Stanley Druckenmiller: "We Have An Entitlement Problem" And One Day The Fed's Hamster Wheel Will Stop

Tyler Durden's picture

Two and a half years ago, George Soros' former partner Stanley Druckenmiller closed shop when he shut down his iconic Duquesne Management, after generating 30% average annual returns since 1986. Some time later he raised many red flags by being one of the first "establishment" types to expose the Fed's take over of the market when he said in a rare May 2011 interview that "It's not a free market. It's not a clean market.... The market isn't saying anything about the future. It's saying there's a phony buyer of $19 billion of Treasurys a week." This was in the context of the constantly declining interest rates on an ever exploding US debt load. And while back then total debt was a "manageable" $14.3 trillion, as of today it is some $2.3 trillion higher moments ago printing at a fresh record high of $16.6 trillion, not surprisingly the phony buyer is still here only now he is buying not $19 billion by over $20 billion in total debt each week. But just like it was the relentless rise in the US debt that forced him out of his privacy in the public scene back then, so it was also the US debt that was also the topic of his rare CNBC appearance today (where he fiercely poked at all those other TV chatterbox pundits when he said "money managers should manage money and not go on shows like this") in the aftermath of his recent WSJ Op-Ed. There, he once again said what everyone knows but is scared to admit: "we have an entitlement problem."

Druckenmiller's definition of the problem:

The media was more concerned about the fiscal cliff and what might happen to the economy over the three months than the big picture which is the debt which is going to swallow our kids in 15 or 20 years. They totally take a pass on entitlements which is the problem. And the president comes out and says i'm not going to do this on the back of seniors. Those seniors, that we put out in the article, are all taking out more than they put in, and it's guaranteed under the system today that all the kids are going to get less than they are putting in...  the reason we're here is I think we have time to deal with this issue. If we don't deal with it in the next four or five years, we'll wake up and interest rates will explode and the next generation will have a very, very tough time and it's so unfair.... In 1994 entitlements were 50% of federal outlays, up from 28% in 1960, but to my horror under the George Bush administration they went from 50% to 63%. Now at 67% of all federal outlays are entitlements. To put that in perspective, if you look at the actuaries out there, entitlements are scheduled to grow $700 billion in the next four years just due to change in entitlements. That's as the demographics kick in.

A quick primer on the unsustainable Bernanke math:

If you normalize interest rates, i'm not talking about a spike, just normalize where they were before QE and took them to 5.7% federal funding costs of the debt, that's $500 billion a year in interest expense that goes out door. We're having a heart attack over an $85 billion sequester when we can lose $500 billion just if you normalize. The way markets work if and when that were to happen, you don't normalize, you keep going because the market figures out that you now have a credit problem which is exactly what's happened in the foreign nations.

A reminder on the irrationality of bond markets:

The bond market is a funny thing. In Greece the bond market was perfectly fine until February of 2010. Not moving, not doing anything, and then in two weeks it was over.

The topic of the free Fed money's diminishing returns is well-known:

The market is fine because you've got all the free money in the federal reserve. But that can only last so long. Eventually the hamster can't move on the wheel anymore and the free money has less and less impact.

His solution: means testing:

Means-test people like me on social security. You realize I've done all right in life, okay? I'm going to start getting social security checks in five years. It's absurd. And i'll get the same social security checks that some people who have not done so well are. And the same thing with medicare. Raise the ages, as I pointed out earlier. When all this stuff was started, life expectancy was way below where it was now, and frankly probably the guesses on life expectancy where they are are too low. It's not that hard.

Finally, on political incentives to act, or rather not:

... Congress is not getting the market signal we talked about in the article so you can scream all you want about congress and the president being clowns, I can't think of any political system anywhere where they acted without interest rates going up. When did greece act? When the bond market blew up. When did Spain act? When the bond market blew up. What was Clinton's response to Rubin, "you mean the f'ing bond market is in control." Doing what they are doing the politicians have no incentive, but the market is a very fickle and violent thing. I don't think it's today, but we've got 3-year-old kids we've promised we'll get them through college and once college is done we'll get them a job. it's going to happen before those kids.

But of course, the merest suggestion of any of the above becoming policy and whoever is in charge screams bloody "austerity" knowing full well their political career is over the moment people's entitlements are cut.

And thus: back to square one.

The full clip follows below:

And for those who missed it, here is the WSJ op-ed from a week ago penned by Stanley Druckenmiller and former Fed governor and current Fed critic, Kevin Warsh:

Generational Theft Needs to Be Arrested

A Democrat, an independent and a Republican agree: Government spending levels are unsustainable

We come from different backgrounds, parties and pursuits but are bound by a common belief in the promise and purpose of America. After all, each of us has been the beneficiary of the choices made—and opportunities created—by previous generations of Americans.

One of us grew up poor in the South Bronx of the 1960s and went on to lead a children's antipoverty program in Harlem. Another grew up in a small town in South Jersey, and went on to be a leading money manager. The third grew up in a small suburb in upstate New York and found his way to serve in the government amid the financial crisis.

One of us is a Democrat; one, an independent; another, a Republican. Yet, together, we recognize several hard truths: Government spending levels are unsustainable. Higher taxes, however advisable or not, fail to come close to solving the problem. Discretionary spending must be reduced but without harming the safety net for our most vulnerable, or sacrificing future growth (e.g., research and education). Defense andhomeland security spending should not be immune to reductions. Most consequentially, the growth in spending on entitlement programs—Social Security, Medicaid and Medicare—must be curbed.

These truths are not born of some zeal for austerity or unkindness, but of arithmetic. The growing debt burden threatens to crush the next generation of Americans.

Coming out of the most recent elections, no consensus emerged either to reform the welfare state or to pay for it. And too many politicians appear unwilling to level with Americans about the challenges and choices confronting the United States. The failure to be forthright on fiscal policy is doing grievous harm to the country's long-term growth prospects. And the greatest casualties will be young Americans of all stripes who want—and need—an opportunity to succeed.

Three main infirmities plague Washington and constitute a clear and present danger to the prospects for the next generation.

First, the country's existing entitlement programs are not just unaffordable, they are also profoundly unfair to those who are taking their first steps in search of opportunity. Social Security is one example. According to Social Security actuaries, the generational theft runs deep. Young people now entering the workforce will actually lose 4.2% of their total lifetime wages because of their participation in Social Security. A typical third-grader will get back (in present value terms) only 75 cents for every dollar he contributes to Social Security over his lifetime. Meanwhile, many seniors with greater means nearing retirement age will pocket a handsome profit. Health-care spending through Medicare represents an even less equitable story.

The government has an obligation, of course, to support needy seniors. But this pension system is ripe for common-sense reforms, including changing eligibility ages and benefit structures for those with greater means, ridding the Social Security disability program of pervasive fraud, and removing disincentives for those who would rather work in their later years.

Powerful, vested interests portray reformers as avowed enemies of seniors. But, the status quo is, in fact, tantamount to saddling school-age children with more debt, weaker economic growth, and fewer opportunities for jobs and advancement.

Second, while many in Washington pay lip service to the long term, few act on it. The nation's debt clock garners far less attention than the "fiscal cliff" clock. Elected officials continue to allow the immediate to trump the important. Washington appears poised to forego fundamental reform at the altar of the expedient, yet again. This could have tragic consequences.

In successive administrations, the country has spent trillions in temporary tax credits and short-term "stimulus" to goose growth by the next election. What do we have to show for this spending surge? Modest growth, declining incomes and a level of national debt that undermine our long-term prospects.

The Federal Reserve's policies reinforce this short-term orientation. To offset weak economic conditions, the Fed's principal policy objectives appear to be twofold: suppress interest rates and raise stock prices. As a result Congress may be missing market signals and failing to see the costs of its spending addiction in time to undertake real reforms. Ultimately, economic fundamentals—not the promises of central banks—will determine the prices of stocks and bonds.

But the deeper failing is one of essential fairness. The benefits of rising stock prices accrue to those who have already amassed wealth at the expense of those who are struggling to save. And failing to deal with runaway spending will burden the country's children with higher interest rates and a debt bomb that will come due in their lifetimes.

Third, too many politicians appear more eager to divide the spoils of electoral victory among their own than to increase the size of the economic pie for all. The grab-bag of special tax favors under the guise of the recent fiscal-cliff deal is only the latest example.

Crony capitalism and corporate welfare aren't just expenses we cannot afford. They are an anathema to economic growth. They deny opportunities to aspiring people and companies who seek to better their lot. They ration opportunity based on things other than merit and hard work. They further ensure that poor children—who already are disadvantaged by failing schools, inadequate health care and little access to necessary resources—will never get the chance to break the cycle of generational poverty through education.

Some individual Americans are surely better off than they were many years ago. The more probing question is whether America is better off. That can only be true if the hopes and aspirations of the next generation are achievable.

The country must find the courage, conviction and compassion to fix what ails it. The opportunity to advance real reform is still possible. But failure to reform the entitlement culture, reaffirm long-run objectives, and re-establish a common purpose will mean a dimming of opportunities for American children today and for future generations. And a great nation will have ceded more than its greatness, but its goodness.

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john39's picture

sure entitlements are part of the problem.... but how about the gargantuan military beast that is the United States taxpayer continues to feed year after year....  probably close to 1000 bases around the world...  no other country comes close.   all for the benefit of the people?  sure it is...    shut it all down.  fuck the bankers and their wars of conquest.

NoDebt's picture

Europe has a tiny military budget compared to the US, yet they still ran their entitlement systems up on the rocks even faster than we did.

Drop military spending to zero, we still have a big problem.

francis_sawyer's picture

@TIS

~~~

YGFBKMe... On ZH ~ I used to have a lot of respect for you... It took awhile ~ But now I think you're just an average, run of the mill FOOL... I don't give a fuckng fuck about what you may think about francis_sawyer...

TOOL CITY BITCHEZ... [Sooner or later all armaments get beaten down into plowshares]... I guess that will be the francis_sawyer fate, sooner or later... Hopefully, the LATTER...

You're glorifying a fucking stooge who, himself was a SOROS stooge... That, essentially, makes YOU a stooge [as well as your 'green arrow army']...

TYLER(s)... PLEASE!?!... Bring back the MATH QUESTION...

TruthInSunshine's picture

Think whatever you wish.

I'm well aware of the allegations regarding Soros, and I have no idea as to how many of those as a % are true or not. But unless you know of the dynamics between Druckenmiller & Soros, with specificity, all you're doing is huffing & puffing about your own raw conjecture (there's nothing wrong with that, IMO, so long as you put a big disclaimer in front of your claims, along the lines of "I am Francis Sawyer, and despite not having any actual, direct evidence of what I am about to state, I believe it's possible that A-B-C based upon X-Y-Z).

For all I know, and certainly based on you history of comments, you loathe the guy based on the singular point that he's jewish (I, unlike you, do not believe that the entire spectrum of people of jewish ancestry are inherently bad, for the wide assortment of malicious traits you obsess upon when you're at your least logical; I know and have known many jews who are as well intentioned and charitable as the most honorable people of any other ethnicity or religion, and I do my best to judge people based on their individual character, rather than damning them immediately and in preconceived fashion in a "guilt by association" way that you seem to love to do.)

My praise of Druckenmiller was and is based on his statements as to why he closed shop, his claim that there isn't a market of any type in all the land that hasn't been reduced to a massively manipulated & rigged roach motel, & his macro opinion as to the hows/whys many western economies are already bankrupt, essentially.

Is he lying about those things he expresses? I don't know. Do you?

The simple fact remains that the guy OBJECTIVELY had the best performance of any large AUM fund manager for a massive stretch of years, consistently, and instead of staying in the game post-financial crisis and massive central bank rigging of markets, which he certainly could have done and should have done if he's some corrupt bastard who is tied in with the den of thieves (which would imply that he has access to and can leverage insider information), he called the Ponzi for what it was, returned all limited partner funds to his investors, and called the scam for what it is in a way that neatly dovetails with my own impressions.

willwork4food's picture

Excellent comment sunshine, my sentiments exactly.

francis_sawyer's picture

 But unless you know of the dynamics between Druckenmiller & Soros, with specificity, all you're doing is huffing & puffing about your own raw conjecture

as well (& such)... YOU ARE... with your RAW underscore [until you fancy ALL OF US with your IN DEPTH carnal knowledge ~ Entertain us... PLEASE]... ZH'ers ~ please DON'T think that francis_sawyer knows anything... INSTEAD ~ Take it ON FAITH that TIS is within the INNER CIRCLE of the SOROS/DRUCKENMILLER conclave... [perhaps even sodomizes the same choirboy goats]...

I, unlike you, do not believe that the entire spectrum of people of jewish ancestry are inherently bad, for the wide assortment of malicious traits you obsess upon when you're at your least logical

Bully 4 u... chilly 4 me... Congrats on having achieved the quintessential KISS ASS status... [Note: You're not a KISS ASS if you do so out of soundness... Instead ~ you're a KISS ASS if you do so in an effort to circumscribe your own pretention of valor]...

Fuck Druckenmiller [He's part of the PROBLEM ~ NOT the SOLUTION]... Your sugary platitudes have ZERO value...

~~~

END THE FED [That's your avatar]... Which, purportedly has some TRUTH towards your motives...

THE FED is fucking jewish families dipshit!... Indulge me by proving to me how I'm WRONG [& otherwise my 'huffing & puffing' is therefore misguided]...

~~~

People... ZH'ers... IT'S FUCKING ON NOW BITCHEZ...

Tylers... You'd better kick my ass off this blog RIGHT FUCKING NOW [I implore you to do so, & in the process, make a quantum leap towards becoming run of the mill MSM]... Because I may have been joking before, but with this BULLSHIT, I'm not joking anymore...

 

TruthInSunshine's picture

It's a waste of time to even attempt to debate you because you're obviously in an unstable mental state, so this will be my last response to any of your tripe.

I do hope that you get well soon. Many formerly paranoid individuals consumed by the type of irrational, raging, blind hatred that you are clearly presently suffering under have recovered.

francis_sawyer's picture

Perfect... That's a CLASSIC 'loser' response... 'ATTACK THE INDIVIDUAL ~ NOT THE ARGUMENT'...

~~~

Notwithstanding ~ You are somewhat correct... I get the impression that you've 'opted out of' the possibility of future exchanges...

Congratulations on your valor!

END THE FED [Yeah bitchez ~ I 'really' mean it... No, SERIOUSLY... I DO!... I'm NOT a poser who just tries to be intellectual about a bunch of shit that I have marginal knowledge about... I may make 'kewl' comments now & then, & people may LIKE me, but mostly that's because I pretended to want a solution to problems INSTEAD of focusing on where the REAL problems lie]... The fact that I defend jews [AT ALL COSTS], especially the fact that jews are the major shareholders of THE FED should not concern anyone in the least...

Instead ~ you should mock francis_sawyer for even bringing the subject to mind...

~~~

THE ABOVE... TIS... Is your posture [unless you care to argue otherwise]... IMO ~ 'Legacy' counts for exactly SQUAT... [Especially if your 'LEGACY' consists of nothng more than a clarion call to END THE FED]... Hell ~ My guess is that one could live... EASILY... Another 20 years with that idea and be a FRIEND to many a dissident...

How far are you willing to go to make that a reality?... [or is it all 'huffing & puffing', as you mentioned before]?

The Navigator's picture

If you question the integrity of this former Soros partner, what think you of Jim Rogers?

Birds sometime fly together that are not similar in feather.

disabledvet's picture

now we're talking. this is what the interview SHOULD be about (these things are all very scripted in advance so...no "we're not going to talk about something real." he might be throwing his hat in the ring for Treasury Secretary here...who knows. But YOU fine sir "have summed up the simplicity of our age quite nicely.") and to answer your question...if there was a question in there...is simply put..."NOT EASY." in other words "it was more expensive to get OUT of Vietnam than it ever was getting into it." And unlike the Nam "this war is one we cannot nor will not ever leave from"...so it makes your point the ONLY valid point namely "to pay for the war IS THE WAR ITSELF." What this interview reveals is that our media (ironically enough major supporters of Israel ALL of course) "simply can't even bring up the reality" let alone "begin to have a debate on "how we fix this thing called...THE WAR." and these talking points simply put DID NOTHING. In short "you'd better begin...repeat and end with the word ECONOMY" because that is how Governments are financed and every war in HISTORY has been paid for. Devolving "Government" to the word "spending" simply gives lie to YOUR whole enterprise of "trying to finance the thing." In other words "businesses have a spending problem...but Governments have a problem WITH THE ECONOMY." Now i can go into great detail...and indeed have "in my own way" about how Government and the private sector "is in fact already solving this problem without even knowing it" (no thanks to the Kings of MBS, CDS, CDO's, RMBS, etc...etc) "but it's still not enough." And the reason which is obvious for the whole world to see "is because the problem is REALLY PHUCKING BIG!" (one of the ways i solve it is to "throw the entire State of Illinois under the bus" for example. Apologies to the State of Illinois of course...but this is how problem solving is in fact done on this level and scale.) I've had a lot of my ideas applied (President mentioned natural gas two State of the Union's ago...MBS purchases-sorry to say--are now being bought) but clearly "the plan to get the economy growing" say 12 percent considering the spending right?--clearly is not working. The President is a real good basketball player so the way i would put it is "you need to be the Lakers of the 80's here" and "be masters of the transition." In other words the President has the "set offense" pretty good: "Clyde Drexler is natural gas" so "you want to pass to him whenever possible." On the other hand "Kareem Abdul Jabbar is Big Oil" so "once he posts up you have to give him the ball." The key though is "you being Magic Johnson." no look passes (3d printing), jukin' the defender ("we're going to Syria" when you really meant Mali) "dishin'" (hey NATO...right at ya!) and most importantly "be ready for the put back" (WTF Wall Street supporters of Israel?) But the way the Lakers played...and WON...back then was IN TRANSITION. In other words "when you screwed up they scored." And that's how you pay for Governments...UP TEMPO AFTER THE STEAL. simply put "you gotta lighten the load" and economics does this by STRETCHING that dollar (and not just "raising taxes to get more of them.) this is your TRUE "force multiplier" (both for the Presidents AND the citizens) and mastering it at the the political level is THE hardest of tasks "because it means you have to have an understanding of banking, how to price a municipal bond, what mortgage insurance actually is"...in short IT'S BORING. But this is in fact the bread and butter of Wall Street AND Government...not at all what you see on television and the stock market. These "boring people" are interested in funding GOVERNMENTS more than anything because "that income stream can last centuries." so sure..."why do we even need bases when we have a war effort?" or better yet "why even have a war effort period and then we can get rid of the bases too"? EXCELLENT observations...and clearly "The Question" that Mr. Druckenmuller should have been addressing. In short "we have a WAR problem" not a spending one. If he is truly serious he will address THAT ahem "issue"...and no other. Most don't...indeed are incapable of doing so...and in the end "are just another Wall Streeter." If you want to be an Alexander Hamilton, a Salmon Chase, a JP Morgan, Henry Morgantheau of Hank Paulson "you don't simply look at Government and say it has a spending problem" cuz all your saying is "i'm in the business of making money and the only thing Government is good for is being in the way." To which i would say "and Government thanks itself for being that way" cuz they don't really give a rat's ass about money either now do they!

rhinoblitzing's picture

I Downed you for no line breaks...

 

RSBriggs's picture

tl;dr   Some of us seem to have a "paragraph" problem....

Freddie's picture

Druckenmiller seems like a decent bloke. His ex-partner Soros needs to be pushed into a wood chipper.

willwork4food's picture

Why ruin a perfectly good wood chipper?

Triple A's picture

don't worry, according to Stan we still have 4 to 5 years to get our house in order. we will be fine.

mrdenis's picture

And that day will be when  Atlas Shrugged 

Almost Solvent's picture

Zap Powerz, that world will have many fewer humans populating it. There are some idiots around here who are upset that the human herd must be culled without cheap oil. But it must, and it will either happen orderly or not. 

prains's picture

UH UH! you have an OLIGARCH problem first

then an entitlement problem because that's the carrot the oligarchs have used to dumb the sheeeps

kliguy38's picture

I think that someone with a modicum of "moral authority" other than Mr. Bankster Druknfuk should make these decisions. After all it must be easy to say "means test" some schmuck that ran a small business and save 300K for retirement and can now live on his .025% rate of return "fixed investement". It shouldn't take too long for that 300K "nest egg" to go the way of the DODO bird. Or say maybe we can have some 75 y/o ZH truckers on the road pullin' those gas tankers for his escalade with his armed bodyguard. Watta fochin' schmuck. Buy more drones right Druknfuk?

ihedgemyhedges's picture

The only surprise in my book is that at the end Maria didn't say: "Ok Stan, what stocks should we be buying here????"

Freddie's picture

ObamaPhone.   People voted for this and he also stole 2012 along with a lot of stolen Dem House and Senate seats.   Vote fraud Obama.

tenpanhandle's picture

while checking out the Obama voter fraud link,  just a slight digression on my part, as is usual, and I end up on an article about Kate Middleton's royal pubic hair. I am now disgusted with myself as well as the bullshit system.

I have my own Obama vote bullshit anicdote.  In Reno Nevada, a battleground state, I personally saw a big foodbank truck handing out food on voter fraud day.  Truck was situated such that voting place was between free food and about 2000 low income apartments.  The streets and sidewalks were chock full of obviously no income women with multiple kids and pushing strollers carrying bags of goods.  Multiply this by the whole country and Obama's elected.

downvote me all you want but this makes me sick.

NoDebt's picture

You're pikers.  I live near (definitely not IN) Philly.  Go read up about all the shenanigans that happened at polling places in that one-party town at election time.  Poll monitors were thrown out of the facilities by election officials.  Whole precincts that tallied votes 100% democratic- not one single vote for Republicans, Independents, Conservatives, no write-ins.  Zip. 

Chicago's got NOTHIN' on Philly.

So, no downvote from me.  Even though I laugh at the minor trifles you call corruption.  That's just an average Tuesday in Philly.  ;)

 

rhinoblitzing's picture

Voter Fraud - Stuffing The Ballot Box  - for sure.

Several contests in Florida due to "Irregularities"

Like 140% of a precinct turnout against Allen West

brettd's picture

little late now, eh friends?

Winning counts.

Taint Boil's picture

 

 

…..to my horror under the George Bush administration they went from 50% to 63%….

That must be a typo .... ROFL

The Obama phone is an urban myth moron – Google it

Larry Dallas's picture

In said it before and I'll say it again: I find it incredible that most American's can't see that O is trying to sink and destroy this country as fast as he can.

I never thought the American populace was this stupid, but they are.

This whole healthcare and increase in taxes has not affected the rich, but is absolutely killing the poor. I had a waiter tell me last week he didn't understand why his paycheck took out an extra 2% from his paycheck because he voted for O. I mean its all been lies. To all.

Things today are so much different than 7 years ago and I don't trust the government at all. From 9/11, to CT shootings, to protecting yourself from a deranged gunman with scissors, we've lost our innocence and everything seems to be rolling in one direction.

I can't watch any TV. It's horrible. I don't find most of my fellow Americans interesting anymore, just poor, tattooed uneducated slobs who contribute nothing to society.

Was it PT Barnum that said "no one ever went broke underestimating the intelligence of most people"?

Complete loss of confidence seems to run rampant globally. And in a matter of time, just as fast, people will hopefully wake up.

But I'm not that hopeful. Only a civil war would settle this. It's that bad now. Democratic Capitalism is severely threatened.

Taint Boil's picture

 

 

 

The Obama Phone:

The Obama phone story is an urban myth. Once again the unsophisticated sheeple are fooled by the likes of Rush Limbaugh, Fox News, Drudge, etc, etc. Funny, Freddie never watches TV but somehow knows all about the “Obama Phone”. A two second Google search dismisses the story as bullshit and it was actually started under Reagan and Bush. 

I am not an Obama fan at all by the way.

There is a program started under George Bush was called SafeLink

And: 

The federal "Lifeline" program was created during the Reagan Administration. Lifeline is a federal program created by the Reagan era Federal Communications Commission (FCC) in 1984. The program was enhanced under Telecommunications Act of 1996, which was supported on a broadly bipartisan basis in Congress. The FCC’s Low Income Program of the Universal Service Fund, which is administered by the Universal Service Administrative Company (USAC), is designed to ensure that quality telecommunications services are available to low-income customers at just, reasonable, and affordable rates. Lifeline support reduces eligible low-income consumers' monthly charges for basic telephone service. 

Link

 

Buckaroo Banzai's picture

You don't know the first fucking thing about the wired or wireless telephone system. There is a legitimate reason for subsidizing wired phone service-- it has to do with the economics of wired networks. There is no fucking excuse to subsidize wireless phone service.

Taint Boil's picture

 

 

…..There is no fucking excuse to subsidize wireless phone service. 

Ok, I agree 100%. But what does that have to do with the “Obama Phone”? Obama has nothing to do with giving free phones away. 

This is the part that is so hard for me to understand: 

It doesn’t matter if you love or hate Obama (I don’t like him). Ask this question to yourself “Does Obama give away free phones” the answer is no. If you hate him or love him, the answer is still no. 

If you like macaroni and cheese but I hate macaroni what am I to do? Should I ridicule you, down arrow you, insult you, etc, etc just because I don’t like an ingredient in a dish you like? When only you are stating a fact that macaroni and cheese contains …. [drum roll] macaroni. This is just a fact and it doesn’t matter my opinion because ……[second drum roll] macaroni and cheese has macaroni in it. 

Am I on the wrong website? Booze is kicking in and I have an early flight tomorrow, got to go. Remember folks - I like to throw gas on the fire and I like to play the Devil's advocate - keep that in mind

11b40's picture

There are a hand full of folks on here that simply do not like facts.  For them, facts are a terrible thing if they get in the way of their retoric.  Facts get down arrows on a regular basis.

Groundhog Day's picture

its also a pension problem

willwork4food's picture

Especially Governemnt, Civil Service & Military pensions.

LongSoupLine's picture

All that fucking interview with super shill Bartaromo did was fucking assure me that we are completely fucked as a nation.

 

Fuck you Maria you stupid fucking fake bitch.  Every fucking day she gets her fat fucking horseburger eating ass in front of that fucking camera and shreiks in her fucking yenta voice about how strong this fucking monkey shit market and recovery is.  Now she supports what these guys say?...fuck you bitch.  Go step in from of a fucking bus you fucking sellside dick swallowing whore.

francis_sawyer's picture

I often get a laugh out of your comments [because ~ STRANGELY ~ they mirror my own views]...

~~~

But THIS was 'HEROIC'... I swear ~ it took me 5 minutes to get thru the comment because I was CRYING LAUGHING along the way...

sgorem's picture

+! SOUPS ON!!! missed ya man, now by God we've got some real posts to read!

willwork4food's picture

Nice, but I feel a sudden urge to go wash my eyes out with soap and call mom.

bulldung's picture

The most disgraceful entitlement is the congressional pension.Only term limits can fix this mess before crisis. Enough said

sgorem's picture

the most disgraceful Entitlement is that these FUCKS get to breathe to stay alive. what a waste of O2..................

crazyjsmith's picture

Check out 7:22 in the clip

Nice little slip from friend of ex Fed Governor

"The federal reserve is a very powerful institution - and to some extent, by printing all of THEIR money - Pause - printing the money they are...."

Banksters's picture

I'll shorten the article.

 

Modern finance and banking is based on the greater fool theory, fraud, and immunity from prosecution.   As one zerohedger said, things won't change until one of these bankers gets a bullet to the brain.   

 

 

11b40's picture

Exactly right.  

Not one word mentioned about how the country has been raped by the bankers & plundered by the war machine.

Nothing in there about the unbelievable differences in effective tax rates of hedge fund managers making a half $billion/yr and sheltering off shore.

Nothing about multi-nationals bleeding off our jobs and paying off Congress to look the other way as the manufacturing base gets dismantled and shipped out...while they come up with 'legal' schemes that allow them to book profits off shore and further escape taxes, screwing all of us a little more.

Nothing about massive manipulation of Oil and other commodities required by the general population for daily living.

Did you see anything about high frequency trading, skimming and sucking dollars away from everyone who does not have a monster computer located across the street from a stock exchange.

What, no mention of exploding health care costs in the for-profit sytem we have allowed to build upover the past 30-40 years?  What did happen to all those public hospitals we once had, anyway?  And what about the fact that Medicare delivers the most cost effective helath care in America (except mayvbe the VA, until all the war-torn vets started showing up)

....and I could go on, but just let me say "fuck you", kind sir, and the Social Security slaying horse you rode in on.

I posit that NOTHING can be fixed until huge gobs of corruption get puked up and the system is purged of the rotten bankster meat that is killing us from the inside.

This prick talking about fairness disgusting.  It is a joke, and the joke is on all the rest of us.

James_Cole's picture

"Exactly right.  

Not one word mentioned about how the country has been raped by the bankers & plundered by the war machine."

It's funny how when the banks needed money suddenly a trillion dollars - no strings attached - appeared overnight. When Saddam H. appeared on the scene in league with Al Qeada and shoring up nuclear bombs there was a blank cheque. When the economy started to falter there was money to send out so Americans could go on a shopping splurge. At a time of two wars everyone got a big tax break.

And now everyone on TV is complaining about deficits.... but don't think about cutting a nickel from defense!