Guest Post: All Of This Whining About The Sequester Shows Why America Is Doomed

Tyler Durden's picture

Via Michael Snyder of The Economic Collapse blog,

If we can't even cut federal spending by 2.4 percent without much of the country throwing an absolute hissy fit, then what hope does America have?  All of this whining and crying about the sequester is absolutely disgraceful.  The truth is that even if the sequester goes into effect, the U.S. government will still take in more money than ever before in 2013 and it will still spend more money than ever before in 2013.  So it is a bit disingenuous to call what is about to happen "a spending cut", but for the sake of argument let's concede that point.  Even if the budget really was being "cut" by 85 billion dollars, that only would only amount to a "cut" of 2.4 percent to federal spending.  It would barely make a dent in the federal budget deficit for 2013.

The U.S. government would still accumulate about as much new debt in fiscal year 2013 as it did in all the years from the inauguration of George Washington to the inauguration of Ronald Reagan combined.  Our debt to GDP ratio would continue to soar.  The sequester cuts would essentially only be a minor bump on the road to financial oblivion.  But if you listen to Barack Obama and his allies, they would have you believe that we are facing a great national crisis because of these impending cuts.  They would have you believe that hundreds of thousands of people will lose their jobs and that many government agencies will no longer be able to operate effectively.  They would have you believe that "granny won't get her lunch" and "roofs blown off by Hurricane Sandy won't get repaired".

Well, if all of that is true, then what in the world would our country look like if we actually cut a trillion dollars from the federal budget this year and started living within our means?

Have you ever known people that are already hundreds of thousands of dollars in debt and yet go out and regularly blow thousands more dollars on wild shopping sprees?

Such debt addicts may be very proud of their new homes, their new cars, their new clothes and all of their fancy electronic gadgets, but it was all purchased with debt.  When a "day of reckoning" finally arrives, many debt addicts lose absolutely everything and end up in the street.

That is what America is like today.

Our politicians like to show off all of the stuff that our government is spending money on, but the truth is that we are spending gigantic mountains of money that we simply do not have.  We are literally stealing from our kids and our grandkids so that we can continue to enjoy a massively inflated standard of living that we have not earned.

But we can't stop ourselves.  Americans are absolutely addicted to big government.  They want a gigantic government that sends out free money to more than 100 million Americans every month, but they absolutely do not want to pay for it.  They would rather steal money from their children and their grandchildren to pay for it.

This has got to stop, because we are literally destroying the future of this country.

If Americans really want a massively bloated government that takes care of everyone from the cradle to the grave then they should pay for it.

If Americans don't want to pay for it, then they should reduce the size of the government to a level where they are willing to pay for it.

But stealing money from future generations of Americans to pay our bills is absolutely disgraceful.

As I talked about in a previous article, we are stealing more than 100 million dollars from our children and our grandchildren every single hour of every single day.

Is there anyone out there that is willing to stand up and defend that kind of theft?

But the vast majority of Americans don't want to do anything to stop it, because they don't want to harm "the economy" (i.e. our ridiculously bloated standard of living).

Will the sequester cuts hurt the economy a bit?

Of course.

Government spending cuts always hurt the economy.

If we raised taxes to help pay the bills that the federal government has been racking up, would that hurt the economy?

Of course.

Tax increases always hurt the economy.

But if we continue on the path that we are today, America is doomed.

The U.S. national debt is the biggest single debt in the history of the world.  It is now more than 16.6 trillion dollars, and it has gotten more than 23 times larger since Jimmy Carter first entered the White House.

If our politicians suddenly decided to go to a balanced budget today, our debt-fueled "bubble economy" would disappear and we would immediately plunge into a deep economic depression.

Do the American people have the character to be able to handle that kind of an "adjustment" to our standard of living?

Of course not.

That is why so many of our politicians are scared to death of doing anything about the debt.

And even these small sequester "cuts" are freaking everyone out.  Many of our politicians and many in the mainstream media are openly declaring that "the sky is falling".  Just check out the following short excerpt from a recent New York Times article...

The owner of a Missouri smokehouse that makes beef jerky is worried about a slowdown in food safety inspections. A Montana school district is drawing up a list of teachers who could face layoffs. Officials at an Arizona border station fear that lines to cross the border could lengthen. And if Olympic National Park in Washington cannot hire enough workers to plow backcountry trails, they may stay closed until the snow melts in July.

But that is nothing compared to what others are saying.  CNN is declaring that if the sequester cuts happen, "granny won't get her lunch" and "roofs blown off by Hurricane Sandy won't get repaired".

And check out these ominous warnings from Barack Obama about what will happen if the sequester cuts go into effect...

"Emergency responders like the ones who are here today -- their ability to help communities respond to and recover from disasters will be degraded.  Border Patrol agents will see their hours reduced.  FBI agents will be furloughed.  Federal prosecutors will have to close cases and let criminals go.  Air traffic controllers and airport security will see cutbacks, which means more delays at airports across the country.  Thousands of teachers and educators will be laid off.  Tens of thousands of parents will have to scramble to find childcare for their kids.  Hundreds of thousands of Americans will lose access to primary care and preventive care like flu vaccinations and cancer screenings."

The Obama administration has even decided to release hundreds of illegal immigrants in anticipation of the cuts...

Immigration and Customs Enforcement officials have released “several hundred” immigrants from deportation centers across the country, saying the move is an effort to cut costs ahead of budget cuts due to hit later this week.

Announcing the news Tuesday, ICE officials said that the immigrants were released under supervision and continue to face deportation. After reviewing hundreds of cases, those released were considered low-risk and “noncriminal,” officials said.

The claims about the sequester cuts just seem to get more ridiculous with each passing day.  Homeland Security Secretary Janet Napolitano is warning that the cuts will make the U.S. more vulnerable to terrorist attacks,  and Obama recently decided not to send an aircraft carrier to the Persian Gulf because of "budget concerns".

Apparently he sees no problem with using the U.S. military to score political points.

And Federal Reserve Chairman Ben Bernanke says that the budget cuts will result in "less actual deficit reduction in the short run".


How stupid do they think we all are?

Yes, the sequester cuts will have an impact on the economy, but they won't cause the sky to fall.

The following is what the CBO says the economic impact of the cuts is likely to be...

The Congressional Budget Office estimates the cuts will cost 750,000 jobs and hit growth by 0.6 percentage points, assuming the cuts remain in effect for the remainder of the fiscal year. Some economists expect a slightly bigger impact.

Remember, these are actually very small cuts.

In fact, according to U.S. Representative Lynn Jenkins, the U.S. government will actually be spending more money in 2013 than it did in 2012 even if the sequester cuts go into effect...

“There’s a fact that says we are going to take in more money this fiscal year than we have ever taken in before,” Jenkins said.  “The budget this year, we will spend more money this year than we spent last year even if the sequester goes into effect.  We will spend more money even if the sequester goes into effect.”

So why is everyone whining and crying over such a very small amount of money?

If you want to get upset about something, why not get upset about things that are increasing our debt by trillions of dollars?

For example, according to a Government Accountability Office report that was just released, Obamacare is going to cause the federal debt to rise by $6.2 trillion.

Why aren't more people getting upset over that?

Sadly, it is because America is a debt addict.  Most Americans don't really care much when federal spending skyrockets out of control, but if anyone tries to slow down the spending a little bit they throw hissy fits.

And please don't tell me that "the big government Republicans" are much better than "the big government Democrats" on budget issues.  The Republicans have caved in and have gone along with all of this wild spending every single time.

On March 27th, they will have another opportunity to do something.  That is when the current continuing resolution expires.

At that time, the Republicans could refuse to pass anything but a balanced budget.

Or they could at least refuse to pass anything except a budget that would cut the federal budget deficit in half.

But they won't do anything once again.  They will cave in and go along with the status quo because they are cowards.

So we will continue to rip off future generations to fuel our current bloated standard of living.

Thomas Jefferson understood that government borrowing is theft from future generations.  He once made the following statement....

And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.

Shame on you Democrats.

Shame on you Republicans.

Shame on you America.

You are destroying the future of America for your own selfish reasons.

If future generations get the chance, they will look back on what you did to them and they will curse you for it.

For much more on our exploding national debt, please see the following article: "55 Facts About The Debt And U.S. Government Finances That Every American Voter Should Know".

Not that living within our means would be easy.

Like I said, it would mean a deep economic depression, and it would also likely mean a tremendous amount of societal chaos.

Even now, while we are still living in the boom times, things are really starting to get crazy out there.  Just check out what is going on in Oakland...

Oakland’s crime problems have gotten so bad that some people aren’t even bothering to call the cops anymore; instead, they’re trying to solve and prevent crimes themselves.

KPIX 5 cameras caught up with a half dozen neighbors in East Oakland’s Arcadia Park neighborhood Monday as they walked the streets on the lookout for crime. The vigilance has never seemed more necessary than now; 25 homes in the neighborhood have been burglarized over the last two months alone.

In a neighborhood that has started to feel like the wild west, people have even started posting “wanted” signs.

“You have to walk around in your house with a gun to feel safe here,” said Alaska Tarvins of the Arcadia Park Board of Directors.

If this is how bad things are now, how bad will they be when a day of reckoning for our economy arrives?

And a day of reckoning is coming.

Our politicians can try to keep kicking the can down the road for as long as they can, but eventually time will run out.  Just take a look at what is happening in Greece and Spain.  Meanwhile, all of this can kicking is just making the eventual crisis even worse.

We can borrow our way to prosperity for a while, but in the end there is always a very bitter price to pay for doing so.

I would love to tell you that there is a chance that all of this will be turned around, but the truth is that all of this whining and crying about the sequester shows that America is doomed.

I hope that you are getting ready.


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CPL's picture

And most of that budget is sucked into the Fed in Interest at whatever low window rate is offered today.

flacon's picture

Did Boehner actually have a press conference today? Did anybody see it? I saw the link on ZH about 11 minutes after they posted the link but I didn't see any press conference. 

GetZeeGold's picture


I'm hoping someone will drive him out in the the country and kick him out of the car. Hopefully he won't find his way back to civilization for at least 48 hours.

flacon's picture

From the article:


Government spending cuts always hurt the economy.


That is not true. Government spending cuts hurts "GDP" which is NOT a measure of PRODUCTION (except in the minds of madmen like John Maynard Keynes). Real PRODUCTION would increase if government were to stop competing with real enterprise. 


Government spending cuts allows PRICE DISCOVERY - and guess what? America has been weighed and been found wanting, which is why they don't want price discovery. 


NotApplicable's picture

As someone who watches zero MSM news these days, I find it interesting just how fast these topics get disseminated amongst the sheeple. All of these people who are too apathetic to try and understand what's really going on will argue about this minutiae on end, without ever realizing they're merely repeating what has been programmed into them.

And that, my friends, is the hallmark of an "informed voter."

francis_sawyer's picture



"Did Boehner actually have a press conference today?"

Did you not see the icon artwork to this thread?... That was Boehner...

Spirit Of Truth's picture

Do you really think the American people will wake up to the fact that they are living the high life on a credit card in their grand children's and great grand children's names?

Hell no! 

There's a good game on to watch....there's some absurd reality TV program to sit down for....there's...

Why ever face up to the utter immorality of living beyond your means until the credit line is cut?

Oh yeah....and what about those folk generating the credit line out of thin air?  Are they accountable?

Sometimes God just wipes the slate clean of such insane ridiculousness:

TerminalDebt's picture

Just live on that credit card until it runs out then move to China

DeadFred's picture

Most of the sub-order reptilian symbionts that populate the MSM have meme propagation inplants. This helps them to all be on the same page to help their uber-order masters.

DJ Happy Ending's picture

If only government were more niggardly.

francis_sawyer's picture

That was Obama... <above & below>

max2205's picture

They think we are not stupid but comatose

francis_sawyer's picture


willwork4food's picture

I doubt when the state takes over Detroit tomorrow and the pensions, salaries, perks and city services get hacked there will be many people sleeping sound for a while. Especially when the riots begin.

Ground Zero.

UnpatrioticHoarder's picture

Back in the 1980s the Australian Labor government instituted the "efficiency dividend", an automatic across-the-board annual expenditure cut to departmental budgets of about 1%. This has been happening for nigh on 30 years now. Of course budgets are adjusted up or down depending on new programs and priorities, but the default position is a small annual reduction.

It is is utterly infantile how the US Government and its lackies can't get their head around the idea that efficiencies will always be found if they try hard enough.

Frozen IcQb's picture

What a great post. Well said.

wee-weed up's picture

Base-line budgeting means there will NEVER be any cuts!

nmewn's picture

ZH really needs to do an article on this to explain it to the "masses". It is fiat monetary inflation in its purest form, sitting there, under everyones nose and no one talks about it.

How is it that, if I'm EXPECTING a 10% raise and I only get a 2% raise it is said by all rational people, that I got a 2% raise?

However, if under government baseline budgeting, when they are EXPECTING a 10% raise and only get a 2% raise it's called a cut?...draconian even!!!

Its the fucking Twilight Zone.

wee-weed up's picture

Thank the Obama Admin lapdog MSM!

See no evil... hear no evil... report no evil!

CPL's picture

Year end spending is part of that mess as well.  Have to spend the budget or you don't get the same budget next year.

nmewn's picture

Thats exactly right, God forbid they don't spend every penny stolen from the pockets of the living (and extorted through debt issuance from future generations).

Its criminal and I don't have a problem calling it so.

DaveyJones's picture

...they don't see it your way because there were two words you used that don't apply to congress: "rational" and "people"

I love it when people use the "c" word

not just because its "my industry"

but because nothing gets fixed until we get there (and we get them there)

kralizec's picture

If these "people" we are talking about understood anything maybe wishes would be more than candy and nuts, but this is the age of the Obama low-info voter where stupid rules over all, get used to it.  When the shit hits the fan the Great Reckoning will commence.

jerry_theking_lawler's picture

one of the exact reasons why 'private' industry is much better at 'spending'....if private doesn't spend its budget, it is a savings to the company and part of the savings is passed on as 'bonus' to the saving parties.....

Just Ice's picture

Yes, an increase that gets wordsmithed into being "a cut"...just like "taxes" have now been changed to "revenues".  Government simply needs "revenues" rather than government is again burdening people with taxation.  Subtlely deceptive speech so black will only sound gray in the mist of the Twilight Zone. 

Parousia's picture

Based on what I've been hearing him say over the last several weeks, either he is threatening the people at whose pleasure he serves, or he is admitting he cannot administrate the Federal Government with 2011 levels of funding. Either way, for many of us there is a lot to be learned about the man who holds the "highest office" in the land.  For the rest of us, what we already knew about him is merely confirmed.  

Crash Overide's picture

This thing is already over most just don't know it yet. 

I can't believe how this show continues to go on, fucking twilight zone is right.

nmewn's picture

It can't be allowed to happen, its clear insanity!!! There's still time, three hours folks, 170 million jobs will be lost!!!

Maxine Waters says so ;-)

Spastica Rex's picture

I bet the market shoots the moon when the world doesn't come to end immediately at midnight.

fonzannoon's picture

i don't know spas. If the market shoots to the moon then it starts to give room to the idea of more cuts. maybe even ending QE.

I am guessing the market takes a real pop. But it will be theatre. 

francis_sawyer's picture

I'll bet that the DAY AFTER THE WORLD ENDS... The markets shoot the moon... [& continue to do so in fibonacci sequences thereafter]...

GCT's picture

Nmewn your comments are spot on.  Do we even have 170 million jobs anymore ?  I do not think so and yet people will cry the sun is going to explode over her really really stupid comments.  I like most do not watch the MSM with the exception of weather and only then because I live in tornadoe alley.

Even the local news is either about gun violence or Obama and the repubs.  There are time I wonder if I am not the Crazy Fucker and then all I have to do is speak with some co-workers and thank my lucky stars to actually do some research and read. Most discussion revolve around reality TV or how we must save the government from crazies like me.

 Actually if you look into the total governement spending along with the Fed bailout this sequistor is only .65% of the budget cuts.  If we cannot cut anything eventually the country will implode at some point.

tawdzilla's picture

yeah, whine away...because 700,000 civilian DOD bureaucrats just ain't enough 

Lucius Cornelius Sulla's picture

Cut all forces outside of American soil, reduce the Navy's power projection to the Pacific and Atlantic and the net effect to our economy will be negligible.  We don't need to be the policeman for global corporations.

DaveyJones's picture

true, but apparently we're their defense attorney and bail bondsman

NoDebt's picture

You have no idea how fragile the current system is, do you?  A hinky election in Italy throws the market into a tailspin.  The slightest distrubance could bring it all down.  It's a pyramid of crystal wine glasses floating on a cork in a millpond.  The slightest ripple.....

Frozen's picture

We can hope.  But in The Matrix, everything, especially disruptions, only serve to strengthen the machine.

NotApplicable's picture

A.k.a., "controlled destruction."

"Yep, it's gonna break, let's do it real goood!"

nofluer's picture

Who cares what the market will do? It has been in fantasy land for years, and only fools and idiots, and people who are "invested" through a pension plan, own stock these days. And the penson plan managers are the very same people that Goldmansucks wound up their pump and dump schemes on for years! Let it crash! No crash, no meaningful market. No meaningful market - no real economy. We'll all be just "livin' the dream" 'cause there won't be any real money to buy anything real with.

McMolotov's picture

+1 for use of the word "hinky." The fact that bankers and bureaucrats piss themselves over an election in one small European country and let it bleed into the markets (rigged as they are) ought to convince everyone of the fact that things aren't quite as stable as we often make them out to be.

Whenever the shithouse finally goes up in flames, whatever sets it off will be something that, in retrospect, will have appeared seemingly insignificant at the time.

Kirk2NCC1701's picture

Make it shaken, not stirred.

Wanton1's picture

Recession is a function of leadership IQ.


According to a study released in The British Journal of Psychology, men's IQs exceed women's by an average of five points. The disparity is more pronounced at higher levels, with three men for every woman scoring above 130 and more than five men per woman above 145 IQ.










FrankDrakman's picture

 men's IQs exceed women's by an average of five points. The disparity is more pronounced at higher levels, with three men for every woman scoring above 130 and more than five men per woman above 145 IQ.

Everyone seems to think the problems started with the Fed in 1913. It's pretty awful, but the worse mistake was giving women the vote in 1920. It's been downhill ever since.

philipat's picture

The question is why? Does Obama truly believe that The US can continue borrowing 1-1.5 Trillion PA indefinitely? If not, the alternative would seem to be a deliberate intent to crash the system?

The latest opinion polls show that the sheeple support Obama and would prefer tax increases on "The rich". But that is, of course, easy to say when you are part of the 50% that doesn't pay taxes.

RebelDevil's picture

Here's the thing about the bottom 50%, ok:
If they were taxed like the so called middle-class, they would LOSE their shit, big time!
(More forclosures, car repos, evictions, ect.)

Can Jamie Dimon pay at least a little more tax? Hell Yeah!
(and that's just assuming he actuals pays tax at the current rate like he should.)

imapopulistnow's picture

You are right Rebel.  Real wages have tumbled for decades and working folks at the bottom of the ladder have gone to third world status.

The problem is real but the answer is not anti-private sector, pro-government Obamanomics.  Too often gov't monies go to create more high pay jobs in the political elite class rather than distributions to the poor which are valid, while the private sector - the group that creates the wealth from which gov't can extract rents - is viewed as an enemy that should be punished.

The solution is to grow the private economy to where it can both create jobs and sustain some appropriate level of  government services.  It is not inconsistant to expect the most wealthy to contribute more.

To understand the cause, see this: (posted by someone of ZH a few months back)

A prophetic interview with Sir James Goldsmith in 1994