Pentagon To "Temporarily" Fire 800,000 If No Cliff Deal; Chaos To Ensue

Tyler Durden's picture




 

Just in case the stakes in the final episode of the 2012 season of the "Fiscal Cliff" soap opera, and a 30 second advertising block was not selling for a record amount, here comes the Pentagon with a warning that it may fire almost 1 million civillians their services will be required but unpaid if there is no Cliff deal. From the WSJ: "Mandatory federal spending cuts designed to be prohibitively drastic will become a reality on Wednesday if negotiators remain unable to reach an agreement to avert the reductions. Illustrating the gravity of the cuts, the Pentagon plans to notify 800,000 civilian employees that they could be forced to take several weeks of unpaid leave in 2013 if a deal isn't struck, and other agencies are likely to follow suit. The cuts, which members of both parties have referred to as a "meat ax," are the product of a hastily designed 2011 law that required $110 billion in annual spending reductions over nine years to reduce the deficit. Their severity, representing close to 10% of annually appropriated spending, was intended to force Democrats and Republicans to come together on a broader package of deficit-reduction measures, which would replace the cuts. That effort failed, raising the prospect of the cuts' taking place."

It gets worse now that it turns out absolutely nobody is prepared for precisely the contingency America is now facing:

Complicating matters, the White House hasn't informed federal agencies or contractors of precisely how the cuts might be administered, leading to confusion about the potential impact. Several federal agencies referred questions about the cuts to the White House's Office of Management and Budget. OMB didn't respond to questions.

 

"The biggest challenge is just the uncertainty," said Steven Glass, chief financial officer at the Cleveland Clinic, a medical center and health-care system that expects to see a $22 million cutback in its Medicare payments in 2013 if the government doesn't reverse the cuts. "It's really hard to plan when you're literally looking a few days out and you don't know what Washington is going to do."

Oh well, luckily according to the latest bout of optimism spewing forth from Politico, things are fine and a deal, at least in the Senate, is imminent.

Senate Minority Leader Mitch McConnell (R-Ky.) and Vice President Joe Biden engaged in furious overnight negotiations to avert the fiscal cliff and made major progress toward a year-end tax deal, giving sudden hope to high-stakes talks that had been on the brink of collapse, according to sources familiar with the discussion.

 

McConnell and Biden, who served in the Senate together for 23 years, only started talking Sunday, after negotiations between Senate Majority Leader Harry Reid (D-Nev.) and McConnell sputtered.

 

Sources close to the talks said a deal is now more likely to come together but cautioned that obstacles remain, including how Speaker John Boehner and House Republican leaders react to any tentative agreement.

 

“The Leader and the VP continued their discussion late into the evening and will continue to work toward a solution. More info as it becomes available,” a McConnell spokesman said.

Then again, this wouldn't be the first time Politico has gotten absolutely everything wrong about the near and far-term outcome of the cliff. So sit back, grab the popcorn, and watch as algos proceed to respond with furious stupidity to every single unsourced, unvalidated, and untrue rumor and various other flashing red headlines.

As for those millions of people who, like the guy in the basement in Office Space, and like the New Normal Schrodinger cat, are employed and unemployed at the same time but certainly unpaid, better luck next time.

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Mon, 12/31/2012 - 09:15 | 3108499 lolmao500
lolmao500's picture

Boo fucking hoo.

Warmongering scum like Graham, McCain and Obama will soil their panties over this but eh, fuck em.

And the defense department should be renamed the War department because that's what it is.

http://rt.com/usa/news/us-deploying-troops-order-749/

US deploying troops to 35 African countries

The United States Army will be deploying troops to nearly three-dozen African nations in the coming year.

Obama, biggest warmonger since Hitler... and not even Hitler invaded 35+ countries at once.

Mon, 12/31/2012 - 09:20 | 3108503 GetZeeGold
GetZeeGold's picture

 

 

A couple of muslim astronauts could totally pick up the slack.

Mon, 12/31/2012 - 09:21 | 3108516 General Decline
General Decline's picture

Good.  Let's hope the drone operators are among the first to go.

Mon, 12/31/2012 - 09:39 | 3108573 GetZeeGold
GetZeeGold's picture

 

 

Wouldn't need them if we could just kill off all the Hollywood actors....just sayin.

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

Mon, 12/31/2012 - 09:43 | 3108582 fonzannoon
fonzannoon's picture

almost 9am. ramp those futures, knock down gold and the vix....business as usual. do yourselves a favor and go do something fun today because this is pure theatre. if u are hoping for a real market u will again be disappointed.

Mon, 12/31/2012 - 09:49 | 3108594 aint no fortuna...
aint no fortunate son's picture

and, right on time, cue, futures rally

btw, I'm afraid to ask what that spot is on the dude's tie

Mon, 12/31/2012 - 09:59 | 3108635 francis_sawyer
francis_sawyer's picture

 "I'm not economically viable"

~~~

William Foster

Mon, 12/31/2012 - 10:05 | 3108649 CPL
CPL's picture

In this situation, nobody is.

 

Regardless of position.

Mon, 12/31/2012 - 10:25 | 3108723 jerry_theking_lawler
jerry_theking_lawler's picture

Finally....the only way to 'reign' in our .gov has some wings......ready to go off the cliff....

 

and the milk subsidy....ready for it to go to 'market price'....

Mon, 12/31/2012 - 10:38 | 3108768 Pool Shark
Pool Shark's picture

Let's start the 'cuts' by stiffing the Afghans,.... er,... too late:

http://www.guardian.co.uk/world/2012/dec/30/afghanistan-us-military-rent-land-dispute

Mon, 12/31/2012 - 10:49 | 3108811 Thomas
Thomas's picture

I will be hurt by the fiscal cliff but I want it. I want austerity now cause later it is gonna REALLY hurt.

Mon, 12/31/2012 - 11:42 | 3108961 I think I need ...
I think I need to buy a gun's picture

maybe they can fire everyone and rehire them at 1/3 just like the private sector

Mon, 12/31/2012 - 11:54 | 3109002 Talleyrand
Talleyrand's picture

Country'll grow.

Mon, 12/31/2012 - 12:16 | 3109089 toady
toady's picture

Exactly!

The race to the bottom for the west has only just begun!

How are the corporations supposed to get the wages in the west down to being competitive with China without a few major downward shifts?

Bust the unions! Mass layoffs! Hire back at pennies on the dollar!

USA! USA! USA!

Mon, 12/31/2012 - 13:23 | 3109355 Hey Assholes
Hey Assholes's picture

In this fucked up - upside down world, reducing government is deemed bad.

 

Fire them all!

Mon, 12/31/2012 - 11:46 | 3108975 DutchR
DutchR's picture

Probably drivel, wears it the whole movie http://youtu.be/qfSAcVq6s9c

Mon, 12/31/2012 - 09:47 | 3108596 GetZeeGold
GetZeeGold's picture

 

 

Remain calm........all is well.

Mon, 12/31/2012 - 09:51 | 3108608 mtomato2
mtomato2's picture

Excellent video.  If you haven't seen it, you need to.

Mon, 12/31/2012 - 10:01 | 3108639 Ghordius
Ghordius's picture

I did - LOL - it took me one full minute to understand the message +1

Mon, 12/31/2012 - 10:00 | 3108632 Alpacanio
Alpacanio's picture

Beware! Anti vius poped up as the Youtube page is under attack. Looks like the government is still working...

Mon, 12/31/2012 - 10:36 | 3108763 GetZeeGold
GetZeeGold's picture

 

 

Might just be the actors union.

Mon, 12/31/2012 - 17:56 | 3110697 Matt
Matt's picture

Film Actors Guild?

Mon, 12/31/2012 - 21:42 | 3111244 GetZeeGold
GetZeeGold's picture

 

 

Why do those guys get the fancy name.....don't they work for a living?

Mon, 12/31/2012 - 10:03 | 3108645 Anasteus
Anasteus's picture

Yet another act in the Cliff comedy called 'The Blackmail'.

Mon, 12/31/2012 - 09:44 | 3108587 Vooter
Vooter's picture

And shot by drones as they leave the building....

Mon, 12/31/2012 - 09:56 | 3108623 stocktivity
stocktivity's picture

Let the scare tactics begin...

Mon, 12/31/2012 - 12:03 | 3109032 Freddie
Freddie's picture

+1

When the SHTF and the checks stop - the thugs with the .40 hollow points will not be getting paid. 

The Tea Party Repubs need to squeeze the muslim at every turn and cut everything.  Cut the White Hut budget 95%.  No av gas for Air Farce One.

Mon, 12/31/2012 - 12:23 | 3109096 lakecity55
lakecity55's picture

Freddie, I am one of your biggest fans.

However, the DHS thugs (TSA) will be taken care of. They ordered ammo for a reason.

From someone who has been there, the rank-and-file do not like the DHS.

I worked with a lot of USCG. Here is what virtually everyone told me:

1. They will not attack their own citizens.

2. They will not give up their personal arms.

3. They wish the CG was never placed under the DHS.

4. They will defend their country from foreign aggressors or illegal orders, that is, obey their Oath against enemies foreign and domestic.

By the way, a majority supported Ron Paul.

Mon, 12/31/2012 - 15:12 | 3109984 Libertarian777
Libertarian777's picture

on 1. My friends in the military have said the same to me.

As I'm sure all the german soldiers said to their jewish breathren in Germany in 1938.

Of course once you brand jews/blacks/gays/asians/muslims as non-citizens, then yes, our soldiers will not be opening fire on 'citizens'.

Plus they'll just be 'following orders'.

Do you really think its a stretch that US soldiers who are ok with using a 25mm cannon on AP reporters, or gunning down an entire village or drone bombing children will have any qualms about shooting US citizens? We already kill US citizens overseas with impunity. They will not ask soldiers from california to police california they will send them to boston or new york, then those people are not the soldier's 'family'.

Mon, 12/31/2012 - 09:22 | 3108523 fourchan
fourchan's picture

All these people who have fought hard to suckle off the rotten teat of government,

groping for handout/bribe after handout/bribe from the corporate citizen are integral

to the problem at hand.

 

Problems, cannot be solvers of problems, by definition.

Mon, 12/31/2012 - 09:37 | 3108560 Leopold B. Scotch
Leopold B. Scotch's picture

Too bad the tax code won't roll back to one page, or something like it, too.  Then all the CPAs, ESQ's and other bend-you-over-with-an-I'm-here-to-help-you-smile tax compliance bridge trolls would be forced to create something people actually want -- with those $billions wasted on tax compliance and strategy being redirected to something that actually improves our standard of living vs. thier parastically hosting on it.

Mon, 12/31/2012 - 10:31 | 3108751 jerry_theking_lawler
jerry_theking_lawler's picture

Most people do not like being 'controlled'....and if they would simply realize that the complex tax code is just another form of .gov control then they would possibly stand against it.

Mon, 12/31/2012 - 09:49 | 3108601 Quinvarius
Quinvarius's picture

The military industrial complex needs new customers.

Mon, 12/31/2012 - 10:06 | 3108651 Ghordius
Ghordius's picture

pls don't look in our direction - we had our share and in some places here we still find unexploded bombs, are rebuilding historic buildings, etc.

Mon, 12/31/2012 - 14:06 | 3109545 blueRidgeBoy
blueRidgeBoy's picture

we love you long time

Mon, 12/31/2012 - 10:46 | 3108794 ImReady
ImReady's picture

No doubt they are courting Japan as we speak. 

Mon, 12/31/2012 - 10:53 | 3108825 wagthetails
wagthetails's picture

It is a governmental industrial complex. Don't limit yourself by just focusing on one aspect. The ENTIRE gov need to be reduced. The welfare side of the house is simply following the success of big military. Both are so big now, with thousands of private companies built around it.

But as long as the getting is good....get your free scooter....you whale.

Mon, 12/31/2012 - 11:00 | 3108839 Nobody For President
Nobody For President's picture

It is the governmental FINANCIAL complex - we have exported the majority of our industry to cheap labor countries years ago after Ike's famous meme - get this right people.,

Mon, 12/31/2012 - 09:51 | 3108610 Chupacabra-322
Chupacabra-322's picture

Fuck those Mercenaries. 

Mon, 12/31/2012 - 10:08 | 3108658 CPL
CPL's picture

Short Xe or Blackwater or whatever the shell company is called today.

 

Mon, 12/31/2012 - 09:53 | 3108612 SheepDog-One
SheepDog-One's picture

Isn't 3 weeks of leave just called a 'vacation'?

Mon, 12/31/2012 - 10:07 | 3108654 Ghordius
Ghordius's picture

if it's paid

Mon, 12/31/2012 - 10:22 | 3108712 exi1ed0ne
exi1ed0ne's picture

Unemployment insurance FTW

Mon, 12/31/2012 - 14:30 | 3109640 CPL
CPL's picture

Contractors don't have to be paid it.  Employees do.  The changed those rules two summers ago remember.  

Contractors are self employeed therefore must pay, but it'll be a cold day in hell when a nickle of the money is paid out.  Yet it has to be paid.  Therefore it's not insurance of any kind.  It's a business tax that can't be deducted.

Mon, 12/31/2012 - 10:16 | 3108685 GMadScientist
GMadScientist's picture

If you have to take it in Kabul?

Mon, 12/31/2012 - 09:59 | 3108636 Zosynspiracy
Zosynspiracy's picture

Well what's wrong with bringing war to Africa???? There will be a shit ton more little black babies for the braindead Hollywood crowd to adopt while their own American babies wallow in poverty.  I mean talk about a true patriot..it's walking salad eaters like Sandra Bullock who are the real American heroes.....

Mon, 12/31/2012 - 10:08 | 3108662 Ghordius
Ghordius's picture

interesting thought, but Russia and China might complain, they are buying up the place

Mon, 12/31/2012 - 12:04 | 3109034 cranky-old-geezer
cranky-old-geezer's picture

 

 

Yes, correct.  Why US is sending in troops, trying to disrupt China's foothold there ...just like in Lybia.

Sooner or later China's gonna say "enough" and have their Russian buddies lob a couple ICBMS over here.  NYC and DC hopefully.  We can dream at least. 

Mon, 12/31/2012 - 11:20 | 3108901 DosZap
DosZap's picture

The United States Army will be deploying troops to nearly three-dozen African nations in the coming year.

Cant have coup' if the real soldiers are on American soil,thousands of miles from nowhere and no way to get home............what plan.

Mon, 12/31/2012 - 13:36 | 3109393 cranky-old-geezer
cranky-old-geezer's picture

 

 

Yep, gotta get active military out of the US before they do their martial law gun grab.

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