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The Obama Budget In Two Charts
The magical thinking highlighted in two charts, as WaPo reports; in his budget request, Obama projects public debt as a percentage of gross domestic project falling to 69% by 2024, while the CBO has it rising to 79% - a difference of 10 percentage points, or roughly $2.7 trillion. As WaPo notes, the likelihood of this scenario unfolding... zero.
The difference is due to hopeful expectations that aggressive revenue expectations come to fruition.
As WaPo notes, these revenue increases assume a compliant Congress that works with the White House to pass major new legislation in the coming years. And the likelihood of that particular scenario is almost zero.
One interesting "efficiency" gain, President Obama has proposed is the idea of either phasing out penny and nickel coins or using cheaper metals to produce them.
The fiscal 2015 budget, released on Tuesday, points out that the coins' manufacturing and circulation have not changed in decades and that the Treasury Department has been reviewing the coins' production. Obama has proposed similar reviews in the past but the measures stalled despite not being partisan points of contention.
The budget does not include a specific cost savings figure for the potential changes but it identifies the rise of electronic commerce as a reason to review the coins' makeup and distribution.
Obama's 2014 had pegged the cost of manufacturing a penny at two cents and the price of a nickel at 11 cents.
One wonders just how long it is before the Dollar bill is worthless too...
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LMFAO!!!
Can I interest you in a financial "product" of mass destruction?
Further, how often is the CBO overly opptomistic?
I talked to a big time Obama lover the other day. Had no idea what the Fed was or who Yellen was. Sure does hate the "right-wing extremists" though.
Obama's stash, bitchez!
Here is an easy way to save money without removing pennies or nickels:
Stop fucking debasing it!
pods
pods, not debasing... does not make you popular. what does everybody and his grandmother say about the EUR? (actually they think the ECB is printing while the FED is... tapering. and Tyler points out that debt growth is... slacking)
or what is near-everybody's simple advice to Greece? debase, of course. it solves all problems, like a bottle of Scotch and two strong painkiller pills
considering the CBO always guesses low when it comes to debt and defecit, i'm thinking maybe, jus maybe, obama is just a tad bit ff with his guesstimates
thinking we will be at around 25 trillion on the old debt clock when this fucker leaves office, if we have the brains to tuck tail and leave putin to the ukraine and vice versa
otherise i'm thiking dollar collapse by june
You guys are missing an important factor not present in either chart.. WWIII bitchez! Budget crisis = averted
http://qzprod.files.wordpress.com/2012/11/debt-and-gdp-main6.png?w=1024&...
Wait a minute, debt as a % of GDP was 72% in 2013? I remember reading articles on ZH saying we past 90% a while ago and I thought we were over 100% already.
The debt clock has us at $17T, our GDP is not $17T
Easy, Peazy Zaphod:
While nobody was watching, our GDP jumped to $23.6 trillion last year.
everything has come down to politics and spin, truth be damned.
I'm starting to think that left-wing extremists have reached parity with right-wing extremists in terms of ideological purity.
By design, yes.
they never do. They don't know what QE is, that the FED is a privatly owned entity, any of it. Just like they never want to hear about how their hero, FDR, imprisoned all those americans of japanese ancestry during WWII and stole all their property. they like to gloss over that little bit of history
Re: Sure does hate the "right-wing extremists" though.
I do too. Because there's a huge difference between a Big-Gov loving "conservative" and a Conservative.
Know any "right wing extremists" who love Big-Ag, Big-MIC, Big-Road, Big-Water, Big-Airport, Big-OldFartHealthcare, Big-AntiDrug, & Big-PoliceState ?
Yeah, me too...
You met one of the host on MSNBC?
LOL !!!
I think Fonestar just may be on to something with Bitcoin. I mean...after all.....what government WOULDN'T jump at the chance to print something for nothing AND have it so easy to steal back from the people ???
ROTFLMAO !!!!
Youll say "SCAM WOW" everytime!!!
DingleBarry Kool-Aid.
Yum.
There is no inflation....
There is no Dana,,,there is only zoooool!
MOAR spending!
does this clown remember the trillion in "stimulus" he got in year 1?
love,
solyndra and QE
Reminds me of how revenue projections in California are always "unexpectedly" missing targets.
That's BHO.... over promise and under deliver... which just gets the markets obviously more excited...
Like the Captain of the Titanic brainstorming with wet feet. Yeah, a submarine, we will just call it a submarine!
It's all good.
pods
Nope, plastic pennies not going to work.
The metal in a penny is worthless, but the metal in the nickel is worth around five cents - it was above six cents a few years ago and they announced plans to reformulate it, but haven't got around to it yet.
Otherwise on the budget and so much, we are SO off the rails, and crashing through the brush, crushing deer and bunnies and a couple of shotgun shacks and heading for the cliff above the river ...
the metal in the nickel is worth around five cents
J. Kyle Bass stacks nickels - and he be smart. I would figure that he wouldn't be doing for less than a 4% arb.
Current melt value of U.S. coinage:
http://www.coinflation.com
A pre-82 penny is worth approx. 2.1 cents, a nickel is worth about 4.5 cents.
I get bags of coins from a couple local convenience stores, count/sort in one operation, run them through a detector in another to pull copper and silver, then return the coins to the store. I get to keep 3% for counting/sorting and pay face value for the 'keepers'. I'm now at the point I'm going to buy two coin sorters for the stores so they can get people to bring them in and do it right in the store. He'll keep 10% or it's full value if used to pay off store credit. And all I have to do is pick up the bags.
debt to gdp as a metric to me always seemed like a banker or economist enabler mechanism. most people look at income v. outgo and interest payments as a percentage of revenue. gdp is just a bogus made up number. tax revenue v. debt is a far more solid number and it is hideously frightening which is why they don't use it.
It's the perfect measure for an out of control government, though.
"How much can we steal?"
"Not sure, Bill. Let's figure out how much there is in total, and then we can just take half of that, as usual."
"You think we could we do 60% this time?"
"Um... yeah. I don't see any problem with that. Hell, they're stupid enough to let us take half, they'll be stupid enough to let us take 60%"
....And so on.
Public Education: Politically Correct Artificial Economies
The majority views nature as the prison, and defines freedom by its ability to imprison nature to the majority's purpose. Before war begins, the participants have already lost, and labor cleans up the mess.
Accounting practice, statistical division by zero to confirm bias in a positive feedback loop, simply shorts the math into increasingly convoluted misdirection, accrual delay of actuarial reality recognition. The economy projected by the media is what the majority wants it to be, something for nothing.
To perform this miracle, the magician must enslave production to consumption, the future to the past. The root bait and swap occurs in public education, categorizing individual initiative, moving forward, as the negative in favor of unassailable groupthink, decision by committee to repeat the past process. The problem solution of course is that scale stupidity cannot print productive children, or force them to accept economic slavery. Reprogramming is required.
"It should be not be thought that this is specifically a weakness of the intellectuals. Dispensational theology, for example, while originally propounded by academically trained men, is especially popular among people who would not be described as intellectuals, but it enables its adherents to practice a remarkably adherent, though a very partial, picture..."
"You can trust public education. Ask any Indian."
"Any consistent reference to someone that categorizes their negatives is demoralizing."
Moron: an adult with intelligence equal to that of an average child of eight or twelve years.
Stupor: a dazed or almost unconscious condition brought on by shock, drugs, drink, etc.
Ringer: a person who encircles.
The majority categorizes and demoralizes itself, attempting to isolate and control the minority; that's what public education is all about, categorizing children and promoting conformity with peer pressure, scaling stupidity by rewarding group conformity and penalizing individual nonconformity.
As such, the education system can only normalize lying, cheating and stealing, which the graduates will tell you if you listen. Argue political correctness all you like, but arguing with a ringer is a waste of time. I'm the guy the politicians turn to when they have a 'special' project to coordinate, expecting to destroy me at the end of the process.
Once I qualified for pre-med, I employed peer pressure to get the assistant in high school calculus to give me an upcoming test, the answers to which the teacher was giving her favorite compliars, 'tutoring' them after class. Then I showed the students she didn't like how to derive the answers, the root assumptions, and purposely failed the test myself, knowing she wanted to catch me cheating, because I didn't need a teacher. That is public education.
The PACs are simply immoral political machines from the past, consolidating peer pressure groups into event horizon order, political correctness. If you want to program gravity computing itself, simply replace gravitational operands with operators, to enable the recursive matching algorithm. Each false assumption embedded by public education adds denial and delay to the passive aggressive autonomic cycle, denial-denial-anger, ensuring no change in the process.
Even now, with all the hysteria over outcomes, the majority still wants someone else to pay for their inflated wages, pensions and property rentals, and is turning to the same RE syndicate to ensure the continued outcome, rigged comparables driving rent inflation on an increasing number of dead units. Joined at the hip, over the cliff they go. The political 'thought' leaders are simply revolving scapegoats.
Each era and subera – pastoral, agricultural, urban and global, results in the same cycle, taxation of the productive individual, habitat and culture to drive more of the same, technology to subsidize artificial authority, until the producers are all gone and all income is printed by fiat devaluation. Gold, like everything else in the empire, is diluted with paper.
“When man invented writing he found a way to preserve his ideas and expressions that passed through the time barrier…But they do constitute moral problems when they take the form of terror in the name of God or in the interests of ‘manifest destiny’ of a supposedly higher civilization, for it is there that considerations of humanity [M]ight be expected to be uppermost…For man perceives of his environment what his culture trains him to see, so that his culture is a filter or series of filters by which he selects what is meaningful…only those books can be judged canonical that are free from contradictions, inaccuracies, inconsistencies, peculiar practices, etc…disasters…revelry…famine…But instead of mourning and repentance, the Jerusalemites were so relieved that they shouted from the roof tops, and proceeded to feast off the few remaining animals…the ‘remnant’ will be very small indeed…”
Inside 50 years, America has gone from the most intelligent to the stupidest country in History, working more hours to avoid work, to deliver the lowest quality at the highest price, than any other, due to arbitrary and sacrosanct assumptions made in its public education system. Take the top end of the distribution and place it in back of the bankruptcy line, to fuel bankrupt civil enterprises on its way back to the top, and write a trillion lines of code to ensure no leakage, in the guise of Homeland Security. Brilliant!
Maximizing rent at minimum wage, seeking a return on someone else’s risk, in a race to the bottom with economic slavery, requires a casino ponzi. And America wins, along with everyone else stupid enough to compete on scale stupidity, arbitrarily assigning debt to production, to feed consumption credit, to complete control over an imploding empire. $350k houses on $10hr is not going to pull the producers back into the economy, but keep trying, by raising the rent.
Everyone’s economic interest rests upon getting workers up to speed in 6 months and paying journey rate at that point, rather than delaying the process with make-work proliferation over 4, 12, 16 and 25 years, because one employer’s producers are another employer’s consumers. Likewise, minimizing their producer rent to create disposable income for trade benefits everyone, because it grows the net economy. Community education is about community talent and skills, not funneling income to the landed class with make-work jobs, derivatives.
Marriage is the primary economic gear, rebirth, because it results in reliable growth of reliable durable goods orders in a feedback loop with nature. It’s self-governing. Of course single people want the benefits of marriage, without the responsibility, forming civil marriage to the end of equal entitlement by imprisoning marriage to their own transmission…and fail every time.
Surround my daughters, call them names, throw sticks, do whatever you want, but don’t be surprised if they have already responded before you begin and you just don’t know it yet. Categorization is about regurgitation, which is demoralizing, which is the empire imperative. Spending time learning with your family is much more important than anything you will ever do in the make-work world of empire.
Bzzt…wrong answer…bzzt…wrong answer…Rebirth in marriage for the purpose is the problem solution, and the State can go to H, as usual, believing its own mythology, that best is the enemy of better. Labor happily accepts the best so discarded.
“I have to pay empire extortion rent; why don’t they?” Moron, Win-Lose, Game Theory Assumptions. Life is not a game; labor just makes it look easy, because its work is done before the majority wakes up. RE inflation is a tax on production, requiring majority participation. Accepting it as a tax on nutrition to subsidize manufactured food and the resulting healthcare albatross is about as stupid as it gets.
When the economic slaves can no longer make the rent, the gangs are brought in to make them make the rent. And when that fails, war begins. Labor, which evacuated long ago, is not making $10; that’s the demoted middle class, and the middle class is all in, globally, to kill itself. Step out of your RE peer pressure group, to become yourself, or have war. Labor doesn’t support morons, determined to kill themselves. Hitler was just an errand boy.
Have you got your list?
Labor has been plowing blood back into the soil for 5000 years, teaching its children the process, not the law, the color of the dress. The middle class shorts itself into event horizon, with arbitrary switching, leaving itself no memory to work with. It’s not about location; it’s about positioning, in spacetime, to hit the gate others cannot see. Labor doesn’t work for derivatives. The switch is an inverted pyramid with momentum, in a fulcrum of fulcrums, a vortex of vertices at the implicit kernel.
Empire education has driven economic mobility to zero, and the majority is in the wrong place, at the wrong time, doing the wrong thing, driving RE inflation, headed to war, with itself. The price is a 24hr workweek at wages 4X rent, or the participants can kill each other, and the price will be the same, redaction of Family Law.
Good overview, kevinearick:
"Accounting practice, statistical division by zero to confirm bias in a positive feedback loop, simply shorts the math into increasingly convoluted misdirection, accrual delay of actuarial reality recognition. The economy projected by the media is what the majority wants it to be, something for nothing."
I like to use this neologism that
I first saw posted in Zero Hedge:
Magical Mathematics:
Magimathematics.
"To perform this miracle, the magician must enslave production to consumption, the future to the past."
"Something for nothing" is the foundation of our fraudulent monetary system, control over which was systematically captured by the international banksters, by persistently applying the methods of organized crime, for more than a Century in America, to end up with the current State Religion monetary system, which is privatized "money" made out of nothing as debts.
Upon that basis, the banksters and their buddies, such as tax-exempt foundations, persistently worked to transform the education system to make sure that enough of the People would not be able to understand the banksters' bookkeeping magimathematics. Of course, there is a detailed history regarding every social institution one examines, as within the schools, and the mass media, etc., that reveals how their funding persistently took over control of those institutions, to make their results consistent with the core creation of the banksters, the Federal Reserve Board, which is the leading manifestation of the runaway social insanity of the "something for nothing" systems.
Americans were the first population to become the victims of the most scientific brainwashing that money could buy. Scientific methods were applied in order to successfully condition enough Americans so they would not understand their monetary system, because they would not want to understand. However, then the paradox manifested of the trend towards the final failure due to too much success in that project, which picked up speed at an exponential rate, so that "America has gone from the most intelligent to the stupidest country in History!"
Tragically, the trajectory that America, and the whole world, is on is for the triumph of financial fraud to be able to take control over everything, through legalized lies, backed up with legalized violence. The central mechanism which drove that process was the funding of politics, and all other social institutions, whereby some of the profits from frauds were able to be reinvested in more frauds, manifesting like a "statistical division by zero to confirm bias in a positive feedback loop."
The most tragic aspect of the triumph of that privatized "money" made out of nothing as debts system is that every other aspect of society has been undermined and eroded by the generalized effects of the triumphant frauds in the form of the monetary system, enabled to go in perverse feedback loops to fund every other social institution, in order to systematically pervert those to serve the interests of the central frauds in the State Religion Monetary System, which was based on the history of the principles and methods of organized crime being persistently applied to capture control over the powers of governments. Therefore, the real world today is a runaway fascist plutocracy juggernaut, hiding behind a fake democracy, where almost all of the politicians are the banksters' puppets, whose job it is to perform for the masses of muppets, whose schooling and indoctrination by the mass media has made it almost impossible for them to understand what is really happening, because they have been successfully conditioned to not want to understand.
The runaway banksters' juggernaut is going to turn most people into its road kill. In my view, it would take a series of political miracles, which by definition are extremely improbable, for anything else to happen instead. The social pyramid system of lies backed by violence has been magnified trillions of times by progress in science and technology, to generate a globalized Neolithic Civilization that is terminally sick and insane. America led the way in those developments, which were the paradoxical application of effective scientific methods, that were designed, and then redesigned, to work, in order to brainwash enough of the people to believe in the biggest bullies' bullshit social stories.
The old-fashioned forms of State Religions were gradually displaced by the current State Religion in the monetary and taxation systems, as frauds backed by force, whose successes entered into reinforcing feedback loops, spiraling out from the capture over the control of the powers of government, to take more and more control of everything else. Every social institution, such as the school systems, have become frauds that support frauds. Thus, at present, every social institution has been modified to support the State Religion of privatized "money" made out of nothing as debts.
That State Religion, throughout all social institutions, has resulted in a civilization which has been driven towards the paradox of final failure from too much successful fraud. America led the way towards that globalization of Neolithic Civilization. Unless there were some prodigious series of political miracles (which are very unlikely, due to the perverse successes of the school systems and mass media), then there will be nothing to stop the overall evil deliberate ignorance that dominates everything that civilization does from eventually destroying itself.
THE RECENT OBAMA BUDGET IS BOGUS, BECAUSE THE ENTIRE BOOKKEEPING SYSTEM IS BOGUS, WHICH IS ONLY POSSIBLE BECAUSE THE AMERICAN SCHOOL SYSTEM IS BOGUS, AND THE NEWS ON THE MASS MEDIA IS BOGUS.
PROFESSIONALS GET PAID TO BULLSHIT, WHILE THEY WOULD BE UNEMPLOYED IF THEY DID NOT, BECAUSE WE LIVE INSIDE AN OXYMORONIC SCIENTIFIC DICTATORSHIP, WHERE THE METHODS OF SCIENCE ARE PRIMARILY APPLIED TO PROMOTE HUGE LIES, SINCE SCIENTIFIC METHODS ARE PRIMARILY EMPLOYED TO PROJECT AND PROTECT THE STATE RELIGION MONETARY AND TAXATION SYSTEMS.
DUE TO THE HISTORY OF THE FEEDBACK OF SUCCESSFUL FINANCIAL FRAUDS BEING ABLE TO TAKE OVER CONTROL OF SOCIAL INSTITUTIONS, AMERICA NOW LEADS THE WORLD IN THE MANIFESTATIONS OF SOCIETY SCIENTIFICALLY DOMINATED BY BOGUS BULLSHIT!
I just had some unicorn shit, er, skittles, for a snack.
Not a unicorn. Is bear. Putin says "Hi. Duck, is nuke."
I don't know exactly when the day will arrive. I'm not sure what event will trigger it. And I don't know who will be the first to call attention to it.
But when the accumulation of short-sighted decisions confronts the reality of the trajectory we've placed the country on, a whole lot of people are going to become extremely desperate. And desperate people don't tend to be polite...
Graph indicates we're at about 75% now but this must be excluding inter-government borrowings/debt related to Social Security as the current US debt is roughly $17.4 trillion compared to a current GDP of roughly the same or slightly less. No worries, I guess, as all of the hard working Americans that contributed to SS over the past 50+ years don't need this money anyhow. As for unfunded liabilities which by most estimates range from a low of $50 trillion to more than $200 trillion (so let's just call it $100 trillion between friends), not a mention, note, or reference to this obligation.
Just leave it to the government to produce a budget that in no way, shape, or form is connected to reality. Everyone jokes about the banks not utilizing mark to market accounting. Hell, the government makes this look like child's play as they have invented an entirely new form of accounting that is basically utilizes the oldest strategy in the accounting world. That is and when you ask an accountant what 2+2 should equal, the response from the government accountants is "Whatever I want it to be to and don't ask again as I will turn the NSA, IRS, CIA, FBI, and whomever else I want on to your ass if you keep asking!".
So think about this for just a moment. The critical financial information needed for investors to make informed decisions, that is the financial statements/budgets provided by the government, is completely de-based from any sound accounting theory/guidelines. And yet, the world's most widely held investment, that is US government debt, seems to completely ignore this fact and operate on the premise that the US government's finances are sound. Surely, this is set to end well!
Hey Krugman you fucking asshole, what do you make of this shit???
That's what I thought - back to sleep fuckhead.
Re; Hey Krugman you fucking asshole, what do you make of this shit
Krugman just called Cheney who confirmed what he said about the topic last time: Reagan proved deficits don't matter.
What's a few zeroes betweeen the ears of an imbecile
Somebody help me, please. I thought that the debt to GDP was about 105% - TODAY!!! Did Obama just get out his pen and telephone and set it back to the 72% detailed in the chart??? Seriously - I be major league confused.
Debt is GDP, and therefore, moar debt = moar GDP in govco speak.
Except they gloss over the fact that moar debt is producing less GDP with every new debt issuance, the ROD (return on debt) is getting softer.
we live in a world of models...the problem is that anyone can make a model that proves any point. the only model that matters is just extending the trends of the past 20-30 years.
Humans do not change until the minutes before an disaster or while actually in the disaster. It has to break to be fixed...Einstein was right noting that the only true learning comes from mistakes....although it is somewhat depressing to think the only way to improve gov't is to go through the painful destruction and rebirth.
We live in a real world ... we hallucinate in a world of models. When FASB altered the definition of 'mark to market', we all boarded the Yellow Submarine and have been on cruise control ever since with the auto pilot being controlled by the world of models ... but we will run out of fuel someday and we will have to surface
you can say just about anything with statistics...
...if you're willing to exclude the "right" data
When truth becomes optional, anything can happen
FDR: Began debasing the currency by taking gold out of coinage in circulation
LBJ: Continued the debasement by removing silver from coinage in circulation
Reagan: Presided over the continued debasement of the currency by removing the 90% copper content from the penny and replacing it with 97.5% zinc
Obama:_______________________________________________________________________________ (Fill in the Blank)
FDR: Began debasing the currency by taking gold out of coinage in circulation
LBJ: Continued the debasement by removing silver from coinage in circulation
Reagan: Presided over the continued debasement of the currency by removing the 90% copper content from the penny and replacing it with 97.5% zinc
Obama:_______________________________________________________________________________ (Fill in the Blank)
She's spreading her legs again.
"Cheaper metals"? What's left that cheaper than the junk our money is made from now? Dirt? Is that a"metal"?
All of those charts are incorrect, as they have the DC US still existing in 2020. Not going to happen.
The DC US is barely hanging on now, and actually making plans for when they fall with NDAA.
I don't understand the charts. Our GDP as of December 2013 was $17.1 trillion and our national debt was $17.4 trillion. We have passed the 100% point and our debt is growing faster. What the hell numbers is the WaPo using? Oh never mind. It doesn't matter.
First of all they don't count the money that we owe ourselves. You know the money that was stolen from social security fund decades ago. Don't worry the government is good for it. Trust em. Second the idea of how much a penny or nickel cost when we spend 1 trillion more than we take in is fucking hilarious. I can only hope there is a special place in hell for asshats that work for the federal government.