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Quote Of The Day From Leon Panetta

Tyler Durden's picture




 

Pretty much sums up not only the present and future of US budget cuts, but everything else about the US:

  • PANETTA SAYS NO IDEA `WHAT THE HELL IS GOING TO HAPPEN' ON CUTS

He added the following:

  • PANETTA SAYS SEQUESTRATION CUTS `SERIOUSLY THREATEN' STRATEGY
  • PANETTA SAYS `MOST IMMEDIATE THREAT' IS FISCAL UNCERTAINTY

And in other news:

  • DEPUTY SECRETARY CARTER AUTHORIZES STEPS TO REDUCE SPENDING
  • CARTER SAYS DEFENSE OFFICIALS CAN DISMISS TEMPORARY HIRES

Don't worry Leon: nothing will happen on cuts, because there will be no cuts, as reducing the US deficit will mean the Fed has to monetize less Treasurys, which means less reserves are created, which means the Primary Dealers have less dry powder to buy 3x beta stocks and less IG9 or 19 collateral, which means less "wealth effect", which means the 1% status quo is unhappy.

And the status quo can never be unhappy.

 

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Thu, 01/10/2013 - 16:25 | 3141874 LawsofPhysics
LawsofPhysics's picture

Did we register/confiscate his guns already?  If so, who cares?  Oh wait...

Thu, 01/10/2013 - 16:40 | 3141959 Ahmeexnal
Ahmeexnal's picture

Haven't seen this posted on ZH:

http://www.sec.gov/news/press/2013/2013-3.htm

 

FOR IMMEDIATE RELEASE
2013-3

Washington, D.C., Jan. 9, 2013 — The Securities and Exchange Commission today announced that Enforcement Director Robert Khuzami will leave the agency after nearly four years of leadership. During Mr. Khuzami’s tenure, the Enforcement Division filed scores of significant actions connected to the financial crisis and brought record numbers of cases involving insider trading and misconduct by investment advisers and investment companies.

The rats are certainly in panic mode.

Something huge and smelly about to finally hit the fan.

Thu, 01/10/2013 - 16:42 | 3141970 AccreditedEYE
AccreditedEYE's picture

It will be a buying opportunity if you're right... but I wouldn't hold my breath.

Thu, 01/10/2013 - 16:52 | 3141980 TruthInSunshine
TruthInSunshine's picture

A (defective, vastly overpriced) F-35 Joint Strike Fighter in every garage!

Thu, 01/10/2013 - 17:37 | 3142260 Tijuana Donkey Show
Tijuana Donkey Show's picture

Maybe Boeing can give them some pointers from Dreamliner. The ultimate bullish market indicator would be if a Dreamliner crashed into a a F-35's from sucking a drone into an engine. USA, USA, USA! 

Thu, 01/10/2013 - 17:54 | 3142342 ParkAveFlasher
ParkAveFlasher's picture

The F-35 will be allowed in every garage, however they will be limited in the number of missiles they may carry, and there will be a department set up to administrate the licensing of guided missiles.

Thu, 01/10/2013 - 17:52 | 3142327 Not Too Important
Not Too Important's picture

As long as they don't get wet. Or is that the B-1 or B-2? Or all the above?

Fri, 01/11/2013 - 01:39 | 3143482 Tijuana Donkey Show
Tijuana Donkey Show's picture

I think your talking about Hillary Clintons "box"

Thu, 01/10/2013 - 17:51 | 3142324 Not Too Important
Not Too Important's picture

"The rats are certainly in panic mode.

Something huge and smelly about to finally hit the fan."

Gore sold his stake in CurrentTV to the very people the station was against, and got filthy richer:

http://www.washingtontimes.com/blog/watercooler/2013/jan/10/al-gore-now-...

Tony Blair took out a monster HELOC:

http://www.dailymail.co.uk/news/article-2204154/Tony-Blair-takes-4-2m-lo...

Are they cashing out and getting ready to run?

Thu, 01/10/2013 - 16:43 | 3141973 CPL
CPL's picture

This is just the pink slip orchestra tuning the instruments.

 

Just wait.  Main Opus is coming up with poor old Lew conducting.

Thu, 01/10/2013 - 16:51 | 3142017 ParkAveFlasher
ParkAveFlasher's picture

Did they fit a whole orchestra on the top deck of the Titanic?  I always thought it was a smaller ensemble.

Thu, 01/10/2013 - 17:02 | 3142074 CPL
CPL's picture

...this will go down as well as the Hindenburg.  I'm sure they'll all fit.

Thu, 01/10/2013 - 17:14 | 3142131 DaveyJones
DaveyJones's picture

I'm with CPL & the Hindenburg. The Titanic did not make its own iceberg

Oh, and the key word from Panetta's lips is "hell"

Thu, 01/10/2013 - 23:14 | 3143297 wee-weed up
wee-weed up's picture

The best way to sum up Obama's economic policies and how to deal with them is... nobody has any fuckin' clue!

Panetta, a member of his own cabinet proves the point!

Thu, 01/10/2013 - 16:27 | 3141892 NemoDeNovo
NemoDeNovo's picture

Did we register/confiscate his guns Drones already?  If so, who cares?  Oh wait...

There fixed it for ya :)

Thu, 01/10/2013 - 16:34 | 3141927 LawsofPhysics
LawsofPhysics's picture

Apparently, california is "magically" fixed.

http://www.cnbc.com/id/100370444

Just the same, can I see the numbers and the underlying assets?  

Thu, 01/10/2013 - 18:47 | 3142036 Muppet Pimp
Muppet Pimp's picture

This should stem the flow of all those smart rich folks leaving for greener pastures.  CA budget was based on projected Facebook earnings, lol.

It appears to be getting serious, and if we pull out our trusty tyrant manual we see the following little gem of wisdom from another broke corner of the earth.

 

When it becomes serious, you have to lie. - Jean-Claude Juncker

Saw the U-Haul quotes in a twitter post.  The price ratio between San Francisco and Austin was 3:1.  1500 bucks to Austin from SF and 500 bucks from Austin to SF.  This means Austin is a 'pit'.  Trucks are not productive in pits, so they cost more to take there (these are places where lots of people are moving).

TD (or other interested party) try contacting Amerco (Uhaul Traffic Department specifically) in Phoenix to see if they will share the pit & desert locations presently throughout the US Canada and Alaska for additional insight into this phenomenon.  This can be incorporated into our data sets under the Uhaul metropolitan index.  There could be a score from 1-10 for each metro area for example.

If I ran I private equity shop investing in residential rental properties (as some are doing) I would use this index to figure out where to direct my investments. 

You see, the areas trying to grow the pie offer low taxes and light touch regulation for responsible folks, and capital seeks out these areas.  And highly regulated, unionized, corrupt locales become less attractive to honest capital.  Same as it ever was.

Thu, 01/10/2013 - 16:28 | 3141894 JPM Hater001
JPM Hater001's picture

PANETTA SAYS SEQUESTRATION CUTS `SERIOUSLY THREATEN' STRATEGY

Exactly which strategy is this Mr Director of the CIA?  The one where you kill children in countries we arent suppose or the one where you snort coke with the Sinaloa cartel?

Thu, 01/10/2013 - 16:56 | 3142046 azzhatter
azzhatter's picture

Jesus, I thought everything was fixed

Thu, 01/10/2013 - 17:18 | 3142155 DaveyJones
DaveyJones's picture

just wait till they lower the "military age" target males to 11. Yemen will love us, want to be just like us, and gladly give us their resources. It makes me proud just to say it.

Thu, 01/10/2013 - 21:24 | 3143005 TheFourthStooge-ing
TheFourthStooge-ing's picture

DaveyJones said:

just wait till they lower the "military age" target males to 11. Yemen will love us, want to be just like us, and gladly give us their resources.

With such brave displays of valor in (virtual) combat, how could it be otherwise?

It makes me proud just to say it.

"A global force for good."

http://www.youtube.com/watch?v=h3wtUCPWmeI

Thu, 01/10/2013 - 23:46 | 3143350 DaveyJones
DaveyJones's picture

They tried "a global force for greed" but it fared poor in the study groups. At least this tape proves we recruit white, black and green people and save babies.  

Fri, 01/11/2013 - 09:04 | 3143777 Watauga
Watauga's picture

Well, he is SECDEF, and not CIA Director, though he did hold that position in the past.

The strategy to which he alludes is the National Defense Strategy which is supported by, primarily, DOD.  

Secretary Panetta is, in fact, leaving DOD, just as Clinton, Geithner, and a half dozen other big players are leaving the administration.  This is not unusual at the beginning of the second term of a President, but it seems somewhat ominous because at the same time as they leave circumstances they created are such that it appears we are on the verge of a genuine, SHTF sort of TEOTWAWKI.

Thu, 01/10/2013 - 16:28 | 3141896 lunaticfringe
lunaticfringe's picture

In other news, the algo closing ramp has arrived on schedule.

Thu, 01/10/2013 - 16:28 | 3141898 AccreditedEYE
AccreditedEYE's picture

Fiscal uncertainty? Has this idiot looked at the stock market? What the hell is he worried about?

Thu, 01/10/2013 - 16:30 | 3141906 Theta_Burn
Theta_Burn's picture

And they called the Bush administration inept.

Keep that attitude up Leon and there will be even more confusion over who will replace you.

Thu, 01/10/2013 - 16:33 | 3141922 Commander Cody
Commander Cody's picture

Could be part of his strategy.

Thu, 01/10/2013 - 16:33 | 3141914 tickhound
tickhound's picture

Cuts are for pussies... What we need are things like more laws to influence growth in our Prison Industrial Complex and in the Lawyers and Paralegals needed to prosecute them.

SOLUTIONS bitchez SOLUTIONS

Thu, 01/10/2013 - 16:38 | 3141946 kaiserhoff
kaiserhoff's picture

Rope?

Thu, 01/10/2013 - 16:32 | 3141916 JPM Hater001
JPM Hater001's picture

Hey Tyler,

Non sequitor, Can you post a chart of new user growth?  You must be setting the world on fire I see so many new names in the last 6 months.  Which in and of itself would be a sign...

Thu, 01/10/2013 - 17:02 | 3142075 earnyermoney
earnyermoney's picture

Probably fascists from the varous 3 letter agencies of the state.

Thu, 01/10/2013 - 17:42 | 3142283 Tijuana Donkey Show
Tijuana Donkey Show's picture

There are only 30 people who actually comment, the different usernames are for the voices. 

Thu, 01/10/2013 - 20:33 | 3142848 newdoobie
newdoobie's picture

I'd comment more but all the good quotes are taken early. Don't you people have jobs?

Fri, 01/11/2013 - 01:40 | 3143483 Tijuana Donkey Show
Tijuana Donkey Show's picture

Working for GOVT as snitchez,,,,,, 

Thu, 01/10/2013 - 16:34 | 3141928 Boilermaker
Boilermaker's picture

He should just put the DOD budget right into the Russel 2,000 and not worry about the cuts!

Hell, he'll have it all back plus some by the closing bell.  You have to 'put money to work'.

What a dumb ass!

Thu, 01/10/2013 - 16:35 | 3141937 kaiserhoff
kaiserhoff's picture

Whatchabitchinabout?   I'm sure Lew the Jew has our futures all mapped out.  Just remember, candy is dandy, but hollow points are forever.

Thu, 01/10/2013 - 16:38 | 3141944 Dr. Engali
Dr. Engali's picture

"Cuts" ...now that's funny. Just print some more Bennny.

Thu, 01/10/2013 - 16:42 | 3141965 kaiserhoff
kaiserhoff's picture

Cuts?  Maybe get a blister on yo little finger.  Maybe get a blister on yo thumb.

That ain't workin'.

Thu, 01/10/2013 - 17:01 | 3142069 knukles
knukles's picture

Maybe get hair on your knuckles, too.

We have a new permanent enemy for the Long War, "Fiscal Uncertainty"

Thu, 01/10/2013 - 16:46 | 3141990 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

Panetta will be replaced by that torturing fascist Brennan. Man is that guy scary. He ran the CIA torture and rendition program. Obomba wanted to make him head of CIA in 2009, but they thought it wouldn't look too good at the time, all that waterboarding and electric shocks etc etc. So they put him in charge of America's centerpiece war crime, the Drone Program. Obomba seriously ramped it up from Bush's levels; and supposedly enjoys replaying the strike videos personally. I wonder if he snorts with pleasure as he watches body parts from nearby 5-year olds fly around. Brennan was in charge of somehow coming up with a "legal" basis for pre-crime extrajudicial murder; but Obomba blocked the public from learning what that "legal" basis is. But they hate us for our freedoms...

I don't know what's scarier: Brennan; the man who appointed him; or the people who elected that guy. Bloodthirsty fascist country-destroyers all

Thu, 01/10/2013 - 17:15 | 3142156 earnyermoney
earnyermoney's picture

Panetta will be replaced by Chuck the schmuck Hagel.  Fill in for General P. will be replaced by Brennan.

 

Ron Paul was the last person I'll vote for in my lifetime.  I refuse to legitimize the fascist police state we've become.

Thu, 01/10/2013 - 18:47 | 3142544 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

Thanks for the correction. Musical chairs for the fascisti, same effect.

Fri, 01/11/2013 - 09:06 | 3143782 Watauga
Watauga's picture

Look ZH readers, Panetta is SECDEF, not CIA Director.  He WAS CIA Director.  He is now SECDEF.

Thu, 01/10/2013 - 16:48 | 3141995 surf0766
surf0766's picture

I think they want the cuts so they can then fund their own personal civil military, one just as strong as our current  military.

Thu, 01/10/2013 - 17:03 | 3142084 knukles
knukles's picture

Now where'd you get that silly idea, surf?

Thu, 01/10/2013 - 17:36 | 3142254 surf0766
surf0766's picture

Would you accept aliens?

Thu, 01/10/2013 - 16:49 | 3142001 SheepDog-One
SheepDog-One's picture

'Cuts'? Yea sure hold your breath.

Fri, 01/11/2013 - 01:17 | 3143466 HardlyZero
HardlyZero's picture

The only cuts will be prime rib and slices of government cheese...or maybe while holding your breath...cut the cheese!!

Thu, 01/10/2013 - 16:50 | 3142009 pods
pods's picture

Can the sequester cuts be made up with secret dope money by moving more?

pods

 

Thu, 01/10/2013 - 16:54 | 3142028 economessed
economessed's picture

Leon, let me toss you a few clues about the future of federal government finances (I have a crystal ball, neener neener neener):

1)  Neither R's nor D's posess any financial acumen, and will default to talking points consolidated onto (1) 8 1/2 x 11 piece of paper (single sided) to form their "positions" about 9 days prior to outright default.

2)  Sternly worded statements will be made.

3)  Unaffectionate terms will be used to describe "the other side."  You know, the crazy ones.

4)  A proposal to reduce the rate of spending will emerge

5)  Hand flailing.

6)  Cave in, approve, manufacture another quadrillion tons of unfunded future obligations.

7)  Wait 3 to 5 months.  Repeat.

 

Thu, 01/10/2013 - 17:04 | 3142087 knukles
knukles's picture

Wow!

 

That's more effort than all of TARP!

Thu, 01/10/2013 - 17:21 | 3142189 DaveyJones
DaveyJones's picture

and they might even suggest documents longer than three pages (even though 3 is a lucky (and holy) number)

Thu, 01/10/2013 - 16:54 | 3142029 JR
JR's picture

Leon is not informed? Hard to believe out of the most versatile multitaskers ever to put on a government hat. Ask Leon to be Chief of Staff? No problemo. How about CIA. No problemo. Defense? No problemo. Swimming instructor? Okie Dokie.

Just don’t ask me any budget questions.

Thu, 01/10/2013 - 17:13 | 3142137 azzhatter
azzhatter's picture

Panutta should have just left it at "I have no idea what's going on I just suck on Obama's cock like everyone else"

Fri, 01/11/2013 - 08:30 | 3143731 bigkahuna
bigkahuna's picture

like everyone else.....in the DoD

 

of course all the others too, but emphasis on DoD

Thu, 01/10/2013 - 17:24 | 3142207 CrashisOptimistic
CrashisOptimistic's picture

 

The fiscal cliff tax portion of things was a lousy $60 Billion in FY 2013 and no more than that each year forever.  

The deficit is $1.2T.

The Sequester is to save about $120 B in spending.  It won't.  Even if it happened, it won't.  $120B is enough to empty cubicles and when you do that, two things happen.  1) you lose the income tax they were paying and 2) You pay their unemployment benefits.  So call it another $60B, and that's not counting the multiplier effects of those DoD office workers not going to lunch outside the base gate and providing the sandwich shop some revenue (on which to pay taxes).

So that $1.2 - .06 then is also - 0.04 and you have $1.1T, assuming the more general GDP reduction from this cut doesn't trim tax revs even more.

 

THERE IS NO ANSWER TO THIS OTHER THAN GOV'T DECLARATION OF NEW NUMBERS.  Money can be redefined at will.  Gold transactions can be taxed if they are ever significant.

Only oil and food calories can't be decreed.

 

Thu, 01/10/2013 - 18:10 | 3142406 Panafrican Funk...
Panafrican Funktron Robot's picture

Funny how that 60 billion got lapped up in upcoming Sandy appropriations.  Fuck, not even 1 day passed and future presidential candidate Chris Christie (if he doesn't die of a heart attack) and his buddy "It's All The Muzzie's Fault" Peter King were gnashing and wailing like female first graders.

Thu, 01/10/2013 - 18:21 | 3142445 Parrotile
Parrotile's picture

In the face of the evident "New Realities" maybe it's time to change your moniker to something more appropriate - may I tentatively suggest inserting "wildly" in the appropriate location?

Considering for a moment that the general public do NOT have access to accurate information, rather their information feeds are at least slightly "massaged" to provide a more palatable Worldview, I suspect (and I note so do many others), that Global financial / markets collapse would be up amongst the "very best outcomes" for our present situation'

Looking back at history - the most probable outcome would be the one similar situations have led to in the past.

Outcomes running from 1914 - 1918, and from 1935 - 1945

"This time it will be different". Dead right there - because this time a LOT of the players are nuclear armed, and it only takes one player to kick the ball for the game to start in earnest.

Thu, 01/10/2013 - 17:32 | 3142240 SpykerSpeed
SpykerSpeed's picture

The US FedGov is officially the Joker in the Dark Knight:

"You wanna know how I got these scars?"

"Trying to cut the Federal budget?"

"Yep."

Thu, 01/10/2013 - 18:06 | 3142391 Tombstone
Tombstone's picture

Take heart,  no matter what happens or what they do or don't do in the big W, the socialists, rich elitists, and Wall Street insiders will make out perfectly well.

Fri, 01/11/2013 - 00:30 | 3143420 joego1
joego1's picture

Its OK Leon. You might have to lay off some friends at 100% pay for life. I know, the paperwork will require a new agency.

Fri, 01/11/2013 - 03:25 | 3143561 dunce
dunce's picture

Cuts in the military will be exceeded by other govt. spending so there will be no good news on either the deficit or the debt. There was a popular song with a lyric of "on the eve of destruction" that seems to fit.

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