicks and voila $500B cut. Oh well no worries soon $500B will be chump change anyways if bitch ass ben gets his way! As Ben would say "Bombs away bitchez!"


http://cgi.ebay.com/Zimbabwe-Currency-100-Billion-Dollar-Note-Agro-/230446347115


http://www.chinook-helicopter.com/Unique_Loads/Tax_dollars_at_work_b_master.jpg


 

Tue, 07/19/2011 - 14:20 | 1471174 glenlloyd
glenlloyd's picture

I didn't expect to see anything substantive, it's just more of the same.

Tue, 07/19/2011 - 14:24 | 1471187 walcott
walcott's picture

the gang bang of six.

Tue, 07/19/2011 - 14:29 | 1471219 Jim in MN
Jim in MN's picture

How clever.  Raise the debt ceiling now, and then nothing happens unless they get 60 votes for...Social Security reform....LOL...

Good one, dudes.

Tue, 07/19/2011 - 14:34 | 1471247 postafoa02
postafoa02's picture

'Gang of Sicks'

Tue, 07/19/2011 - 15:36 | 1471524 francis_sawyer
francis_sawyer's picture

& the 6th sick shieks 6th sheeps sick...

Tue, 07/19/2011 - 14:35 | 1471259 HungrySeagull
HungrySeagull's picture

And where are the 94 remaining Senators who have yet to speak up?

Or are they riding the clock, silent knowing there nothing anyone can do to save the Nation.

Tue, 07/19/2011 - 15:39 | 1471535 francis_sawyer
francis_sawyer's picture

And where are the 94 remaining Senators who have yet to speak up?

They're in the other chamber... voting themselves more bennies commensurate with the deficit reduction tally ...

 

Tue, 07/19/2011 - 14:46 | 1471323 TruthInSunshine
TruthInSunshine's picture

The iPad Micro Touch is coming out (it's like the original iPod), and Priceline.com & Travelzoo are going to merge with AOL.

Tue, 07/19/2011 - 14:51 | 1471358 Nothing To See Here
Nothing To See Here's picture

If Olympia Snowe and Susan Collins are in, I know this plan is serious and scientifically sound.

Tue, 07/19/2011 - 14:53 | 1471363 firefighter302
firefighter302's picture

Options writer hit it.

The House Republicans are never getting re-elected if they support this.

I don't see it having much of a chance getting by the House of Representatives as written. (and given the vagaries in the proposal.)

Tue, 07/19/2011 - 14:53 | 1471368 Nothing To See Here
Nothing To See Here's picture

If Olympia Snowe and Susan Collins are in, I know this plan is serious and scientifically sound.

Tue, 07/19/2011 - 14:54 | 1471372 duffelpud
duffelpud's picture

Plants like it; it's got electrolytes!

Tue, 07/19/2011 - 14:55 | 1471378 duffelpud
duffelpud's picture

Plants like it; it's got electrolytes!

Tue, 07/19/2011 - 14:56 | 1471381 duffelpud
duffelpud's picture

Plants like it; it's got electrolytes!

Tue, 07/19/2011 - 15:06 | 1471406 Buckaroo Banzai
Buckaroo Banzai's picture

Brawndo does indeed have what plants crave.

Tue, 07/19/2011 - 15:21 | 1471466 FinalCollapse
FinalCollapse's picture

If this gang of six plan goes through, it means that there will be austerity, and they will be removing big money out of the economy - and it is deflationary by its nature. Hence the gold corrected down.

It will be interesting to see if this is one day correction, or something longer term.

 

Tue, 07/19/2011 - 15:25 | 1471472 francis_sawyer
francis_sawyer's picture


dupe (above)

 

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