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Why A Balanced Budget Is Impossible In America

Tyler Durden's picture





 

If the US government cut all government services except Social Security, Medicare, Medicaid, and interest payments, federal spending would still outpace revenues. As we noted here, these four mandatory items dominate costs. All the arguing over sequestration and the fiscal cliff are moot since as Professor Antony Davis notes in this brief clip, there are no specific cust that will enable government to balance the budget; in fact "nothing less than a complete redesign will solve the problem." That redesign begins with determing the proper role of government.

 

 


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Tue, 10/16/2012 - 13:23 | Link to Comment Dr. Sandi
Dr. Sandi's picture

We also need to remember the chump change spent on our military entitlements.

Tue, 10/16/2012 - 13:26 | Link to Comment Tyler Durden
Tyler Durden's picture

We have. It is in the linked chart: it is the 4th largest use of funds (was third last year) after "Human and Health Services", Social Security and Treasury spending.

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/07-2/Govt%20Spending.jpg

Tue, 10/16/2012 - 13:32 | Link to Comment Dr. Sandi
Dr. Sandi's picture

The military needs its own income stream like SS has. Maybe we can institute a head tax whereby every government pays the US military if it wants to keeps its heads.

Tue, 10/16/2012 - 13:38 | Link to Comment francis_sawyer
francis_sawyer's picture

That's why we're guarding the poppy crops in Afghanistan...

Tue, 10/16/2012 - 13:45 | Link to Comment john39
john39's picture

 we are defending them....

Tue, 10/16/2012 - 13:59 | Link to Comment kito
kito's picture

ss stream is slowly turning to a trickle..................................

Tue, 10/16/2012 - 14:17 | Link to Comment dlmaniac
dlmaniac's picture

Democracy + Debt = Guaranteed Self-Inflicted Bankruptcy.

Tue, 10/16/2012 - 19:59 | Link to Comment Mentaliusanything
Mentaliusanything's picture

Relax - you just need a 15% consumption Tax - Problem solved

(its coming and it will make the poor poorer and the rich much richer)

Tue, 10/16/2012 - 17:40 | Link to Comment Zadok
Zadok's picture

And diamonds in Africa...

Tue, 10/16/2012 - 13:56 | Link to Comment zerozulu
zerozulu's picture

Legalizing marijuana and taxing 20% on sales will balance the budget.

Tue, 10/16/2012 - 13:59 | Link to Comment pods
pods's picture

No way in hell it would do that.  It grows anywhere.  It is nicknamed "weed" for a reason.

pods

Tue, 10/16/2012 - 14:20 | Link to Comment zerozulu
zerozulu's picture

No need to raise cows if you get milk cheaper.

Tue, 10/16/2012 - 17:18 | Link to Comment sessinpo
sessinpo's picture

That is an inaccurate analogy. The cost of having milking cows, even just one is much higher then growing marijuana plants. And I say this with the bias of legalizing marijuana for economic reasons. Please don't use such bad analogies because you only hurt your argument, not help it.

Tue, 10/16/2012 - 15:35 | Link to Comment Handyman
Handyman's picture

It wont solve all the problems but still....prohibition is a waste of money in these times. Not to mention that If i want to smoke a joint in the privacy of my own home it's NOBODY'S FUCKING BUSINESS!!!!!

 

If the guv doesn't want profits from pot I guess we'll just keep giving it to organized crime. They don't mind.

Tue, 10/16/2012 - 16:17 | Link to Comment smlbizman
smlbizman's picture

handy, i would say they make more profit than anyone...trails, lawyers,judges, gaurds, prisons .23 cents an hour .( know first hand a small local uniform maker just lost 50% of contract to a much cheaper competor)....and laundered funds and the list doesnt stop....so if they get that 5 dollars on that ounce they lose 57 billion on their other enterprise....

Wed, 10/24/2012 - 02:29 | Link to Comment Handyman
Handyman's picture

True...an even more organized crime.

Tue, 10/16/2012 - 15:12 | Link to Comment SmittyinLA
SmittyinLA's picture

LOL they tried that in CA, it didn't work of course the 20% was divied up between the local police, sheriffs, and elected offcials, not used to pay down debts. 

Tue, 10/16/2012 - 17:01 | Link to Comment ersatzteil
ersatzteil's picture

Even then it can't be that great of revenue; most of the crowd with medical cards don't buy regularly through the legal channels. The card lets you carry as much as a half ounce in the car, which takes the stress out of picking up from a friend.

If they really want to make revenue, find a way to tax the guy who buys from Northern California at 150$/oz and sells in Southern California for 300$/oz. But even then, he doesn't sell it all at once, it's broken into 1/8oz, 1/4oz, and he's gotta find buyers (the hardest part).

 

Tue, 10/16/2012 - 16:18 | Link to Comment ilovefreedom
ilovefreedom's picture

I always giggle when I see such statements about taxation regarding potential Cannabis sales.

Everyone does realize that the current market economics for cannabis exists largely as a black market and gray market enterprise, right?

Thus, any forecasts, sales estimates, etc. are based on Black Market prices and are unrealistic under a legalization scheme.

They say nationally the current TAM (Total Actual Market) for cannabis is around $18 Billion dollars, at or around the same for Corn.

But Corn is not illegal to grow. If Cannabis consumption and agriculture were legalized prices would plummet around 800-1000% as the current pricing scheme is the same or higher than street black market prices. The only sellers who could get similar prices in a legal market would be boutique product, but the majority of consumers would gravitate towards Wal-Mart priced products as they do on cigarettes and liquor and cigars. How many people that smoke cigars smoke $100/each unit? How many people buy the finest cigarettes and roll their own? How many people buy expensive liquor, beer or champange?

So in reality, Cannabis taxation would not be the salvation of any budget through taxation. The enforcement,"justice system", and prison costs related to these items would by far be the biggest cost savings available to be reallocated in the budget.

Tue, 10/16/2012 - 16:35 | Link to Comment JFK.4PREZ
JFK.4PREZ's picture

+4 for justice system in quotes 

+2 for the realistic forecast

+0 for not being more enthusaistic about the legalization of pot

Tue, 10/16/2012 - 16:38 | Link to Comment Jam Akin
Jam Akin's picture

I agree with your main point but please fix your math. Prices can decline by a max of 100% at which point the price would be zero.

Cheaper blunts would be a good thing...

Tue, 10/16/2012 - 17:05 | Link to Comment prodigious_idea
prodigious_idea's picture

"If Cannabis consumption and agriculture were legalized prices would plummet around 800-1000%"

 

You might want to check you math on that statement.

Tue, 10/16/2012 - 18:07 | Link to Comment ersatzteil
ersatzteil's picture

free weed bitchez!

Tue, 10/16/2012 - 19:13 | Link to Comment Flakmeister
Flakmeister's picture

Better yet, they pay you to smoke it...

Tue, 10/16/2012 - 22:41 | Link to Comment cornedmutton
cornedmutton's picture

Introducing the Supplimental Weed Assistance Program (SWAP) for the needy...

Wed, 10/17/2012 - 05:54 | Link to Comment Radical Marijuana
Radical Marijuana's picture

Adequate outdoor marijuana can be grown for pennies a gram.

The black market sells it for dollars a gram... 1,000% mark up?

5 cents legal growing ... 5 dollars to sell on the black market!

100 times, times 100, to give per cent, you do the math ...

The point is that NOTHING could compete with hemp!

That was one of the main reasons it was made illegal.

Pot prohibition FIRST started way back in 1898, with the Egyptian cotton industry lobbying to criminalize cannabis, which was something that the international banksters picked up, through the international organizations that they set up to advance their overall agenda. WHY? Well there is no way that cotton could compete with legal cannabis cultivation.

Everything was PERFECTLY PERVERSE! It was due to the runaway triumph of evil, whose longer term consequences automatically get worse and worse, faster and faster. In the USA, the first signs of that perversity arose before that. In 1850s America, pharmacies carried medicinal cannabis. Around 1860, cannabis regulations and restrictions were first instituted. Around the same time, states began regulating pharmaceutical sales, including penalties for mislabeling and adulterated substances. It became a slippery slope toward criminalizing cannabis. After 1906, states began labeling it poisonous. In the 1920, prohibitions began. By the mid-1930s, all states enacted regulations, including 35 under the Uniform State Narcotic Drug Act. Classic slippery slopes, towards the ironic inversions: THE POWER TO PENALIZE MISLABELLING WAS ABUSED BY THE AUTHORITIES, WHO DELIBERATELY MISLABELLED MARIJUANA.

Indeed, ASK: Who will guard the guardians?

Those who gained powers to stop mislabelling then became the worst of all the mislabellers!

The power to force labelling of products was abused, to force labelling marijuana POISON, as another enforced huge lie! Over and over again, the argument for "public safety" was perverted, and turned to become more and more psychotic. That is NOT just the way there is a revolving door between the FDA and the agribusiness and pharmaceutical companies, although that was significant. Profit from junk food, along with profit from disease systems, are two of the biggest root causes of the runaway government budgets being impossble to fix. They are, in fact, even larger domestic disasters than the foreign affairs and war budgets, but most people do not see that economic reality for what it really is! Most people can not, or do not want to understand how much medicine is actually inside of militarism, and thus the money system, controlled by the Fraud Kings, and therefore, cause everything to happen BACKWARDS. Our medical system does systematic death control through the maximum possible deceits, which is an extremely expensive thing to do, but which the government more and more pays for, or forces people to pay for! That has another history whereby the banksters used their power to corrupt everything. Of course, they attacked and denied and suppressed medical marijuana inside of that real context.

It is a thorough system, with the international banksters at the center of that web of deceit and destruction. It is the control of the puppet politicians by the banksters that made it possible to drive the American money system to become PERFECTLY PERVERSE! That is why the numbers regarding the budget ARE INSANE. There are level after level of greater insanities, the more one looks ... which is why we live in a Bizarro Mirror World, where everything is BACKWARDS. One of the most important of those ways, which makes the insane monetary value of marijuana look totally trivial in comparison, was the way the 1947 National Security law destroyed national security more than anything else, and created the situation whereby it would eventually be possible for things like the events on 9/11/2001 to become successful false flag attacks.

The fact that marijuana cost 100 times more than it should, and so, a little bush is worth more than a big tree, SYMBOLIZES how the rest of society is dominated by professional liars, and immaculate hypocrites, and thus, ideas like "public safety" become PERFECTLY PERVERSE! Those who create those laws then finally use them to accomplish totally the opposite of everything they say! That is NO ACCIDENT.  ... Therefore, there is no reason to believe it will stop, but rather, every good reason to believe it will automatically get worse, and worse, faster and faster ... in every possible way that one can imagine!

Having the legal system make marijuana worth 100 times more on the black market than it could cost to grow it legally was a GREAT way to subsidize organized crime!  That got the Mexican drug cartels going in the first place. That has morphed into being the best way to make sure that the privatized, for profit, prison system is one of the best businesses in the USA today.

The INSANE ratios of what it costs to grow marijuana, compared to how much it was worth on the black market, was an excellent way for the banksters to drive American society into irreconcilable social polarization. At some point, one has to admit that this runaway social insanity does not have any other way to be fixed, that to finally collapse into insane chaos. That is basically what the budgets of the governments are going to do. They are the runaway triumph of frauds, which therefore can NOT be fixed. The truth about budgets is IMPOSSIBLE to present in the public space dominated by the mass media, controlled by the banksters' buddies. A sane budget would be related to the conservation of energy, and the systems in which that happens. An insane budget takes place inside of fiat money system, state religion. That marijuana has an insane monetary value, a couple of orders of magnitude too much, FITS into the rest of the insane state religion of faith-based fiat money, backed by the force of governments. The ANSWERS to the questions about the fundamental purposes of governments are way, way deeper than most people are willing to ever even begin to think about! ... To again quote another Zero Hedge comment, what we are looking at is NOT mathematics, it is mathemagic. I.e., INSANE NUMBERS, which depend on the triumph of frauds, in order to exist! These numbers are due to trick after trick, illusion on top of illusions, decade after decade, for more than a Century, with accumulating consequences!!! The insane monetary numbers surrounding marijuana merely provide some easier to understand illustrations of that almost PERFECT PERVERSITY.

Wed, 10/17/2012 - 03:54 | Link to Comment Radical Marijuana
Radical Marijuana's picture

I agreed with the comments made by ilovefreedom above ...

Cannabis laws are merely the single simplest SYMBOL, and the most extreme EXAMPLE, of the general pattern of social facts. It was BECAUSE hemp was the best plant for people, for food, fiber, fun and medicine, that the laws became based on a propaganda campaign that asserted "marijuana is almost as bad as murder."  Of course, it is just one plant, and that can not fix the problems which are astronomically bigger than any one plant. However, pot prohibition may be a way that people come to understand that the economic laws are NOTHING but legalized lies, backed by legalized violence, on that astronomically larger scale.

One needs to go through a number of levels of waking up to how the banksters and their buddies control civilization through a total social pyramid system of debt slavery, backed by wars based on deceits. The drug wars segued from slavery and racism, which were previous systems running the social pyramid for thousands of years. The drug wars were NOT a "failure" if one understands that what they actually did was what they were intended to do! Drug wars were intended to be excuses to build a bigger fascist police state, to serve the interests of the fascist plutocracy. The banksters that pull the strings of the puppet politicians were the ones that benefited the most, all the way around, from the drug wars. The banksters dominated the funding of politics, in order to drive their systems to become triumphant. The biggest banksters launder the drug money. The banksters are the biggest gangsters, that benefit from creating an entire culture that enables lesser crime gangs to flourish. All of that goes around and around in deliberately driven vicious spiral. More fascist policing, destroying civil liberties, serves the real interests of the fascist plutocracy.

The drug wars are 75% against "marijuana," which was a Mexican Spanish slang word adopted by the propaganda campaigns to rename hemp, so that the assertion that "marijuana was almost as bad a murder" could become the basis of the laws. It is a notorious fact that huge lies work better than small lies, in the context of promoting propaganda. Similarly, the word "pot" was also derived from Mexican Spanish slang. Pot prohibition was deliberately perverse, in order to serve the interests of those who drove that perversion through! It was perfect propaganda to assert that a plant that was actually the single best plant on the planet for people was "almost as bad as murder," and then back up those huge legalized lies with legalized violence, for decades!

Marijuana laws and monetary laws are basically similar. They are BOTH HUGE FRAUDS, backed up by the full force of the legalized violence from law enforcement authorities. Sure, the plant itself is not that big of a deal. Sure, at least 90% and perhaps as much as 99% of the money in marijuana is ONLY there because of the black market. However, it is also true that at least 90%, or more like 99%, of the money from cultivating cannabis for other purposes is not there, because marijuana laws were the excuses to criminalize all cannabis cultivation, for all other purposes. All of that traces back in its real history to racist rationalizations, piled on top of deeper issues surrounding political corruption. Criminalizing cannabis fits into the overall pattern of fascist plutocracy throughout every aspect of North American society that one examines.  The history of alcohol prohibition, upon deeper analysis, was similar in many respects. The profit from junk food, and profit from disease systems, were also consistent with pot prohibition. ETC.!!!

Society ends up being controlled by the people who were the best at being dishonest, and backing that up with violence. Criminalizing all cannabis, because they said that "marijuana was almost as bad as murder," was the one particular way in which they went the most overboard doing what they did everywhere else, regarding everything else! One SHOULD go through several more turns of that worm to understand the deeper reasons WHY that situation evolved, as our REAL human ecology and political economy! Answering the question WHY the best plant for people is treated as if it is almost as bad as murder leads on to better ways of answering all the rest of questions regarding why our monetary system is the almost total triumph of runaway frauds!

Of course, comparing marijuana laws to money laws is like comparing something that is 0.000001% of the problem, to something that is 99.999999% of the problem. However, the same basic pattern is there! Our monetary system, inside of which reaching a balanced budget is totally IMPOSSIBLE, is due to the FACTS that our whole financial accounting system is fundamentally fraudulent, and as backwards as it could possibly get!  The inherent structural problems within the "money-as-debt" systems, that perverts the meaning of the word "money," to become the opposite to what money meant before, MUST drive that deliberate debt slavery system towards debt insanity! The budgetary problems of the USA are IMPOSSIBLE to fix within those established systems! The same ways as that marijuana laws are INSANELY BACKWARDS, since marijuana has never killed anyone, but the laws are based on saying that "marijuana is almost as bad as murder," the entire monetary system, within which the budgeting processes attempt to be done, are BACKWARDS, because they were set up under the control of the Fraud Kings! Marijuana is NOT that important in itself! However, it is very important as a social symbol! The government picked on pot to transform into a tool of persecution. The government loaded all its symbolic weight onto that plant! The changes which we need, and should go through, would be symbolized more by REVERSING the ways that the government treats hemp, than by anything else!

However, it is way more probable that only fake legalization, in the worse possible ways, is politically possible within the foreseeable future. Indeed, genocidal world war, along with democidal martial law, are way more probable events than fully legalizing marijuana. If we did not live a runaway INSANE WORLD, then hemp would have never been criminalized, and cannabis would still be cultivated as one of the biggest crops in the world. Remember, the first American flag, and the Bill of Rights, were both actually made out hemp!  It is NOT an accident that those were criminalized, by the international banksters, who took control of the government, in order to deliberately destroy the American democratic republic, while making a fantastic profit from every aspect of them doing that! The powers of We the People were taken over to be used against the People. Too many Americans are now nothing more than Zombie Sheeple. They have been buried under such massive amounts of bullshit throughout their entire lives, that therefore, marijuana laws became a symbol of the money laws: HUGE LIES, BACKED BY VIOLENCE!

The symbolic significance of marijuana laws, and changing those laws, takes place within the context that nearly EVERYTHING ELSE that the Federal government of the USA is doing is LEGALIZED LIES, BACKED BY LEGALIZED VIOLENCE, serving the established social systems of fraud and robbery, which benefit tiny elites fantastically, while screwing the vast majority of the public worse and worse ... which overall system has become such an out of control spiral of self-destruction, as is demonstrated by the insane numbers regarding the governmental budgets! The debt slavery system has grown to the point where it IS DEBT INSANITY. That is simply the result of the runaway triumph of FRAUDS. The entire established systems of mass media, and puppet politicians, are feeding that monster, so that it constantly is getting bigger, faster. Therefore, there is no reasonable hope for the future ... Maybe some fake legalization of marijuana, that will actually make things get still worse, as while the overall monetary system has it problems also "resolved" in bogus, bullshit ways, that actually make things get still worse too!

There are NO other good solutions, than some practically impossible Second American Revolution. There are NO possible reforms that could work within the established systems, which are the totally backwards achievement of the Fraud Kings, operating HUGE LIES, using the powers of government, against the interests of the vast majority of the people, who have mostly been reduced to acting like Zombie Sheeple, already almost totally brainwashed to believe in the biggest bullies' bullshit, so that enough of those Zombie Sheeple will continue to vote for the puppet politicians, that actually work for the banksters, while they continue to pass laws that legalize lies, and thereby, destroy the lives of more Americans, worse and worse, in the foreseeable future.

I WISH that there was some other outcome to this, than that terminal social sickness killing us. However, I do not find any realistic reasons to actually believe in such a hope. Evidence and logic means nothing to systems based on lies, backed by violence. Thus, more truth about marijuana NEVER made any difference to marijuana laws. More truth about the monetary system NEVER made any difference! The ONLY things that the established systems care about, and WILL DO, is back up their lies with more violence. That applies to both the marijuana laws, as well as the astronomically worse money laws. Too bad. So sad. ... IN FACT, inside of that real context, it is practically guaranteed that it was a waste of my time to bother to write this, and the only real effects from doing so will more likely backfire upon me, rather than change anything else to get any better ...

Tue, 10/16/2012 - 15:18 | Link to Comment Antifaschistische
Antifaschistische's picture

bring back pillaging and plundering!!   hmmm, does oil count?

Tue, 10/16/2012 - 16:10 | Link to Comment EINSILVERGUY
EINSILVERGUY's picture

Brings up a very good thought. What is freedom from military conquest worth to the american people. Is it worth the cost of a coke, or a meal a day?  Worth the cost of an Ipod. Im not arguing about the military engagements overseas and the large defense programs that have rewarded contracts in 50 states (remember the B1 bomber reincarnated becuase it was produced in 48 of 50 states)

I would love to see a cost benefit model of the ability to walk relatvely free (personal liberty attacks aside) . When you think about the beenfits that we receive, it makes you wonder why each of us, inclluding the 47% who pay no federal income tax, don't have a right to shirk their portion toward the defense of the country.  What is it worth to you. to me, waking up every morning and not walking through Syria makes me willing to put my first $ in tax to what it takes to keep the country strong. Just saying

 

Tue, 10/16/2012 - 19:28 | Link to Comment lolmao500
lolmao500's picture

Every country where there's US bases should pay a big tax to the US to pay for the military. Any US ally should pay a tax. Every NATO country should send money to the US.

Tue, 10/16/2012 - 19:46 | Link to Comment Matt
Matt's picture

I think we already do, it's called US Dollar Hegemony, where we have to hold a certain amount of US Dollars as reserves and buy a certain amount of US Treasuries. That's why most countries have radically different "Net" vs "Total" debt.

Tue, 10/16/2012 - 20:32 | Link to Comment Mentaliusanything
Mentaliusanything's picture

Hey!!!  we don't get a choice - they just land, unpack and never leave. its like a creeping Jesus or a horrible smelly relative that won't leave the basement.

How about we hear that old line "Yankee go home" - Fuck are you deaf and stupid. Just go home and stop inflaming the tension. Tell Hillary that she is Haggard, Fat, Ugly and has the brains of a smashed crab.

Just stop tying to give your "Freedoms" to Sovereign States, who, before you came thought they were happy. Once you arrived they knew and understood they were really happy. Your security is their nightmare.

Tue, 10/16/2012 - 23:16 | Link to Comment FreedomGuy
FreedomGuy's picture

I agree. I would even bet that of all government agencies some people would actually send MORE than they owe in taxes to that one department. I don't know about your "head tax" but I do believe every citizen who has any income should pay Federal taxes.

Wed, 10/17/2012 - 03:25 | Link to Comment e-recep
e-recep's picture

"The military needs its own income stream like SS has. Maybe we can institute a head tax whereby every government pays the US military if it wants to keeps its heads."

... says a man hailing from the land of the free.

geez... no wonder hatred against the amis is growing all around the world.

Tue, 10/16/2012 - 13:37 | Link to Comment Tijuana Donkey Show
Tijuana Donkey Show's picture

Does this include the shadow budgets? The NRO, CIA, NSA, and others often don't report due to "national security"

Tue, 10/16/2012 - 13:54 | Link to Comment The Gooch
The Gooch's picture

see- "Poppy"

Tue, 10/16/2012 - 14:02 | Link to Comment francis_sawyer
francis_sawyer's picture

They don't call him [POPPY] Bush for nothin'... & all along you thought it was because he was Jr. duncecaps dad...

Tue, 10/16/2012 - 16:14 | Link to Comment Clashfan
Clashfan's picture

In your address bar, type in illuminati backwards, then .com

See where it takes you. Bitchin'.

itanimulli.com

Try to guess before you do it.

Tue, 10/16/2012 - 13:57 | Link to Comment Bob
Bob's picture

Back to the misleading misrepresentation of SS payments in the language of "outlays" I see, ignoring the fact that the money was already paid in . . .

Tue, 10/16/2012 - 14:01 | Link to Comment pods
pods's picture

Not misleading at all.  The incoming funds go into the general fund, so the outgoing payments are outlays.

You cannot call the incoming funds revenues on one side of the ledger and remove the payouts from the other. Well, unless they want to.  

pods

Tue, 10/16/2012 - 14:03 | Link to Comment CynicLaureate
CynicLaureate's picture

It wasn't paid IN, it was transfered...

http://en.wikipedia.org/wiki/Ponzi_scheme

Tue, 10/16/2012 - 14:19 | Link to Comment Bob
Bob's picture

https://en.wikipedia.org/wiki/Meme

Nothing butt-hurts the finance community worse than investors who don't get ripped off like they're spozed to:

https://en.wikipedia.org/wiki/Confidence_trick

Tue, 10/16/2012 - 15:09 | Link to Comment MachoMan
MachoMan's picture

part of the money was paid in...  however, the past, present, and expected future outlays far surpass this amount... 

Tue, 10/16/2012 - 23:18 | Link to Comment FreedomGuy
FreedomGuy's picture

It was stolen and helps hide the real deficit.

Tue, 10/16/2012 - 15:35 | Link to Comment Chewybunny
Chewybunny's picture

Except that's not how it works. Everyone is entitled to SS, regardless of whether they paid in or not. Point in case: My grandparents who we brought from Soviet Russia with us in 91'. They've been living on American Social Security, and she hasn't contributed a penny into the system.

 

Furthermore, the money going into it will never outpace the money taken out. If I put $5 in today, in 30 years that $5 will be equivelant to today's $3. The expendetures will be higher.

Tue, 10/16/2012 - 19:53 | Link to Comment Matt
Matt's picture

Wow, that has got to be the most optimistic post I have ever read on the future value of American Dollars. 

Tue, 10/16/2012 - 14:31 | Link to Comment kito
kito's picture

am i missing something with that video?...the colored block for the interest payment on the u.s. debt was only a  sliver..............yet the govt paid over 400 billion last year on interest:

 

the graph in that video should have the interest payments nearly as big as the military spending

 

http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm

Tue, 10/16/2012 - 14:53 | Link to Comment redd_green
redd_green's picture

Kito, bingo, spot on.  The "professors" numbers are bunk.   

Tue, 10/16/2012 - 15:22 | Link to Comment hmmtellmemore
hmmtellmemore's picture

His numbers look fine to me.  Look up Net Interest paid on the US debt, its less than the 15% number.

Tue, 10/16/2012 - 15:31 | Link to Comment redd_green
redd_green's picture

Last year interest was over 454 billion, many times what the "professor" indicates on his little graph:

 

http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm

Tue, 10/16/2012 - 15:56 | Link to Comment Grinder74
Grinder74's picture

Am I the only one that undestands what "net interest" means?

Tue, 10/16/2012 - 17:00 | Link to Comment Real Estate Geek
Real Estate Geek's picture

So what's the offset--the so-called profits that the Fed returns to Treasury?

Tue, 10/16/2012 - 17:09 | Link to Comment kito
kito's picture

it cant be just that. the fed only owns a fraction of the total debt. the gao list gross interest as heldon all treasury debt, and net interest held on just publicly held debt. but the ssa needs its money. not sure why that should be excluded.....

 

http://www.gao.gov/special.pubs/longterm/debt/budgetdebt.html

Tue, 10/16/2012 - 19:57 | Link to Comment Matt
Matt's picture

Maybe interest paid on debt held by Social Security is re-classified as part of the Social Securtiy expense? While technically true, it skews the image to present what someone wants people to see.

Tue, 10/16/2012 - 16:00 | Link to Comment kito
kito's picture

how does that number look fine??? if the federal govt paid out over 400 billion last year, how is that videos chart in proportion to the other expenditures? look at tylers chart on treasury spending............why is the professor pretending gross interest on debt doesnt count???.................when you owe, you owe, matters not to whom.......................................

Tue, 10/16/2012 - 15:27 | Link to Comment redd_green
redd_green's picture

Sorry Tylers.    The base pentagon budget of about 530 billion does not include war funding.   The total "military + war" budget is unknown.    Its at least 1.2 trillion, way, way bigger than your graph indicates.      If we cut all war funding, we would be able to balance the budget and run a good society.

 

 

http://www.thenation.com/article/168002/how-much-does-washington-spend-d...

Tue, 10/16/2012 - 15:54 | Link to Comment blunderdog
blunderdog's picture

They don't usually put unpredictable future wars on the budget, though.

The data Tyler provided is accurate, it's just misleading, because there's a massive discrepancy between "budget" and "spending."

Tue, 10/16/2012 - 13:30 | Link to Comment Tyler Durden
Tyler Durden's picture

Please no MMT links. Magic money trees don't grow in the real world. And reserve currency status, which is what three lettered socialism goal seeking economic "theories" rely on, always ends.

Tue, 10/16/2012 - 13:34 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

The US dollar has passed its "sell by" date.  Perhaps the Greeks could unload the moldy dollar for us?

Tue, 10/16/2012 - 13:41 | Link to Comment Ahmeexnal
Ahmeexnal's picture

That would explain the greenish hues on it.

Tue, 10/16/2012 - 13:40 | Link to Comment machineh
machineh's picture

MMT = Madcap Monetary Trauma

... a theory so deranged only an academic could believe it.

Free money, free Kool-Aid ... drink up!

Tue, 10/16/2012 - 13:48 | Link to Comment El Viejo
El Viejo's picture

Glad to comply with your request, but would like to see info on this site that demonstrates the difference between the Base Money and M2 Money supply. A lot here seem to have them confused. It might just explain to them why we havent seen hyper-inflation 4 years hence.

Right or wrong there is a lot of useful info on how the system works on that link.

Tue, 10/16/2012 - 14:00 | Link to Comment Tyler Durden
Tyler Durden's picture

The problem with all these "modern" theories is they are stuck in the early 1980s, and completely ignore the impact of deposit-free "credit money" i.e., shadow banking, whose size at last check is larger than adjusted M3 (total US financial bank liabilities), at just over $15 trillion (in the US alone). Thus they are all, each one of them, absolutely inadequate to explain real modern "monetarism." It is the deleveraging in shadow banking that is the inflationary buffer, and is what Bernanke is trying to eliminate, and force as many people as possible into demand deposits, which increases inflationary onset probability.

The following post is a good place to start.

Tue, 10/16/2012 - 14:40 | Link to Comment Parabolic
Parabolic's picture

The link above is in my TOP 10 ZH folder....one of the greatest pieces ever written...

Tue, 10/16/2012 - 15:40 | Link to Comment francis_sawyer
francis_sawyer's picture

True dat ~ One of the best of all time on ZH...

Tue, 10/16/2012 - 14:49 | Link to Comment El Viejo
El Viejo's picture

I am not an apologeticist for MMT or it's variant MMR. I work as an engineer and see the FED as a perfect example of a buffer tank or in the dairy world a balance tank. I am sure the current economic system 'fools' a lot of sheeple and by that end is immoral, but at the same time I do not believe going back to the gold standard is a good idea. The other countries of the world IE Japan Korea China France who demand to have us at a disadvantage with hefty trade imbalances would also have our hands tied with a gold standard. A better system may some day be coming and until then the education of the soon to be retiring masses (if that is possible) would be better for it. I think your site and the one I mentioned go a long way to that end. Depending on the level of understanding of the visitors.

Tue, 10/16/2012 - 16:28 | Link to Comment blunderdog
blunderdog's picture

    A better system may some day be coming

I think an *energy* standard is the obvious step forward, but it's tricky enough to explain to someone why currencies benefit from a backing resource in the first place, let alone one as abstract as energy.

A gold standard is certainly better than nothing, even if it's not really the best approach.

Tue, 10/16/2012 - 16:22 | Link to Comment Dr. Acula
Dr. Acula's picture

"The problem with all these "modern" theories is they are stuck in the early 1980s, and completely ignore the impact of deposit-free "credit money""

It's more like they are stuck in 1910.

See Ludwig von Mises's The Theory of Money and Credit, published in 1912.

http://library.mises.org/books/Ludwig%20von%20Mises/The%20Theory%20of%20Money%20and%20Credit.pdf

 

Tue, 10/16/2012 - 18:14 | Link to Comment natty light
natty light's picture

"The moneyness of credit" (seen in Doug Noland's commentary).

Tue, 10/16/2012 - 18:17 | Link to Comment avidtango
avidtango's picture

That paragraph should be given to every economist, journalist and politician.  The Fed's obsessions with risk, inflation and cheap money seems so ludicrous, almost the opposite of a solution. But we've got this far and things haven't exploded so why not debt so 25, 30 or 40 trillion?  Is there a tipping point or will we simply watch the numbers go up and up?

Tue, 10/16/2012 - 14:41 | Link to Comment Parabolic
Parabolic's picture

.

Tue, 10/16/2012 - 14:39 | Link to Comment TPC
TPC's picture

That's not an MMT link.  MMT is based on the state theory of money and a government centric view of the world.  All I do in that link is explain how the monetary system is designed in the USA and how it's designed around a private banking based institutional design.  Like it or not, our govt has designed a system that is by the bankers and for the bankers.  Everything govt does is basically designed around facilitating the health of the banking system.  

We've had some pretty harsh interactions with MMT people on this and they pretty much universally despise what I do because I criticize their work a good deal.  I try to keep politics out of this as best as possible.  So what you'll find at that link is almost entirely descriptive....

 

Tue, 10/16/2012 - 15:27 | Link to Comment RafterManFMJ
RafterManFMJ's picture

Hey, add China above the USA on the year 2015. Color the bar red, for emphasis. 

Tue, 10/16/2012 - 13:37 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

I was talking with a Romney supporter about the fiscal realities of the deficit as it relates to overall government spending.  The mathematical fact is that ALL taxes would have to be raised 50% and ALL non-descretionary spending would have to be cut immediately to balance the budget.  Note, no talk about paying down the national debt, just balancing the budget.

His reply was that Romney will take on Newt's plan of selling ALL federal land and let the drills start working.  We would then grow our way out of debt.  Mind numbing simplicity that does not add up, which was pointed out. 

The knee jerk response then, "Will then go vote for Obama!"

Who needs math when you have YOUR party for which to vote.

Tue, 10/16/2012 - 13:40 | Link to Comment drink or die
drink or die's picture

When you press Romney supporters, it basically ends up turning into hope and change v2.  They can't really say how anything will change, they just hope it will be better.  Pretty pathetic, it seems like no one ever learns their lesson after four years, as long as "their" team is in charge.

Tue, 10/16/2012 - 13:44 | Link to Comment the not so migh...
the not so mighty maximiza's picture

Romney supporters will get what they deserve.

Tue, 10/16/2012 - 14:02 | Link to Comment azzhatter
azzhatter's picture

You mean "Myth" Romney is not the answer

Tue, 10/16/2012 - 14:17 | Link to Comment pods
pods's picture

Copyright that shit ASAFP, that is too funny!

pods

Tue, 10/16/2012 - 15:24 | Link to Comment hmmtellmemore
hmmtellmemore's picture

Myth Romney vs Barack Hopebama to save the day.

Tue, 10/16/2012 - 18:08 | Link to Comment The Gooch
The Gooch's picture

"Scope and Range!"

Tue, 10/16/2012 - 14:27 | Link to Comment the not so migh...
the not so mighty maximiza's picture

no answers or solutions will be standing on stage tonight.

Tue, 10/16/2012 - 15:28 | Link to Comment kaiserhoff
kaiserhoff's picture

You want four more years of Hating Whitey?

Tue, 10/16/2012 - 15:50 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

You are missing the point entirely and are blinded by party affiliation.  The R side is willing to discount Karl Marx light's point of view about HIS form of socialism, while at the same time attacking the D side's form of socialism. It's so fucking insane. 

Tue, 10/16/2012 - 16:17 | Link to Comment lasvegaspersona
lasvegaspersona's picture

at least the word 'liberty' is in Romney's vocab...at least he will lie to us that he cares about liberty...Obama ..not so...to him 'freedom' is the government lifting the burden of work from our shoulders...giving us FREEDOM from suffering...the Ds figured this out from the Marxists in the past 30 years.

Tue, 10/16/2012 - 13:47 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Interesting thing would be to press some of the Romney supporters on which candidate they voted for President before George W.  I would bet  their answer would be Clinton. 

Additionally, many Romney supporters cry communism and socialism of Obama, while agreeing with Romney's "widen the tax base" argument. 

Tue, 10/16/2012 - 14:05 | Link to Comment Kitler
Kitler's picture

"Widen the tax base" in Romneyspeak = eliminate home mortgage interest deductibility.

Tue, 10/16/2012 - 14:29 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

I did the math on my taxes and assuming a cap on deductions at $17K, my Federal Income Theft.....I mean Tax would increase by 51%.  So the political establishment has given me very few options.  Obama v Romney? Ice Cream v Milk Shake....better yet Donkey Shit vs. Elephant Shit.

Tue, 10/16/2012 - 14:23 | Link to Comment knightowl77
knightowl77's picture

eh, I voted for Ross Perot

Tue, 10/16/2012 - 14:30 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Chicken Man is endorsing Romney.  I voted for Ross during my first elligble vote. 

Tue, 10/16/2012 - 14:47 | Link to Comment insanelysane
insanelysane's picture

seems like so friggin long ago...

people just looked at him with a blank stare when he would talk about soc sec running out

Tue, 10/16/2012 - 17:17 | Link to Comment Harbanger
Harbanger's picture

Say "The fastest dog gets the bone" with a Perot accent. 

Tue, 10/16/2012 - 13:52 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Divide and conquer, all by design.

Tue, 10/16/2012 - 16:01 | Link to Comment Grinder74
Grinder74's picture

You bet; I hope we will change back to an American president, not a pseudo-mooslum communist bathhouse member.

Tue, 10/16/2012 - 19:25 | Link to Comment Incubus
Incubus's picture

thanks; you just reminded me why even ZH readers are idiots. 

 

As if 'being American' is the great qualifier of being a savior for you fools these days. 

 

Tue, 10/16/2012 - 13:44 | Link to Comment The Gooch
The Gooch's picture

The Romney signs are sprouting up on the lawns in these here burbs.

I think I'm going to plant my Ron Paul signage. Maybe sit in the front yard and clean the .308 all weekend.

Shake it up a bit.

 

Tue, 10/16/2012 - 13:46 | Link to Comment drink or die
drink or die's picture

Could put out some of these:

http://www.zazzle.com/obomney2012store/gifts

Tue, 10/16/2012 - 14:14 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

I just LOVE your personal note to the IRS.

https://twitter.com/i/#!/FamilyRotten/media/slideshow?url=pic.twitter.com%2F2HQ8XBDJ

Too freaking funny. I thought I was the only one.

<Always be polite....even when you are insulting them.>

BTW I just KNEW the terrorists were hiding in Cleveland.

https://twitter.com/i/#!/FamilyRotten/media/slideshow?url=pic.twitter.com%2FoHZx0I5Z

Tue, 10/16/2012 - 14:24 | Link to Comment francis_sawyer
francis_sawyer's picture

Gooch!... Is this you?...

~~~

http://www.youtube.com/watch?v=z7X2_V60YK8

Tue, 10/16/2012 - 14:45 | Link to Comment The Gooch
The Gooch's picture

That is correct!

p.s. serial junker (or soon to be Romney apologist) on the loose!

 

Tue, 10/16/2012 - 14:32 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Thanks for the compliment.  You should see the checks I write to them in the memo line.

Some examples -

QE Twist

QE infiniti

Euro bond purchases

HAHAHAHA

Tue, 10/16/2012 - 14:37 | Link to Comment Water Is Wet
Water Is Wet's picture

Write in Dwayne Elizondo Mountain Dew Herbert Camacho for President!!!

Tue, 10/16/2012 - 14:23 | Link to Comment GernB
GernB's picture

So you're basically faced with two choices: one candidate who seems determined to grow the size and scope of government, advocates for it openly, fought for it firecly in the form of federal control of health care, and who seems to want to tax as much as needed to accomplish the goal, and the other candidate who at least gives lip service to smaller government. I figure if we have a Repoblican establishment candidate having to use liberatarian rhetoric to appeal to his base, at least that's some progress.

Tue, 10/16/2012 - 14:34 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Nonsense.  The currency crisis is at our doorsteps.  The sad thing about lib service is that the majority believe the words.  If Romney is for "free markets" and this shit hits the fan during his "free market" endeavors, guess what theory gets blamed?

I'm half tempted to vote for Obama so the whole fucking thing comes down under the obvious Marxist leader.

Tue, 10/16/2012 - 14:56 | Link to Comment Hohum
Hohum's picture

Good Dr. Head,

Define Marxism.  Does it involve helping big banks?

Tue, 10/16/2012 - 15:28 | Link to Comment CrockettAlmanac.com
CrockettAlmanac.com's picture

Yes.

Number 5 of Marx's ten planks: Centralization of credit in the hands of the state, by means of a national bank with state capital and an exclusive monopoly.

Tue, 10/16/2012 - 17:35 | Link to Comment blunderdog
blunderdog's picture

That's "Communism" you're referring to.  There was no "Marxist Manifesto."

Tue, 10/16/2012 - 21:26 | Link to Comment CrockettAlmanac.com
CrockettAlmanac.com's picture

Those are Marx's own words. But, yeah, you're right, it would be unfair to use them to characterize Marxism.

 

Next!

Tue, 10/16/2012 - 23:34 | Link to Comment blunderdog
blunderdog's picture

Well, if you can distinguish between math and physics, you SHOULD be able to distinguish between Marxism and communism, too.

Sometime folks got some blind spots, though, I understand.

Wed, 10/17/2012 - 10:54 | Link to Comment CrockettAlmanac.com
CrockettAlmanac.com's picture

Marx said what he said. If you have a problem with that take it up with him.

 

Definition of MARXISM

: the political, economic, and social principles and policies advocated by Marx

Wed, 10/17/2012 - 13:38 | Link to Comment blunderdog
blunderdog's picture

You always gotta fall back on those word-games, dontcha?

It's worth pointing out again, because I suppose there could be new readers...

"Marxism" is a descriptive social philosophy.  "Communism" is a political agenda.

There is a distinction worth understanding, and Marx's philosophical work was first-rate, even though he ended up as just another asshole politician. 

Just like, in theory, someone could've loved Reagan's film career and hated his Presidency. 

The man and the life are *discernable* to anyone who can grasp the *ideas.*  It's not just about in-group or out-group status, but if that's the only level of your comprehension, so be it.

Tue, 10/16/2012 - 15:11 | Link to Comment GernB
GernB's picture

There's part of me that tends to agree.

Tue, 10/16/2012 - 17:51 | Link to Comment Harbanger
Harbanger's picture

"I'm half tempted to vote for Obama so the whole fucking thing comes down under the obvious Marxist leader."

I've had the same thought about this, but in an "emergency" and war where the Pres. gets temporary Dictator rights.  I don't think blame will be a factor when it's all over.  You're assuming we'll come out the other end with a Constitution, the same population and some semblance of rights.

Tue, 10/16/2012 - 13:36 | Link to Comment Ahmeexnal
Ahmeexnal's picture

Following the example of the W -> Au transmutated fake bars, Sweden (or is it Argentina?) ups the ante and solves the millennia old riddle of how to label pork as Halal: dye it and label it as beef:

http://www.thelocal.se/43840/20121016/

Warning over dyed pork sold as beef in Sweden

Published: 16 Oct 12 07:11 CET | Double click on a word to get a translation

Several tonnes of pork tenderloin has been dyed and sold as beef tenderloin to Swedish grocery wholesalers, prompting Sweden's National Food Agency (Livsmedelsverket) to issue an EU-wide warning.
The meat manipulation was discovered by wholesaler Svensk Cater after a shipment of what had been sold as beef from Argentina was returned by a customer who complained the meat was too moist, the Svenska Dagbladet (SvD) newspaper reported.

It is now estimated that all beef eating moslems in Sweden have lost claim to their seven virgins in paradise.
"if you don't hold it in your hand, you don't own it.....if you don't grow it in your land, you'd better not eat it"
Tue, 10/16/2012 - 13:49 | Link to Comment Tijuana Donkey Show
Tijuana Donkey Show's picture

No one wants virgins, they want whores anyway, whores know the drill. I suspect many moslems thought it was the best tasting beef they ever had, and went back for more. Also, who is stupid enough to mistake a pork ternderloin for a beef tenderloin? The size difference is major, and the look is completely different.

Tue, 10/16/2012 - 16:53 | Link to Comment Tijuana Donkey Show
Tijuana Donkey Show's picture

I see by the down arrows that people around here don't like pork or whores. 

Tue, 10/16/2012 - 23:03 | Link to Comment Stuck on Zero
Stuck on Zero's picture

ZHers like bacon and hos.

Tue, 10/16/2012 - 14:44 | Link to Comment Urban Redneck
Urban Redneck's picture

It's all fun and games until they start substituting puffer fish for salmon... once the Swedish economy reaches the 3rd (world) circle of hell.

Tue, 10/16/2012 - 16:44 | Link to Comment dugorama
dugorama's picture

Actually, Sweden runs a pretty wonderful economy.  Maybe the lack of individual freedoms puts me off, but the clean streets, great transit, free university education, strong (enough) military and superb hockey to go along with the most beautiful women in the world is worth emulating.  yes, however, they do pay more in tax.

Tue, 10/16/2012 - 16:52 | Link to Comment Flakmeister
Flakmeister's picture

Yeh. Imagine that...

People should make themselves aware of how the Swedes cleaned up a banking mess from a housing bubble in the early '90s....

Here is a portal to some good links

http://en.wikipedia.org/wiki/Swedish_banking_rescue

Tue, 10/16/2012 - 13:48 | Link to Comment aerojet
aerojet's picture

Not sure if serious.  It's definitely not "chump change" and has risen considerably since 2001.

Tue, 10/16/2012 - 15:36 | Link to Comment redd_green
redd_green's picture

Spot on.   The military budget is always grossly distorted by those folks that want to make it look reasonable, which is is not.   The bast pentagon budget of 530 billion does not include war funding.   Total all military + war funding and the number is much closer to 1.2 trillion.   

Tue, 10/16/2012 - 16:36 | Link to Comment dugorama
dugorama's picture

Yes we do.  I call bull shit on this analysis.  All on and off budget defense spending (Afghanistan and Iraq are continuing resolutions) totals approx. $1T.  Tell me how this is not a significant portion of a $3.5 T budget.

Tue, 10/16/2012 - 16:47 | Link to Comment Dickweed Wang
Dickweed Wang's picture

I for one am sick and tired of benefits like Social Security and Medicare being called "entitlements" when I have had to pay into both of these systems for the last 35+ years. 

And I don't want to hear from you accounting types about how I am going to get much more back than I ever put into the system.  What I have to say to that is; 1) if they didn't steal the money out of both accounts and use it for non-related spending the interest on the original withholding would have compounded the intitial investment many times over and 2) the money placed in the system 30 years ago (even 10 years ago) had much more value dollar for dollar compared to the future dollars I will take out of the system (i.e. inflation)?

Tue, 10/16/2012 - 17:38 | Link to Comment blunderdog
blunderdog's picture

Well, if it makes you feel better, you could just think of it as a really poor state-mandated "investment."  It's not, but lying to oneself is a common enough pastime.

FICA's just another tax. 

Tue, 10/16/2012 - 13:23 | Link to Comment centerline
centerline's picture

That which is not sustainable won't be sustained.

Tue, 10/16/2012 - 13:29 | Link to Comment crusty curmudgeon
crusty curmudgeon's picture

Whoa, slow down.  That which, what?

Hey, did you see who won cupcake wars?

Tue, 10/16/2012 - 13:30 | Link to Comment Skateboarder
Skateboarder's picture

Paraphrased by our overlord, that sounds something like "that which is not sustainable will be sustained by whatever crappy means necessary."

Tue, 10/16/2012 - 14:37 | Link to Comment LMAOLORI
LMAOLORI's picture

 

 

Indeed the politicians will just make you pay more taxes they will never ever willingly give up the power and money that goes with it.

Tue, 10/16/2012 - 13:35 | Link to Comment Quinvarius
Quinvarius's picture

"The problem which is unsolvable should be made bigger."

Tue, 10/16/2012 - 13:55 | Link to Comment Biosci
Biosci's picture

Alexander, confronted by the Gordian knot:  "Somebody get me some more rope!"

Tue, 10/16/2012 - 13:42 | Link to Comment seek
seek's picture

Exactly.

When people ask me to forecast the next ten years (something I do professionally), I ask them which forecast they want, the status quo forever or what really happens. This usually opens the door for the discussion that the professor's video highlights. There is simply no way, mathematically, that the current system can remain viable, so I explain that there will be "an event or events to be determined" that will result in a reset, the consequences of which may be a much lower standard of living, radical alteration of government structure, replacement of the financial system or mass die-off.

There is no avoiding this outcome, because we're already well past the point of sustainability.

Tue, 10/16/2012 - 13:54 | Link to Comment Skateboarder
Skateboarder's picture

And the fucking idiot people followed the king to the end of the noose... (because the king promised forever welfare in the afterlife)

Tue, 10/16/2012 - 14:06 | Link to Comment francis_sawyer
francis_sawyer's picture

In 10 years ~ I see myself opening up a "Biff Tannen's Pleasure Palace"... (as soon as these damn Elliott Waves start behaving like they're supposed to)...

~~~

http://www.youtube.com/watch?v=S4m848bh1iY

Tue, 10/16/2012 - 17:47 | Link to Comment blunderdog
blunderdog's picture

Gonna lay some odds there?

Personally, I say it's about 95% likelihood of "replacement of the financial system."

We've been through this before.  Many times.  Yet we still have nation-states and the global "per capita" standard of living is likely higher than it's ever been in the past. 

SO...the standard of living falls in the USA and the "G8"?  Big whoop.  We all had it coming, and it's been underway for decades.

Tue, 10/16/2012 - 13:45 | Link to Comment dwdollar
dwdollar's picture

I like football.

Tue, 10/16/2012 - 13:48 | Link to Comment aerojet
aerojet's picture

It will be sustained via inflation until we revolt.

Tue, 10/16/2012 - 14:02 | Link to Comment centerline
centerline's picture

Seems to be the path we are on.  Going to slowly crush the standard of living until the bottom drops out.  Those already on the edge are going to get hit hard.  The same groups that comprise the majority of the entitlement and healthcare outlays.  Up until the bottom drops out, the writting on the wall is increasing violence and families having to dig even deeper to help the elderly.

 

Tue, 10/16/2012 - 14:18 | Link to Comment Skateboarder
Skateboarder's picture

No one gives a shit about the elderly - not in America. Fuck man, we're gonna throw em in old folks homes and call em on Christmas once a year. Maybe we'll even invite em over for Thanksgiving... that's good enough, right? On second thought... nah, we've gotta finish dinner early and stand in line for cheap Chinese shit. "Talk to you next year Mom and Dad!"

Tue, 10/16/2012 - 14:48 | Link to Comment Urban Redneck
Urban Redneck's picture

Stupid young Americans... "old folks homes" are the corporatocracy's tool to separate "your inheritance" from "your parents"

Tue, 10/16/2012 - 15:21 | Link to Comment Blankenstein
Blankenstein's picture

And Senator Claire McCaskill's (MO)  husband is a big player in that biz.  

Tue, 10/16/2012 - 15:36 | Link to Comment CrockettAlmanac.com
CrockettAlmanac.com's picture

 

 

Stupid young Americans... "old folks homes" are the corporatocracy's tool to separate "your inheritance" from "your parents"

 

Yet another cost to the two wage earner family. Hadn't thought of that. It's almost like the destruction of the extended family was planned somewhere along the way.

Tue, 10/16/2012 - 15:52 | Link to Comment tickhound
tickhound's picture

Yeah you know... Keeping people alive post-functionality / crapping pants stage seems to be a pretty profitable trend now-a-days.  Lots of profits in the zombie "old folks" market.

Tue, 10/16/2012 - 15:57 | Link to Comment CrockettAlmanac.com
CrockettAlmanac.com's picture

In 1999 Gramma died in my Aunt's spare bedroom. There was a human element to that death that wasn't present when other relatives died in hospitals and nursing homes.

Tue, 10/16/2012 - 16:06 | Link to Comment tickhound
tickhound's picture

Man does that ever hit home.  I know exactly what you mean.

Tue, 10/16/2012 - 13:24 | Link to Comment JLee2027
JLee2027's picture

Amen to the redesign of our Government.

Tue, 10/16/2012 - 14:03 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Government currently funds over 80% (either directly or indirectly - hello no bid contractors) of GDP.  So yes, time to redesign society, fucking bring it!!!!  Shut down all government handouts/subsidies, make trading margins 100% fucking percent, if you buy it, you take fucking delivery. Just don't be surprised when food and fuel get more expensive not less.

Tue, 10/16/2012 - 14:53 | Link to Comment LMAOLORI
LMAOLORI's picture

 

 

Ending the subsidies would save billions in tax dollars and yes it might make food more expensive but the subsidies lean heavily to corporate farms and junk food.

The Nine Foods The Government Is Paying For You To Eat

snip

Over the past 15 years, the federal government paid nearly $150 billion in subsidies to U.S. farmers. It paid $77 billion to plant corn in the U.S. between 1995 and 2010; $32.4 billion to plant wheat; and $24.4 billion to plant soybeans. All of that money came from American taxpayers

Why Does the US Government Give Out Farm Subsidies?

 

Agricultural Policies Versus Health Policies

Tue, 10/16/2012 - 15:27 | Link to Comment LawsofPhysics
LawsofPhysics's picture

And with wages declining how would joe six-pack eat, heat the house, get to work, or go to the doctor again? - FAIL

 

Only a total fucking reset "fixes" anything.  The only people who fear a reset are those who know that the real value of their labor is fucking zero.

Do NOT follow this link or you will be banned from the site!