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As China Says No More Stimulus, Obama Comes Begging For More.... While Promising Even MORE Cuts In The Unknown Future
Proving once again that when it comes to the definition of Banana Republic, America really has no equal, we first read in China Business News that according to PBOC adviser Li Daokui, China will "basically" maintain its existing monetary policy direction, and won't likely introduce stimulus measures as it did in 2008. Sorry "Rest of the World", you are on your own: China will no longer act as the last recourse economic (confidence) dynamo (because who the hell knows just what is going on in the mainland aside from building empty cities and grounding its entire monorail fleet, an action that was accompanied by so-called objective rating agency Dagong giving the rail ministry a rating higher than that of China itself!... once a rating agency...). However, this action of glaring sobriety does not stop our own fiscal monkeys from throwing feces at the stimulus wall in hopes something sticks. Just as last year the payroll tax was supposed to be the $100 billion gift that keeps on giving, yet crashed and burned miserable within months if not weeks, so this year we find that Obama is once again "recommending that the congressional deficit supercommittee back new measures to stimulate the lagging economy, people familiar with White House discussions said Tuesday." But that's not the funny part! No, the funny part is that even as he demands more alms, our munificent president would also "recommend the committee come up with a package that reduces the federal budget deficit by much more that its mandate of $1.5 trillion over the next decade, a senior administration official said, through changes in the tax code and social safety-net programs." So let us get this straight: more stimulus in the short-term, offset by quadrillions...nay... sextillions of savings at some point in the far future, long after the current administration is at the very bottom of the history books. Brilliant! But an even better idea: Obama should pull a Bryan Gardner and forge a money order from Hank Paulson, making Citi hand out a +/-$1 million check to every American, paid out of petty unaccounted for cash, as was the case before. Obviously, nobody noticed then; it is only Banana Republican that nobody will notice now.
More on this latest farce of short- vs long-termism from the WSJ:
"There's no reason to stop at $1.5 trillion," the official said.
Mr. Obama hasn't agreed to a set of proposals, people familiar with the discussions said, but the White House will begin to decide on elements of the plan in coming days. Mr. Obama is expected to make some decisions by Thursday.
Mr. Obama said in Iowa that when Congress returns from recess in September he will put forward "a very specific plan to boost the economy, to create jobs, and to control our deficit." He will unveil his plan before the Joint Select Committee on Deficit Reduction's first meeting on Sept. 16.
The White House is looking for ways to boost the sluggish economy and bring down unemployment that is now stuck above 9%. Mr. Obama, facing re-election next year, has been pushing Congress for months to adopt a variety of stimulus measures, some of which he could urge the committee to embrace. These include extending unemployment-insurance benefits and a payroll-tax cut for employees, which expire at year end and together cost more than $160 billion a year, and an infrastructure bank that could cost as much as $30 billion. The White House is also looking at a payroll-tax cut for employers, worth perhaps as much as roughly $110 billion, and other tax breaks for businesses of as much as $55 billion.
Mr. Obama's recommendations could complicate the committee's task because the stimulus measures, by increasing government spending and reducing revenue, would worsen the deficit in the short term. But Mr. Obama would recommend ways to offset those effects, and the whole package would still reduce the deficit over 10 years.
Oh please, what would he complicate? At this point only the morons at Fitch and Moody's buy anything coming out of the CBO. Zero Hedge is willing to place a bet of unlimited fiat amount that in 3 years, the CBO's current forecast for the 2014 deficit will be at least 50% off from the reality (obviously in the wrong direction), which in turn will mean that the entire debt ceiling farce was for nothing as the $2.1 trillion in 10 year savings will be swallowed by the tens of trillions in additional deficit funding that will mysteriously appear over the next several years, and be required to keep the US(S) PonzAAi from running into yet another iceberg.
So give Obama what he wants.
At this point the only thing that can save the system is if "they" just accelerate the status quo's crash course with fate, and just blow everything up to smithereens, thereby making a grand reset inevitable.
The longer we pretend something, anything can be fixed, the more pain, suffering and death will come to the people of this insolvent world.
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looks like the "jackasses" offensive and crude free speech is not going unnoticed. as far as you not "coming from a camp", i have to publicly appologize for you mistaking me for someone who really gives a shit. i would hope in the future, you and your cohorts would try not to notice my posts. thanks in advance, reality......
You're easy to overlook ... not a problem for me...
oohh, gorem
why shouldn't people read your posts? i read them, that is why i'm here, posting 2U. you tried a literary device that didn't work very well ["that someone is me"] and people found what you were saying confusing, perhaps, as to veracity and intention; ambiguity is not always a powerful impetus to thought, but it sure can be, sometimes
then you try to defend yourself, again, about the camp thingy, but we know you're only pretending to be paranoid and it is fabulous irony
that said, yours is, as far as i see, the original post involving perry, texas, bush, and so on to the topic, here, but i'll re-check; no one is trying to limit your speech that i can see; people are trying to tell you a) you're having a bad hair day and b) actually, your hair is on fire, so c) do yourself a favor and chill a bit, if you can copy, ok?
You forgot to push the "CAPS LOCK" button.
I'm pretty sure the answer is 'Texas'. Don't ask me why but they seem to be on a streak.
We could raise new money selling Afghanistan back to the Russians
YES!
Financial Engineering in a Global Scale!
Genius! Bloody Fucking Genius!
50 billion a year opium operation, they're not gonna give that up
afuckistan=opium=BIG PHARMA=dead american soldiers.
middle east=oil=BIG OIL=dead american soldiers.
ussa=money=BIG BANKS=dead americans.
let's sell japan to china. oh I know, I know, we don't own japan, but that doesn't seem to be an obstacle anymore.
We never had a problem giving them opium cover before
CIA funding to the Afghan Mujahideen and the ContrasThe U.S. Central Intelligence Agency held numerous accounts at BCCI [Bank of Credit and Commerce Internationl], according to William von Raab, former U.S. Commissioner of Customs. Oliver North also used and held multiple accounts at BCCI. These bank accounts were used for a variety of illegal covert operations, including transfers of money and weapons related to the Iran-Contra scandal, according to Time Magazine.[9] The CIA also worked with BCCI in arming and financing the Afghan mujahideen during the Afghan Waragainst the Soviet Union, using BCCI to launder proceeds from trafficking heroin grown in the Pakistan-Afghanistan borderlands, boosting the flow of narcotics to European and U.S. markets. [3]
http://en.wikipedia.org/wiki/Bank_of_Credit_and_Commerce_International
Besides blowing up Buddha's, the Taliban also killed the poppy industry. Luckily, we crushed the Taliban and gave freedom back to the poppy farmers.
Another Loan...Does anyone expect the banking industry to come up with any other solution? Loans are what they do and they are in charge of the show right now. Maybe these guys from Texas are the only hope. The oil industry is the only interest group with deep enough pocket to take on the banking cartel. Problem is, they will probably only appear to be taking on the bankers. Once once in office, it may be Bush & Bush all over again. Oy Vey!...Rufus
how bought a rogue government? taken over from the outside through money and corruption.
I suspect that as soon as serious cuts to the military budget are announced you might see a new gov... and it will be wearing uniforms...
But when you think back on the photos of Mubarak in that cage doesn't it kind of make you wish...
My my, this country is beyond fucked. Just wait 'till interest rates rise and the debt tsunami swamps the U.S.S. Dollarzero.
Yep, loaded up on gold (domestic and foreign) and some foreign currencies. What else can one do except batton down the hatches and short some of the shit trading on our glorious financial "markets."
I need to do bankruptcy.... the bill collectors are driving me nuts.
Uncle Sam, is that you?
if you are serious, run the fucking credit cards to the max buying physical gold/silver. then just walk.........your credit rating is meaningless in this day and age, ie., "remember the housing fiasco"?
You need a lesson from Chumba. Maybe search some old posts. At the same time, you should do a search on debt repudiation. At minimum, make sure you know what you are up against and what your real options are before you do anything.
Years ago, I was at a Giants baseball game. The Dodgers were in town and as their manager, Tommy Lasorda, then pitching Nutrical or someother 'miracle' food substitute to lose weight, a voice behind me yelled out, Hey Tommy, wanna know how to lose some weight? Ask your son". Lasorda's son was dying of AIDS and the comment was, as only liberal San Franciscans can dish out, unbelievably cruel! But there is was. Reality.
Obama is trying to peddle 'nutrical' in a world of terminal debt obesity. Didn't work for Bush. Didn't work for Obama ( phase one) aint going to work if its tried again. Obama has infected the economy with economic AIDS! So sorry.
"i am reality".....sarge, in Platoon.
When life gives you AIDS, you just need to turn it into lemonaids ;)
http://www.economist.com/node/21525961?fsrc=scn/tw/te/ar/stickingittochina
Georgia is making and selling chopsticks to China. Have we reached wage parity in Americus, GA? Or are they plundering our natural resources? Who's empire is whose?
LMAO... good one Kali...
Notice they send the skilled finish work to China. That blows me away. How much wastage do you think they get on each "stick"? They could probably save a ton on ship weight. I wonder if it is because they think Americans are too stoopid to do anything other than cut blocks of wood, or, that the 12% unemployed in that County would rather sit on the dole than do any kind of work at all at any price? I wonder what these guys are paying their employees. Georgia is a right-to-work state, is it not? They save that much on Chinese labor over reduced shipping costs? What a waste of oil.
It isn't the 'detail' of the labor division that made me laugh... It's the irony of the US selling chop sticks to China the mercantilist power house. Too funny...
Yes, but that is the obvious irony. But a Chinese immigrant who is exploiting cheap unskilled US labor and resources. It is ironic on many levels. Steve Jobs exploits cheap skilled Chinese labor to make iPads, Jae Lee exploits cheap unskilled US labor and resources to make chopsticks to send to Asia. The iPads are more complex and require more brains and skill. Asians think we're idiots.
"Asians think we're idiots."
So do I... Otherwise, how would one account for this total clusterfuck of an economy and the self serving morons in public office?
; )
Look, you cannot continue to print money thinking it will move the economy forward. It will not as has been proven for the last 2+ years. It just goes down the sewer for most people. Why the hell are we propping up the stock market, so 15% of us who do this all the time do well. The rest just wait for the bucks to "trickle down". We here at Zero Hedge know that never has a nation prospered by printing money and creating serious inflation. Cannot happen. Yes, it is going to be ugly. Yes, banks will fail, more citizens will be out of work and even the wealthy will retrench and stop spending. But, there is no other Honest way out.
But who will get the machine started. Harry Reid, worthless to Nevada and the country, Turbo Timmy, The Bernank, Obama who only cares about another 4 years of riding around in Air Force One around the world on my worthless dollar. Nancy? You have to understand that we cannot continue on the same path but that is the only path these morons in Congress know.
And Krugman should be fired for even hinting of war. Maybe we need to have him take a trip to the rehab centers where too many young Americans are trying to come back to life without an arm, leg, eye or even their sanity. Panetta tells us if we cut more out of the budget from defense we will open ourselves to attack. Bullshit. Bring all troops home from over 20 countries, defend US. To hell with the rest of the planet. It is time for others to take over. We are broke. We did more than our share. The last worthy war was II. I did Viet Nam as a pilot and it was complete bullshit and lies. They did not want us there, just leave us alone and let us grow our rice. Every war since, useless, killing our men and women for the Imperial America. Fondle your children at the airport so we are safe from child terrorists, in America. A bill in Congress so we can "buy a regular light bulb.
Senior citizens that did everything right, worked hard, saved, paid taxes, now retired on 0 interest from the head inmate. How does that man sleep at night. How does he live knowing he is destroying the lives of millions of good Americans?
So continue on the same path, keep printing, monetizing the debt and keep the Squids in business at the expense of the people. No sir. That will not work. It is over. Pay the freaking Piper already, step on the fucking can and lets get started. Keep printing. I cannot believe that.
Thanks monopoly... you are preaching to the choir... but it's ok...
The choir thanks you. But, please give the innocent senior citizen routine a break. If you're 70 you've been electing and re-electing and re-electing over and over and over again the same worthless pieces of shit that put us in this mess. You are the problem (not u but the sr citizens).
No doubt it's all my fault... I should have refused to pay taxes and social security, and gone to jail... yeah, that woulda fixed it.
Listen bud... people do what they gotta do, when they gotta do it. I supported candidates that were trying to 'change the system'... none of them got elected. Hell, I voted for Perot, I believed Jimmy Carter when he said 'we are using too much imported oil' and I drove economy autos when I didn't have to.
All to what end? nada...
I don't know your age and frankly I dont care. You will learn that there is only so much one mortal can accomplish in a life span. Some accomplish more, some less.
If you had been in my shoes could you have accomplished more? Do you even have the imagination to put yourself in another's shoes? ... few do.
First of all, I was seconding your "preaching to the choir" post and my post was a response to Monopoly, not you.
Second, I don't blame you per se. Most here on ZH are at the least cognizant of the problems the nation faces.
Third, I am sick of the "innocent senior citizen," ploy. It's tiring. It's like rather like listening to the villagers around Bergen Belsen when they proclaimed their innocence. They weren't involved. They didn't know what the nazis were doing. blah, blah. You voted for Perot, Jimmy Carter, drove a compact. Did you write your Senator and Representative when they were spending your GRANDCHILDREN'S MONEY on more of the same great society bullshit they were peddling? Did you complain when they were handing out multimillion dollar contracts to Boeing to buy a dozen hammers? Maybe YOU, YOURSELF did. If so, I congratulate you. Many, however, most, did not. And if not actually complicit, the "innocent senior citizens" of which you speak, were at best co-dependents.
I'm one of about two dozen in this medium sized town that stood with signs and protested the war in Iraq before it began. I got egged and tomatoed for my efforts... so I got a free salad to wear.
I'm one that protested on campus during Viet Nam...then I got drafted and sent to Nam.
I'm one that thinks to this day that Johnson is/was complicit in the murder of JFK.
I'm one that isn't buying the official 9-11 story.
and I have written many, many letters to my congresscritters... all to what end?
You believe that you can change the system now... or, if you were around then you could have made a difference? I'm telling you that if you believe that then you are naieve and have a lot to learn.
Tell me... so far in your life what changes that you have worked toward and have met with success?
You sound like a sore head that came along after the party was over! Well, the party wasn't that great if you spent part of it in Nam.
When I first bought gold at $300 US ($500) Canadian, I was nervous, but thought the powers that be had miscalculated and there would be an appreciation of the commodity.
Well, as time goes on, I see I was a fool for not going 100% gold, because the Powers That Be are actually suicidally insane.
Who could have known?
Amen.
This nation needs a reset, a finacial collapse, a jolt out of mindless materialism...and then maybe we can find our way back home.
Hooray for President Zero.
"Over the last six months, we've had a run of bad luck." -- Barrack Obama, POTUS, explaining the poor economy
Barrack Obama: "Good news, we're gonna tax the rich and get those suckers! Bad news is, there's nothing but poor people left."
We have an ecomony that is largely based on consumerism. Unemployment is at record levels. There are nearly 50 million Americans on food stamps, many millions have no health insurance, our industrial base has been decimated, many Americans could not deal with a $1000.00 unexpected expense, many families are living from paycheck to paycheck and so on and so on, etc. There is a huge cloud of pessimism, depression and fear hanging over main street America and there is nothing on the horizon that has the slightest and remotest possibility of breaking that cloud up. Don't you even dare suggest that a presidental and congression election campaign can lessen the pain or provide a sense of relief. There is an answer out there to our dilemma but it would come at a cost our representatives are unwilling to pay; we will suffer greatly for this reluctance.
Well said.
They tried to avert The Great Reset in 2008-9. Every major money-printing operation, every stimulus, every bailout and sovereign rescue is just delaying the inevitable, albeit at high cost. But inevitable it is. It's clear now to those who get it that we're now beyond the failsafe point.
But wait...through the mist I see...a UFO on the horizon...hooray we're saved by intergalactic war w aliens
Zzzzzzzapp! Oops, they won.
http://www.huffingtonpost.com/2011/08/16/obama-lone-wolf-terror_n_928880...
Can we say....
When I look at the world and the news and the markets, why do I always feel like throwing up?...
That is the proper response. Congratulations, you're still human.
"There is an answer out there to our dilemma but it would come at a cost our representatives are unwilling to pay; we will suffer greatly for this reluctance."
They know how to fix it but none of them want to fix it on their watch.
None of them are leaders... None of them are willing to step up and confront reality...
"All of the great leaders have had one characteristic in common: it was the willingness to confront unequivocally the major anxiety of their people in their time. This, and not much else, is the essence of leadership."
John Kenneth Galbraith
Its sooo easy to see all signs point to QE3 they wont let this monster crash and correct, Lou Dobbs was just bitching at Schiff that inflation is all bullshit, because Gold is a bad indicator and Oil is at 86 dollars a barrel(I wonder what Oil would be with the QE's Lou not even close to 80 dipshit!!) funny he ignored food prices LOL fucking Lou, watch and enjoy
http://www.youtube.com/watch?v=4kZWcUmxzf0&feature=feedu
I sent knuckle head Lou an email about treating Schiff like a kid yesterday. Lou Dobb's is a candy assed chearleader for wall street.
so this year we find that Obama is once again "recommending that the congressional deficit supercommittee back new measures to stimulate the lagging economy,
Sending all those millioins of manufacturing jobs overseas is the death knell for the American economy.
Sure, they can keep it going a while with tax breaks and cash infusions. Problem is, we're seeing tax breaks but no cash infusions. All the cash infusions are going to Wall Street, not Main Street.
It's a big hoax. They're not interested in saving the economy. They stood by while millions of manufacturing jobs were sent overseas. Stimulus goes to Wall Street, not Main Street.
All they care about is Wall Street. Keeping their banker bosses swimming in (taxpayer) money.
c'mon. who ya gonna believe? obama or china?
A: neither
but this gets the implied false dichotomy of the day award from slewie
The Irony:
Bernanke (and Friedman) thought they had learned all the lessons of The Great Depression. Smugly, they believed that their enlightened understanding would have averted it all. And once again, they declared 'this time, we really got it all figured out'. The perpetual motion machine that avoids boom and bust. How ironic that now we stand once again at the crossroads where reality meets hubris: you can't stop the world from turning. All the king's horses and all the king's men can't glue Humpty together again.
Rid yourselves of delusion: they're protecting TPTB from a reset that will cause major defaults on the credit they extended. But it has to be at the ultimate expense of Main Street. And these days Main Street extends beyond national borders.
Venezuela May Move Cash, Gold From U.S.http://www.bloomberg.com/news/2011-08-16/venezuela-may-move-reserves-fro...
I guess Germany gets to see how this works out for Chavez before they come calling for it. China, Russia, every nation I'm sure would like to see what the U.S. response is to the calls for gold.
Found this on GATA.org
This could be bigger than it looks at first glance. Is Chavez the one that sparks the world's nations to repatriate thier sovereign physical Gold from the U.S.
Seem's to me, this could be huge !
"Seem's to me, this could be huge !" It's either of no importance or the start of the 'liquidity freeze from hell'
Geitner to Chevez... "Sorry Hugo, we must have a bad connection"... "Try again later"
"Zero Hedge is willing to place a bet of unlimited fiat amount that in 3 years, the CBO's current forecast for the 2014 deficit will be at least 50% off from the reality (obviously in the wrong direction), which in turn will mean that the entire debt ceiling farce was for nothing as the $2.1 trillion in 10 year savings will be swallowed by the tens of trillions in additional deficit funding that will mysteriously appear over the next several years, and be required to keep the US(S) PonzAAi from running into yet another iceberg."
I think it probable that 3 years from now, that the CBO will not exist.
Worse case, it will morph into the Ministry of Truth, or some similar bullshit to that.
i'm sure the CBO has many to please, yet they do hafta actually come up w/ the fiscal impact answers and show their work, too
they are generally passive or neutralizing, altho their "forecasts" can be subject to political ridicule and revisionism, and conversely also become primary "facts" in how we proceed, if they can publish something which can attract a concensus of, say, 45% (offhand) to TPTB in the goobermint.
Q: why can't they publish stuff that attracts this everyday level of agreement?
A: TPTB such as the FED, the banksters, the "securitizers" and their pols KEEP MOVING THE GOALPOSTz
so they just get ridiculed, b/c they don't figure inflation the same way, or they place the probability of a slowdown at a higher notch, or something like that
but i would not blame them b/c nobody can plan for three weeks after greenspam, p-pall-some, the arch-puppet/"legacy" bush. the chairstan, timmah, and prez0. are you fuking kidding me? talk abt "murderer's row" (?) L0L!! what a lineup of screwballs, spitballs, other people's balls, pretend balls, whiffle balls, and lost so many balls i have no balls left
ergo, we can ignore the CBO and proceed, b/c they are not "right" (45% m/l)
we do not hafta dialogue with them about what is actually happening and try to reach the necessary concensus
we can just declare them wrong, and proceed to determine what "needs" to be done, next
and when in doubt, refer everything to the council on foreign relations, so we can proceed, of course, b/c we must do something...
...and these interests have purchased and paid for the goobermint, btw..., so they should get to keep deciding everyone's future on the planet
right?
all post.glass-steag.$$$
not to mention 9.11.o1.gub
we weren't s'posed to be able to keep up with them, zHeads
they are soooo fuked
trust me
its over........Christine Romer is getting ready to sing
Yet another reason among many that I truly suggest QE3 will be LATE in coming. The geopolitical and domestic pressures become more significant daily. I've rarely disagreed with Tyler and gang, but I'm willing to risk my anonymous (non- embarrassing) self in stating clearly that I personally believe that the U.S is about to experience another 'apparent' recovery (money supply, nothing more, and it will be transitory, not unprecedented). May not show up until 2nd quarter 2012, (convenient huh?)
The pivot point is Europe (DUH!). If Europe goes down in Sept/Oct then the 'spook' factor kills money supply because the money won't go to work. To 'spooked'. So much talk of long cash isn't just a buck here or there. That is real money on the sidelines, and shorter lines at Starbucks won't fix our problems (what an ASSHAT!).
A prominent U.S CEO goes all in on stupid. Well, we shall soon enough see if coffee can turn this ship around eh?
"At this point the only thing that can save the system is if "they" just accelerate the status quo's crash course with fate, and just blow everything up to smithereens, thereby making a grand reset inevitable.
The longer we pretend something, anything can be fixed, the more pain, suffering and death will come to the people of this insolvent world."
Standing ovation.
if you go to the zoo, you,re liable to see an african lion. if you go to the white house, you,ll see a lyin' african
if you go to the zoo, you,re liable to see an african lion. if you go to the white house, you,ll see a lyin' african
And the next occuapnt might be a lyin' whitey, like the last occupant was, and the one before that, and the one before that ....
Lyin' runs across all ethnicities.
i'll kiss yer ass for that one!
both of em! prez0 may not be in a league of his own, but his team is from chicago, and they're very, very good
The Chicago 0'bamas
BiCheZ
Cloward-Piven, fools. Cloward-Piven.
The strategy of forcing political change through orchestrated crisis. The "Cloward-Piven Strategy" seeks to hasten the fall of capitalism by overloading the government bureaucracy with a flood of impossible demands, thus pushing society into crisis and economic collapse.
"A crisis is a terrible thing to waste." -- Rahm Emmanuel
http://www.americanthinker.com/2009/11/clowardpiven_government.html
Can you help a brother out China? (OBAMA) http://chicagoist.com/images/2004_09_panhandler.gif
stimulus x stimulus = stimulus squared?
the great thing about doing any type of government forecast is that not only can you make the numbers do anything you want, but you can get promoted and/or receive favorable performance reviews for doing so. there is no track record per se. that being said, all the administration has to do is operate with a real code of ethics. since that won't happen, this cycle will continue as we circle the drain.