Watch Paul Ryan Unveil His Draconian Budget Proposal Live

Tyler Durden's picture

Time for some more theater: at 10:30 am Eastern Paul Ryan will reveal his budget proposal which sees the US government cutting $650 billion each year over the next 10 years. This simply means that even more stimulus will reside with the Fed, and with monetary policy, which also means that not only is QE3 guaranteed, but so is QE33. Watch Ryan live at the below C-Span link.

And here are two summary compare and contrasts of the proposed budget and that of the president.



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gordengeko's picture

QE33 = AGQ 10,000 per share = non existent physical silver.  Get it before it's gone.

Sudden Debt's picture

They'll be selling future silver mining option for the year 2120 by then :) 

narapoiddyslexia's picture

I bet there's silver on the Moon. How can I create and sell options to deliver Moon silver? Anyone? 

dark pools of soros's picture

truck back some of Titan's methane while we're at it

Salah's picture

It can never happen; we signed the obscure Outer Space Treaty of 1967 to placate the Soviets' paranoia.  Nobody can do jack-shit on the Moon or any other 'heavenly body', astroids included, because nobody has any property rights.  No reward; why take the risk?

Of course, were the USA to unilaterally withdraw from that treaty (per article 16), and declare national sovereignty on the Moon (the treaty's intended victim all along), and then guarantee property rights there... it'd be a whole different story, huh?  

Why the USA might even be able to incentivize the next economic revolution, if some shit-for-brains DC bureaucrat studied how just such a scenario, called the "Pacific Railraod Act of 1863" was able to put America on a path to 20th century greatness.

Nah, it'd never work, they're a bunch of pantywaist pussies.


j0nx's picture

Rule of Acquisition 132: Contracts and/or treaties are meant to be broken.

gordengeko's picture

He has to keep printing.  Sellside volume running avg on the weekly chart has turned over 50% to the sellside on spx, spy, sdy and oef.  That hasn't happened since last summer.  It's Ben against the world!lol

SilverRhino's picture

Shit, Silver's right back up after this morning's raid.  

38.85 now.


Edit: DAMN ... spiked to 39.05 in 3 minutes.   Something's getting squirrelly.

TruthInSunshine's picture

-***Breaking News Alert (and Black Flag Event)***-

04-05 10:31: Fed's Dudley says NY Fed, money managers and banks will create swap plan

-***This Has Been A Breaking News Alert (and Black Flag Event)***-


Back on topic. Just shut it down. Shut 50% of government operations & expenditures down and let people see life will go on with no significant adverse impact.

We can then get to a more sensible equilibrium, because the formerly easily scared will understand how much waste is built into the system.

dogismyth's picture

of course they will.  they  must secure adequate funding for the perpetual wars on behalf of Israel and the elite of England to continue their world domination.  Sound far-fetched?  Not really.  As soon as the Middle East is secured with bases and troops, then its onward to the big prize: China and perhaps Russia if they do not submit to the plans that the "pharaohs" offer them.  Military operations will not be cut from the budget.  emergency appropriations will continue along with other sleight of hand techniques to make us feel warm and cozy.

They'll continue to slice away at all public programs and safety nets.  yes, i know that many of the programs are enormous.  Of course they are maintained that way purposely so it appears to be an easier task of cutting the fat.  Of course,  we are simply entering a period of serfdom unless of course you are within the inside circle.   Just wait...they'll be coming for the public pensions next and then 401k's will be annexed into the Save Amerika Program.  So while many feel safe that the cuts will not affect them, it is simply the Mouse Trap Parable.  But then again, Americans never really were a cohesive bunch.  They like to pretend to be but when it gets right down to the matter....everyone is out for themselves.  And that is surely reflected in our foreign policies.

Well I could go on and on but I realize its useless to do so among my peers since I have no catchy phrases or jokes to sweep this under the rug.  So I'll leave you with this.


EscapeKey's picture

That's what I debated Flak yesterday - when they shut down QE2, they will finance the deficit through repo's; PDs pick up treasuries, these are financed back to the Fed through repo's.

This IS John Law territory, no fucking kidding. John Law allowed Mississippi Company equity as collateral for new loans - 80% of which were reinvested in Mississippi Company shares.

This shit doesn't have long to go.

magpie's picture

Simply classic, EscapeKey.

The USA - always has been a division of Compagnie de l'Ouest.

Flakmeister's picture

Hey, maybe you and I have become market movers and somebody was reading :)

It will be a summer of discontent, me thinks...

falak pema's picture

John Law left indelible memory imprint on France. It ruined its economy. The bubble of Louisiana-Mississippi based on fiat money was so sweet it seduced a generation of middle class. As between king who spent and over-spent and middle class ruined...all that was left were people who sang "give us bread!"...Start sharpening your scythes peasants, citizens, of the land of hope n glory. The dragon bites its tail!

trav7777's picture

the whole south seas and other global bubbles in this period are what the EW kooks refer to as a primary wave with what followed, mini depression, global revolutions etc., as the corrective retrace.

The monetary shenanigans in the 1700s were enormous, a lot of macro trends colliding at that time, aristocracies, revolutions, VOC, all of it.

Mr Anderson's picture

Sounds alot like today


Flakmeister's picture

Youza.... nibbled any troll lately?

Bob's picture

"We've got to get our fiscal house in order for jobs and the economy to grow." 

Can't wait to see him pull those jobs out of his ass once "entitlements" are cut.  Now that's magic. 

dark pools of soros's picture

did he ever say those jobs had to be in america???  

Ident 7777 economy's picture

Ringside seat; thanks Tyler

Roy Bush's picture

Blah Blah..blah, blah, blah, blah, blah....

The only direction is inflation...more money, more benefits, more stimulus.  It will happen until the engine finally explodes.

Robot Traders Mom's picture

Bingo! Ryan is a patriot-act neocon fraud. Nothing is going to change. All this does is force people to take a side and solidify the two party system. All part of the master plan...

Maybe when Robot can write a paper on this in his civics class this afternoon.

SWRichmond's picture

It sure looks like the PM markets like the phony-baloney Ryan plan.

Bob's picture

Silver's gonna break $39 at this rate . . .

StychoKiller's picture

Done!  $39.18/Toz. at the Crimex close.

EscapeKey's picture

The wicked bitch will not allow Gold above 1443 it would appear. Gets hammered constantly.

Long-John-Silver's picture

Watch what happens when the hammer handle breaks from overuse.

StychoKiller's picture

Blythe gets taken out at $1451.10 at the Crimex close!

Rainman's picture

....but..but if the goobermint is forced to fire union employees, who will be left to vote for the re-election of the Great Agitator ? This is the most important question. 

RKDS's picture

I hope you run a business and alot of your customers are government employees.  Then we'll see who cries like a bitch when public sector payrolls get chopped in half.

dark pools of soros's picture

we are all stupid for not starting a chain of Zero Hedge grocery and gold marts.  The SNAP cards print profits and whoever is dumb enough to sell us gold is a bonus

nedwardkelly's picture

I hope you run a business and alot of your customers are government employees.  Then we'll see who cries like a bitch when public sector payrolls get chopped in half.

It doesn't matter what you cut, you're always going to find someone that will cry like a bitch. Seems you're suggesting that we shouldn't cut anything lest it upset someone?

Oquities's picture

it's really worse than Groucho Marx as the leader of Freedonia in Duck Soup

brian0918's picture

Gold just exploded to 1443. What happened?!

dexter_morgan's picture

Wow - that's quite a spike there

magpie's picture

Nothing to see. Uncle Ben completing his after breakfast exercise, whacking King Dollar with a 2x4 on the head.

solgundy's picture

get extemely short & vote communist(dem)

Popo's picture

QE33?  Sorry, but no.  Take a look at any graph of the decreasing marginal return of new capital formation.

QE33 will not happen because it simply won't be effective as a form of stimulus.  That tipping point is already here.   New dollars simply don't have a whole lot of bang for the buck (literally).  


Sure, QE3 might happen for political reasons.  But financial reality can't be avoided for more than another round or so...  




EscapeKey's picture

"capital formation". Now those are words I haven't heard for a long time. Next, you'll tell me savers won't be ripped off in this new paradigm?

Popo's picture

No I won't.  Savers will get ass raped by inflation, until the engine for inflation can't inflate anymore -- at which point we'll go from supernova to white dwarf.  

QE33 is unquestionably beyond that timeframe.  It won't happen.   We can argue about QE3, and even QE4 (since we don't know how big either will be).  But criticality is getting closer every day, and the marginal return of every newly created dollar is approaching zero.

cxl9's picture

The marginal return to whom, exactly? Money printing benefits the guy who owns the press, as well as the early recipients of the fresh cash. Their "return" is nearly infinite, as they create money at essentially zero cost to themselves, paid for by the dilution in value of all the dollars held by others. And why should anyone care about all those dollar-savers anyway? They were the ones dumb enough to trust their wealth to government promises.

MachoMan's picture

If marginal returns are nil, then why would we expect for them to keep their foot on the gas?  If prolonging the charade is the only name of the game, then why would we expect them to keep their foot on the gas?  Further, if a withdrawal (albeit temporary) of "stimulus" is to happen, how many successive rounds of stimulation/withdrawal can we withstand?  There seems to be universal agreement that a continuation of stimulus, in its present course, will sink us fairly soon...  and, likewise, a complete withdrawal would sink us soon...  but, what about a little of both?

falak pema's picture

Three major objectives of QE-infinity are : 1° Continued WS assets levitation (avoid collapse/accept gradual downturn). 2° USD devaluation through 'controlled' inflation as reserve currency (nuclear clout makes eviction as reserve NON NEGOTIABLE, acceptable inside a IMF basket, but not OUT of it, alone in cold). 3° Cut back of deficits by reduced budget spending and more competitive economy by creating new growth areas around (INTERNET+ energy renewables). So many balls in the air and no political will to go slim in USA....tough shit ahead! If USA waits too long to expedite diet change, then China/EM balk and all bets are off...we head to WAR!

Go Benocide! Lets see you juggle the balls like Houdini in pin stripes!

StychoKiller's picture

Have a big, steaming plate of Gridlock in spicy, Cesium-137 sauce!  How about a little "POMO-Ade" to wash it down?

No matter what size cut(s) the Republicons propose, the Decepticrats in the Senate are gonna try to ensure it's stillborn!  Even if the Senate somehow becomes rational, Obamatron will veto it if his darlin' child (ObamaCare) is taken out!  Is it any wonder, then that Au and Ag are using their jetpacks?

Spalding_Smailes's picture

Viva libertarian's & anarchist .... Limited government letting the white collar crime accelerate ...


Golf clap <Sarcasm>

tmosley's picture

Good, good, let the butthurt flow through you.

Andy_Jackson_Jihad's picture

holy crap you combined snark and starwars on a finance site.  A+