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Congress's $1.15 Trillion Spending Bill: Heads They Win, Tails You Lose

Tyler Durden's picture




 

Submitted by Simon Black via SovereignMan.com,

Fyodor Dostoyevsky’s seminal masterpiece Crime and Punishment is often thought of as one of the longest classics at more than 200,000 words.

The Consolidated Appropriations Act of 2016, which was signed into law on Friday, is nearly twice as long.

In case you’re not familiar with the background, the author was once quite wealthy.

But through years of reckless, irresponsible behavior, he gambled away his wealth until he was impoverished and unable to pay his creditors.

I am, of course, talking about BOTH Dostoevsky, and the United States government.

Dostoevsky went broke from a gambling problem. The US government has gone broke from a spending problem.

And you’d think that, with nearly $19 trillion in debt, they’d come up with a budget that demonstrates a modicum of conservation.

But no. At 887 pages, the bill allocates $1.15 trillion in war and discretionary spending for fiscal year 2016 which began almost three months ago.

(That’s an average of $1.3 billion in spending PER PAGE of the bill.)

Last December I recorded a podcast entitled “Paying down the debt is now almost mathematically impossible”, which described how the US as currently structured was condemned to perpetual deficits and rising debt.

This spending bill further proves that point. And in making it public law, President Obama has effectively signed the death warrant of the US government’s finances.

First, some explanation.

Late last week, the Congress jointly presented a series of bills to the President, the most important of which was the Consolidated Appropriations Act.

It contains a budget breakdown, department by department, for what the government is authorized to spend this fiscal year.

Bear in mind that this is only a portion of what the government spends.

Because on top of the $1.15 trillion ‘discretionary’ spending package, the government also spends a ton of money on ‘mandatory’ programs, like Social Security and Medicare.

Last year’s mandatory entitlements totaled $2.45 trillion. And given the thousands of people who become Social Security recipients every day, that number will increase this year.

Last but not least is that wee little problem of the national debt, now closing in on $19 trillion.

At more than $400 billion per year, interest on the debt is so huge that it has its own category of government spending.

Do the math and you’ll see that government spending for this fiscal year will hit $4 trillion for the first time in history.

Now, Congress has very little control over the last two categories.

They can’t change the amount of interest that America owes to its bondholders without causing a major financial crisis.

And they can’t make any adjustments to Social Security, Medicare, etc. without causing a major political crisis.

The only thing they realistically control is the discretionary category, which funds most of the things we think of as government– the military, national parks, homeland security, etc.

Again, you’d think that with such a massive debt, they’d be a bit conservative in their spending.

Yet their $1.15 trillion allocation to discretionary spending this fiscal year is a 6.6% increase from last year.

Personally I find this increase a bit curious given that the government itself tells us that there’s no inflation.

So even though the national debt is $19 trillion, and they haven’t run a budget surplus in decades, their ‘solution’ is to expand the government.

There is zero sense of urgency here.

Simultaneously, they passed a tax package that will cut government tax revenue by $622 billion.

(Don’t get excited– most of these tax cuts won’t affect your personal income tax at all.)

So basically they’re willfully increasing expenses and decreasing revenue. It’s genius!

This sort of financial acumen should come as no surprise given that we’re talking about people who spent $2 billion of taxpayer money to develop a website.

Just like Dostoyevsky 150 years ago, the US government is broke and unable to pay its creditors thanks to a long-term trend of reckless, irresponsible behavior.

But rather than writing a masterpiece, they put together a bill that takes them even deeper into the hole, and crammed it full of so many provisions that it was impossible for anyone to have actually read it all.

One of those provisions buried deep in the bill is the Cybersecurity Information Sharing Act, which establishes ‘automated information sharing’ between major technology providers and the federal government.

So not only did they manage to make the government more broke, but they also managed to make you less free.

And that is perhaps the biggest twist of irony: just three days before signing this freedom-killing bill into law, President Obama proclaimed December 15th as “Bill of Rights Day”.

As the President wrote in his formal proclamation, the Bill of Rights was ratified on December 15, 1791 “to guarantee our fledgling Nation would never succumb to the tyranny it fought against. . .”

Try to read that sentence again without laughing. He continues:

“Today, we stand on the shoulders of those who dedicated their lives to upholding the meaning of our founding documents throughout changing times — a mission made possible by the fundamental liberties secured in the Bill of Rights.”

You can’t make this stuff up… ‘Standing on the shoulders’? More like trampling.

This is the two-faced reality you’re dealing with: hollow words about freedom published by an ever-expanding surveillance state, financed by a budget that drives the nation closer to fiscal destruction.

This is not a consequence-free environment. What’s your Plan B?

 

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Mon, 12/21/2015 - 16:31 | 6950287 stocktivity
stocktivity's picture

It's 3:30. You know what that means.

Mon, 12/21/2015 - 16:34 | 6950296 InjectTheVenom
InjectTheVenom's picture

umm, can we please get Trump in there before it's too late ?

Mon, 12/21/2015 - 16:36 | 6950309 Seasmoke
Seasmoke's picture

Sorry. Too late. 

Mon, 12/21/2015 - 16:41 | 6950328 NidStyles
NidStyles's picture

Twas too late for the dollar in 1974. 

Mon, 12/21/2015 - 16:43 | 6950345 Boris Alatovkrap
Boris Alatovkrap's picture

<-- Weak Citizenry is alway lose

<-- Powerful State is alway win

However, if you are escape Matrix, you are free of all powerful state:

http://twitter.com/BorisAlatovkrap/status/679038014517981184

Mon, 12/21/2015 - 17:23 | 6950492 The Pope
The Pope's picture

$19 trillion, whereby the 'layaway' plan on the [NEVER TO BE]re-payment on that simply means a certain jew owned entity occupies itself with the task of counterfeitting the 'monthly nut', &, simply results in Simon Black keeping himself awash in Rochefocaulds while he jet-sets around the planet bloviating about injustices and pretending to be your BFF on the airport tarmac.

Mon, 12/21/2015 - 17:56 | 6950604 TeamDepends
TeamDepends's picture

We Cloward-Pivened some folks.

Mon, 12/21/2015 - 17:35 | 6950539 hannah
hannah's picture

'Twas too late for the dollar in 1974. '

 

Twas too late for the dollar in 1913...........

Mon, 12/21/2015 - 16:41 | 6950332 Demdere
Demdere's picture

Trump is many things, but rhe answer to our problems he is not.

https://thinkpatriot.wordpress.com/2015/12/18/was-trump-annointed/

Just another Israeli-Neocon.

Mon, 12/21/2015 - 16:54 | 6950387 RonArgent
RonArgent's picture

So Trump is a foreigner AND he's Jewish.......

 

What Buttfoonery

 

 

Mon, 12/21/2015 - 17:39 | 6950554 FreeMoney
FreeMoney's picture

This is the continuous reason to never vote for an incumbent.  Politicians should be limited to a single elected office.

Mon, 12/21/2015 - 17:55 | 6950600 The Pope
The Pope's picture

Politicians should be limited to being administered 'swirlies' if they ever decide it's time to run for public office...

 

There, fixed it.

Mon, 12/21/2015 - 21:10 | 6951039 Demdere
Demdere's picture

You had to work at that.

Anyone who follows the world knows that Israeli-Neocons did the 9/11 False Flag attack on Americans at the WTC.

Those are the Israeli-Neocons I was referring to.  I will be pleased to explain this in as much detail as you would like, precision of terms is important in communications, don't you think?

And meanwhile, we, the Saudis and Gulf States and Israelis are about to be charged with genocide for our creation and support and leadership of ISIS :

http://www.bbc.com/news/uk-35147645

You should recall the Israeli Col who was captured with his ISIS unit this summer, he had lead them in the attacks on Mosul, I recall.

Now rethink Paris and the stream of threats that ISIS produced just after that information started coming out, the Turks screwed up, remember?

Those Israeli-Neocons, the existential threat to America.

Mon, 12/21/2015 - 16:56 | 6950393 FreeShitter
FreeShitter's picture

Trump is just doing what he is told...the dude didnt get up to 10B on his own w/o handlers.....newsflash sheep: There never has been a candidate for the people since the 1800's.

Mon, 12/21/2015 - 16:59 | 6950406 centerline
centerline's picture

Turd versus douchebag.  Same as always.  (ref. Southpark).

Mon, 12/21/2015 - 17:03 | 6950429 Bunghole
Bunghole's picture

It was actually Turd Sandwich vs Giant Douche in the SP debate.

Mon, 12/21/2015 - 17:13 | 6950459 centerline
centerline's picture

Thanks.  I forgot that!  Memory half-working. 

Mon, 12/21/2015 - 19:12 | 6950762 The Pope
The Pope's picture

FreeShitter is right... Trump is playing the MATT DRUDGE, (controlled objection), role in this social experiment... The only difference is that Trump isn't actually jewish (which qualifies him as wannabee 'bootlicker' in chief #2, after Hilary).

 

At least they never got to Ron Paul ('cept for the part about seeing him get brushed to the side, of course).

Mon, 12/21/2015 - 21:18 | 6951174 Demdere
Demdere's picture

Not 'handlers', that is too strong.  'Advisors' in the business world, 'Liasons to the x, y or z community' in politics.

Trump's advisors are mobbed up, or people like Roger Stone and have connections to old-line Deep State. Lots of others, the man is part of several different communities.

Trump's lawyer-advisor is Roy Cohn's son.  Trump learned to do his PR from Cohn, according to a Salon article earlier this year.

Perhaps Liasons to the NY Mob are a requirement for a NYC real estate developer, some of the things I read said that Trump claims that.

I think we kow as little about Trump for real as we knew about Obama.

Israeli-Neocon in policy, we saw the negotiation and acceptance right before our eyes.

https://thinkpatriot.wordpress.com/2015/12/18/was-trump-annointed/

Mon, 12/21/2015 - 16:35 | 6950304 Dr. Engali
Dr. Engali's picture

It's time to drink? 

Mon, 12/21/2015 - 16:33 | 6950295 NoWayJose
NoWayJose's picture

Help us, Obi-Trump, you're our only hope!

Mon, 12/21/2015 - 16:34 | 6950299 Dr. Engali
Dr. Engali's picture

We have to spend money to keep from going bankrupt.

 

~The Tower of Financial Intellect

  Joe Biden

 

https://youtu.be/LHFEcyUNBjg

Mon, 12/21/2015 - 16:34 | 6950301 Seasmoke
Seasmoke's picture

FUCK YOU JACK LEW. 

Mon, 12/21/2015 - 18:00 | 6950620 BandGap
BandGap's picture

This budget gives each party what they want.

They know this is the endgame, this is one of the last meals they will get made to order before the SHTF. Therefore, everyone gets what they want. It is the US govenrment's way of ensuring they get the most out before it blows up. It's what I am doing with my paper money these days, turning it into tangible assets.

Mon, 12/21/2015 - 16:36 | 6950308 KnuckleDragger-X
KnuckleDragger-X's picture

I can't be out of money, I still have checks. We all know how this little passion play ends.......

Mon, 12/21/2015 - 16:36 | 6950313 PoasterToaster
PoasterToaster's picture

The "government"owes nothing.  The concept of "owing" means nothing to an entity that cannot be collected from.

Mon, 12/21/2015 - 16:40 | 6950317 Rainman
Rainman's picture

bastards filled all 7 orifices of the human taxpayer in one cum shot ...  including the belly button

Mon, 12/21/2015 - 16:46 | 6950335 Mr. Schmilkies
Mr. Schmilkies's picture

One page in this law for each "department" of the federal government. They each get discretionary money, Barrack and Congress say so. Christmas presents.

Mon, 12/21/2015 - 16:43 | 6950343 Spiritof42
Spiritof42's picture

Contrary to what Simon says, it makes perfect sense. If I knew there was no chance I could pay down my debts, I would spend as fast as I could until my creditors cut me off. In politics, spending is everything. 

Mon, 12/21/2015 - 17:03 | 6950426 NotApplicable
NotApplicable's picture

Besides, it's the only place left for GDP "growth."

Mon, 12/21/2015 - 20:32 | 6951041 Bobbyrib
Bobbyrib's picture

The Federal Reserve has been our only creditor lately. It's really just a matter of time before the rest of the world loses faith in the American dollar..then us little people are fucked.

 

I had this shiny stuff at one time that protects against this type of inevitable occurrence, but I was in a boat in some water and I fell out. I must have hit my head and when I woke up my shiny stuff was gone and I couldn't remember much.

 

Mon, 12/21/2015 - 16:46 | 6950347 youngman
youngman's picture

It still amazes me how other countries still accept and want our dollars....you would think they would run away from that fiat...but they dont...

Mon, 12/21/2015 - 17:12 | 6950457 WayBehind
WayBehind's picture

I was thinking about the same thing and my conclusion was that the only reason dollar is still "the currency" is because all the other currencies (perhaps other than a swiss franc) are even worse shit. Just think about it, all the Euro currencies are crap and who wants to hold some China money?

Mon, 12/21/2015 - 17:20 | 6950489 grekko
grekko's picture

If the dollar is the cleanest dirty shirt at the laundry, then perhaps the laundry need to burn down.

Mon, 12/21/2015 - 17:27 | 6950511 boattrash
boattrash's picture

"This is not a consequence-free environment. What’s your Plan B?"

Save my last round for myself. But I've got lots of rounds.

Mon, 12/21/2015 - 20:35 | 6951051 Bobbyrib
Bobbyrib's picture

The US, UK, and China are the biggest money printers.

Mon, 12/21/2015 - 16:50 | 6950368 Johnny Horscaulk
Johnny Horscaulk's picture

there is zero intention on the part of tptb to ever repay this debt.

The US is being used as sword, shield and treasury to sow the chaos it has been sowing for years now - to include the immivasion and demographic assault on Europe and its indigenous population.

http://russia-insider.com/en/politics/us-elites-are-trying-destroy-europ...
http://celticanglopress.tumblr.com/post/47433261983/the-coudenhove-kaler...

THAT...is what 'deficits don't matter' means.

Once the American Empire is all used up via debt, 3rd world immigration and needless wars, it can dry up and blow away.

Mon, 12/21/2015 - 16:57 | 6950399 Thisisbullishright
Thisisbullishright's picture

Not to worry...

Crazy panic buying, VIX destroying mania into the close!

You can't make this shit up!!

 

Mon, 12/21/2015 - 17:27 | 6950405 Wow72
Wow72's picture

From Article:  "And you’d think that, with nearly $19 trillion in debt, they’d come up with a budget that demonstrates a modicum of conservation.

But no. At 887 pages, the bill allocates $1.15 trillion in war and discretionary spending for fiscal year 2016 which began almost three months ago."

 

Yes they are doing it because its OUR money, OUR debt and OUR responsibility and NOT THEIRS DUH!!!! They are laughing all the way to the BANK at US???? They are spending OUR money that's why they have no problem turning the FIRE hose on???  Its not their problem... Modelled after the "Golden Parachute" concept.. aka "All for me..none for u" concept.  Im convinced WE are fucking IDIOTS for letting this continue... The paedophiles are raping our children's future??? WTF??  If you were in charge of a huge pile of money and you kept taking it and no one said anything what would you do? NOT TAKE IT?  Apathy toward Human Nature is going to be our end.  ITs UNREAL??

Im always amazed at the tolerance, indifference and apathy of the American people, what is it going to take?? Just trust a politician when They say "Gov. debt really doesnt matter, TRUST US!" are you fucking kidding me?  Its like me saying I have a bridge for sale? Holy SHIT!

Mon, 12/21/2015 - 20:51 | 6951092 Barrack Chavez
Barrack Chavez's picture

Note to China and OPEC and other major creditors of Washington DC:

We the people are not represented by them the politicians, and as we have been saying for 239+ years, "No taxation without representation".

Its not "our" debt, and if you people are dumb enough to lend them your money anyway... well "read my lips and kiss my intern's ass"

Mon, 12/21/2015 - 17:01 | 6950416 dogbert8
dogbert8's picture

Lawmakers could not care less about the national debt; that ceased to be a concern with G.W. and has continued under Obama.  Once we passed the point where it was mathematically impossible to pay off the debt, and the economy did not collapse, lawmakers rightly figured they could keep their spending scheme going ad infinitum.  Who or what is there to stop them?

Mon, 12/21/2015 - 17:04 | 6950434 NotApplicable
NotApplicable's picture

The Law of Unintended Consequences.

YMMV

Mon, 12/21/2015 - 17:17 | 6950478 grekko
grekko's picture

Is a Revolution an Unintended Consequence?

Mon, 12/21/2015 - 20:48 | 6951079 Barrack Chavez
Barrack Chavez's picture

Not defending the stupidity of G.W. -- but if you were being honest with yourself, you would admit the US government hasn't run balanced spending since FDR took office.

Social Security is just a pyramid scheme that you are required to participate in.

By the time LBJ took office, they were already running off balance sheet debt vehicles (named FNMA and FHLMC) -- which LBJ supposedly "privatized" to claim his budget balanced.

Every government since then has run massive deficits. Some ran on balance sheet deficits, while others (Clinton notably) ran off-balance sheet deficits -- assuming that most public school educated voters were too stupid to see through his scam.

But the US government has been spending beyond its means for decades. Try not to sound stupid by blaming one "political party" over the other

Mon, 12/21/2015 - 17:03 | 6950430 rejected
rejected's picture

How does one get "more broke"?

Mon, 12/21/2015 - 17:14 | 6950468 Sudden Debt
Sudden Debt's picture

Broke the American way

Mon, 12/21/2015 - 17:37 | 6950549 Amish Hacker
Amish Hacker's picture

Deposit all the money you don't have into an account paying negative interest. You're welcome.

Mon, 12/21/2015 - 17:08 | 6950445 A Lunatic
A Lunatic's picture

What price can you put on Freedumb.........?

Mon, 12/21/2015 - 17:12 | 6950455 Sudden Debt
Sudden Debt's picture

It's why America is in a constant war or they couln't pass that bill.

Mon, 12/21/2015 - 17:15 | 6950471 _SILENCER
_SILENCER's picture

If these shitweasels have 1.15 Trillion of debt to play with at our expense, I say we should just stop participating in their tax scam. Fuck 'em.

Mon, 12/21/2015 - 17:23 | 6950501 rsnoble
rsnoble's picture

Anythings possibly with the tecnologically advanced digital zero.

Mon, 12/21/2015 - 17:25 | 6950503 BigRedRider
BigRedRider's picture

Hmmmm...lets see...$1,500,000,000,000 divided by 321,216,397 men, woman and chilins in the U.S. = $4,670 a pop.  Maybe I can float an unsecured loan with my grandkids' piggy bank to bring my dues up to snuff with the revenuers.

Mon, 12/21/2015 - 20:42 | 6951064 Barrack Chavez
Barrack Chavez's picture

You laugh, but essentially that is what happened.

Hopefully your children (and grandchildren) will put Obama/Ryan in the same book as Benedict Arnold. Its where they belong

Mon, 12/21/2015 - 17:27 | 6950508 Aussie V
Aussie V's picture

The only way they can fund this is by taking other countries resources.

This sham of stealing other countries resorces has been going on for a long time but it will become much more obvious and evident to the sheeple as time goes on.

The PTB will find it increasingly difficult to hide the fact that they ARE the resident and concentrated evil on this planet!

Mon, 12/21/2015 - 17:29 | 6950520 Your Creator
Your Creator's picture

paul ryan is boner jr.

Mon, 12/21/2015 - 17:40 | 6950558 Bill of Rights
Bill of Rights's picture

Fucken cunts everyone of them we can only hope Mother Nature dies her duty and they all suffer slow burning cancer.

Mon, 12/21/2015 - 17:41 | 6950563 sbenard
sbenard's picture

Calamity is certainty! Plan and prepare accordingly!

Mon, 12/21/2015 - 18:37 | 6950603 Wow72
Wow72's picture

Based on recent performance I think its time to at least cut these losers gov.  salaries and benefits?  Shouldnt we move to a more "performance" based pay system for these assholes? They dont do much except cause problems? Their results have been nothing short of Piss Poor.   Bribes and promises of future employment should more than cover their expenses at this point? Why do we need to pay these losers?  Cant we get a robot to do what they do.. Sit there and act like idiots? Shouldnt be tough to replicate the behaviour? 

Mon, 12/21/2015 - 21:21 | 6951185 Demdere
Demdere's picture

The problem seems to be one of accumulating the power to fire them.

Mon, 12/21/2015 - 23:10 | 6951596 Wow72
Wow72's picture

At this point yes, but by spring I think there will be plenty of support to fire them.. Its coming, timing is always tough.   I dont know a few million angry Americans seems doable?  You have a Congress and Senate that barely get above 15% approval, meaning there is an 85% disapproval rating? In a country of 300 million Im sure there is more than a few that are ready.. approx.  255million of us disprove for one reason or another?  We just need to agree that we need to start over from scratch? Should be Plenty of Power? Not sure power will be an issue on OUR side?

Mon, 12/21/2015 - 18:03 | 6950625 bentaxle
bentaxle's picture

"....signed the death warrant of the US government's finances.."

 

Do we get to see it die?

Mon, 12/21/2015 - 20:40 | 6951060 Barrack Chavez
Barrack Chavez's picture

Yes we can, and yes we did.

You must have blinked. Between interest payments and elderly welfare and Obamacare, default is inevitable. its just a question of which promises and what percentage won't get paid.

Meanwhile, dip-shit academics are still indoctrinating future economics students into thinking US Treasuries are "risk free" -- and get this -- the students are paying them $60K per year to be lied to!

Mon, 12/21/2015 - 18:18 | 6950659 Kelley
Kelley's picture

The author and other authors continue to misidentify Obama's position. He is Resident Obama aka The Usurper.

 

Otherwise. Simon Black has written a fine article.

Mon, 12/21/2015 - 18:36 | 6950683 Jstanley011
Jstanley011's picture

The shell game of increasing spending and simultaneously cutting taxes is a long-standing compromise that goes back to the Reagan era. The "conservatives" of the time thought they could get away with it based on the Laffer Curve, which works well enough when spending is increasing arithmetically but not so well when it's increasing exponentially.

The issue isn't the fact that we'll never be able to pay off the debt as this post discusses; not even Stockman is asking the right question, "Can this nation manage a $35 trillion public debt at the very time that the baby boom is retiring at a rate of 10,000 per day?"

The real issue is the doubling of the national debt every two presidential terms; Clinton left $5 trillion, Bush left $9 trillion and Obama is set to leave close to $20 trillion. Stockman's $35 trillion is his estimate for it in ten years, based on the budget deal. My guess is more that $40 trillion in eight or BUST, with bust being the more likely of the two.

One thing's for sure, what cannot be sustained, sooner or later, will not be.

Mon, 12/21/2015 - 20:23 | 6951026 ajkreider
ajkreider's picture

Pretty sure he's mixed up "Crime and Punishment" with "The Brothers Karamozov" - the latter being both much better and much longer.

Mon, 12/21/2015 - 20:35 | 6951049 SubjectivObject
SubjectivObject's picture

Noting that in both the House and Senate, essentially all Republicans voted yes and essentially all Democrats voted no.

And the Obaminator did not veto it.

Mon, 12/21/2015 - 20:47 | 6951075 atthelake
atthelake's picture

Anyone who gives or accepts lobby money, to the detriment of America and Americans, should have a fair trial for treason and, if found guilty, hang from the neck, until dead.

Tue, 12/22/2015 - 00:20 | 6951788 kaboomnomic
kaboomnomic's picture

Their own country running like this shit. And yet, the trolls predicts the "impending doom" of other country economic condition.

 

Amazing how kardhasians ass can wreack havoc on some of the ZH trolls brains here..

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