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The Scariest Charts From Paul Ryan's Proposed Budget

Tyler Durden's picture


A little while ago, Paul Ryan revealed his proposal for a US budget titled "The Path to Prosperity" which is a 91-page waste of time, because if America nearly fired more people than were employed as a result of an $85 billion reduction to the increasing US rate of spending, at least according to math and logic-challenged Maxine Waters, Ryan's suggestion to really gut spending by cutting $4.6 trillion from the deficit over the next decade would be Armageddon incarnate as interpreted by the Obama administration. Which, no matter what one thinks of Ryan's political views, is unfortunate as the fundamental ideas contained in the budget are spot on: America has an unsustainable spending problem which, however, simply can not be resolved, period. After all - why bother: Bernanke will fund US deficit spending until the very end.

So while we present the budget in its entirety for those who need a handy paperback to print out, below we have cropped the key, read scariest charts, from Ryan's budget. They are self-explanatory.

Full budget:


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Tue, 03/12/2013 - 11:35 | 3322520 Super Marco
Super Marco's picture

Ben Bernanke doesn't have $85B to give... oh wait.

Tue, 03/12/2013 - 11:37 | 3322531 Richard Chesler
Richard Chesler's picture

Interest to banksters bitchez!


Tue, 03/12/2013 - 11:41 | 3322549 Ruffcut
Ruffcut's picture

The fed, biggie ass bank, is buying the government to control it and charging us interest and then printing to buy all the stock s to own everything else.

They will print to own until they have it all and you bitchezz have nothing but a drone chasing you with a rocket with your name on it.


Tue, 03/12/2013 - 11:52 | 3322602 camaro68ss
camaro68ss's picture

Its all transitory, until collapse.

Tue, 03/12/2013 - 13:55 | 3323055 SamAdams
SamAdams's picture

How to defeat the mind of the Bolshevists?  All power is derived from monopoly of money creation.  This allows them to buy the service of the defunct GoyMason.  They have not come to power through legal means, regardless of what they say.  The courts are in their hands, politics are controlled media.  The only recourse is force.  The power to coin money must forcefully be taken back by the American people.  That is the only solution.

On the flip side, that is what they want.  Divide and conquer, order from chaos, DHS_1.5B_TSA_UN.  Better wake up as many strong, intelligent people as possible.  The only recourse is force.  They will never concede their power peacefully (Iceland is not the war resource).

Tue, 03/12/2013 - 16:22 | 3323688 RockyRacoon
RockyRacoon's picture

Better wake up as many strong, intelligent people as possible.

That would be, ahhh, ohhh, about 3 in my world.  How 'bout you?

Tue, 03/12/2013 - 11:52 | 3322599 Banksters
Banksters's picture

There will never be an equation under our current system that accurately shows what level of growth will lead to prosperity.   That is because it can't exist.   Monetary policy is really designed to take the land, labor, resources and liberties of the vast majority of people.  It is a scam, a lie, a ponzi.  It will fail.

Tue, 03/12/2013 - 12:29 | 3322751 orez65
orez65's picture

Try to explain that to a Liberal aka the "walking dead"

Tue, 03/12/2013 - 12:35 | 3322773 Banksters
Banksters's picture

I try, but they can't fathom the idea that individual rights are to be cherished.

Tue, 03/12/2013 - 13:23 | 3322954 MachoMan
MachoMan's picture

Despite themselves actually believing in their own individual rights and, thereby, being conservatives in substance...

Tue, 03/12/2013 - 13:36 | 3322993 SeattleBruce
SeattleBruce's picture

Right - so basically, they enjoy beating their heads against a wall...

Tue, 03/12/2013 - 14:16 | 3323142 akak
akak's picture

Yes.  And no.

WTF is a "liberal?!"

WTF is a "conservative?"

If "WTF" = A, and "WTF" = B, then by the commutative principle of political doublespeak, a "liberal" is identical to a "conservative".


Tue, 03/12/2013 - 15:52 | 3323590 SimplePrinciple
SimplePrinciple's picture

That explains how John McCain, Lindsey Graham, and Barack Obama have dinner parties together, after which they can all bad-mouth Rand Paul.

Wed, 03/13/2013 - 09:59 | 3325669 MachoMan
MachoMan's picture

The wikipedia entries should be a good explanation for everyone as to how virtually everyone gets the terminology wrong (they're literally all over the place)...  the simple fact is that of our representatives, only a handful expressly hold themselves out as conservatives.  What commonly occurs is that liberal is used interchangeably with democrat and conservative with republican...  However, this has NOTHING to do with liberalism and conservativism.  The reason why McCain, Graham, and Obama can go to dinner parties together and get chummy, is because their political ideals are the same (liberals)...  their political party affiliation is irrelevant.

The only reason why these things are confusing is because the terminology is purposefully misused and corrupted.  Do you want more government?  If so, you're a liberal.  If you want less government, then you're a conservative.  Simple as that.

Tue, 03/12/2013 - 11:55 | 3322616 Clayton Bigsby
Clayton Bigsby's picture

The US will soon officially be "Barter-town" - Mooch is Auntie Entity and the Bernank is MasterBlaster - obama, he's one of the pigs in the basement.

Tue, 03/12/2013 - 11:57 | 3322622 Sudden Debt
Sudden Debt's picture

whatever... you'll be paying it back anyway... and your kids... their kids.. and their kids untill they jump the fence and try to make a run into Mexcico to get a real job by than.

Tue, 03/12/2013 - 12:05 | 3322656 StarTedStackin'
StarTedStackin''s picture

How much have YOU had to pay back?

Tue, 03/12/2013 - 12:17 | 3322715 toady
toady's picture

30 to 40k a year used to go to the taxman before I jumped off the merry-go-round. They still get me for 4 to 5k a year.

Tue, 03/12/2013 - 12:27 | 3322743 Kayman
Kayman's picture

You are not alone. I have been winding down for the last 4 years.  It is pointless to run a business and create private sector jobs.

Tue, 03/12/2013 - 12:33 | 3322764 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

Alas, very true.

Tue, 03/12/2013 - 12:53 | 3322848 Manthong
Manthong's picture

The central planning idiots think everybody, including business owners have a government worker salary oriented mindset.

Boy, are they in for a surprise.

Tue, 03/12/2013 - 13:25 | 3322961 MachoMan
MachoMan's picture

That depends on the will and perseverance of the people...  they'll only be surprised when the whip and gun cannot get the mules to pull the cart any longer...  we're still in the "carrot on a stick" stage of the game.

Tue, 03/12/2013 - 14:12 | 3323132 Dieselclam
Dieselclam's picture

It's a lot less traumatic to be a burden who pays nothing than to be the 80hr/week slave who was handing JUST the IRS $70,000/yr a few years ago.

Tue, 03/12/2013 - 13:41 | 3323013 SeattleBruce
SeattleBruce's picture

"It is pointless to run a business and create private sector jobs."

Come on Kayman - you're not being a team player!  Don't you know there are poor bankrupt bankers to be fed, not to mention funding pay raises for the TOTUS (not to mention greens fees and junkets for his family and entourage) and CONgress?  Oh, did I fail to mention all the moochers...come on man, get up and give me 20 more (years)!

Where's your sense of civic duty?!  /massive sarc, in case anyone could not detect.

Tue, 03/12/2013 - 12:50 | 3322832 TBT or not TBT
TBT or not TBT's picture

Starve problems and feed solutions.

Tue, 03/12/2013 - 12:27 | 3322740 Son of Loki
Son of Loki's picture

I told mi hijo to learn Espanol ASAP. He'll need it for a good job in Guatemala or Panama where the yobs are when he grows up.

Tue, 03/12/2013 - 12:11 | 3322685 SheepDog-One
SheepDog-One's picture

'The Path to Prosperity!'

LULZ yea sure...

Tue, 03/12/2013 - 13:20 | 3322948 IridiumRebel
IridiumRebel's picture

Give? No

Print? Yes

Tue, 03/12/2013 - 11:35 | 3322523 firstdivision
firstdivision's picture

What Ryan left out would be how he would add $10T in debt in other areas since the banks wouldn't like the US letting the economy/markets tank. 

Tue, 03/12/2013 - 11:45 | 3322565 Ruffcut
Ruffcut's picture

Your debts are your problem. Their debts are still your problem. Ryan is as full of shit as anyone on the hill, the hill of a huge stinkin pile of shit. Glad I have not stepped in it, but seems to taste real bad, so far.

Tue, 03/12/2013 - 13:45 | 3323031 SeattleBruce
SeattleBruce's picture

"Glad I have not stepped in it" - what are you talking about?  Assuming you're an American, we're all knee deep (or higher!) in this sh#$.  OK, so figuratively and literally, some portion of us are retreating to the hills...

Tue, 03/12/2013 - 16:26 | 3323702 RockyRacoon
RockyRacoon's picture

...the hill of a huge stinkin pile of shit.

Yep.  And we all live down-wind from it, no matter what point of the compass we occupy.

Tue, 03/12/2013 - 12:57 | 3322856 cougar_w
cougar_w's picture

Ryan's charts are stupid. Did he consult with Birinyi on how to use a ruler to extrapolate 50 years ahead?

Anybody extrapolating 50 days ahead needs to have their head examined. There are so many unknown unknowns at work right now that The Great Kreskin would be boggled.

Tue, 03/12/2013 - 13:05 | 3322884 Divine Wind
Divine Wind's picture



Excellent call.

The only numbers I even semi trust these days is that coming out of Shadow Stats.

Tue, 03/12/2013 - 11:36 | 3322527 the not so migh...
the not so mighty maximiza's picture

Mr Ryan voted for every bailout, he shouold be the last one to write a budget proposal.

Tue, 03/12/2013 - 11:46 | 3322569 blueRidgeBoy
blueRidgeBoy's picture

he seems to be the only one writing a budget proposal.

Tue, 03/12/2013 - 11:56 | 3322619 DOT
DOT's picture

Amazing that a Congress Critter can write at all. Normally all legislation is delivered to the Reps. with talking points.

Tue, 03/12/2013 - 14:19 | 3323155 SeattleBruce
SeattleBruce's picture

Funny you say that, I'm sure the TOTUS will have his teleprompter deliver his budget 'suggestions'...The Senate hasn't delivered a budget in over 3 years...apparently they don't need one.  Talk about the new normal.  None of the rest of us can live like that without getting thrown in jail.

Tue, 03/12/2013 - 11:48 | 3322577 ParkAveFlasher
ParkAveFlasher's picture

< Ryan is a poser

< Ryan is a poser

Tue, 03/12/2013 - 13:29 | 3322976 DoChenRollingBearing
DoChenRollingBearing's picture

<---  Ryan est un poseur...

Tue, 03/12/2013 - 14:11 | 3323128 cougar_w
cougar_w's picture

<--- DoChenRollingBearing is a poser

<--- cougar_w is da mac daddy yo.

Tue, 03/12/2013 - 12:06 | 3322660 McMolotov
McMolotov's picture

He wants us to think of him as a "policy wonk," but this is how I'll remember him forever:

Tue, 03/12/2013 - 11:37 | 3322528 DoChenRollingBearing
DoChenRollingBearing's picture

And since no one wants to really control spending in DC, things will get worse.

Since almost NONE of us can do anything about DC and Fed machinations, I recommend getting OUT of the corrupt system by buying as much gold as you are comfortable with.

Tue, 03/12/2013 - 11:47 | 3322572 Deo vindice
Deo vindice's picture

One might even consider buying more gold than one is "comfortable with". Just saying...

Tue, 03/12/2013 - 12:25 | 3322697 DoChenRollingBearing
DoChenRollingBearing's picture

Speaking for myself only, I need a LOT of gold to feel comfortable...



Although I would settle for a LOT of good automotive bearings.

Tue, 03/12/2013 - 12:05 | 3322657 squidward
squidward's picture

Gold has been confiscated before, hedge with lead.  

Tue, 03/12/2013 - 12:13 | 3322687 akak
akak's picture

Correction: gold has been illegalized before, but it has NEVER been actually "confiscated".  There have NEVER been any door-to-door searches of homes and private property for any 'illicit' gold, so no privately held gold has ever been literally confiscated.

I am coming to suspect that this inappropriate and erroneous meme of gold "confiscation" has actually been purposely and repeated injected into discussion (not by you, squidward) by TPTB to scare current and potential gold owners, and to psychologically weaken their resolve to defy any potential illegalization of gold down the road.

Tue, 03/12/2013 - 12:20 | 3322716 DoChenRollingBearing
DoChenRollingBearing's picture

Yeah, could be akak...  So many naysayers on gold.  Makes me suspicious too.

On the other hand, lead becomes precious moving at a high enough velocity.  Even Russian steel!


We had a delicious dinner last night with three customers at a big chifa / buffet place on Javier Prado (some smart Peruvians in the bearing business, what a pleasure talking with them).  I´m gaining weight here akak, good thing we are heading back to America soon, or I would get FAT!

Tue, 03/12/2013 - 12:26 | 3322737 akak
akak's picture

LOL DoChen!

Despite all my hiking and backpacking, I can remember gaining weight on each of my trips to South America as well!  US 'american' citizenism citizens who have never left our borders simply have no conception of how good good food --- REAL food --- can be!

Tue, 03/12/2013 - 12:36 | 3322780 DoChenRollingBearing
DoChenRollingBearing's picture

Although NEXT TIME I am here (Nov), I am going to insist that we take our customers to "Jose Antonio", the BEST Lomo Saltado I can ever recall having...

(Stomach rumbles...)

Tue, 03/12/2013 - 12:38 | 3322785 Miffed Microbio...
Miffed Microbiologist's picture

Had to up arrow that one....sorry for the minionship. Experiencing international delicacies are one of the best part of travel. The other..not running into too many sheeple Americans. They tend to lean toward the canned vacation and stay on the cruise ships not far from the buffet.


Tue, 03/12/2013 - 12:56 | 3322813 akak
akak's picture

Your repeated throatings of the mind make you a parangong of US 'american' akak minionism.



(Sorry, Miffed, if you have not yet had enough exposure to AnAnonymous-speak to fully grasp the sarcasm here.  It is, neverthemore, the crustiest bit of the mattering thing!)

Tue, 03/12/2013 - 13:16 | 3322928 Divine Wind
Divine Wind's picture



Center of mass shot, akak.

I have traveled worldwide and lived abroad for years at a time. You are correct that most Americans have no idea how wonderful the gastronomic side of travel can be. In my case, I love to explore food from street vendors and night markets.

Stinky tofu and onion pies in Taipei, skewered chicken in Hong Kong. stewed salt fish served with spicy plantains in St. Kitts, coconut dumplings  vegetable samosas, fresh mango juice, etc...

Mmmm mmmm mmmm

Tue, 03/12/2013 - 13:17 | 3322933 AGuy
AGuy's picture

"There have NEVER been any door-to-door searches of homes and private property for any 'illicit' gold, so no privately held gold has ever been literally confiscated."

Actually it was. The Feds seized all Safety deposit boxes in 3000 banks:

"The U.S. Treasury came into possession of a large number of safe deposit boxes due to bank failures. During the 1930s, over 3,000 banks failed and the contents of their safe deposit boxes were remanded to the custody of the Treasury. "

A few points of interest:

1. Currently there is a 28% capital gains tax on PM's

2. Its likely in the future the capital gains tax on PMs will rise to +90%

3. Its possible TPTB may implement a property tax on PMs, such as real estate, cars, and other high value assets.

4. There is no second amendment like law preventing the gov't from making gold owership illegal. If they can pass guns restrictions, stealing PMs is a walk in the park.


Tue, 03/12/2013 - 13:41 | 3322987 akak
akak's picture

A Guy, a few corrections here:

1) Your link regarding the "seizure" of safe deposit boxes in the 1930s actually highlights the fact that those boxes were not "seized" per se, and most especially were not "seized" due to suspicions that they contained illicit gold, but were merely, and rightfully, taken into custody by authorities as a result of their holding banks having failed.  The contents of those boxes were subsequently released to their rightful owners upon being claimed by them (which almost half were not, oddly).

2) There is NOT currently a blanket 28% capital gains tax rate on precious metals profits --- that is one of the most widely spread bits of misinformation on gold (and silver) in the USA today.  In fact, that 28% rate only applies to PM profits accruing to those in the higher income tax brackets, whose tax rates on ordinary income match or exceed that 28% rate.  For those of more modest means, such as many retirees, their PM profits are currently taxed at their ordinary (lower) tax rate.

3) It is questionable, if not doubtful, that a future 90+% capital gains tax rate will be applied to (nominal) PM profits.  That is nothing but pure speculation on your part.  See point #4 directly below.

4) If any future property tax is levied against PMs, it is more than likely that such a tax would ALSO be levied against equities, bonds, and other financial assets which are MUCH more widely held.  While I would not put such a thing beyond the sociopaths in Washington, it is not an argument against holding PMs --- and note that it would be MUCH easier to evade such a tax by merely not reporting one's PM holdings (assuming that they were purchased with no paper trail), which would be impossible for stocks or bonds.

5) Again, there is similarly no such amendment (or compunction) prohibiting the government from confiscating one's retirement accounts, stocks, bonds, or other assets as well.  And again, physical PMs are vastly easier to hide from the authorities than paper assets with their corresponding paper trails.

Tue, 03/12/2013 - 15:45 | 3323562 AGuy
AGuy's picture

"There is NOT currently a blanket 28% capital gains tax rate on precious metals profits"

yes, you are correct. I recall reading about the higher capital gains tax a few years ago, either I mis-read the article or it was poorly written. At any rate, there a capital gains tax on PMs and its subject to change, but not in a good way.

" that a future 90+% capital gains tax rate will be applied to (nominal) PM profits. That is nothing but pure speculation on your part."

Yes it is speculation, but I strongly feel that when push comes, TPTB will get desperate and take action against PM savers. Currently there is a war against cash savers, by dropping interest rates to zero, and rewarding those deeply in debt. I see this war continuing into PMs as savers move capital out of cash and other liquid assets into PMs to preserve wealth. Currently we are just at the very beginning when savers are moving into PMs for wealth preservation. In a few years as inflation\stagflation becomes more severe, there will likely be significantly more interest in PMs.   Ask yourself this question: Why won't the war on savers shift to PMs as interest by savers into PMs grows?g


FWIW: My point was just to point out some of the risks owning PMs, Something to consider. I would not recommend putting all of your nest egg into PMs, since you cannot possible guarentee that the rules will be changed to screw you over. There are two guarentees in life: Death and getting screwed by the politicians no matter what you do!







Tue, 03/12/2013 - 13:37 | 3323001 Dr. No
Dr. No's picture

I would be scared if my gold hadn't been lost in a boating accident.

Tue, 03/12/2013 - 14:55 | 3323320 FreeNewEnergy
FreeNewEnergy's picture

+100 to akak.

Was thinking about PMs the other day and wrote this on my blog:

Granted, stocks - in terms of the Dow Jones and S&P indices - have more than doubled since the '08-09 collapse, but what about gold and silver, the two most widely-held precious metals?

Holders of physical metals have not done too badly, even considering the recent turn of fortune to the downside.

During the latter months of 2008 and the first three months of 2009, according to data from, gold could be had for anywhere between $712 and $989 per ounce. Silver traded in a range of $8.80 to $14.39 per ounce during the same time frame.

So, to those who deride stocks over precious metals and ridicule the so-called gold - and silver - bugs, they've gotten it all wrong, as both of the most-popular metals have done exceedingly well, especially silver, which has more then tripled in value form its low point in 2008. Gold, if scaled in on a dollar cost average basis (one of the best ways to buy either stocks or bonds) could easily have produced 100% or better returns during the "financial crisis," which, by the way, is still not finished.

Wed, 03/13/2013 - 13:54 | 3326496 de3de8
de3de8's picture

Always a first time.

Tue, 03/12/2013 - 12:55 | 3322854 TBT or not TBT
TBT or not TBT's picture

Food and water too

Tue, 03/12/2013 - 12:59 | 3322861 i_fly_me
i_fly_me's picture

Agree on augmenting ones portfolio with Pb, but I still don't see any real chance they would try to confiscate Au again.  That trick only works *before* you devalue your currency and they already pulled that one.  Anyway, how would that work?  Some sort of house to house search?  I think not.  They can't even admit that Au is desirable at this point, much less so valuable they have to risk rebellion stealing it from their own citizens.  I think it is much more likely that they will just stay stuck in this inflation trough, promising more and more free crap, until the wheels fall off. Then there will be some bad times through which you will need to transport your savings.  How to best do that is left as an exercise for the reader.

Tue, 03/12/2013 - 11:40 | 3322529 IridiumRebel
IridiumRebel's picture

"Today, we’re enjoying historically low interest rates because the Federal Reserve is buying large amounts of our debt, and investors have retreated to U.S. securities amid global turmoil. But our growing obligations may shake their confidence. In return, they might demand compensation for that higher risk. Foreigners own almost half of our publicly held debt. So we’re particularly vulnerable to a sudden shift in foreign-investor sentiment. In addition, over one-third of our total marketable debt will mature over the next 24 months. So we will have to roll over much of our debt in the next two years—when interest rates might be higher." (Pg. 14)


get it?

Tue, 03/12/2013 - 11:57 | 3322621 NoDebt
NoDebt's picture

10 Year is already up about 70 bps off it's all-time lows.  So, yeah, I get it. 

Unforunately, I doubt ANYTHING will be done before we're already in the middle of a crisis.  Certrainly this congress and administration have ZERO possibility of cutting anything.  That dog don't hunt.  And when it becomes a CURRENT problem, it will hurt twice as bad as dealing with it now (or last year, or the year before, or the year before that).

Tue, 03/12/2013 - 12:00 | 3322639 IridiumRebel
IridiumRebel's picture

...or the year before that or that year before that one or the year before all of those or....

Tue, 03/12/2013 - 13:00 | 3322863 TBT or not TBT
TBT or not TBT's picture

The democrats will block it. Obama would veto. Seeing the problem here? Not the entire congress is the problem, just most of it. And the resident, and 4 9ths of the supreme court, and too often, 5 or 6 ninths.

Tue, 03/12/2013 - 11:58 | 3322630 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

I've said this simple point, there are 3 outcomes or some combination of degrees of each if there is no debt forgiveness along with a restructing of the whole finance system to a debt neutral based monetary system, WWIII on the global debt level, Autocratic restructuring of governments or outright regime changes ultimately resulting in a more autocratic regime on a national level, erosion to outright destruction of social cohesion on the peon level. Either way the forest fire is coming to clear out the forest of the overgrowth one way or the other.

Centralization is going down like a 2 dollar hooker at the end of the day. It won't go away but Newton's law of motion will apply here with the caveat of opposite and violent of possibly being one and the same.

Tue, 03/12/2013 - 12:34 | 3322747 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

You know what should be looked into is the amount of current marketable debt this way one can see just how much that one third percentage equals in dollars.

I'm trying to find information on the numbers but not sure where to look.

Here are some numbers for Treasurys

I don't know if this covers all marketable debt or not though. Other marketable debt would be things like corporate and municipal bonds.

Tue, 03/12/2013 - 12:58 | 3322811 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Based on the Treasury Direct site and Ryan's assertation that at least 1/3rd marketable debt will be coming due in 2015,

Just on principal that means at least 3 trillion in marketable treasurys will mature in 2015.

I would hope someone here in finance will do a more detailed analysis on the numbers along with a follow up article here at some point. I believe IR has focused in on something important here that should be looked into with more depth and clarity from an experts point of view.

Assuming Paul's assertations are correct that means they need to budget at least 3 trillion meet those obligations.


I know the numbers are approximated and somewhat off the but implications I think are clear.


Tue, 03/12/2013 - 12:37 | 3322782 orez65
orez65's picture

If interest rates go up everyone will be selling bonds and Ben will be buying all of them.

All of the sudden there will be TRILLIONS of US dollars looking for a place to park.

Voila: hyperinflation.

Tue, 03/12/2013 - 11:38 | 3322536 Fishthatlived
Fishthatlived's picture

"... because if America nearly fired more people than were employed as a result of an $85 billion reduction to the increasing US rate of spending, at least according to math and logic-challenged Maxine Waters, Ryan's suggestion to really gut spending by cutting $4.6 trillion from the deficit over the next decade would be Armageddon incarnate as interpreted by the Obama administration."


Is that even english?

Tue, 03/12/2013 - 11:47 | 3322574 blueRidgeBoy
blueRidgeBoy's picture

We all know Tylers are grammatically challenged.  We try to look past it.

Tue, 03/12/2013 - 12:07 | 3322662 IridiumRebel
IridiumRebel's picture

The substance is there. Sure, we could get microscopic and nit-pick comma placement, but the fact is that they are providing a voice to expose this hypocricy of a banking system to those who choose to read. Trust me. There are plenty out there with their heads buried in the sands of confirmation bias as all of these signs flash red across any chartist's CPU. What is obvious is the level, or should I say decline, of the educational standard of journalism. I see problems in every article and wonder if they are all a product of Nanny Bloomberg's most excellent school system he bypasses in the name of 32 oz. sodas. 

Tue, 03/12/2013 - 12:14 | 3322689 fuu
fuu's picture

"What is obvious is the level, or should I say decline, of the educational standard of journalism. I see problems in every article"

There are not actually enough journalists in the world to account for the daily output of news articles.

Tue, 03/12/2013 - 12:39 | 3322786 IridiumRebel
IridiumRebel's picture

I'm glad that journalism was not my career choice. Playing suck monkey before the inevitable robot take over would be concerning to say the least. 

Tue, 03/12/2013 - 12:20 | 3322719 McMolotov
McMolotov's picture

I wouldn't say the Tylers are grammatically challenged. If I were trying to crank out as much content as quickly as ZH, I'd make the occasional mistake, too, probably even more, and I know my thoughts would be a jumbled mess.

I'm somewhat amazed at the quality of this site when compared to mainstream sources of news, all of which have multiple editors who miss horrendous errors, not just grammatically but factually.

Tue, 03/12/2013 - 12:43 | 3322806 orez65
orez65's picture

It's the journalistic content that matters.

I read ZH every day and would be willing to pay for it.

I don't read Main Stream Media lies and propaganda anymore, except for occasionally reading the Wall Street Journal.

Tue, 03/12/2013 - 13:04 | 3322876 McMolotov
McMolotov's picture

What we read on ZH is often weeks, months, and sometimes years ahead of the mainstream media.

Why wait for those assholes to tell us the truth when we can get it here every day without having it shaped, filtered, and propagandized for mass consumption?

Tue, 03/12/2013 - 11:53 | 3322604 Tyler Durden
Tyler Durden's picture

If subordinate clauses present too much comprehension difficulty, perhaps the USA Today is more appropriate reading material?

Tue, 03/12/2013 - 12:11 | 3322688 CrimsonAvenger
CrimsonAvenger's picture

No worries, the NY Fed has him covered:

Tue, 03/12/2013 - 12:17 | 3322712 Say What Again
Say What Again's picture

Tentative Outright Treasury Operation Schedule

They say; "The Desk plans to purchase approximately $45 billion in Treasury securities over the month of March."

21 market days in March

So ~$2.1 Billion per day

Compensataion for top bankers (old data, but what the hell)

Aggregate compensation of top 56 bankers (in 2007) = ~$944 Million   Let's just say 1 Billion dollars -or- roughly $4 Million per day

Solving for "X" I get about 525 Bankers / day.

A little bit more than I expected, but we can always use leverage to rehypothecate some stuff.

I did this in a hurry.  Can someone please check my math.

Tue, 03/12/2013 - 12:33 | 3322695 SheepleInAction
SheepleInAction's picture

Although Google News likes Washington Post the most. I would say USA Today is in the second place. Apparently someone in silicon valley decided that sheeple need to see the more sheeply news agencies the most.

Tue, 03/12/2013 - 12:17 | 3322709 machineh
machineh's picture

Some here among us struggle with My Weekly Reader because their lips get tired.

Tue, 03/12/2013 - 12:18 | 3322713 NoDebt
NoDebt's picture

Imagine me in 3rd grade.....

Teacher:  That's called a run-on sentence, little NoDebt.  It's not proper grammar.

NoDebt:  Is not!  It's just a sentence with a lot of subordinate clauses you tree-hugging card-carrying union pension-pumper.

Teacher:  Off to the principal's office with you!

..... and that's how the over-use of subordinate clauses got me thrown out of school.

Tue, 03/12/2013 - 12:36 | 3322779 Say What Again
Say What Again's picture

For me it was my non-stop correction of my algebra teacher.  She was hot as hell, and as a teenager, I wanted her REAL bad, but she was dumb as a rock.

"Funny... I don't FEEL tardy"

    -- Hot for Teacher!!! -- Van Halen

Tue, 03/12/2013 - 12:42 | 3322802 Kayman
Kayman's picture

You'd be off to the principal's office because the teacher wouldn't know what a subordinate clause was. And you we not conforming.

To dumb-down education, you have to start by dumbing-down the teachers. 

Tue, 03/12/2013 - 12:42 | 3322804 recidivist
recidivist's picture

Perhaps that's also a good example of the use of insubordinate clauses?

Tue, 03/12/2013 - 12:25 | 3322732 Pure Evil
Pure Evil's picture

I would suggest an internship at the Congressional offices of Maxine Waters for the poor boy. That way he can catch up on the latest job losses due to secastration and learn about the other 7 states in our 57 state union and quite possibly where the other 30 million jobs are hidden.

Tue, 03/12/2013 - 12:31 | 3322752 DoChenRollingBearing
DoChenRollingBearing's picture

Now thas jus plane meen and bad!

And rayciss!

Tue, 03/12/2013 - 21:06 | 3324491 StychoKiller
StychoKiller's picture

Well, you're arguing with "Pure Evil" here! :>D

Tue, 03/12/2013 - 12:26 | 3322738 Fishthatlived
Fishthatlived's picture

Well that got your attention. It wasn't so much the subordinate clause but more the word "nearly," which I kept trying to read "merely." I told you I was confused.

Tue, 03/12/2013 - 11:39 | 3322538 Say What Again
Say What Again's picture

Here's a little thought experiment.

How many bankers does it take to pay for the debt on a daily basis?

Start with the highest paid banker exec and work you way down.

Keep adding their bonus until you reach the amount being borrowed. 

How many bankers does it take to pay for the debt on a daily basis?

Tue, 03/12/2013 - 11:39 | 3322539 Paper CRUSHer
Paper CRUSHer's picture



Tue, 03/12/2013 - 11:40 | 3322547 Flakmeister
Flakmeister's picture

The end game is never pretty....

All I ask is that the wheels don't completely come off the dollar for another 5 years or so...

Tue, 03/12/2013 - 11:53 | 3322601 kralizec
kralizec's picture

Screw it, it will only get uglier the longer we wait. 

Tue, 03/12/2013 - 12:06 | 3322659 Flakmeister
Flakmeister's picture

Naw, the level of ugliness will be adiabatic....

Tue, 03/12/2013 - 11:41 | 3322550 Crtrvlt
Crtrvlt's picture

so no reduction in "defense". got it.  

Tue, 03/12/2013 - 12:02 | 3322646 dick cheneys ghost
dick cheneys ghost's picture

bill kristol wouldn't hear of it

Tue, 03/12/2013 - 11:42 | 3322552 I am a Man I am...
I am a Man I am Forty's picture

lmao, how long have politicians been parading around budgets, and look where we are

Tue, 03/12/2013 - 11:43 | 3322553 AssFire
AssFire's picture

No work for the masses and yet what you see here is their continued growth. The spending must be capped and tubes tied for those who cannot contribute. Technology is leaving the illiterate even further behind and those not in the top quarter are basically kept animals.

Sorry for the truth, junk me if you is quality, not quantity that should be appreciated in people.

The elephant in the room is the 47%ers.

Tue, 03/12/2013 - 11:49 | 3322583 Flakmeister
Flakmeister's picture

The elephant is the room are the greedy cocksuckers for whom no amount is enough...

On the current path, 0.1% of the population will own everything in 10 years or so...

Sounds like you favor eugenics on the basis of money.... Boy are you fucking misguided....

Tue, 03/12/2013 - 12:14 | 3322680 moonshadow
moonshadow's picture

you are Both right. there are Two elephants

Tue, 03/12/2013 - 15:26 | 3323489 gaoptimize
gaoptimize's picture

Adapting as best I can.  Aspiring flightless dung bettle here.

Tue, 03/12/2013 - 12:16 | 3322707 Terminus C
Terminus C's picture

While his statement is harsh he brings up the key issue that is destroying our society: Entitlement.

This comes in many forms but is most commonly concentrated at the top and bottom ends of society.  People need to produce something of value for society but we have large portions of our society that does not.  This is our problem.  Be they parasites who hoist nuclear waste upon our society or those who demand the gov't buy them a phone, be they bankers or welfare queens, the takers are the problem.

Those who build, design and produce physical and intellectual products are crumbling under the weight of the parasites.  This will cause social and economic collapse (which will likely lead to political collapse).

Tue, 03/12/2013 - 12:27 | 3322741 tarsubil
tarsubil's picture

"This comes in many forms but is most commonly concentrated at the top and bottom ends of society."

Those are also the two places where the counterfeit is dumped.

Tue, 03/12/2013 - 12:38 | 3322746 Flakmeister
Flakmeister's picture

History has shown us time and time again that the worst parasite class is the rentier class. Most people who have nothing will do everything they can to improve their lot, whereas the rentier class will do next to nothing except to maintain their priviledged status at the expense of society. The best measure of a failed society is its GINI ratio, if you don't believe me, read about the finacializations of the leading European powers  and the subsequent outcomes, i.e. the Dutch, the Spanish, the English and now the Americans.... 

Your Galt's Gulch argument has zero credibility, it is a narcissist fantasy that has never occured in history at a societal level...

Tue, 03/12/2013 - 13:32 | 3322983 MeBizarro
MeBizarro's picture

It's incoherent and infantial ranting that doesn't begin to get at the heart of the problem and by his own incoherent statement a huge part of the 'parasite' problem are the infirm elderly given that the biggest expense for Medicaid is assisted living facilties for the elderly. 

Tue, 03/12/2013 - 13:36 | 3322994 Flakmeister
Flakmeister's picture

Yes, the current Medicare system is completely unsustainable. But what you fail to realize is that it is a symptom of the problem and not the disease....

Tue, 03/12/2013 - 12:47 | 3322815 Kayman
Kayman's picture

Those who build, design and produce physical and intellectual products are crumbling under the weight of the parasites.


Tue, 03/12/2013 - 13:42 | 3323018 Flakmeister
Flakmeister's picture

Hint: Guys that own a modestly sized HVAC outfits (and the like) that are bitching about Obamacare are not those "leaders" you refer to to...

The people that *really* innovate and create do so because they enjoy it and not for the money.... Seeing their vision ultimately realized is usually enough reward....

Your parasites include no-bid defense contractors and the rentier class that inherited their wealth, i.e. they are "entitled" to all the fruits of others labors....

Tue, 03/12/2013 - 13:48 | 3323040 steve from virginia
steve from virginia's picture




It's hard to think of anything that has been built in the past 100 years that isn't a waste-enabler.


... more clever ways to burn capital while pretending to do something 'worthwhile' with it.


At least gambling and theft are honest in their own way.

Tue, 03/12/2013 - 14:11 | 3323070 Flakmeister
Flakmeister's picture

Well folllowing the discussion in the latest Drumbeat, one could argue that the lowly electro-mechanical washing machine is actually something that enables society to move forward (if it chooses that path!)....

Tue, 03/12/2013 - 13:15 | 3322922 eddymunster
eddymunster's picture

I saw them tearing a building down
A team of men in my hometown.
With a heave and a ho and a yes yes yell,
they swung a beam and a sidewall fell.

And I said to the foreman, "Are these men skilled?"
"Like the ones you'd use if you had to build?"
And he laughed and said, "Oh no, indeed...
the most common labor is all I need...
for I can destroy in a day or two
what takes a builder ten years to do."

So I thought to myself as I went on my way...
Which one of these roles am I willing to play?
Am I one who is tearing down as I carelessly make my way around?
Or am I one who builds with care, in order to make the world a
little better... because I was there?

Tue, 03/12/2013 - 11:54 | 3322609 irie1029
irie1029's picture

Spot on.  I am going John Galt as I am fed up with TPTB.  Fuck them all and their bastard offspring.

Tue, 03/12/2013 - 12:06 | 3322664 eatapeach
eatapeach's picture

Go get 'em, tiger!

Tue, 03/12/2013 - 13:43 | 3323023 steve from virginia
steve from virginia's picture




I remember the old days when people said, "I'm going on vacation," now they say "I'm going Galt for awhile".


Enjoy your trip to Atlantic City.

Tue, 03/12/2013 - 12:15 | 3322705 12ToothAssassin
12ToothAssassin's picture

You would have to leave Earth to "Go Gault" these days. Where exactly will you go where you cant be found? Nowehere.

Wed, 03/13/2013 - 11:37 | 3326044 TBT or not TBT
TBT or not TBT's picture

Gilligan's island.

Wed, 03/13/2013 - 11:35 | 3326035 TBT or not TBT
TBT or not TBT's picture

Eugenics. You have a lot of company Assfire, such as the early 20th century progressivists, who inspired hitler(useless eaters and final solutions) and others, and Margaret Sanger, the founder of planned parenthood, the abortion mill that has succeeded marvelously in its original mission of cutting down on what she viewed as lesser races. There may be a dystopian novel in you. Keep at it.

Tue, 03/12/2013 - 11:43 | 3322557 taketheredpill
taketheredpill's picture

What Drives Our Debt / Govt Spending as a Share of Economy


He left out MILITARY SPENDING.  I assume that must be less than 1% so negligible.




Tue, 03/12/2013 - 12:17 | 3322714 AynRandFan
AynRandFan's picture

Defense spending as a % of GDP is under 5%.  Here's a chart showing the long term decline:

Social entitlement spending as a % of GDP is rising fast, in contrast with the trend in defense costs.  

Rest easy, odds are that Iran will get the A-bomb and we won't do anything about it. 

Tue, 03/12/2013 - 12:34 | 3322770 tarsubil
tarsubil's picture

It's nice that the total war period in WWII is included to scrunch up the recent numbers. Maybe you should use your bifocals because defense is clearly increasing over the last decade. I am thankful though. Those 25 thousand mine resistent vehicles are really going to come in handy when Iran invades the US. I mean, has a country ever been so vulnerable to invasion as the US is right now?

Tue, 03/12/2013 - 12:55 | 3322850 fuu
fuu's picture

He is also playing word games.

The DoE pays for nuclear weapons research, maintenance, cleanup, and production. Treasury pays into military pensions and interest on debt incurred by past wars. Veterans Affairs cover health care for veterans out of that budget. State finances foreign arms sales and military related development assistance.

Defense Department budget does not include DHS, counter-terrorism under the FBI, and NASA intel gathering.

In addition to all of that GAO admits they cannot even audit Defense Department budgets due to accounting irregularities.


Tue, 03/12/2013 - 13:05 | 3322885 tarsubil
tarsubil's picture

When will we get to Peak Lies?

Tue, 03/12/2013 - 13:40 | 3323008 Bob Sacamano
Bob Sacamano's picture

But I thought the interest on the debt was incurred by past trillons of welfare state spending.

Tue, 03/12/2013 - 12:23 | 3322726 tarsubil
tarsubil's picture

He is a total fraud. His only problem with spending is that his people aren't getting more. He doesn't care about you. His previous "balance budget" proposal that he posted on a website was so ridiculous it relied on positive growth for something like 15 or 20 years then the budget balanced. No real cuts in spending. Just slow it down and rely on growth to balance the budget. And this guy is labeled a super fiscal conservative? How can anyone think the solution will not end up being ... PRINT!

Tue, 03/12/2013 - 11:44 | 3322563 Rainman
Rainman's picture

" America has a fundamental spending problem which, however, simply cannot be resolved. period. "

Thanks, Tyler, obviously simple it has all become.

Tue, 03/12/2013 - 12:12 | 3322691 moonshadow
moonshadow's picture

yeah...pretty scary funny

Tue, 03/12/2013 - 12:45 | 3322812 slightlyskeptical
slightlyskeptical's picture

The whole thing can be resoved, but we need to eliminate debt based money and thus fractional reserve banking before we can resolve anything. Any propenents of such needs to be removed from any policy making position for even that won't work.

Tue, 03/12/2013 - 11:48 | 3322580 Sach Mahoney
Sach Mahoney's picture

There are all a bunch of liars.  Ten year budgets are a joke.  Cutting does not mean cutting, it only means slowing growth. Bernanke will be printing $170BB / month by next year

Tue, 03/12/2013 - 12:51 | 3322834 Kayman
Kayman's picture

Bernanke ought to print $4 trillion a year so we can eliminate taxes entirely and run an annual surplus.

Tue, 03/12/2013 - 11:51 | 3322584 proLiberty
proLiberty's picture

Notice the curve "Revenues" on the slide What Drives Our Debt:

“Rahn Curve” Video Shows Government Is Far Too Big


There is considerable academic research on the growth-maximizing level of government spending. Based on a good bit of research, I’m fairly confident that Cato’s Richard Rahn was the first to popularize this concept, so we are going to make him famous (sort of like Art Laffer) in this new video explaining that there is a spending version of the Laffer Curve and that it shows how government is far too large and that this means less prosperity.


New Study from Swedish Economists Allows Us to Quantify the Cost of the Bush-Obama Spending Binge

For all intents and purposes, all this research shows that developed nations are on the downward-sloping portion of the Rahn Curve. Named after my Cato colleague Richard Rahn and explained in the video below, the Rahn Curve is sort of a spending version of the Laffer Curve.

It shows that growth is maximized by small governments that focus on core “public goods” like rule of law and protection of property rights. But when governments expand beyond a certain growth-maximizing level (the research says about 20 percent of GDP, by I explain in the video why the right number is probably much smaller), the result is slower growth and less prosperity...


Leaving recessions out of the account, for the past 60 years federal tax revenues have been rather steady at just under 19 percent GDP regardless of the tax rates. The top income-tax rate has ranged from a low of 28 percent in 1988-90 to a high of 92 percent in 1952-53, yet the flow of money has been a fairly constant proportion of the economy. This would seem to confirm the apparently controversial hypothesis that taxpayers are purposive human beings who can be counted to modify their behavior according to the incentives and disincentives that government places in their paths.

Yet most politicians don't get it. In The Wall Street Journal a few years ago, W. Kurt Hauser, formerly of the Hoover Institution, wrote:

Even amoebas learn by trial and error, but some economists and politicians do not. The Obama administration's budget projections claim that raising taxes on the top 2% of taxpayers, those individuals earning more than $200,000 and couples earning $250,000 or more, will increase revenues to the U.S. Treasury. The empirical evidence suggests otherwise. None of the personal income tax or capital gains tax increases enacted in the post-World War II period has raised the projected tax revenues.

"Hauser's Law" seems quite robust. Over 60 years, "there have been more than 30 major changes in the tax code including personal income tax rates, corporate tax rates, capital gains taxes, dividend taxes, investment tax credits, depreciation schedules, Social Security taxes, and the number of tax brackets among others. Yet during this period, federal government tax collections as a share of GDP have moved within a narrow band of just under 19% of GDP."

The explanation is simple enough for a child to understand, though politicians have difficulty with it:

When tax rates are raised, taxpayers are encouraged to shift, hide and underreport income. Taxpayers divert their effort from pro-growth productive investments to seeking tax shelters, tax havens and tax exempt investments. This behavior tends to dampen economic growth and job creation. Lower taxes increase the incentives to work, produce, save and invest, thereby encouraging capital formation and jobs. Taxpayers have less incentive to shelter and shift income.

Hauser shows that GDP grows faster when taxes are lower. "In the six quarters prior to the May 2003 Bush tax cuts, GDP grew at an average annual quarterly rate of 1.8%. In the six quarters following the tax cuts, GDP grew at an average annual quarterly rate of 3.8%. Yet taxes as a share of GDP have remained within a relatively narrow range as a percent of GDP in the entire post-World War II period."


Taxpayers Aren't Stationary Targets
Sheldon Richman, Dec. 23, 2012

Tue, 03/12/2013 - 11:51 | 3322592 azengrcat
azengrcat's picture

Spending is under control.  Under control of the healthcare, banking and defense cartels.

Tue, 03/12/2013 - 11:52 | 3322594 DOT
DOT's picture

I'll read it after the Senate passes it.

Tue, 03/12/2013 - 12:01 | 3322638 FuzzyDunlop21
FuzzyDunlop21's picture

Youd make a good senator

Tue, 03/12/2013 - 12:07 | 3322668 NoDebt
NoDebt's picture

Very good.  You've obviously been taking your government-proscribed crazy pill every day, as recommended.  Me too!  Doesn't it feel so much better that way?  No more pain or confusion!

Tue, 03/12/2013 - 11:53 | 3322607 williambanzai7
williambanzai7's picture

His plan was written by Evil Oprah

Tue, 03/12/2013 - 12:00 | 3322611 Shizzmoney
Shizzmoney's picture

I love how Ryan always excludes the (pork) defense spending. 

He's needs the ZIRP interest rates more than anyone if he wants his buddies at the Pentagon to keep getting their welfare checks.

Tue, 03/12/2013 - 12:10 | 3322682 Missiondweller
Missiondweller's picture

The military, fatigued after a decade of war, has already endured three rounds of budget cuts during the president's first term alone.

Tue, 03/12/2013 - 12:15 | 3322702 DOT
DOT's picture

Ryan knows the whole world loves us for our freedoms. This will continue as long as the Pentagon continues to get those "fair share" checks.

Tue, 03/12/2013 - 11:58 | 3322627 topshelfstuff
topshelfstuff's picture

ALL the Social Security and Medicare, the thing they try to Blame, instead of the real cause, if that was such a big problem Why not Eliminate the CAP or at least Raise it.
You'll notice that nobody dare mentions this simple, common sense "fix", but they don't want the Average Person to know there is a CAP. It was $110,100 in 2012, and if removed there would be enough to cover Medicare, SS's supposed shortage and actually Lower the Tax for ALL. If more than Half, about 70% of Total Wages is NOT Paying in, that's the cause.

[[Social security and Medicare taxes, also known as FICA taxes must be withheld from your employees' wages. As an employer, you must also pay a matching amount of FICA taxes for your employees. Currently the social security tax rate is 6.2%. You are required to withhold 6.2% of an employee's wages for social security taxes and to pay a matching amount in social security taxes until the employee reaches the wage base for the year. The wage base for social security tax is $97,500 for the year 2007. Once that amount is earned, neither the employee or the employer owes any social security tax.

The Medicare tax rate is 2.9% for the employee and the employer. You will withhold 1.45% of an employee's wages and pay a matching amount for Medicare tax. There is no wage base for the Medicare portion of the FICA tax. Both the employer and the employee continue to pay Medicare tax, no matter how much is earned]]

Wealth Inequality in America

Tue, 03/12/2013 - 13:45 | 3323036 Bob Sacamano
Bob Sacamano's picture

Because the principle of SS and Medicare was that everyone puts in roughly the same amount as everyone else and gets out roughly the same amount as everyone else.  Not welfare for elderly redistribution. 

Tue, 03/12/2013 - 11:58 | 3322631 taketheredpill
taketheredpill's picture

What Drives Our Debt / Govt Spending as a Share of Economy


MILITARY SPENDING would be somewhere between Medicare and Medicaid, so fairly substantial.


Seems like a serious error to leave it off the chart.


I get the logic though.  If you cut govt spending on healthcare more people will die.  But if you cut Military Spending, everybody in the US would be at risk since "if we don't fight them over there, we'll be fighting them over here".




Tue, 03/12/2013 - 14:04 | 3323104 DosZap
DosZap's picture

If you cut govt spending on healthcare more people will die.

That's the plan,and they have already sucked 788 billion out of medicare alone.

Tue, 03/12/2013 - 15:42 | 3323545 SmallerGovNow2
SmallerGovNow2's picture

"on a long enough timeline" we're all going to die....

Tue, 03/12/2013 - 12:00 | 3322632 j.tennquist
j.tennquist's picture

You do want DOW 50,000, don't ya punk?!? 

I mean, when the dollar crashes and burns we can trade our AAPL shares for extra food stamps.

Tue, 03/12/2013 - 12:14 | 3322698 CrimsonAvenger
CrimsonAvenger's picture

That's an AAPLs to apples comparison.

Tue, 03/12/2013 - 12:01 | 3322643 SheepDog-One
SheepDog-One's picture

Paul Ryan is covering up the truth, there's never going to be 'double debt' from here in 10 years, it's all collapsing far sooner than that and he knows it. He's just a puppet, same as all the rest of em.

Tue, 03/12/2013 - 12:02 | 3322647 taketheredpill
taketheredpill's picture

Would be nice if they could have come up with a Spending Projection that included savings based on Medicare being allowed to bargain for cheaper drug prices.  There's $90 Billion a year.  Not massive savings, but better than a poke in the eye etc. etc.

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