And The Kickers In Reid's Proposed "Deficit Cutting" Plan Are...

Tyler Durden's picture

Following hot on the heels of the proposed Boehner rehashed plan, we get the first details of where the bulk of the $2.7 trillion in proposed savings will come from. Are you ready for this? REID PLAN SAID TO HAVE $1 TRLN SAVINGS FROM WINDING DOWN WARS. That's right. In some parallel galaxy far, far away, lack of expenditures, on America's 6 front wars to be sure, is now considered a "saving"? Front lobe hemorrhage to commence in 5 seconds. And the other migraine-inducing details of the Reiid plan are...


So $1.2 trillion in discretionary cuts, which means millions in government job losses. What was that about the unemployment rate again? And what the hell is an "interest savings" - is that the interest on the debt that would be incurred if the deficit cuts were not imposed? Or will Reid replace Brian Sack in the Fed's OMO desk and proceed to sell trillions in Long-term bond futures puts to get the 30 Year rate to -infinity?

Even the moronic rating agencies won't hesitate to downgrade the US to F- based on this deranged gobbledygook.

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schoolsout's picture

I'd laugh if it wasn't so damn sad....



101 years and counting's picture

i laughed anyways.  this shit is just way too funny.

redpill's picture

I'm surprised they haven't come back to Ron Paul's solution of having the Fed destroy their bond holdings.  POOF, national debt goes down $1.6T.


max2205's picture

THAT is A BAG OF SUCK (to quote GW)

aheady's picture

I know. I can't stop saying that one.

cosmictrainwreck's picture

dose guys are dumber than a bag o' hammers.......

Popo's picture

They really don't get it. They're still playing the "re-shuffle the debt cards" game. They don't seem to understand that the game is over.

A bi-partisan committee to find future savings?

Sort of like ... The one you're on NOW????

knukles's picture

Owwwwh, come on, I kinda like that bi-sexual partner with animal commission to maybe find some potential savings down the raod later on some day in the future when and as it may be necessary.

cramers_tears's picture
HTML Copy and Paste?! - Zero Hedge Opens Up the Commissary. Military outlays (.980+T) v. budget deficit (1.21T)  -  Comparison with other countries - LET'S JUST BLOW UP SOME MORE SHIT!  Or better yet... VOTE FOR PAUL - 2012.

Military spending as a percentage of GDP

The 2009 U.S. military budget accounts for approximately 40% of global arms spending and is over six times larger than the military budget of China (compared at the nominal US dollar / Renminbi rate, not the PPP rate). The United States and its close allies are responsible for two-thirds to three-quarters of the world's military spending (of which, in turn, the U.S. is responsible for the majority).[31][32][33]

In 2005, the United States spent 4.06% of its GDP on its military (considering only basic Department of Defense budget spending), more than France's 2.6% and less than Saudi Arabia's 10%.[34]information 2006 This is historically low for the United States since it peaked in 1944 at 37.8% of GDP (it reached the lowest point of 3.0% in 1999–2001). Even during the peak of the Vietnam War the percentage reached a high of 9.4% in 1968.[35] Countries like Canada and Germany spend only 1.4% of GDP on their military.

Goldtoothchimp09's picture

LOL LOL hahahaha -- Laughing is all that is possible!!

PuppetRepubl1c's picture

Some men just want to watch the world burn...!





Cleanclog's picture

Is it possible that Reid and Schumer are trying to induce a migraine in Bachman and the Tea Partiers?

JohnG's picture

Heh.  If so, it's effective.  My head has been hurting for days.

Or is that caused by constantly beating my head with a 2x4?

Cash_is_Trash's picture

Wars go away..

It's the kinetic military action we're all worried about.

JohnG's picture

When?  They'll just find or make an excuse for another war.  It's endless and very sad.

StychoKiller's picture

Just what were those Idjuts in Nevada thinkin' when they re-elected Reid?  (oh, right -- thinking is hard work, better to stick with the Devil you know and all that rot...)

Cole Younger's picture

I laughed as well as it just proves the politicians do not want to cut spending. They are going to fight spending cuts tooth and nail. In the end, even the republican plan will be accounting schemes, impossible future growth expectation, and hedonic adjustments.

Stoploss's picture

Surely this is bullish, no??

gmrpeabody's picture

One would think so, but...

American Sucker's picture

You got the "bull" part right.

Cthonic's picture

Go ahead and laugh.  It's a sign of supreme, and deserved, derision.

Mongrel's picture

Message to Reid from my 4-year-old grandson: "You think you know, but you don't."

Pool Shark's picture


Smoke - and - mirrors


Perseid.Rocks's picture

These geniuses need to figure out where all that excess debt-money is at, then go after it and eliminate it. I never saw a bigger bunch of weenies in my life.

Hey I'm starting to miss that ZH math question already. It's become part of my routine.

mick_richfield's picture

Hey I'm starting to miss that ZH math question already. It's become part of my routine.

I feel you, bro. 

Here.  I can help.  This is one of the questions I want to propose to qualify for Rater status.

"What is the smallest counting number that will never go to 1 after any number of repetitions of the following 2-part rule:  (1) if the number is even, cut it in half.  (2) if the number is odd, triple it and add 1."


Sacrilege !  This is for you, too.    Look ^^^

Perseid.Rocks's picture

I don't think there is a counting number which matches that description.

Sophist Economicus's picture

Sir, you have unjustly insulted two inanimate objects!

Translational Lift's picture

Same type of Bull Shit as in obummer-care....Pathetic.....

Urban Redneck's picture

Smokin boat, if he thinks there's hundreds of billions in interest savings coming, perhaps he should lay off the hard stuff before getting in front a microphone.

Urban Redneck's picture

Smokin boat, if he thinks there's hundreds of billions in interest savings coming, perhaps he should lay off the hard stuff before getting in front a microphone.

Blano's picture

How could interest savings come any other way than REDUCING debt??

pupton's picture

By defaulting, duh.  hahaha...these fukkin assholes are just winging it at this point. 

Neezer's picture

The federal government should use the same FAS157 accounting standard that financials use.... ie, they should mark-to-market their debt. In this bizarro world, the more that congress trashes the USA's creditworthiness with frivolous debt-financed spending, the greater the gains (savings!) that can be booked in current income through lower bond prices on all outstanding treasury bonds.

It's like inventing "perpetual motion", an infinite debt ceiling could lead to infinite interest savings! Brilliant!

Spitzer's picture

gold down for the rest of the week ? me hopes.

EscapeKey's picture

interest savings = QE to infinity, pushing 30 year yields down below 1%.

as if the wars will ever stop.

edit: reminds me of this

PuppetRepubl1c's picture

awesome clip!


and promising to "end the wars" is hilarious, anyone stupid enough to believe that lie should be deported immediately so they can never vote in another election





ThirdCoastSurfer's picture


The Treasury budget report from 7/13 beat expectations when the model used to calculate interest payments on Treasuries was adjusted to lower by $60 billion the deficit for June or it would have been -$103.1b instead of -43.1b. 

urbanelf's picture

How much did we save by not bombing Tlon, Uqbar and Orbis Tertius?

Global Hunter's picture

had to google those...thanks for the laughs, think we saved 1.5 trillion right there!  ha.

Greater Fool's picture

But if we had bombed them, they would have made some very nice Circular Ruins.

BetTheHouse's picture

Weak stuff to be sure.  You know old Harry wants to make it up by raising taxes, but the Senate of course can't do it.  Origination clause, Bitchez! 

StychoKiller's picture

"Some dayz it just don't pay to gnaw through the leather straps!"

redpill's picture

Don't forget the "savings" from CPI calculation adjustment.

caerus's picture

sweet selloff...maybe