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CBO Scores "Bipartisan" Plan At Half Of S&P Required Savings; Only 2% Of Total Cuts To Take Place Before Obama Reelection
It was only a week ago that S&P said anything under $4 trillion in deficit cuts would be an automatic downgrade for the US. So according to the CBO's just released score of the bipartisan budget, the S&P will have to cut its rating of the US in half, since the total budget cuts will be just over 50% of what S&P demanded previously. And here's the funny part: of the $917 billion in known cuts (the other $1.2 billion is factored but not even the CBO has any clue what it will look like), a whopping 2% in cuts will take places before the Obama election. 2%! This whole charade is there only to make sure the president is reelected. Oh, and of course to make sure S&P does not downgrade the US. Which is where we get back to the fun. THE FUN. Because as it turns out, that whole $4 trillion thing.... S&P was only kidding. "It appears that the perception Standard & Poor's seemed to harbour, that the U.S. needed to find a $4trn sized package in order to keep its triple A rating, is unfounded. Two credit research reports published today point to the testimony given by S&P president Deven Sharma to the Congressional House Financial Services subcommittee on Wednesday, where he seems to believe his firm has been misquoted in media reports." There you go: to S&P $2.1 trillion (of which $1.2 trillion may never even materialize) will end up being just as good, if not better than $4 trillion. And that, ladies and gentlemen, is how a rating agency regains credibility and stuff.
The only chart from the CBO that matters:
The full CBO pamphlet can be read here
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All who vote for this are traitors. It's time to let them swing in the wind.
I don't agree. I think they should swing at the ends of ropes. One and all.
If votes continue to be so ineffective at garnering significant change then this is what it will come to. The banksters and pols think they can spit in the eye of the rule of law forever, but they don't understand that they're playing with fire, and that they're likely to burn for it.
Zero Hedge rocks.
Name a single other source stating facts from the record about this matter, such as above, that shows what a complete and total farce, charade and kabuki theater of the very worst kind all of this is.
It's as if American Taxpayers paid a premium to see a prop comedian perform, and when they took their seats just in time for the opening, sledge hammers dropped from the unknown darkness above their seats and dealt a severe blow to their genitalia.
There is no watermelon in this show.
And there is no spoon.
The whole State-banking-rating agency Cartel is firmly stacking it against the bears right now. Panic sell-off? No. Just simulated. Cover and buy your SPY calls at 1275. See through the evil and sickness at the heart of the EE and make money. Join the celebration rally. Even if you do not believe it is anything to celebrate. Use your money to buy more physical, soon to be heavily discounted.
As Ron Paul pointed out several times before: The only budget that counts is this years budget.
On the next debt ceiling hoaxthe current terms will be long forgotten.
edit: no sofa for me... no unicode either :(
This is outrageous, but what should I expect?
A "solution" which addresses none of the underlying problems but instead piles on more debt until after the next election cycle, while continuing to funnel money to the wealthiest .5%. WHO COULD POSSIBLY HAVE PREDICTED THIS?
The US economy is stalling. You can't implement austerity now, or it will definitely contract. Most of the cuts are back ended to allow government flexibility in these uncertain financial times. Then if/when the US gets ouf of this economica malaise, and tax revenues increase, they can cut. That is why most of the cuts are back ended. It's sound policy based on current economic conditions.
There's always an excuse, isn't there? Can't cut because of: war, floods, snow, election, etc.
2 years from an election, etc
S&P off 1% etc
The Republicans: Keeping their powder dry since 1988.
They are really, really gonna kick some ass right after the next election. Honest.
You can't stop what's coming, it ain't all waiting on you. That's vanity.
And for crap's sake, let's get the collapse over so that we can move on!!!!!!!
Economic contraction is totally inevitable, and really the only way it will work is a total reset to subsitance farming... which will erode the land and clear the forests because there are too many people. We're at the point in the game of tetris where the blocks are piling up alot faster than we can figure out where to put them all. It's game over. Nightmare scenario within 10 years (I know alot of you are thinking it will be alot sooner than that).
Then we're saved?
Depends on the meaing of "saved". Probably no.
Yeah, Heaven Forbid we allow Idol America to come to the realization that we've been in a depression since mid-2008 and that it's going to get worse before it can ever get any better.
Might upset peoples' election prospects 15-months from now, you know.
Comments like this prove that we need the Captcha back!
This is the same sort of Keynesian nonsense that got us here to begin with.
Fat, drunk, and stupid is no way to go through life son.
Think you forgot the sarcasm tag.
pods
Austerity has nothing to do with helping the people (their economies)
These hallucinagens you're taking, care to share?
Real smooth Obama Banana.
That can in the road is getting mighty heavy, starting to hurt when we kick it...
What can? There's nothing left to kick!
Fantastic. Gold just retraced the whole decline and now I see Krugman on Bloomberg tonight. He'll explain everything... Popcorn! I need Popcorn!
When is the Congressional vote -- the Dow should take off after that...
Glad you are around keeping it Real,, Tyler
Then on top of it all, these "cuts" are merely cuts in the RATES OF FUTURE SPENDING! (and the Ignorati rejoice, knowing that their wise leaders have saved their bacon, yet again!)
Is anybody really surprised by this?
Nothing has changed. Same old shit.
Extend and pretend baby!
The US has already been downgraded in the eyes of the rest of the world, so the lack of credibility of SnP and Moody's doesn't really matter. By the time SnP and/or Moody's downgrades the US, it will be way too late.
Also, the market will see right through this debt "deal" as a total charade. The fact that fiscal policy is conducted merely to get Obama re-elected and not based on needs only worsens the credibility of the US government at such a critical point in time.
The price of Au tells the tale: $1627/Toz as I type this!
Sounds like a win to me.
They are throwing a Hail Mary praying for growth. Is there any case in history an economy has been able to 'grow out' of its debt problems if the Debt/GDP ratio exceeds 100%? I can't find any.
Here is an interview I found with Marc Faber where he says total debt/gdp of the US is already at 375%, but when you include unfunded liabilities it is 600%! (Be sure to click CC, it is not in english)
http://www.youtube.com/watch?v=SlC1_HrQgog
No there is not.
But "this time is different"....
I summarized and expanded on cognitive dissonance's excellent piece on power and wealth addiction. I think I nailed it. http://thecivillibertarian.blogspot.com/2011/08/with-majority-of-this-co...
Seriously folks, I am brand new to trading and feel blessed to have found the wisdom of Zero Hedge so early in the game. I read all these posts about macro trends, fraud, misdirection, and corruption and cannot help but being a bear long-term, even as a newcomer to trading. It seems that hyperinflation is unavoidable . . . eventually.
I also recognize this an incredible trader's market. Here's my question for the communtiy: What is honestly the best way to trade this thing? Do selloffs like today (and probably this week or even month) present buying opportunites akin to the 2009 lows for short-term profits?
It seems difficult to view any selloff as the beginning of the end, since there has never been an "end" in this country before. Is there a thesis that suggests this particular round is different somehow?
Regardless, I'd love to hear ideas on trading this. I've been following threads for a long time and have gained respect for a number of you, so I hope to hear your views.
I quit trading 4 years ago. I took 25% of my dough and converted it to precious metals. Trading this market means geting in bed with the bankers. They are sitting chilly just waiting to unload on the retail investor. Sometimes the only way to beat a guy in a poker game is by refusing to play. Without players, the game ends.
And btw, my precious metals are up nearly 100% in the last two years. I challenge you to find those returns anywhere else.
Fantastic. Would you do the same today if you were in cash?
HELL YES ... half silver, half gold. ALL in the safe or in a location where you and your closest relative know where it is .... if you dont HOLD it you dont OWN it.
Plus, all the guys with the big chips keep helping each other to cheat!
Only the crap stocks are getting hit - not worth buying anyway.
Research SSN and GPL.
I agree with the guys at Casey Research who suggest 33% cash, 33% physical gold & silver bullion, and 33% equities. That allocation has worked out VERY WELL for me over the last 8 years, with my equity 3rd concentrated in the mining and energy sectors. This philosophy has yielded consistent double digit growth for me. Obviously the allocation is not 100% consistent - cash will be lower and equities higher in economic downturns, and vice-versa - but those are the general targets.
Buying the dips in a volatile market works well so long as you remember to sell the peaks. Don't get greedy! Stick to your plan. To mitigate the worry of major crashes, employ relatively tights stops. Sure you'll get burnt occasionally in temporary sell-offs, so you must temper the tightness of your stops with your tolerance (appetite?) for disaster.
Volatility is excellent for range trading... if you have the time, patience, and passion. On the other hand, if you don't feel you have the aptitude or energy, you can still inexpensively pay an expert to do so for you in the form of a specialty mutual fund or exchange traded fund (ETF). There are many great such products out there that can be easily researched online.
Most importantly... do not allow yourself to get over-leveraged. That's what got us all in to this mess to begin with. It may not be as lucrative, but it is a lots less stressful, and way more enjoyable when you are playing within your means. That's probably the single best piece of advice I can pass along.
Pelosi had the right idea when she rammed through health care - don't let anyone read the bill till after it passes.
Old Boener could learn a thing or two from the botox queen
It does not matter at this point. The economy is cliff diving and there is nothing anyone can do about it. The Bernanks lies about "Green Shutes" are totally exposed and the unemployment rate is gonna spike up to 9.5 by end of August on its way to 10% by October.
Add to the fact that 2.6 million more people will lose their free money by the end of the year and the Republicans aren't going to allow ANY stimulus whatsoever, and you will have a President that has no choice but to sit and watch the economy crumble even after he got what he wanted. Although the losers of this are the American People the Republican's are actually gonna win this round because they can say "look, we raised the debt ceiling and you keep spending, but the economy is still imploding".
And the second Bernanke tries more QE the market will tank. Because everyone will know we are Fubar'ed!
Inflection point?
Even with 2.1 Trillion and fudged statistics it's hard to imagine how the Prez will spin it to look good, there is only so much ignorance to go around
Look,
All of this so called problem is just being caused by brain dead tea baggers and other so called conservatives. If they would just step out of the way and let Obama lead then everything would be ok. HIS brilliance is being wasted by ignorant fools who can never hope to have his kind of charisma, astonishing intellect, and unassailable hipness. This country obviously just needs more money and Obama is just trying to give it to us.
You forgot to add "sarc"
Sarc? Can't you tell a true believer when you see one? All these gold hoarders and doomers.... dude, my bunker is stocked with Obama campaign merch. That's real wealth right there. And NO, the Obama doll is NOT just a chocolate colored Ken; anyone who says that is just a LYING LIAR.
Husk - ROFLMAO!
Po' homeys, thought they were electing Martin Luther King Jr. V2.0, but ended up with Buckwheat!
Husk says "This country obviously just needs more money and Obama is just trying to give it to us."
He's trying to give it to us alright!! Bend over a bit more. But we don't blame Obama exclusively. We hold more contempt for his handlers and the banksters.
As far as more money is concerned... when even the worst loan shark in the most lawless ghetto has turned you down, you start to come to the realization that there just IS no more money. The U.S. is finally starting to wake up to this unfortunate reality.
The swings!
Gold attacking the highs again; S&P up 20 this morning now down 15; crude up 2.50 to down 1.50!
Your honor, we have whiplash.
To be revised.
Big Fail. Not enough votes to be gleaned for this Steaming Pile.
The real compromise:
Obama: I wanna be reelected
Republicans: We wanna no tax increase
Deal!
A tax increase IS baked in the cake:
"The Bush Tax cuts, and the FICA cut, both will expire at the end of 2012. President Obama, and he will be President on that day, will veto any attempt to extend them."
http://market-ticker.org/akcs-www?post=191135
a whopping 2% in cuts will take places before the Obama election. 2%!
nothing better then a good game of Poker
SnP just HANGING ON::
http://markettechnicals-jonak.blogspot.com/
Criminal...absolute criminal...........
Wouldn't it be ironic, if suddenly everyone realized that the confidence built on the lies of the Federal Government and the Federal Reserve was just a house a cards.
In other words, now the RA's are going to get together and continue lying about America being a AAA. What if this is the opposite of confidence inspiring. What if all of the sudden people start asking "if they are lying about this what else are the lying about"?
If the world truly needs America to be a AAA, then maybe America should do the work to become a AAA/ And not just have the crown because a bunch of kleptocrats around the world decided that their status rests on deluding the world into believing that America is a AAA.
Remove the rhetoric and the lies. The truth is confidence inspiring.
2% that is simply amazing. Is that before or after inflation ?
the official inflation or real inflation number?
Hahahahahahaha.......did we say $4 trillion? That is so funny. Sorry. Our bad. $2.1T is fine. In fact, it's awesome! You're not gonna nuke us, are ya? Hahahahahahahaha......seriously, you're not, are ya?
I think it's safe to say that most ZH'ers would agree that this grand Keynesian experiment will eventually meet it's demise... regardless of the Newspeak.
Anything that gives the growing ranks of freshly indoctrinated "contrarians" a chance to get their plans in order (ie: dips in PM's) I consider welcomed!
Oh, this can't be good for your Dharma, Sharma.
total lack of leadership. 2% cut prior to emperor O's re-election?
when will this country "take it's medicine"? the longer it is put off, the worse it will be.
never mind this crap, just hit the couch and watch dancing with the stars and American Idol, you know, the REALLY IMPORTANT things in life!
So, it seems even the GOP have enough sense to back load the cuts since we are neck deep in a brutal recesssion (cutting to meet TP demands would be irresponsible at this point)... both sides are unhappy, so it seems a reasonable deal under the current situation.
That is the perception they are trying to perpetrate. By the way, please give me the recipe for the Koolaid you are drinking.....seems like it is really powerful.
I'm confident you and your like minded friends have much better answers (to everything), but if you don't mind, I'm going with the 235 year old system of comprimise that has (for the most part) served the country well and purposely blocks either side from moving policy too far from center... I know, life's a bitch when you don't get your way, but at least you get to come to ZH, whine, and pretend to have all the answers... feeling better?
Ah, the argumentum ad temperantiam fallacy
This cardhouse is doomed. You'all better come to terms with it and move along.
PM's : CHECK
5 year valid passports for the family: Check
My wife and I are going to a gold party in our neighborhood tomorrow night; you know, those events where everyone shows up and sells their old jewelry to some dealer (scalper). I’m probably going to get kicked out of the house early, because, I plan to be competing with the dealer on the buy side. But first, I’ve got to sell some Treasury Funds today.
Should be an interesting evening. I was going to go to one in my neighborhood, just so I could confirm my idiot list.
"It was only a week ago that S&P said anything under $4 trillion in deficit cuts would be an automatic downgrade for the US. So according to the CBO's just released score of the bipartisan budget, the S&P will have to cut its rating of the US in half"
Hilarious, a good amount of Glenlivet just came out of my nose while laughing. A credit rating agency reneged on its word? Don't make me laugh, bitterly.
The fact that they are still cited as credible sources on a daily basis regarding the worldwide financial rating system influencing trillions in trades is laughable at best. My left nutsack has more credibility than these assholes who are still in business after their Lehman/AIG AAA rating giveaway bonanza right before the shistorm. Dicks.
We are state that is so corrupt, that it can't do the right thing unless forced too.
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