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The Scariest Charts From Paul Ryan's Proposed Budget
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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LOL even those graphs are hyper optimistic... no way the system lasts till 2020+..
4th chart from top...
Soc Sec spending does not rise in percentage terms? Really? Even with the Boomers arriving starting now? And the % stays at just 5% of spending?
How can that be?
'Ben Bernank, will 'fund the defecit' until the very end'.....utterly insane how humanity revolves around 1 person. WTF do they MEAN '1 guy will fund it'? BULLSHIT!
Never left the Dark Ages with Wizards and magic and whatnot running the show...and people still believe in it today!
Looking at the first chart, Looks like we wont be fucked until 2084. Bullish!
The OMB/CBO sure seem talented at drawing straight lines from today's date on their charts.
the glaring and telling chart of the budget and spending engineered fiasco is the one on social spending.....the whole purpose of this charade is to gut social spending while shoveling more money into the police state and wars of imperial aggression....."oh my god - look at those out of control transfer payments!" left unstated is the out of control pentagon (war) spending and the nazi enforcement troops such as tsa, homeland security, and other nazi organizations....
truly the goal of the nazis is to throw granny over the cliff and suzy under the bus....after all, when the choice is between helping someone and killing someone, the nazi choice is so easy.
Listening to NPR this AM (I know - stay with me), some talking head characterized these documents (Ryan's and a similar one from the dems in the Senate) as just "position presentations/papers". Not real budgets. Meant to state positions framed so that they can beat the opposition over the head.
And what is this 10+ year time window nonsense. No future Congress is bound by what any previous Congress did. So, if you aren't killin' it in the first year (okay maybe two for a Congresional term) then get outa here - you're wasting my time. Besides, we don't do budgets - we do CRs.
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Cutting NPR funding (and PBS) would be a reasonable action. We do not need them.
This budget proposal is just another distraction; page 321 in the Divide and Conquer for Dummies manual.......
Here is a half baked idea....allow opt out of Medicare. Allow an industry to begin to service the healthcare needs of older people. The entire industry would be jointly and severably liable so that if one company failed the others would have to pick up the slack. I'm certain that self policing would work.
Once we prove that principle we allow banks to do whatever they want....reckless investments? no problem...if GS fails JPM and the other kiddies in that PD pool would have to bail them out. Only if the entire industry fails would the taxpayer even have to pay attention.
The current system will implode (or is it explode, I'm weak on the physics of the whole destruction thing). When we have cleaned up that mess our next system will need better rules. J&S liability within some industries would eliminate the need for many of the watchdog orgs (that always seem to fail at the big things and just fine industry enough to pay someone a political bonus).
I don't know why you're wasting even a millisecond of time considering political "solutions."
All that does is to help legitimize the ruling criminal cartel.
I don't normally read CNN but since the Dems. are so good at taxing us to death I thought that would be a viable source. It looked like Tyler had done a charting mistake on the [marginal tax rate chart] above. I thought wrong. Americans' 90% tax rate - CNN.com
Are you going to trust this guy? After all, none other than Nancy Pelosi and Paul Krugman has stated that debt is no problem.
If you can't feed them, don't breed them. The US and the west for several generations has been a breeding experiment gone wrong.
Its not "unsustainable" versus "unsustainable", we just have to be slightly less sustainable than the other guy(s), and that looks pretty easy.
Realistically what leverage does anybody have? "hey print less" "you first" I thought so. LOL
It is evident that Paul Ryan's forecasting tool arsenal includes only a sloping upwards ruler.
Maxine Waters couldn't tell you what the square root of 4 is.
I know too
I know too
170 million?
Did anyone read this bullshit?
I must have missed the past 13 year take down of every sound financial law and the propping up of complete bogus ones. What about The Fed subsidizing banks while screwing the rest of us just on interest alone?
These criminals are re-elected at a 90% clip, this country gets exactly what it deserves.
Ryan is an absolutely typical silver spoon Xtian cunt; his religion is all fresh-scrubbed white people in 1950's picket fence homes, pitching in to help the brown people from time to time. Religion is his heroin. Do not underestimate the extent to which Xtianity drives and sedates Freeks like Ryan and Mitt.
Dominionism and the Seven Mountains Mandate?
Sounds like the cat's pajamas to live back then
The US spending problem is easily reolved. But neither party wants to do it, because it would temporarily harm the profits of their large Coporate sponsors.
Cut $1.3tn+ of Corporate Welfare, military spending and other extreme forms of Corporate waste. They are all easy cuts and a bit of tax generation from Large Corporations.
Here is a list of easy items.
http://ian56.blogspot.co.uk/2012/11/it-is-very-easy-to-cut-1tn-from-fede...
You use around half of that money for massive tax cuts to middle earners and below and some for small/medium businesses to get the economy going again.
Like this
http://ian56.blogspot.co.uk/2013/03/the-government-is-being-incredibly.html
You need to break up the Corporate cartels that now operate in each major industry to put competition back in the market.
Reinstate Glass Steagal.
Scrap Obamacare, a few other things.
After the economy starts improving, you have to tackle entitlement reform.
The retirement age will need to gradually go up to 70+ by 2050. People are living longer.
There should be means testing of medicare/medicaid. The costs of medicare/medicaid should be reduced by improving Healthcare efficiency. Reducing the prive of drugs and cutting fraus are 2 of the easiest ways.
The absolute insanity of the Paul Ryan budget.
http://ian56.blogspot.co.uk/2012/08/romneys-solution-to-widest-income.html
http://ian56.blogspot.co.uk/2012/10/the-reality-of-mitt-romneys-tax-plan...
Ryan assumed a 6% GDP growth rate from here to infinity to make his numbers work.
Even during the boom years (1950 to 2000) the US only averaged 3.3% growth.
Since 2000 US GDP growth has averaged just under 2%.
Ryan assumed that he would close $750bn a year of tax loopholes by 2020, but he didn't name a single one in 91 pages of rhetoric. They would of disproportionally hurt the middle class and deepened the coming depression if they were closed.
Did this fucking asshole Ryan ever have a real job in private sector outside of Government since graduating college. How about his whore wife. No ?
Well then, fuck the Ryan's. they are part of the spending problem !
I bet 80% of the Democrats in the House have already filed Ryan's plan into the little round metal filing cabinet next to their desks. Other than a 30 spot on the evening news, this will be ignored. What should happen is that every Congressman and every voter should be tied down for 4 hours and made to listen to the plan.
All fine points, but pointless if one expects this plan to perform as explained while operating within a tyrannical state. The first step is to gut and replace the gerrymandered operating system in Congress and our government, with one that is based entirely upon the operating model of Liberty, as delineated at www.electanewcongress.com. This information can be found nowhere else, and it comes with an up and running operational 2014 Congressional Campaign to Elect A New Congress we call HM 535 (Hearts & Minds). But you won't hear about it here on zerohedge, because Durden doesn't like me too much, but that is ok, because that is his right to be obtuse. Serfs Up America!
If the public sector doesn't borrow ... who pays the private AND public sector debt service?
It doens't come down the chimney with Santa Claus.
What the country really needs is four new Saudi Arabias right now. It also needs another couple of atmospheres to fill up with toxic gases and three or four more oceans to clog up with plastic waste, about ten more US's filled with topsoil to deplete, about ten more continents worth of phosphorus and potassium to squander ... all of these things right now along with another quadrillion or so in dollar-credit.
C'mon Santa, get cracking!
Let's cut SS and Medicare and triple the military budget!!!
To think any of these clowns aren't spending for their friends is a joke
Right there with you. Winding down my businesses and replanning my retirment to be more modest. No longer pays to participate in this game. Too much risk to accumulated capitol to make reinvesting worth while.
In the Seventies we didn't need Prozac to face such dire forecasts -- we all had lava lamps.
Bet these things come back into vogue, but with an additional "bernanke' button to ensure the blobs nevel fall to the bottom.
Lavalampism: the original blobbing-up (and blobbing-down).
Just started reading a book titled America on the Brink It Could Happen Here authored by Bruce Johnson.
He listed six reasons why the Soviet Union collapsed. I found this passage interesting;
"The Soviet Union's economic rigidity played an obvious role in its collapse. The political structure of the nation was dramatically weakened by its dysfunctional economy. Moreover, history is replete with examples of revolutions that were triggered by economic shocks. In essence, ongoing national security-which is often seen solely in terms of foreign policy-also requires domestic economic strength and stability. Yegor Gaidar, who served as acting prime minister of Russia, minister of economy and first deputy prime minister between 1991 and 1994, attributes the collapse of the Soviet Union to the sudden decline in oil prices in the 1980s. The nation's dysfunctional economy relied on oil revenue for purchase of foreign grain. Gaidar asserts, " The timeline of the collapse of the Soviet Union can be traced to Sept. 13, 1985, "when Saudi Arabia announced it would " stop protecting oil prices." As a result, "the Soviet Union lost approximately $20 billion per year, money without which the country simply could not survive." By 1989, the Soviet Union needed to borrow $100 million annually from the West to finance grain purchases."
So the Soviets could not survive without this $20 billion they were losing every year yet the red is printing at least $85 billion every month right here right now.
Can anyone see why .gov is going full steam ahead with all the data mining, surveillance, gun grabbing, government control mandates.
Can anyone see why .gov wants the bread and circus to continue. Can anyone see why they keep the lie going. They want us all to be unarmed and dumb. Unarmed and dumb equates to easy to control.
The government is afraid. They know how bad it is. They know it won't end well for them. They know we are in a hole we can't get out of and they don't know what to do about it, other than to manage control of the people.
The fourth chart (What drives our debt?) is the most unnerving...revenues level out right around the point that interest payments on our growing debt kick in. Imagine if rates back up to historic norms and interest payments go vertical.
Bennie and the Inkjets... pushing on a string...champion of the "great rotation" that will cut our throats.
Give Ryan credit for one thing - he is certainly persistent with this steaming turd. What is missing though and it the critical piece of it is he assumes his massive supply-side gambit will generate 10 years of continuous growth rates at an annual GDP growth rate which the US hasn't seen since it industrialized in the late 19th century. Without it or even with a moderate recession, his numbers fall completely apart.
On the general points I agree especially about healthcare spending but Ryan's budget is POS that emphasizes the same stuff that has resulted in large annual deficits - huge defense spending (with no plans on how to control personnel and entitlement spending in the DOD which is consuming its budget & the real greatest threat to national security), supply-side economics which would make Kemp blush, and the same energy policies which have put up behind the 8-ball in the first place.
GOP is largely a party trapped in amber and sadly their key fiscal points get lost as a result.
It always sad too how the GOP doesn't give a shit about payroll taxes or sales taxes when blabbering about the '47 percent.' The only thing Ryan has removed in his SSI plan is removing the idea of private accounts because most people saw through the Bush BS to realize it was just the greatest giveaway to Wall Street in US history.
I am generally a fiscal conservative who is social liberal & agree that the current system of pensions & retirement benefits is driving the US gov't off a cliff at all levels. What I despise is what the GOP has become - a bump of Bible-thumping imbeciles who are very militaristic with strong warmongering and negative freedom tendencies who largely don't give a shit about the poor or the disadvantaged. I would argue the Democrats are largely the same too with the only difference it is that doesn't have the same Bible-thumbing idiots and is only slightly less warmongering. Both run huge deficits - GOP to fund unpaid tax breaks for corporations and individuals and the Democrats for social spending programs.
What Ryan failed to mention: 60% plus of all corporations in the US, (C, not S - I know the difference) pay NO federal income taxes. it's not just GE and Exxon/Mobil. We have data from 1998-2005: http://www.gao.gov/new.items/d08957.pdf
That report confirms earlier findings from the years 1996-2000 http://www.gao.gov/new.items/d08957.pdf
We also note the following: Of spending & debt, what's out of whack are revenues FRED - http://research.stlouisfed.org/fredgraph.png?g=guN
Whether you want to discuss the merits of taxes on business is another discussion, but be it noted that while wages as a share of GDP have been on a decades long downward trend, after-tax profits have skyrocketed: FRED http://research.stlouisfed.org/fredgraph.png?g=guW
The problem is revenues.
Exactly and what Ryan's plan calls for is reducing the corporate rate even further with no specifics on what tax credits/deductions he would get rid off to offset that revenue reduction to make it revenue neutral.
Simpson-Bowles deserve a real look at and there are a few other plans too that I have seen which are at least a credible starting point and probably should go further.
What Ryan failed to mention: 60% plus of all corporations in the US, (C, not S - I know the difference) pay NO federal income taxes. it's not just GE and Exxon/Mobil.
Yep, and there should be MAJOR tax penalties for any company offshoring American JOBS!.
That would force a rebuilding of a mfg base,killing it is what started the slide to begin with.
Corporations don't pay taxes. Their customers do.
Wanna bring jobs back home? Stop making US companies pass through taxes to customers who can buy from someone else.
The charts are sooo wrong. I dunno who made them but they don't have a full grasp of what is going on.
Damed if you do damned if you don't... I'd say the part(ies) over...
The scary chart is the one showing someone actually taking Paul Ryan seriously. The man's a joke, please.