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Retirement Fund Plunder Update: $206 Billion So Far, $62 Billion Left

Tyler Durden's picture




 

As of today, since the debt ceiling breach on May 16, the Treasury has plundered about $206 billion from the two primary retirement accounts: the G-Fund and the Civil Service Retirement and Disability Fund, according to calculations performed by Stone McCarthy. The full breakdown for sticklers is provided below, however what is more important is that with just 4 weeks left until the D-Day, there is about $62 billion in available debt ceiling stretching options. In other words, Tim Geithner has burned through 75% of his dry powder just 50 days into the debt ceiling breach. What happens in the next few days - Stone McCarthy gives the full breakdown "Based on our projections for marketable borrowing and trust fund flows, we think Treasury would need to use about $37 billion of that $62 billion in July, and would exhaust the rest with the settlement of auctions on August 1. If things go down to the wire, Geithner could create a little more room by declaring that the Debt Issuance Suspension Period will last longer than the original May 16-August 2 timeframe, which would be reasonable if Congress hasn't acted by August 1 or August 2." Said otherwise, with the market still completely ignoring the debt ceiling situation, if nothing has changed by the last week of July, it will once again, very much retroactively, panic.

SMRA reminds us that QE is now over, which means Primary Dealers will now be used as a monetization buffer. "Based on our current cash flow projections, we think Treasury could pay its obligations for the first couple of weeks of August, and probably manage to pay the August 15 coupon interest payment. That assumes that Treasury would be able to roll over maturing debt at auctions in the first half of August, even in the absence of a debt limit increase. We imagine under such a scenario that there would be stepped-up pressure on primary dealers to participate in Treasury auctions."

As for government retirees, here is how the funding backing your retirement accounts if being used:

A tabular summar of sources and uses to date:

As for what the current status of (non) negotiations is, here is the summary of SMRA's Nancy Vanden Houten:

Over the last few days, we've learned that the President has had some high-level budget talks -- notably with House Speaker Boehner The President met with Congressional leaders today, and will do so again on Sunday. If we can believe what we're hearing, the President and the Speaker at least appear to be aiming higher in their negotiations on a deficit reduction deal. Previously, the talks had been focused on deficit reduction of about $2.5 trillion, or a little more than any voted-upon increase in the debt ceiling. In the last few days, a deficit reduction package totaling about $4.0 trillion appears to be back on the table.

Certainly, a deficit reduction deal totaling $4.0 trillion would be a huge step toward addressing our long-term fiscal crisis. But we think an agreement of that magnitude is still a long shot. A deficit reduction deal of $4.0 trillion would have to have a fairly significant revenue component; otherwise, the necessary amount of spending cuts wouldn't get much support from Democrats in Congress. On the other side, a large block of Republicans still opposes a deficit reduction deal that raises any revenue all. Surely the President and the Speaker know this. Do they think they can persuade their parties to come around and sign on to a "grand bargain?" Or are they posturing in front of an agreement on a smaller deal that gets us through the next election? We could see how the President in particular might benefit from that outcome: "I was willing to meet them more than halfway...to accept less in revenues that I'd like and support more cuts in programs that are most important to Democrats, but they wouldn't take yes for an answer."

And for the latest update here is the NYT confirming that Republicans and Democrats were still "far apart" on said "grand bargain". Perhaps that article is best summarized with the following phrase:

“The big question everyone is asking is, ‘What are we getting?’ ” said Representative Edward J. Markey, Democrat of Massachusetts.

Alas, gone are the days of idealistic monologues by JFK that would have provided a witty rejoinder to the above. Instead, we get the days of US insolvency and pillaging of retirement accounts of former government workers.

 

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Thu, 07/07/2011 - 22:15 | 1434813 JW n FL
JW n FL's picture

http://thehill.com/homenews/senate/152223-reid-accuses-gop-of-threatening-social-security-in-funding-fight

 

“It’s not just an exaggeration that Social Security is headed for bankruptcy, it’s an outright lie,” Reid said.

Reid and other Democrats at Monday’s event note that Social Security has a $2.6 trillion surplus and is projected to pay out 100 percent of benefits until 2037. After that point it is projected to pay out about 80 percent of owed benefits unless changes are made to the program.

Thu, 07/07/2011 - 22:52 | 1434888 cranky-old-geezer
cranky-old-geezer's picture

Cash balance in the (alledged) trust fund is ZERO.

IOUs are not cash.

Thu, 07/07/2011 - 23:18 | 1434941 bobert
bobert's picture

Here's what we could do.....

 

Sell the SS IOU's (making what is "non marketable" marketable). Use the $2.6 T in proceeds

to fund our budget deficit. This gains us 1.73 years prox., and allows congress and the

commander to do nothing for awhile. When we have depleted this "Trust Fund" we can

.then start marketing the Medicare "Trust Fund" and finish with the CSR "Trust Fund."

 

By my guesstimate we have three years to stall using this technique

 

Then in 2014 we go to pass through accounting! Expenditures = Revenue plus what you

can finance if there is still an annual deficit.

 

Funding in the US will then cost about what it does today in Greece and Portugal.

 

It will be entertaining to say the least to watch the lobbiest lobby at that time!

 

Or maybe congress gets responsible and we avoid the above scenario?

 

Doubt it.

Thu, 07/07/2011 - 23:26 | 1434956 RockyRacoon
RockyRacoon's picture

Those IOUs would be backed by the full faith and credit of a bunch of old broken down fat Boomers?   Good luck with that sale.

Thu, 07/07/2011 - 23:34 | 1434972 bobert
bobert's picture

That's correct Rocky!

I'm thinking the price for debt will be going up pretty soon.

Fri, 07/08/2011 - 02:32 | 1435224 Dre4dwolf
Dre4dwolf's picture

Actually.... they kinda are.

Fri, 07/08/2011 - 06:59 | 1435395 tarsubil
Fri, 07/08/2011 - 09:44 | 1436120 FEDbuster
FEDbuster's picture

"That's as good as money.  Those are IOUs."  Classic Ponzispeak!

Fri, 07/08/2011 - 04:12 | 1435306 Urban Redneck
Urban Redneck's picture

They are non-marketable treasury securities.  However, What prevents Timmy G from entering into a $1T 90-day Repo with the FED with the non-marketable treasury securities?  The Fed has certainly accepted more worthless collateral to justify its money printing.  Treasury is openly exploring options with the FED to maintain the ponzeconomy in the event they don't get Congressional permission to continue business as usual.  Given that the Treasury has by it own action demonstrated that pension obligations may be freely plundered to feed the beast, why not plunder the big lock box of pension obligations?  As worthless as most government employees are the government pension obligation to them is actually more binding than Social Security which is subject to annual adjustment by Congress. 

Thu, 07/07/2011 - 23:29 | 1434963 Mad Marv
Mad Marv's picture

I am constantly amazed at the number of people who believe that Social Security is ‘Fully Funded’.  And when they hear a dissenting opinion, rather than exhibit any curiosity into the matter, they just repeat the same mantra that all politicians give; Social Security is Safe.  WTF?!?  Why are these politicians allowed to lie like this?!?   I’m guessing at some point these Ivy League Jackasses must have taken an econ course or two – They must know what utter Bullshit this is. 

 

It’s damn hard to be compassionate with the aging population when you can easily discern the true state of these ponzi schemes.  I don’t want people to suffer, but some need a dose of reality to wake them the fuck up.      

Thu, 07/07/2011 - 23:37 | 1434976 ThirdCoastSurfer
ThirdCoastSurfer's picture

If Social Security wasn't alright, how could we afford to enact a 2% reduction in FICA for 2011?  For a couple making the max contribution, that's more than $350 a month and I think the total for all is like $30 billion that SS will never see. I never heard a peep out of AARP over this, how is this not a cut? 

Thu, 07/07/2011 - 23:45 | 1434994 JW n FL
JW n FL's picture

Doesn't bother anyone that Grand Ma and Grand Pa were Robbed for their Contributions that Exceeded the Needs of the Program?

Fri, 07/08/2011 - 00:16 | 1435036 sun tzu
sun tzu's picture

The effects won't be felt until 20 years later

Fri, 07/08/2011 - 00:30 | 1435066 Doyle Hargraves
Doyle Hargraves's picture

Fuck it give them bitchez MREs and section 8 housing. EBT cards and gubmint Cheese. Let it be a reminder to the rest of us what happens when you let the gubmint plan for your future so we can plan accordingly!

Fri, 07/08/2011 - 09:25 | 1435993 realitybiter
realitybiter's picture

Maybe so.  I suspect they will someday soon get paid in GE's.....gubmint equivalents.

 

soylent green, anyone?

Fri, 07/08/2011 - 02:15 | 1435199 Freddie
Freddie's picture

The Repubs are no prize but hussein and his dems are real a*s *uckers.

Fri, 07/08/2011 - 02:25 | 1435212 Michael
Michael's picture

How do you get blood out of a stone, the stone being the bankrupt Federal Government and virtually the whole of the American people at large?

That being said, I don't give a shit about the 25% of the US population eligible to receive a pension. Let them eat cake or go pound sand, makes no difference to me.

OT

I just thank God I won the war against the eco-fascist global governance people who wanted so bad a global carbon tax. That was to be their trillion dollar a year market and the third leg of the global governance stool. Those people can go pound sand too.

HA Ha!

 

 

Fri, 07/08/2011 - 08:49 | 1435741 Watauga
Watauga's picture

And I suppose you include the hundreds of thousands of retired military personnel who, over 20-35 years each, defended your right to "life, liberty, and the pursuit of happiness"?  And the thousands of families who have lost soldiers, sailors, airmen, and Marines in that defense and who receive some form of benefit from government? 

Why are there so many angry men on ZH who promote open generational and socio-economic warfare?  Is it that, because you are young, you are selfish and cannot grasp that you stand on the shoulders of giants?  Is it that you suffer from a Napoleonic complex of some kind, and feel small and unappreciated?  Is it because you a psychopathic or sociopathic?  Narcissistic? 

The answer here is not generational or socio-economic warfare.  Honestly, all that would do is result in many deaths, agony, and the perpetuation of evil.  The answer lies in youth rediscovering respect for their elders, committing to taking care of their families, dedicating themselves to self-sacrifice and hard work, and taking lawful action to restore liberty, private property, and free enterprise.  The easy way out is to point fingers at and shout down those you want to blame for your circumstances.  The high road, which demands courage and sacrifice, is to work within the law to find solutions that benefit all.

So, stop pissing and moaning about how grandpa ruined your life.  Get off your ass, get to work, get invovled in local political campaigns, start a business, write a blog promoting liberty, and generally be positive and productive rather than whiny and worthless.

Fri, 07/08/2011 - 09:17 | 1435943 XPolemic
XPolemic's picture

Fuck you.

Fri, 07/08/2011 - 15:02 | 1437744 Whizbang
Whizbang's picture

Good point. Spoken like a true asshole.

Fri, 07/08/2011 - 19:21 | 1438647 XPolemic
XPolemic's picture

Oh ... you want the long version? I thought ZH didn't have attention span for it.

The answer lies in youth rediscovering respect for their elders,

I don't respect people who steal from me and my children. Do something respectable and I will respect you.

committing to taking care of their families,

Oh I am committed, you better fucking believe it. Come at me mofo to take my last can of beans and you will see my commitment to protecting my family from you theiving shits.

dedicating themselves to self-sacrifice and hard work,

Been working hard and sacrificing my whole life to pay for your fucking luxurious retirement, I'm done now.

and taking lawful action to restore liberty, private property, and free enterprise.

Not possible, because the laws have changed to prevent the restoration of those things. Guess who by?

The high road, which demands courage and sacrifice, is to work within the law to find solutions that benefit all.

If such a solution were found, the law would be changed.

Get off your ass,

Get off yours.

get to work,

Follow the jobs to India where you sent them?

get invovled in local political campaigns,

To what end?

start a business,

With what capital?

write a blog promoting liberty,

Now you are just taking the piss.

and generally be positive and productive rather than whiny and worthless.

Sorry, whiny and worthless is your generation's specialty, not mine.

 

Fri, 07/08/2011 - 09:28 | 1436024 realitybiter
realitybiter's picture

Largely, we are where we are do to the leadership of folks that are now 60 to 80 years old.  Should we kick them to the curb?  No.  Should we cut them back hard?  We must.  Everyone needs to suck it up, and the old need to admit they squandered their paycheck and yours, to keep their bad habits going.  Sorry.  My folks are welcome to stay at my home

Fri, 07/08/2011 - 09:52 | 1436161 FEDbuster
FEDbuster's picture

This was the same attitude of most of the "Teapartiers" I saw and meet.  Most over 60 years old, most want to save the Country "for our grandchildren", no cuts to SS or Medicare (we paid it, we deserve it) and cut Medicaid, unemployment, food stamps, etc...  No willingness to share the sacrifice, just a "take care of me, fuck everyone else" attitude.  I quit going to the rallies, now I just wait and prepare for the collapse.

Mon, 07/11/2011 - 23:19 | 1446562 MGHJFHD
MGHJFHD's picture

I wish more people would write sites like this that are actually helpful to read. With all the fluff floating around on the web, it is rare to read a site like yours instead.

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Thu, 07/07/2011 - 22:15 | 1434814 km4
km4's picture

Great to see...welcome to the real world gubmint retirees ;)

 

Thu, 07/07/2011 - 22:20 | 1434822 CrashisOptimistic
CrashisOptimistic's picture

AARP will not allow touching SS or Medicare.  

It has become possible in the past 6 hours or so, that there can be no deal.

That would downshift to 90 day or 180 day ceiling increases, at 150 billion in cuts per increment.  

They're in trouble.

It's important to understand that any tax increase or spending cut in FY 2012 would be fiscal contraction and would raise unemployment.  Obama can't go this route.  The Tea Party may demand nothing less.

Thu, 07/07/2011 - 22:22 | 1434830 darkstar7646
darkstar7646's picture

It's too late for those who ask for austerity not to also ask for a fundamental demographic change to the nation -- by force.

I'm shocked the Karl-bots haven't already started going down to the local welfare houses to scope out targets.

Thu, 07/07/2011 - 22:20 | 1434827 101 years and c...
101 years and counting's picture

So, in August, Timmay! will need to sell about $400 billion to fund those accounts and for the standard monthly deficit of $150 billion? Good luck to him without money printing 3.0 up and running yet.

Fri, 07/08/2011 - 02:17 | 1435200 Freddie
Freddie's picture

No wonder Timmy is trying to quit.  Hope and Change.  Nice job by the scum who voted for the kenyan.

Fri, 07/08/2011 - 05:12 | 1435332 rufusbird
rufusbird's picture

at the "top of his game"...

Fri, 07/08/2011 - 09:56 | 1436197 FEDbuster
FEDbuster's picture

When the going gets tough....

I suppose they are all fully vested in govt. retirement once they make it to the 6 month mark.  "Turbo Tax" Timmy should go hide under the same rock as "Stammerin" Hank Paulson.

Thu, 07/07/2011 - 22:25 | 1434838 zorba THE GREEK
zorba THE GREEK's picture

 Social Security has a $2.6 trillion surplus? Of Gov. IOU's. If SS had a real surplus, Timmy would be

 raiding it to keep the Ponzi going.

Thu, 07/07/2011 - 22:36 | 1434861 bob_dabolina
bob_dabolina's picture

There are people who check Tims math on this situation right? I mean this guy couldn't even figure out how to pay his taxes.

Fri, 07/08/2011 - 04:18 | 1435307 Urban Redneck
Urban Redneck's picture

There are a bunch of guys from GS & JPM who are probably concerned about their next monthly TBTF transfer payment and are checking his math. 

Fri, 07/08/2011 - 08:12 | 1435539 krispkritter
krispkritter's picture

Cut him some slack. I hear he just upgraded to Timmy, er, TurboTax 3.0, the Fed edition. It promises the 'Biggest Refund. Free' so he's gonna run with that awhile. Bonus is that his 'Get Out of Jail Free. Get a Job with GS' card is included.

Thu, 07/07/2011 - 22:49 | 1434876 Zero Govt
Zero Govt's picture

it's a bloody disgrace not only robbing pensions but the financial 'planning' that got us here ...the fact nobodies resigned pinpoints the lack of integrity and professionalism of this bunch of big spendng, inept, irresponsible debt-junkies

Thu, 07/07/2011 - 23:04 | 1434910 gall batter
gall batter's picture

the disgrace is that they haven't been arrested.  no accountability.  

Thu, 07/07/2011 - 22:53 | 1434890 zorba THE GREEK
zorba THE GREEK's picture

 'Stepped up pressure on primary dealers'  is an understatement. They will buy, only they won't

 be able to roll it back on the Fed until QE3, which will tie up capital in banks. We probably won't

 see QE3 until stock market crashes and who knows how long that will take. It reminds me of the 

 old movies when I was a kid. The villain would have the girl tied up in the cabin with a keg of 

 dynamite with a lit fuse and the hero would be riding on his white horse to save her. The fuse

 would just keep on burning for the longest time while everyone was on the edge of their seats

 biting their nails. Except this time, there are giant kegs of dynamite with lit fuses burning 

 everywhere you look and we are all expecting the blast any minute but the fuses just keep

 burning and the tension keeps mounting. It doesn't look like most people are taking cover, but

 as for me, I surrounding myself and family with heavy metals to shield us from the blast.

 

 

 

 

 

Thu, 07/07/2011 - 23:11 | 1434927 Dr. Richard Head
Dr. Richard Head's picture

The fuse has been lit and burning for so long that I have started to wonder if this accounting really means anything in the end. Numbers on paper is the basis for life and death in the world. Fucking amazing reality. You would think humanity would have advanced further than this. Sigh....

Fri, 07/08/2011 - 00:32 | 1435073 HungrySeagull
HungrySeagull's picture

They lit the fucking fuse back in the Carter Administration.

Fri, 07/08/2011 - 09:00 | 1435824 Watauga
Watauga's picture

You might say the fuse was lit in by LBJ, or JFK, with their bizarre notions of "new frontiers" and "great societies" and horrific immigration reform.  You might say it was lit by FDR, with his perverted and twisted Statism.  Or by Woodrow Wilson's grand design of American Empire and the Idea of Progress.  Or even earlier, when Lincoln and a bunch of Northeaster Moneyed Interests chose to burn the Consitution and invade the sovereign C.S.A.  Or, possibly even earlier, when Alexander Hamilton won out in the battle over banks, money, and finance.  Or even when the Founding Fathers decided to settle a dispute by declaring a slave 3/5 of a human.  Or maybe it goes back even further, when the Radicals in France decided to slaughter their anyone they wanted in the name of equality and fraternity.  Or perhaps it was during the "Enlightenment," when Sisyphean intellectuals introduced the notion that Man not only could, but should, kill God.  Or maybe it was Julius Caesar who lit the fuse, when he destroyed the Republic.  

The fuse has been lit since Man found fire to light it.  Why?  Because men, in Original Sin, act solely in what they perceive to be their self-interest.  Money is merely a means.  The root of all evil is Self.  And men always try to lie, cheat, steal, or otherwise to promote themselves.  It is greed, pride, and selfishness all rolled into one.  Self.  And evil-mongers like LBJ, FDR, Lincoln, Hamilton, and so forth will always seek and achieve power in order to promote themselves and what they think are their interests.

 

Thu, 07/07/2011 - 23:06 | 1434913 buzzsaw99
buzzsaw99's picture

Too bad the CONgreff pissed away their sworn duty to issue money themselves to the private kleptocrats back in 1913.

Thu, 07/07/2011 - 23:22 | 1434949 bobert
bobert's picture

You are ugly and you are correct!

Fri, 07/08/2011 - 07:06 | 1435403 tarsubil
tarsubil's picture

Prohibition, income taxes, and popularly elected Senators, all around the same time. The seeds were sown a long time ago.

Thu, 07/07/2011 - 23:23 | 1434950 casey13
casey13's picture

So what happens to the pension funds now if they don't raise the debt ceiling?

Thu, 07/07/2011 - 23:32 | 1434967 bobert
bobert's picture

See my comment above. I believe they go from "non-marketable" to marketable.

In other words the Treasury shall convert "inter governmental debt" (non-public) to public debt.

Within three years the entire $14.3 T plus three years of additional deficit funding of $4.5 T

(because the lackey's in congress will not solve anything) = $$18.8 will be entirely public.

This won't happen if any of the three "Trust Funds" have annual operating profits, and or congress

and the commander reduce the deficit. Do you think this will happen?

 

What do you think the market will price US debt issues at then? I think 15-18% for the ten year.

 

Another related thought is: How much of the above debt will be held by our central bank and

it's prmary dealer's?

 

Just my idle thoughts on the matter.

Thu, 07/07/2011 - 23:27 | 1434958 FischerBlack
FischerBlack's picture

LOL,from https://www.tsp.gov/investmentfunds/fundsheets/fundPerformance_G.shtml

Under "Risks" we see only one risk they are willing to acknowledge:

The G Fund is subject to inflation risk, or the possibility that your G Fund investment will not grow enough to offset the reduction in purchasing power that results from inflation.

Nowhere do they mention the risk that those non-marketable securities issued to the G fund may actually be un-issued at any time, effectively borrowing the same money a second time. The risk being, obviously, that you have to be paid back twice. As if getting paid back once wasn't looking ever more tricky.

Hilarity.

Thu, 07/07/2011 - 23:37 | 1434977 bobert
bobert's picture

I think your onto something here Fischer!

Thu, 07/07/2011 - 23:27 | 1434959 JW n FL
JW n FL's picture

Doesn't bother anyone that Grand Ma and Grand Pa were Robbed for their Contributions that Exceeded the Needs of the Program?

Thu, 07/07/2011 - 23:37 | 1434975 random shots
random shots's picture

Serious question...

If a default is coming then why has the market not priced this in? And where are rates going? Noone has been able to answer this question in a serious manner. Is the 10 year going to jump overnight to 10%? What is the haircut bondholders will have to take? Why haven't US CDS gone parabolic like Greece

Thu, 07/07/2011 - 23:42 | 1434986 bobert
bobert's picture

Random:

The ten year and other rates have not risen due to a very large purchaser of bonds

with a never ending deep pocket (our central bank and it's priary dealers).Their purchases

keep the price of US treasuries high and conversely the associated interest rates low.

There will be a day I suppose when they are either embarrassed or intimidated out of

further purchases. It is at this time that you will see a marked increase in the pricing

of debt i.e., interest rates for these debt instruments.

 

Humbly.

Thu, 07/07/2011 - 23:50 | 1435001 JW n FL
JW n FL's picture

China's Central Bank has 1,200% Leverage Against EVERY! Renminbi Printed.

The U.S. FED has 120% Leverage Against Every! Dollar Printed.

 

You dont like that answer? well, the answer is no matter how fucked up you think we are.. here in the U.S. that the rest of the world is at least 10 times worse off than we are. and when I say 10 times worse off I mean the part of the World that everyone is moving to, too get ahead! China has 10 times more leverage from their central bank than we have from the FED.. it should be noted that these numbers are more than a few months old now and the leverage will have changed (for the worse) but the idea presented will still hold water.

 

Thu, 07/07/2011 - 23:51 | 1435007 JW n FL
JW n FL's picture

http://www.youtube.com/watch?v=3g_osF4mXWU

 

Max Keiser [7-7-11] 'Europe's Neo Feudalism' Stacy Herbert and Michael Hudson [KR]

Fri, 07/08/2011 - 07:33 | 1435448 Bob
Bob's picture

Thanks, JW! 

Fri, 07/08/2011 - 00:02 | 1435019 bobert
bobert's picture

JW:

If you don't mind, how do you define "leverage" and "dollar printed" that you mentioned above?

Thu, 07/07/2011 - 23:45 | 1434992 sleepingbeauty
sleepingbeauty's picture

Disabled and Elderly American's: "Tis but a scratch"

Non-sheep: "A scratch??? You're Arm's off"

Disabled and Elderly American's: "No it's not, and anyway I have to watch Casey Anthony"

Thu, 07/07/2011 - 23:50 | 1434998 bobert
bobert's picture

Yeah and when does American Idol start up again and or Dancing with the Stars?

Sooooo....very unpleasent this economic reality!

Fri, 07/08/2011 - 08:16 | 1435554 krispkritter
krispkritter's picture

There you go, bringing 'reality' into it. 

Fri, 07/08/2011 - 00:01 | 1435017 NOPOMO
NOPOMO's picture

Ben, Tim & Obama...Great seeing you are using pension funds to drive the markets higher.  Maybe next, you will empty citizen savings accounts to fund the perpetual risk trade.

You both are irresponsible civil servants and deserve no second term.  Termination to your existing term should be considered.

 

 

Fri, 07/08/2011 - 00:12 | 1435030 zorba THE GREEK
zorba THE GREEK's picture

 Everyone in gov. knows that the final solution will be to print money to cover entitlements.

 Gov. pensions, SS , medicare, medicaid, food stamps, unemployment benefits, ect. are all

 politically uncuttable. What is going on now is political theatrics. In the end, the only acceptable

 solution to the masses will be raise taxes on the rich, close some tax loopholes, cut some fluff

 out of the budget, and print the other 95% needed to keep the status quo. Of course this will

 cause a rapid rise in inflation and eventually the collapse of the dollar but it will keep the Ponzi

 going for a while.

 

Fri, 07/08/2011 - 00:29 | 1435054 dalkrin
dalkrin's picture

This default possibility is pure entertainment, I only hope there is some chance we maintain this political impasse past August 2nd, resulting in some beautiful creative anarchy erupting into our degenerately ordered society.

If I do taste bitter defeat, I will turn and redouble my physical silver accumulation in order to hasten the D-Day on the Crimex.  This candle is officially burning at both ends.  Multiple lit fuses all crackling and hissing towards the same fuel depot of ludicrous proportions.

Fri, 07/08/2011 - 00:34 | 1435079 HungrySeagull
HungrySeagull's picture

I see the PM's as an oppertunity.

Let it all burn. Then maybe there will be sufficent recovery from the ashes.

Fri, 07/08/2011 - 00:40 | 1435091 Coldfire
Coldfire's picture

The austerity theatre of Congressclowns notwithstanding, the only debt limit is the one imposed by foreign creditors, notably China and Japan.

Fri, 07/08/2011 - 04:31 | 1435313 Urban Redneck
Urban Redneck's picture

China and Japan are only brother #3 and brother #4.

Brother #1 is actually Timmy G, and brother #2 is Benny B - authoritarian statist ponzi scheme that it is...

Ta Mok and Leng Sary couldn't hold a candle to Nuon Chea and Pol Pot.

Fri, 07/08/2011 - 08:18 | 1435556 Diogenes
Diogenes's picture

China and Japan quit buying a long time ago. The Fed is now the biggest buyer.

Fri, 07/08/2011 - 00:40 | 1435092 slewie the pi-rat
slewie the pi-rat's picture

we can do this if we just stay focused on the Plan:

The Big Whatever

Fri, 07/08/2011 - 01:09 | 1435130 uniman
uniman's picture

I'd like to ask that folks refrain from blanket blaming of "boomers" for the coming shitfest.  I'm one of those boomers and I've been a Libertarian since my teens.  The system has juggernauted its own way ever since then and I had nothing to do with it.  Instead of pissing and moaning about the problem, I'm taking action.  I've got my money out of the system, I survive in the underground economy and I don't pay income tax or expect to use SS and Mediscam.

Also realize that the financial meltdown is the Achillie's heal of the Enemy.  The boomers have (admittedly inadvertantly) primed the self-destruct mechanism of this evil system and now all the post-boomers have to do is make revolution.

The next time one of you post-boomers feels like blanket tarring an entire demograpic I challenge you to instead live up to my example.  You think you have a problem?  Then quit pissin' 'n' moanin' about it and go fucking do something about it. 

I for one am part of the solution.  Before you throw bananas at me, I hope you can make the same claim.

http://grandfubar.com

http://67.208.112.48/protest/

Fri, 07/08/2011 - 02:33 | 1435225 slewie the pi-rat
slewie the pi-rat's picture

yep.  with The Big Whatever as the plan, anything can happen. 

soc/sec eligibility (as far as i know) comes at 40 quarters' participation, whatever that means according to the rules.  whenever i have a question, i just go to the local office, take a number, wait for about 20 minutes, and talk to somebody who can answer my questions. 

i tried this at the irs once.  that was a mistake.

Fri, 07/08/2011 - 08:31 | 1435602 Diogenes
Diogenes's picture

You also have to laugh at the young people who are so ready to throw Granny under the bus for the benefit of big banks and big government. What do they think the big boys are going to do to them when their turn comes around.

When you stick up for the rights of others you are sticking up for yourself. When you sell out others you are selling out yourself. If this does not make sense to you now it will when it is too late.

Fri, 07/08/2011 - 01:11 | 1435132 PulauHantu29
PulauHantu29's picture

These will all be Bailed out by the Fed Printing Presses either directly or indirectly....so don't sweat it.

The Fun will begin when the Gubberment takes over private pension plans (401k, IRAs, etc) to pay for its debts......

Fri, 07/08/2011 - 01:15 | 1435138 dcb
dcb's picture

screw those who are retired or going to retire. as long as we can keep bombing foreign lands. terrorists, etc. that's all that matters to me. If interesting note, notice how this doesn't get much play in the media, we talk about budget stuff but the president never mentions it, or does he say: OK boys fine, we will start cutting own military operations because of funds.

 

I voted for this president, hate him, he has got to be one of the biggest loosers on the planet.

Fri, 07/08/2011 - 01:26 | 1435146 laosuwan
laosuwan's picture

The US government is also plundering military vets including active duty and this is getting almost zero press

http://www.youtube.com/watch?v=kZd322Wyix8

Fri, 07/08/2011 - 01:31 | 1435151 laosuwan
laosuwan's picture

Alas, gone are the days of idealistic monologues by JFK that would have provided a witty rejoinder to the above

This was always my favorite JFK rejoinder (and no teleprompter, too)

http://www.youtube.com/watch?v=GXEkz6ksxdk&playnext=1&list=PL776D2FF204A5DF46

Fri, 07/08/2011 - 05:03 | 1435253 Sudden Debt
Sudden Debt's picture

RAISE THE RETIREMENT AGE

If you raise the retirement age to 70 or 75 years, there will be less people who will survive long enough to plunder the hard earned cash of the government!

 

REACTIVATION OF RETIRED PEOPLE

Any retired people below 75 can be reactivated and put to work in the US gold mines so the FED can mine those 8000 tons of gold which they hold on the books but still is encased in bedrock.

 

LOWER THE MINIMUM AGE OF WORKERS

People who are 12 years and older and who would like to work should be allowed to work. It's also good to replenish the retirement accounts for those who really should urn retirements: government workers.

 

 

 

Fri, 07/08/2011 - 04:35 | 1435316 mess nonster
mess nonster's picture

@ Sudden Debt:

I like this. Why stop there?

No Minimum Age of Workers: 5 year olds can work! Put the little bastards to use!

No Retirement Age: You wanna retire? Why? You're still alive, aint ya?

But even that won't save Social (In)Security. Revel in your atavistic impulses!

Fri, 07/08/2011 - 05:02 | 1435326 Sudden Debt
Sudden Debt's picture

It is not that a sucker is born every minute.

On the contrary, a sucker retires every minute.

 

Now the sollution is so close!

Let's see what Social Security currently does according to their website :

  • Retirement.Social Security's retirement program provides a lifetime monthly income for qualified workers once they reach their full retirement age. Depending on when they were born, that age ranges from 65 to 67. The amount of retirement benefits that a worker receives depends on his or her income while working. Workers also have the option of receiving a lower monthly income starting at age 62.
  • Survivors. Social Security's survivors program provides a monthly lifetime income to the surviving spouse of a deceased worker once he or she reaches retirement age. The amount of the monthly benefit depends on both spouses' income while they were working. The survivors program also pays benefits to children under the age of 18 and the surviving spouse caring for them. Unless they are disabled, children's benefits end when the last child either reaches age 18 or graduates from high school, whichever is later.
  • Disability. Social Security also pays lifetime monthly income to workers who are disabled and, in some cases, to their spouses and children under the age of 18. These benefits depend on the worker's earning history.

 

1. We kind of solved this retirement problem in the previous post.

2. Survivors.... the first word IS THE SOLLUTION!!! Organize a kind of gladiator wars with lethal weapons per 100 people. The one that leaves the arena GET'S SS BENEFITS!!! AND = A 99% SAVINGS ON SS IS A FACT!!

3. Disability... Face it, those people don't have that much of a added value to society. It's like having a real cool Iphone and when it breaks down you say: I'm going to keep it in my pocket, recharge it every 8 hours and keep paying the phone bills. NO HOW FUCKED UP IS THAT? ANY NORMAL PERSON THROWS AWAY THAT BROKEN PHONE AND ONLY PAYS THE BILLS OF THE WORKING PHONE RIGHT?

 

 

Fri, 07/08/2011 - 07:37 | 1435455 tarsubil
tarsubil's picture

While this is funny, I'm not sure you want to give them any ideas.

Fri, 07/08/2011 - 06:49 | 1435388 Major Priapus
Major Priapus's picture

- Alexander Fraser Tytler (1747- 1813)
 

"A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world's greatest civilizations has been about 200 years. These nations have progressed through this sequence: From bondage to spiritual faith; From spiritual faith to great courage; From courage to liberty; From liberty to abundance; From abundance to selfishness; From selfishness to apathy; From apathy to dependence; From dependence back into bondage."  

Meanwhile an incorrigible plagarist provided this quote: 
 
"Democracy is a form of government that cannot long survive, for as soon as the people learn that they have a voice in the fiscal policies of the government, they will move to vote for themselves all the money in the treasury, and bankrupt the nation."  Karl Marx

Final quote of the day...

"History may not repeat itself, but it sure does rhyme!"  Mark Twain and/or Albert Einstein

Fri, 07/08/2011 - 07:17 | 1435422 tarsubil
tarsubil's picture

When zh first broke this I sent it to a couple boomers who were retired government thinking they would spread it around or at least go 'meh, I'm not worried'. I got zero response. They didn't even say it was wrong. Just nothing. That's why this stuff will continue. No one cares.

Fri, 07/08/2011 - 09:21 | 1435967 Sudden Debt
Sudden Debt's picture

They don't care because they think it doesn't affect them.

Once they'll notice it will, they expect everybody to care.

Then it's your turn to say: Meh....

 

Fri, 07/08/2011 - 07:55 | 1435492 DavidC
DavidC's picture

Why don't they just raise the debt ceiling to $50 trillion instead of going through this pathetic disaplay each time, raising it (oh, there's a surprise) and then spending until they reach it again. No doubt they would reach $50 trillion, but it would take a little bit longer to get there.

Pathetic.

DavidC

Fri, 07/08/2011 - 08:02 | 1435511 tarsubil
tarsubil's picture

Duh! If they did that, "fiscally conservative" Republicans and Democrats wouldn't be able to make empty gestures with orchestrated votes before every election. People need to be lied to at least every two years.

Fri, 07/08/2011 - 07:58 | 1435501 White.Star.Line
White.Star.Line's picture

This is like Dillinger cleaning out the vaults, then ransacking the teller's purses.

Fri, 07/08/2011 - 08:26 | 1435523 Incubus
Incubus's picture

Retirement is an old concept of centuries past.  In Corporate America, if you cannot contribute NOW--you are worthless.  So in Corporate America, retirement is detrimental to the state. 

 

You.will.work.until.you.cannot.or.until.you.die.

 

Everyday that I'm driving to work...I pray for any disaster to end this stupid ass social construct. Anything.  Anything at all will do. 

We're all a bunch of programmed little happy bots that believe in a nonexistent society -- wasting our lives away for corporate profit.

 

 

Fri, 07/08/2011 - 08:41 | 1435684 doggings
doggings's picture

awesome video on this exact thing by freedomainradio here

"welcome to the real world"

Sun, 07/10/2011 - 18:04 | 1442017 jonytk
jonytk's picture

i neither work neither retire, my algos works for me!!

 

unlesss.

--- TOBIN TAX ---

Fri, 07/08/2011 - 08:59 | 1435812 Baptiste Say
Baptiste Say's picture

"Instead, we get the days of US insolvency and pillaging of retirement accounts of former government workers.

 

Good, these fucks are the ones who led the US government to become a $4 trillion per year war mongering monster. Next up their homes, cars and personal effects should be nationalised

Fri, 07/08/2011 - 09:22 | 1435978 Stuck on Zero
Stuck on Zero's picture

Nuclear power is safe.  Agent Orange is safe.  X-rays are safe.  Hydrogenated fats are safe.  Smoking is safe.  Asbestos is safe.  Thalidomide is safe. Aldrin is safe.  Chlordane is safe. DDT is safe.  Methyl chloride is safe.  Methyl parathion is safe.  Your government pension is safe.  Social Security is safe. 

Fri, 07/08/2011 - 21:11 | 1438852 laosuwan
laosuwan's picture

also, your safety deposit box is safe

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