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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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.

Andy_Jackson_Jihad's picture

Saiga12s and 00 buckshot, bitchez!

Andy_Jackson_Jihad's picture

Saiga12s and 00 buckshot, bitchez!

Andy_Jackson_Jihad's picture

Saiga12s and 00 buckshot, bitchez!

RockyRacoon's picture

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

Andy_Jackson_Jihad's picture

Saiga12s and 8balls of coke, bitchez!

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

Smiley's picture

Snortin coke off a hooker's ass bitchez!

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.

Jack Kreuz's picture

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

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.

Turd Ferguson's picture

I think this headline is more significant:

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

JW n FL's picture

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


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

cdskiller's picture

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

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?...)



ViewfromUndertheBridge's picture

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

Archimedes's picture

The algos seemed to like it!


TradingJoe's picture

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

cougar_w's picture

The defeat of Debtron makes the world safe for Queezlon.

QE3 is on the way.

Superslam's picture

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

Bastiat's picture

Like all bullshit, this too will pass.

cosmictrainwreck's picture

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

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.

TradingJoe's picture

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

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).

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. 


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.

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.

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 ?

TradingJoe's picture

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

RobotTrader's picture

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

equity_momo's picture

You couldnt predict yesterdays weather , muppet.

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

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...

kito's picture

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

Neezer's picture

Stocks went vertical on this drivel? Seriously?

Imagine if Obama announced a new IPhone 6?

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.

John Rotten's picture

Obviously you don't get his Twitter feeds.

Johnny Lawrence's picture

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

r101958's picture

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

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.

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?

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!


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:

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. 


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)

glenlloyd's picture

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

NotApplicable's picture

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

Do you have any idea what that means?

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.  

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?