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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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Thu, 02/28/2013 - 22:11 | 3288660 CPL
CPL's picture

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

Thu, 02/28/2013 - 22:14 | 3288667 flacon
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. 

Thu, 02/28/2013 - 22:18 | 3288683 GetZeeGold
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.

Thu, 02/28/2013 - 22:25 | 3288693 flacon
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. 


Thu, 02/28/2013 - 22:48 | 3288791 NotApplicable
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."

Thu, 02/28/2013 - 23:02 | 3288837 francis_sawyer
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...

Thu, 02/28/2013 - 23:27 | 3288925 Spirit Of Truth
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:

Fri, 03/01/2013 - 11:03 | 3289994 TerminalDebt
TerminalDebt's picture

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

Fri, 03/01/2013 - 00:06 | 3289039 DeadFred
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.

Thu, 02/28/2013 - 22:52 | 3288804 DJ Happy Ending
DJ Happy Ending's picture

If only government were more niggardly.

Thu, 02/28/2013 - 23:05 | 3288841 francis_sawyer
francis_sawyer's picture

That was Obama... <above & below>

Thu, 02/28/2013 - 23:13 | 3288876 max2205
max2205's picture

They think we are not stupid but comatose

Thu, 02/28/2013 - 23:20 | 3288906 francis_sawyer
francis_sawyer's picture


Fri, 03/01/2013 - 00:16 | 3289063 willwork4food
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.

Thu, 02/28/2013 - 23:12 | 3288857 UnpatrioticHoarder
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.

Fri, 03/01/2013 - 09:04 | 3289565 imapopulistnow
imapopulistnow's picture

Excellent point.

Thu, 02/28/2013 - 23:08 | 3288860 Frozen IcQb
Frozen IcQb's picture

What a great post. Well said.

Thu, 02/28/2013 - 22:12 | 3288663 wee-weed up
wee-weed up's picture

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

Thu, 02/28/2013 - 22:26 | 3288713 nmewn
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.

Thu, 02/28/2013 - 22:34 | 3288737 wee-weed up
wee-weed up's picture

Thank the Obama Admin lapdog MSM!

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

Thu, 02/28/2013 - 22:43 | 3288777 CPL
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.

Thu, 02/28/2013 - 22:47 | 3288788 nmewn
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.

Thu, 02/28/2013 - 23:38 | 3288945 DaveyJones
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)

Fri, 03/01/2013 - 08:35 | 3289521 kralizec
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.

Fri, 03/01/2013 - 11:36 | 3290128 jerry_theking_lawler
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.....

Thu, 02/28/2013 - 22:48 | 3288795 Just Ice
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. 

Thu, 02/28/2013 - 23:11 | 3288868 Parousia
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.  

Fri, 03/01/2013 - 12:40 | 3290477 Crash Overide
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.

Thu, 02/28/2013 - 22:39 | 3288765 CPL
CPL's picture


Thu, 02/28/2013 - 23:00 | 3288829 johngaltfla
johngaltfla's picture

Congress and political morons running the DoD guarantee that also:


A Perspective on Sequestration from the Cockpit of the F-35 Joint Strike Fighter

Thu, 02/28/2013 - 22:14 | 3288665 nmewn
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 ;-)

Thu, 02/28/2013 - 22:48 | 3288796 Spastica Rex
Spastica Rex's picture

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

Thu, 02/28/2013 - 22:56 | 3288820 fonzannoon
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. 

Thu, 02/28/2013 - 23:23 | 3288915 francis_sawyer
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]...

Fri, 03/01/2013 - 11:45 | 3290158 GCT
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.

Thu, 02/28/2013 - 22:14 | 3288666 tawdzilla
tawdzilla's picture

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

Thu, 02/28/2013 - 23:16 | 3288881 Lucius Corneliu...
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.

Thu, 02/28/2013 - 23:42 | 3288976 DaveyJones
DaveyJones's picture

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

Thu, 02/28/2013 - 23:56 | 3289017 willwork4food
willwork4food's picture


Thu, 02/28/2013 - 22:15 | 3288671 NoDebt
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.....

Thu, 02/28/2013 - 22:24 | 3288707 Frozen
Frozen's picture

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

Thu, 02/28/2013 - 22:50 | 3288799 NotApplicable
NotApplicable's picture

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

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

Thu, 02/28/2013 - 23:58 | 3289025 nofluer
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.

Fri, 03/01/2013 - 00:56 | 3289141 McMolotov
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.

Fri, 03/01/2013 - 01:11 | 3289160 Kirk2NCC1701
Kirk2NCC1701's picture

Make it shaken, not stirred.

Thu, 02/28/2013 - 22:15 | 3288677 Wanton1
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.










Fri, 03/01/2013 - 17:50 | 3291762 FrankDrakman
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.

Thu, 02/28/2013 - 22:22 | 3288695 philipat
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.

Thu, 02/28/2013 - 23:42 | 3288962 RebelDevil
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.)

Fri, 03/01/2013 - 09:30 | 3289608 imapopulistnow
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

Fri, 03/01/2013 - 10:27 | 3289835 Shizzmoney
Shizzmoney's picture

It is not inconsistant to expect the most wealthy to contribute more.

As Richard Wolff (who is pretty much a Communist) expertly notes: Regulations are mostly useless; the "elites" usually find ways to get around them with the amounts of capital they have, or even worse, eliminate the important ones (like Glass-Steagall) completely through buying off politicians.

The country is too big, and we have too much bureaucracy. 

Fri, 03/01/2013 - 10:57 | 3289969 jemlyn
jemlyn's picture

Too bad I can't give you an up arrow.  You started with a quote.

Fri, 03/01/2013 - 00:04 | 3289029 Diogenes
Diogenes's picture

It's the same reason so many are obese. Diet and exercise pay off eventually, sitting in front of the TV eating Doritos pays off right now.

Likewise, if he keeps running the country into the ground someone else will suffer after he leaves office. If he does something about it he will suffer now.

Of course this presupposes he knows what is good for the country. It is much more likely that he sincerely believes what he is doing is for the best. And if it isn't working it is all the fault of those Republicans.

Fri, 03/01/2013 - 09:35 | 3289627 imapopulistnow
imapopulistnow's picture

 Hmmmm, hamburger-flavored Doritos. 

Fri, 03/01/2013 - 11:19 | 3290053 Shizzmoney
Shizzmoney's picture

Likewise, if he keeps running the country into the ground someone else will suffer after he leaves office.

This has happened for every President since Nixon.

Look at the consistency of stock market major downturns/crashes at the end of POTUS terms' since the Nixon era:

Nixon (1974 Crash due to effect from 1973 Oil crisis, collapse of the Bretton Woods system, 'Nixon Shock' via Watergate, and United States dollar devaluation under the Smithsonian Agreement)

Ford (1977 Souk Al-Manakh, Kuwait, stock market crash.  This started off a wave of Oil crisis pressures that led to the rise of the Islamic Revolution in the early 1980s, as well as many downturns these oil pressures added to our stock market.  Kuwait's market finally completely tanked in 1982...when Suddam Hussein came into power...what a coincidence!).

Carter (1980 - 'Silver Thursday'

Reagan (1987 'Flash Crash')

Bush (1991 Recession, spurred on by shoddy fundamentals, rising taxes, and S&L crisis.  The only reason it wasn't bigger? We were in Gulf War Part I, which props up GDP).

Clinton (1999 - Bubble)

Bush II (2007 - Housing Bubble, Lehman/Bear Sterns)

Obama (2015, Bonds IMO)

Thu, 02/28/2013 - 22:23 | 3288699 Ned Zeppelin
Ned Zeppelin's picture

Let's get serious - if you leave out MSNBC, no one is upset about the sequester. No real people care.

Thu, 02/28/2013 - 22:30 | 3288734 AmCockerSpaniel
AmCockerSpaniel's picture

You are right "........ without much of the country throwing an absolute hissy fit", but it was a creation by the politicians, and the media as a whole. Garbage in garbage out. I don't fault the people, they were just victims of the media, and/or the one tenth of one percent.

Thu, 02/28/2013 - 23:11 | 3288870 W74
W74's picture

Rachael Maddow needs a punch in the face, or maybe just a good lay. 

I don't think I could do it though, I mean I'm reasonably good but I think she'd just criticize me anyway.  And with that voice.....Yuck.

Thu, 02/28/2013 - 22:23 | 3288709 JJ McApe
JJ McApe's picture

lol while I enjoy all the doom and the smiley at the end of this "report" i find it quite funny that the dow is near it's all time highs. dow is above 14k - and gold is getting poleaxed erryday.

so what is going on folks, something is wrong. either the doomtards or the stock market... something is not fitting in.

where is world war 3???

Thu, 02/28/2013 - 22:34 | 3288751 TruthInSunshine
TruthInSunshine's picture

The Dow and S&P & Nasdaq are all, at a minimum, 50% lower in real terms than their actual historic highs.

It's conspicuous but not surprising as to why the sellside snake oil machine that is Wall Street rarely if ever uses the term "nominal" when discussing such things, nor is "survivorship bias" a commonly discussed theme.

Thu, 02/28/2013 - 22:36 | 3288757 fonzannoon
fonzannoon's picture


Thu, 02/28/2013 - 22:49 | 3288797 PAWNMAN
PAWNMAN's picture

Would a used car salesman EVER state that it was a bad time to buy a car? That's all these jackasses are, high paid used car salesman. In fact, that analogy gives them more respect than they deserve.

Thu, 02/28/2013 - 23:08 | 3288858 W74
W74's picture

No different than Realtors.

Fri, 03/01/2013 - 01:06 | 3289154 McMolotov
McMolotov's picture

Who cares if companies listed a few years ago are gone now? We've got Zyngas and Herbalifes and Facefucks to take their place! We're an all time high, just like Octopussy!

Thu, 02/28/2013 - 22:24 | 3288710 fonzannoon
fonzannoon's picture

where are they now Egan Jones and S&P. Hey Moody' have any input on this?

Thu, 02/28/2013 - 22:29 | 3288727 Papasmurf
Papasmurf's picture

This notion that government debt steals from future generations is incorrect.  It steals from savers through the theft of inflation.  Future generations will never shoulder this debt because the debt is never paid off.  Those who spend more than they have are the smart ones.  They never have an inflated dollar in their pocket.  I wish I had figured that out forty years ago.


Thu, 02/28/2013 - 22:33 | 3288750 booboo
booboo's picture

I think you mean to say "They never have an deflated dollar in  their pocket" or the same dollar chasing inflated assets. In my world my dollars are getting smaller.

Thu, 02/28/2013 - 22:29 | 3288730 booboo
booboo's picture

All of this hand wringing, Bernanke being asked in hearings if cutting the rate of growth by 85 billion dollars is all a scripted production by all interested parties (except the citizens of course) is to wear down the proles to the point of fatigue so they don't have to suffer through the argument again and again. It reminds me of the scene in Saving Private Ryan where the reoccuring nazi soldier is shushing the american soldier while he shoves the knife in his gut trying to quiet him from screaming as if to say just accept it and die already.

Thu, 02/28/2013 - 22:31 | 3288741 Stanley Lord
Stanley Lord's picture

Did not read it, nobody I know is throwing a 'hissy fit" most people are zombied out or have  tuned out.

Thu, 02/28/2013 - 22:35 | 3288754 Sutton
Sutton's picture

Everyone gets a million dollar check.  Smart people do their thing, nigs do their thing.

Thu, 02/28/2013 - 22:55 | 3288814 Papasmurf
Papasmurf's picture

How much coke and ho's can you get for a mil?  Oh, wait, lets ask a senator.

Thu, 02/28/2013 - 22:38 | 3288755 moonstears
moonstears's picture

Several times Mr Snyder mentions stuff like: "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."

I came to realize high inflation is the ONLY way to fix the debt at Govt level, they don't worry about the grandkids, 'cause it'll blow long before the grandkids. This "2% austerity" is hype for the markets. "See, we're on top of this, we're being austere". "Now go out and buy more bonds, and don't forget to tip your waitress" JMO

Thu, 02/28/2013 - 23:06 | 3288854 W74
W74's picture

I hear they want 18% tips now, but for some reason I can't seem to do anything other than 10% quickly enough in my head.  I really think anything more is just unreasonable, and 10% is assuming they're doing their job reasonably well.

Fri, 03/01/2013 - 00:13 | 3289054 cxl9
cxl9's picture

You sound like a cheap-ass. But don't worry, I normally tip 20%. So between us we're giving 15%.

Thu, 02/28/2013 - 22:37 | 3288756 A Lunatic
A Lunatic's picture

I'm sorry, did I miss something? Just opt out Bitchez.........................

Thu, 02/28/2013 - 22:38 | 3288762 pragmatic hobo
pragmatic hobo's picture

some recovery we are in ...

Thu, 02/28/2013 - 22:40 | 3288768 dolph9
dolph9's picture

Everybody is always promising armageddon if they don't get what they want.

The reality is that we are desperately in need of collapse.  Just think what life would be without the all intrusive federal government...without TSA agents groping you and without police sirens blaring at night...with traffic 50% lower, with the wars over, with the obese and addicts having to either shape up or die, with the prices of things you need dropping and the prices of useless shit rising.

One can dream, right?

Thu, 02/28/2013 - 22:55 | 3288815 W74
W74's picture

Twenty Six and Dreaming that such a day will come.

I saved my first 100K from working my ass off at 21.  Today I don't even qualify for a mortgage (too responsible of course) despite zero debts and a 700 credit score. 

I very well may be unemployable once I graduate this May.  I was hoping for a government job, but we'll see.  If not I'll re-train as a Plumber/Electrician, they seem to be about the only things in demand so why not become both?

Fri, 03/01/2013 - 11:26 | 3290083 Shizzmoney
Shizzmoney's picture

The reality is that we are desperately in need of collapse.

"If you are a fan of peace and reform, you root for the DOW to collapse every single day" - David Graeber (Anarchist)

Thu, 02/28/2013 - 22:46 | 3288785 Diogenes
Diogenes's picture

The David Peterson government was elected in 1985 in Ontario on a "cut spending, balance the budget" platform.

As soon as they got into office they announced they were going to close hundreds of schools, hospitals and sports arenas.

This caused a public uproar. Peterson immediately went on the air "Oh sorry, I thought you wanted us to cut spending, if you feel that way we will drop the whole program"

The next week, he went out and bought himself a new jet airplane.

Sounds like the US government is using the same script.

Fri, 03/01/2013 - 00:31 | 3289096 Totentänzerlied
Totentänzerlied's picture

No one gives one miserable single fucking flying fuck about the future beyond today. That is the conclusion I have reached. Our societal time-preference is not high, it is infinite.

Thu, 02/28/2013 - 22:51 | 3288798 Diogenes
Diogenes's picture

Also puts me in mind of a conversation  I heard about between Reagan and Lee Iacocca in the 80s.

Iaccoca said " the government is running a 30% deficit. You can eliminate that if you cut spending 15% and raise taxes 15%".

Reagan said "you can't cut spending 15%".

Iaccoca said "Mr President I have been a businessman all my life. I can cut 15% out of any budget and you will never even miss it".

Fri, 03/01/2013 - 00:20 | 3289068 Curt W
Curt W's picture

And the next year Iaccoca borrowed a Billion from the government.

Thus began the government bailouts of large corporations.

Fri, 03/01/2013 - 09:18 | 3289586 StychoKiller
StychoKiller's picture

Hmm, no it was a loan under the Carter admin., NOT Reagan.

Thu, 02/28/2013 - 23:00 | 3288826 TahoeBilly2012
TahoeBilly2012's picture

They plan to starve and kill us all. They are doing a great job, give them some credit.

Thu, 02/28/2013 - 23:03 | 3288840 IridiumRebel
IridiumRebel's picture

But according to Chris "I'd suck Obamas Dick Twice" Mathews we are terrorists. Fuck you. I am preparing. Waiting on final home sale shit and inspection. I'll paint the fucking house with my tongue to get out. We here know this country is fucked. There are simply too many dumbasses who's narcissistic Facebook phantasmagorical wet dream of a life is leading them down the primrose path to Hell. I pray for us all, but I will be damned if I am not going to protect my family. Godspeed ZHers.

Thu, 02/28/2013 - 23:58 | 3289023 Calmyourself
Calmyourself's picture

Crae to share the plan ? You going expat or?

Fri, 03/01/2013 - 01:24 | 3289175 IridiumRebel
IridiumRebel's picture

I'm looking into Chile. I don't wanna leave but I see shit getting really ugly. I have a 14 month old and she comes first so if we gotta roll, we will roll.

Thu, 02/28/2013 - 23:11 | 3288863 Haole
Haole's picture

The concept that was America is long dead for fuck sake. All the good people who still retain honesty, morality and work ethic are the ones that are doomed.

Thu, 02/28/2013 - 23:16 | 3288889 El Hosel
El Hosel's picture

    Yeah, why bother with honesty, morals and work ethic when you can be J. Dimon and cheat your way to obscene money.... and a get out of jail free card from the Government.

Thu, 02/28/2013 - 23:24 | 3288918 Haole
Haole's picture

Welcome to a pervasive culture of thievery and deceit. What a shame, how quickly it all fell into a pile of shit...

Thu, 02/28/2013 - 23:14 | 3288878 tony bonn
tony bonn's picture

"...Why aren't more people getting upset over that?.."

money for nothing and your chicks for free - it's the american way - there is always other people's money to steal to pay for your high living.....americans have never had to pay the bill for the pig nazi government they is always financed through debt - it is an anasthetic.....the rockefeller axis of evil loves debt because it impoverishes the nation and gives them more control over people's lives and the government......the people love it because it's free money....the democrats love it because it is free votes....the republicans love it because it is free votes....

it is win-win for everyone.....americans are the most ignorant foolish people in the world and in history....they have been lied to and self deceived by the most gargantuan liars - themselves and their conquerors.....this nation is finished and hopeless.....

when the day of reckoning arrives, america will descend over night into 3d world status - there will be no gradual decline - it will be a fly hitting the windshield while the blades are moving.....

Thu, 02/28/2013 - 23:26 | 3288919 Elliott Eldrich
Elliott Eldrich's picture

Here's the problem I see with the whole notion of "people demand benefits they are not willing to pay for." "Pay" for what? How paid? See, when you're talking about FIAT CURRENCY that is being CREATED OUT OF THIN AIR then why do we have to worry about it being repaid?

If we had a real hard money system, with real money that was based on real coinage with real value contained (in other words, "money") then that would be a very different situation and the arguments presented here would have weight and merit. But we don't and therefore the arguments simply don't hold up. 

Wouldn't it make more sense to look at currency as something to be simply provided as the economy needs it? Use the money printed to do things like pay for the stuff government spends money on, when the economy overheats slow down the spending, when it slows down speed up the spending. It's an equation a half-bright fifth-grader could work out.

But no, I guess it's MUCH BETTER to have a private banking cartel create the fiat out of thin air, then LOAN it out AT INTEREST, then yell at everyone as they slowly go broke to just tighten their belts and work harder. Oh yeah, this is gonna work out just swell...

Thu, 02/28/2013 - 23:40 | 3288969 Anusocracy
Anusocracy's picture

But hunter-gatherers didn't have to pay for things 15,000 years ago, and they don't want to pay for things now.

Foraging is the way to go, working is for suckers.

Fri, 03/01/2013 - 09:22 | 3289594 StychoKiller
StychoKiller's picture

Hmm, 15,000 years ago if you couldn't find any food, you died from starvation; today, you jus' swipe yo EBT card at the strip club...

Thu, 02/28/2013 - 23:27 | 3288921 Lordflin
Lordflin's picture

We are not technically borrowing from future generations as the debt will never be paid back. What we are doing is destroying the machinery of enterprise. Who knows when a system may be built to replace the one we have broken... That will be a problem left to future generations. What is left to us is to walk through the resultant chaos.

As to the game going on in Washington... It has little to do with spending cuts or more taxes. Obama has the Republican party backed up against it's base... Tea party, fiscal conservatives and so on... and he intends to break them in time for the 2010 elections. Whether a Democratic run Senate and Congress would be quite the rubber stamp he is looking for is hard to say... But I suspect that the Shadow Party wrecking ball would be far more effective under such circumstances. In any event he will do what damage he can with these cuts in order an attempt to discredit his opponents.

What the outcome of all this is, is anyone's guess, but the fact of Obama's reelection is itself not encouraging.

Fri, 03/01/2013 - 10:06 | 3289733 Andy_Jackson_Jihad
Andy_Jackson_Jihad's picture

They are borrowing from future generations since those generations will pay taxes to pay the interest on the principle they're running up now.  It doesn't matter if the principle is never paid down.  We are techically borrowing them into debt slavery.  Or, the squids are potentially borrowing from their own future generations if our children wake up and one day and kill them all.

Fri, 03/01/2013 - 12:23 | 3290369 RichardENixon
RichardENixon's picture

Where are they going to get the $ to pay taxes with?

Thu, 02/28/2013 - 23:32 | 3288937 RebelDevil
RebelDevil's picture

I am starting to gain the insight that the spending problem is really a inflation & greed problem.
Tons of pork for stupid shit, then when it comes to the important stuff, it costs more for less.
(Like food stamps, DHS, DOD, ect.)

I feel feel for the 750K people who will have to settle for near min-wage again. It sucks ass.

Thu, 02/28/2013 - 23:40 | 3288971 orangegeek
orangegeek's picture

Looks like the Ben and Barry Show is headed toward its series finale.




Thu, 02/28/2013 - 23:50 | 3289001 loveyajimbo
loveyajimbo's picture

The people who are pulling the strings need to be erased... and I don't mean the moronic radical loud puppet Obunga Soetero Davis... how about the Marines... who swore an oath...???

Fri, 03/01/2013 - 00:07 | 3289043 hooligan2009
hooligan2009's picture

excellent statement of the financial position. approximate future track for the "yes we (kick the) can" man

debt = 16 trillion, deficit = 1.2 trillion, then 1.1 trillion then 1.0 trillion and 1.0 trillion = debt in four years of >20 trillion.

100% debt to gdp goes to 104%, then 108%, 112% and 116%...the picture is clear.

needed: a political party that states it has an objective of getting debt to 50%, zero base budgets the expenditure based on the taxes that people "should" (a big should) pay on average. tax avoidance is the issue with us companies avoiding taxes using transfer pricing in offshore jurisdctions. the specialized tax planning accountants should be outlawed and prosecuted if they persist. so should hedge fund maagers using tax shelters like delaware, the caribbean and other places. 

i suggest that tax rate is a 12.5% of GDP to cover all federal, state and muni maintenance, (health and welfare) benefits and defence. PLUS 7.5% to repay debt and interest until debt to gdp gets to that 50%. (100% debt to gdp down to 50% at 7.5% = around 7 years..roughly the same time it took for germany to consolidate east germany into the west germany). this is structural reform. 

tax take = 20% of gdp = 3.2 trillion, v current taxes of 2.1 trillion requiring a 50% increase in taxes for seven years to get things back on track. 

spending has to be cut from 3.6 trillion to the affordable outlays of 12.5% of gdp = 2 trillion for a drop of 1.6 trillion or 44%. 

america has the brains to work out a more efficient logistical deployment of taxes. the governments role needs to be to replace the existing infrastructure for defence (drones certainly kill people more cheaply than sending in a squad of 20 GI's, homeland security can be replaced in its entrety by visual serveillance with police rapid response teams, prisons can be completed shut down with house arrest and tagging, computer devices could replace schools/universities in their entirety (e-readers/note pads..the list is endless).

so increase taxes by 50% and reduce spending by 44%.

sounds hard? think about is the right answer...the wrong answer is to persist with the current system evolved from corruption, pork barrel politics and plain flawed fiscal strategy.

impact on the output? a massive cut in waste..and a freeing up of resources. 

Fri, 03/01/2013 - 00:36 | 3289106 Totentänzerlied
Totentänzerlied's picture

"so increase taxes by 50%"

Great plan, yes, there will be a bloody civil war the next day and that'll be uberbullish for defense stocks!

Fri, 03/01/2013 - 00:53 | 3289133 hooligan2009
hooligan2009's picture would benefit cuts..civil war is happening now in economic terms..check out the number in prisons, widening gap in living standards as the the usa turns into the peoples democratic republic of america.

evolution won't work..economic revolution is isn't everything, social media has seen to that...give people the gadgets in the meanwhile and networks will release all sorts of things.

Fri, 03/01/2013 - 09:26 | 3289601 StychoKiller
StychoKiller's picture

Better plan:  CUT SPENDING by 44% first for a year, then we'll see if raising taxes is still necessary.

Fri, 03/01/2013 - 00:37 | 3289111 Bandit und Buster
Fri, 03/01/2013 - 00:53 | 3289136 Mike Cowan
Mike Cowan's picture

I love the sequester. I love to see them howl. 

Fri, 03/01/2013 - 01:33 | 3289189 Kirk2NCC1701
Kirk2NCC1701's picture

Unless, they are into 'creative writing' or just need a podium, some ppl here need to decide where they really stand, because they seem on opposite of the fiscal issue.  E.g. you can't want the whole thing to crash ASAP and get it over with, and then also complain about the budget not getting fixed. 

What's it gonna be:  1. Fix it, 2.  Keep it (Feed it), or 3. End it (Starve it, Kill it or Assist the killing)?  Pick one and stay the course, dammit.

If, for example, you are for #3, you must stop bitching about "O" increasing the debt, as increasing it only brings the day of Reckoning closer and faster.  If you want #3, you will want him/them to print & spend till the cows come home, to get to inflation and hyper-inflation that much sooner.  Otherwise you're either an idiot, confused or an asshole.  Maybe all 3.

So, to eat my own cooking: I would like #1, but doubt it has any chance.  I don't believe they'll do #2 either, no matter how much they pretend.  It's all theater.  So the realist in me hopes for #3:  Road to Reset.  Scary & uncertain as that will be.  A person can have a personal, fiscal and survival plan for any of these 3 outcomes.  You just need to have one for yours.

Fri, 03/01/2013 - 01:35 | 3289192 Kirk2NCC1701
Kirk2NCC1701's picture

Cut the budgets, cut the Fed jobs!  Cut, cut, cut.  Welcome to the real world.

Fri, 03/01/2013 - 04:22 | 3289317 NuYawkFrankie
NuYawkFrankie's picture

That weeping graphic bears an uncanny resemblance to a cartoonified 'Boaner The Moaner'...

Fri, 03/01/2013 - 07:11 | 3289425 Freewheelin Franklin
Freewheelin Franklin's picture

It's 1937 all over again.

Double dip, baby.

Fri, 03/01/2013 - 08:22 | 3289495 Downtoolong
Downtoolong's picture

In other news: Today the U.S. Government balanced its budget for the first time in 20 years by fining the Federal Reserve two trillion dollars for negligence in executing monetary policy. Included in the settlement, payment must be made in fresh newly printed FRN’s (no Treasury Securities will be accepted) and the Fed will issue an opinion stating this action will have no impact on the inflationary outlook whatsoever.

In the aftermath, newly appointed Treasury Secretary Jacob Lew was quoted as saying, “Man, I don’t know why we didn’t think of this before. It’s like twice as good as that stupid trillion dollar coin idea.”

Fri, 03/01/2013 - 09:59 | 3289706 goldenbuddha454
goldenbuddha454's picture

I don't have govt. benefits, a fat govt. pension, govt. guarantees, a sweet healthcare plan, paid sick days and paid vacations.  Why should America feel sorry for priveleged class?  Why can't govt. workers find work in the private sector?  Could it be that the policies that have come out of Washington don't favor entrepreneurs and wealth creation?   Most of us out here have had to scratch and claw our whole lives through investing wisely and saving what the govt. doesn't take from us.  Its really disgusting the whole culture of expecting endless handouts and cradle to grave security provided by those in the private sector who have businesses and produce real products and real results and build real wealth.   If it weren't for the private sector, the govt. wouldn't run.  We built this country and now the bureaucrats in Washington assume the credit.  Higher taxes on everyone is their only solution to govt. mishandling of money.  Higher taxes only means they have more to spend.  Why do we give endless money to countries over seas who have repeatedly gone against American interests?  Why are we still in Afghanistan?  Why are we not energy independent?  Why has the keystone pipeline not been built?  Why do we contribute money to the IMF to dole out to their chosen bannana republics?  There is no amount of money that exists that would satisfy Washington.  5 trillion dollars and 7.8% unemployment later, they whine and complain that  people are going to hurt.  Where has the money gone?  Keynesian lunacy has taken us to the edge and every generations into the future will be paying the price.   

Fri, 03/01/2013 - 10:01 | 3289713 NEOSERF
NEOSERF's picture

I was thinking about this too.  Given who the voting block now is and what we have just witnessed during this sequester process which was not much effort at all, it is pretty clear NOTHING is going to happen over the next 15 years as boomers divest and retire.  There will be no cuts but rather attempts to push up real inflation while telling the world that there is in fact no inflation.  This allows COLA increments to be flat and payout in real dollars to decline while inflows will increase due to increasing taxes.  Pretty much we just have to wait for boomers to push through the system but I think the yawning debt (could US be up around 125% of GDP?) will be unfixable at that point.  Rollback in coverage, cuts in services (Mail will only come on MWF) etc. will lower everyone's standard of living gradually.  1999 truly was the best this country is likely ever to see....

Fri, 03/01/2013 - 10:24 | 3289822 Shizzmoney
Shizzmoney's picture

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?

Let's get serious - if you leave out MSNBC, no one is upset about the sequester. No real people care.

When you threaten to cut defense (most of it corporate) spending, then you will have plenty of servings of whine from those in government and on televisikon ,especially MSNBC (because their parent company, GE, handles so many defense contracts).

How to add guilt to this?  Cut the spending on seniors, poor people, and low-income students. 

Lets just cut everything while we are at it.  I want the anarchy to begin.  Set this fucking thing on fire.

Fri, 03/01/2013 - 11:48 | 3290167 QQQBall
QQQBall's picture



Electing a community organizer as a Prez...

Fri, 03/01/2013 - 12:44 | 3290518 gnomon
gnomon's picture

I am waiting for the administration to recommend budget cuts based on race and party affiliation, (as recorded in the last election).  If you are a person of color or a dem, no cuts for you!

And if they can't promote this outright, they will try it with some subterfuge.

White trash need not apply.

Put this under the category of REPARATIONS.

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