This page has been archived and commenting is disabled.

The Day Austerity Died

Tyler Durden's picture




 

Via Peter Tchir of TF Markert Advisors,

Austerity is dead!  Long live Spending!

Futures are up, Italian and Spanish bonds are up, CDS spreads on them are at least 10 bps tighter, and MAIN is 3 bps tighter on the day (though I have this feeling I better type fast as we are starting to fade off the best levels).

Lots of little things seem to be contributing to the strength, TXU earnings, no economic data, auctions that raised the required money, etc., but there does also seem to be a belief that Germany finally “gets it”.  That Germany is finally going to relent on their demands for austerity.

The first question is “what is defined as austerity?”  Programs that are providing money today, that is quickly re-circulated into the economy because it is paying for people to live should not be cut – that is bad austerity.  Raising taxes in general is probably bad austerity, but what about actually collecting taxes on all those who have avoided paying what they owe?  Plans to reduce long term benefits must go forward, minimal current cost to the economy, but necessary for any long term solution.  So while “austerity” hasn’t worked, it is not all bad, and some forms need to be maintained to have any hope that the situation can be turned around in the future.

The second, and more important question, is “why does any sane person think spending for growth will work?”  Just pause for 1 moment.  How were these massive deficits built up? Was all the spending frivolous?  I don’t think so.  A lot of spending was meant to target growth in certain areas.  It is just very difficult to achieve.  If spending to get growth was so easy in a global economy, the U.S., the current king of spending, would have Chinese like GDP growth.  It is not that easy to spend your way to growth.  I’m sure at some level, Solyndra received money because there was a real belief somewhere that it was a good investment for growth.  GM might be used as an example, but I’m not convinced that the government spending did anything more than private capital would have done in the wake of a real bankruptcy.  The excitement over “spending for growth” is almost mind-boggling, because it basically goes against a decade of history showing the inability of governments to spend and achieve real growth.  But, there is one part that does make sense, at least from a Wall Street perspective.

So the final question is, “who will finance all that spending?”  Ahhh, the real reason Wall Street is enthusiastic about spending for growth.  The only way a spending for growth campaign can begin, is with another massive round of balance sheet expansion by central banks.  That has been great for banks and wall street, while less clear what it has done for the economy, or anyone without a significant portion of their wealth in stocks.  If Spain announced a big new spending campaign, would anyone really believe it would work?  What would they do?  Build more homes to get construction going?  How would that help when an unpopped real estate bubble is part of the problem (actually the bubble has burst, it just hasn’t been recognized on banks’ and cajas’ balance sheets).  Would investors who aren’t excited about lending 5 year money at 4.75% suddenly line up to buy all this debt thinking the new spending initiatives (which increase debt in the short term) will really work?  I don’t think so.  Buying new debt in an environment where countries feel free to spend and run deficits because austerity doesn’t work, will only frighten private capital.  So the central banks of the world will have to step up again and provide the funding.  I don’t think that is a good thing, but can see why some do, and can really see why some of those pushing the most for a return to debt issuance and spending and central bank intervention would want it – because they benefit, not because it will work.

The reality is that spending won’t solve anything.  It will grow debt faster than the spending can improve the economy.  Stopping longer term austerity programs will make the future debt to GDP ratios look even more horrific.  There will ultimately need to restructuring on a massive scale.

It is no co-incidence that more and more sovereign debt is being funded by institutions in that country.  It is specifically to make leaving the Euro easier.  An Italian pension plan for example has both its assets and its liabilities in Italy.  A conversion back to Lire is manageable in a situation like that.  Yes, the pension plan’s redenominated Italian Lire bonds may trade down because of the devaluation, but their pension obligations would also be redenominated at the same time, offsetting a lot, if not all of the pain.  The same is true in the banking sector.  Corporations won’t have that luxury as many are global, but it may explain why Italian and Spanish companies have been busy issuing debt.  So returning to traditional currencies has the least impact on the country and the Eurozone if the debt is largely held internally.  That is the direction the countries and the ECB have been moving, so don’t ignore this as a more likely real solution.

Debt restructuring in terms of coupon reduction, notional reduction, and maturity extension are all real possibilities too.  If countries learned anything from Greece, it is that by waiting too long, and accepting more Troika money than the private sector wrote-off, the problem doesn’t go away.  Restructuring early and harshly is far better than waiting and doing it in bits and pieces, and it has to affect ALL creditors.  One reason that the ECB hasn’t resumed its SMP just yet is that countries aren’t sure how much they want to owe the ECB.  The ECB has proven itself to be an unhelpful partner in restructuring.  Watch what the ECB does (or doesn’t do) and ask yourself why.

So “Austerity Now” may be over, but killing something that didn’t work, isn’t the same as solving the problem.  Going back to the norm that caused the problem in the first place, hardly seems like a solution either.  Currency reversion and/or debt restructuring will be the ultimate end-game.

We get a deluge of housing data out this morning.  I expect it to disappoint, but at this stage I’m not sure another housing disappointment does anything for the market.  It would merely confirm what is becoming a consensus view – that the actual weather actually played a role in making the winter numbers look better than they might otherwise have been.

Good luck with the rest of the day, though I suspect that once Europe goes home we will do nothing but watch every move in AAPL like we did yesterday afternoon.  In the meantime I hope I can get the Don Maclean American Pie song out of my head on “the day austerity died”….

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 04/24/2012 - 08:23 | 2369359 GetZeeGold
GetZeeGold's picture

 

 

 

You'll get nothing....and like it!

 

http://www.youtube.com/watch?v=0f6l1QljpMo

 

Tue, 04/24/2012 - 08:31 | 2369394 chubbar
chubbar's picture

At least the U.S. Gov't has a plan, STEAL IT!

http://foodfreedomgroup.com/2012/04/23/obama-seizes-farmers-money/

"Monsanto’s Food and Drug Administration can’t close down small dairies and private food clubs fast enough, bursting on the scene with guns drawn as if the criminalized right to contract for natural foods we’ve consumed for millennia deserves SWAT attention.

Now, Obama has the Dept. of Justice going after small farmers under the post-911 “Bank Secrecy Act” which makes it a crime to deposit less than $10,000 when you earned more than that.

“The level we deposited was what it was and it was about the same every week,” Randy Sowers told Frederick News. The Sowers own and run South Mountain Creamery in Middletown, Maryland.

Admittedly, when the Sowers earned over $10,000 in February, and learned they’d have to fill out paperwork at the bank for such large deposits, they simply rolled the deposits over to keep them below the none-of-your-fucking-business amount, rather than waste time on bureaucratic red tape aimed at flagging terrorism or other illegal activities.

“Structuring,” explains Overlawyered.com, “is the federal criminal offense of splitting up bank deposits so as to keep them under a threshold such as $10,000 above which banks have to report transactions to the government.”

While being questioned, the Sowers were finally presented with a seizure order and advised that the feds had already emptied their bank account of $70,000. The Dept. of Justice has since sued to keep $63,000 of the Sowers’ money, though they committed no crime other than maintaining their privacy.

Without funds, they will be unable to make purchases for the spring planting.

When a similar action was taken against Taylor’s Produce Stand last year, the feds seized $90,000, dropped the charges and kept $45,000 of the stand’s money." ......

Tue, 04/24/2012 - 08:33 | 2369398 cossack55
cossack55's picture

If you are not Big Agri, you won't soon be growing anything but old and hungry.  Gotta love nazis.

Tue, 04/24/2012 - 08:34 | 2369401 Badabing
Badabing's picture

Man I feel great! Let’s see how I feel tomorrow with a hangover.

Tue, 04/24/2012 - 08:36 | 2369405 GetZeeGold
GetZeeGold's picture

 

 

Great James Bond movie......Tomorrow Never Comes.

 

Tue, 04/24/2012 - 08:52 | 2369452 Gully Foyle
Gully Foyle's picture

GetZeeGold

"Great James Bond movie......Tomorrow Never Comes."

Bond? I envision it more of a Zappa inspired porn flick. Like a renamed Dynamo hum.

I couldnt say where shes coming from,
But I just met a lady named dinah-moe humm

She stroll on over, say look here, bum,
I got a forty dollar bill say you cant make me cum
(yjes cant do it)

She made a bet with her sister whos a little dumb
She could prove it any time all men was scum

I dont mind that she called me a bum,
But I knew right away she was really gonna cum
(so I got down to it)

I whipped off her bloomersn stiffened my thumb
An applied rotation on her sugar plum

I pokedn stroked till my wrist got numb
But I still didnt hear no dinah-moe humm,
Dinah-moe humm

Dinah-moe humm
Dinah-moe humm
Where this dinah-moe
Comin from
Done spent three hours
An I aint got a crumb
From the dinah-moe, dinah-moe, dinah-moe
From the dinah-moe humm

I got a spot that gets me hot
But you aint been to it
I got a spot that gets me hot
But you aint been to it
I got a spot that gets me hot
But you aint been to it
I got a spot that gets me hot
But you aint been to it
cause I cant get into it
Unless I get out of it
An I gotta get out of it
Before I get into it
cause I never get into it
Unless I get out of it
An I gotta be out of it
To get myself into it

(she looked over at me with a glazed eye
And some bovine perspiration on her upper lip area
And she said...)

Just get me wasted
An youre half-way there
cause if my minds tore up
Then my body dont care

I rubbed my chinny-chin-chin
An said my-my-my
What sort of thing
Might this lady get high upon?

I checked out her sister
Who was holdin the bet
An wondered what kind of trip
The young lady was on

The forty dollar bill didnt matter no more
When her sister got nekkid an laid on the floor
She said dinah-moe might win the bet
But she could use a little ------- if I wasnt done yet

I told her...
Just because the sun
Want a place in the sky
No reason to assume
I wouldnt give her a try

So I pulled on her hair
Got her legs in the air
An asked if she had any cooties on there

(whaddya mean cooties! no cooties on me!)

She was buns-up kneelin
Buns up!
I was wheelin an dealin
Wheelin an dealin an ooooh!
She surrended to the feelin
She sweetly surrendered
An she started in to squealin

Dinah-moe watched from the edge of the bed
With her lips just a-twitchin an her face gone red
Some drool rollin down
From the edge of her chin
While she spied the condition
Her sister was in
She quivered n quaked
An clutched at herself
While her sister made a joke
bout her mental health
till dinah-moe finally
Did give in
But I told her
All she really needed
Was some discipline...

Kiss my aura...dora...
M-m-m...its real angora
Would yall like some more-a?
Right here on the flora?
An how bout you, fauna?
Ywanna?

Mmm...sound like ymight be chokin on somethin

Did you say you want some more?
Well, heres some more...

Mmm, sure...listen
Dyou think I could interest you
In a pair of zircon-encrusted tweezers?

Mmm...tweezers!
Here, lemme sterilize em...
Gimme your lighter...

I couldnt say where shes coming from,
But I just met a lady named dinah-moe humm

She stroll on over, say look here, bum,
I got a forty dollar bill say you cant make me cum
(yjes cant do it)

I whipped off her bloomersn stiffened my thumb
An applied rotation on her sugar plum

I pokedn stroked till my wrist got numb
An you know I heard some dinah-moe humm,
Dinah-moe humm

Dinah-moe
Dinah-moe
Dinah-moe
Dinah-moe

 

Tue, 04/24/2012 - 09:37 | 2369617 WhyDoesItHurtWh...
WhyDoesItHurtWhen iPee's picture

 

 

+1 on the FZ reference

Tue, 04/24/2012 - 08:58 | 2369464 Shizzmoney
Shizzmoney's picture

There is a sequel: "Whatapussy" starring Ben Benanke as Dr.Douche!

Tue, 04/24/2012 - 08:50 | 2369442 Gully Foyle
Gully Foyle's picture

cossack55

"If you are not Big Agri, you won't soon be growing anything but old and hungry.  Gotta love nazis."

IDIOT!

While I'm not a fan of agribusiness, and I live rurally so have seen family farms go under, you responded to an article that had nothing to do with driving a family farm out of business. But everything with privacy.

More importantly the reasons family farms go under are complex, not enough profit/the kids don't want to be farmers/bad growing seasons.

What I'm not seeing are the Amish farms going under.

I'm not seeing a lot of independent farmers who rent, instead of own, property go under.

I'm not seeing the smart young farmers who actually have a busioness model go under.

 


Tue, 04/24/2012 - 09:59 | 2369672 KickIce
KickIce's picture

From the link:

While being questioned, the Sowers were finally presented with a seizure order and advised that the feds had already emptied their bank account of $70,000. The Dept. of Justice has since sued to keep $63,000 of the Sowers’ money, though they committed no crime other than maintaining their privacy.

Without funds, they will be unable to make purchases for the spring planting.

Tue, 04/24/2012 - 10:01 | 2369679 mess nonster
mess nonster's picture

The Amish don't make any deposits, you idiot. They use cash and barter. Soon the way the Amish do business will be called terrorism, and they will all be locked up, just like you and me.

Tue, 04/24/2012 - 09:57 | 2369669 mess nonster
mess nonster's picture

Welcome to the Obama People's Republic. Take-home message- dont fucking make more than 10,000 dollars a year! Stay beneath the radar! Learn to see poverty as a lifestyle! The only crime these people committed was being successful and prosperous. Fucking kulaks! Line them up against the wall and shoot them, then starve the rest to death! Long live communism!

Tue, 04/24/2012 - 08:45 | 2369427 Gully Foyle
Gully Foyle's picture

chubbar

And here I got all wound up thinking small farmers were being shit on, then I discerningly read your post.

"

Admittedly, when the Sowers earned over $10,000 in February, and learned they’d have to fill out paperwork at the bank for such large deposits, they simply rolled the deposits over to keep them below the none-of-your-fucking-business amount, rather than waste time on bureaucratic red tape aimed at flagging terrorism or other illegal activities.

“Structuring,” explains Overlawyered.com, “is the federal criminal offense of splitting up bank deposits so as to keep them under a threshold such as $10,000 above which banks have to report transactions to the government.”"

They chose to break a law.

The goddamned thing has absolutely NOTHING to do with small farmers, except the ones who stupidly CHOOSE to break the law!

I know smoking dope is wrong and when I smoked dope I knew I was breaking the law. By your association, according to the posts logic, if I smoked dope on a family farm and got arrested BIGOV was targeting the farm and not me smoking dope.

But what you fail to grasp when you post this shit is it actually detracts from the REAL small farmers who are "targeted" for various offenses.

 

 

Tue, 04/24/2012 - 09:23 | 2369562 chubbar
chubbar's picture

Hey Gully, fuck you. This in no way detracts from small farmers who are targeted for other offenses. Did YOU KNOW that if you make $11,000 and only deposit $9,000 that you are breaking the law? Did you?

 That the gov't can come in and steal your money without a hearing is fucking retarded and unconstitutional, not that it matters any longer! This family has every right to keep cash at home or do whatever the fuck they want WITH THEIR MONEY. This action by the gov't assumes tax evasion before it even happens. These laws were supposed to be all about stopping money laundering by drug sellers, not about forcing businesses to use the banking industry or arresting people for thought crimes. If they are going to evade taxes then they need to file a 1040 to make it official, not fail to put money into their account. This is one more example of passing a law that everyone knew was unconstitutional but for a good cause, only to find out that the gov't had no intention of limiting the application to what was advertised. Think NDAA and how that is going to morph over the next few years.

You calling me out on this because you feel it somehow detracts from other small farming issues is retarded. The gov't is hounding small farmers on behalf of big agri. They are using many tools to do so, this is one of them and no less significant than any of the others. 

Tue, 04/24/2012 - 09:26 | 2369571 XitSam
XitSam's picture

You undoubtedly are in the legal profession. If it is The Law, it must be right. Have a crappy day, Judge Dredd.

Tue, 04/24/2012 - 11:48 | 2370116 FREEEEEEEEEDOM
FREEEEEEEEEDOM's picture

How dare you bash weed?

Tue, 04/24/2012 - 08:28 | 2369364 q99x2
q99x2's picture

Most of those people that the banksters say owe taxes were laid off years ago. They're only good for fighting in the revolution. They bought guns with their last dollars.

who will finance all that spending?

Rotheschildes, Bushs, Gates, Buffet (if the vultures leave any meat on the  bones,) Rockefellers and Warburgs after the revolutionary redistributation takes place.


Tue, 04/24/2012 - 08:23 | 2369365 TradingJoe
TradingJoe's picture

AppleTini Everyone?!?!

Tue, 04/24/2012 - 08:23 | 2369366 cossack55
cossack55's picture

As long as they don't do away with debt.  What kind of world would this be (other than irradiated) without debt. Sheeesh.

Tue, 04/24/2012 - 09:15 | 2369532 Sam Clemons
Sam Clemons's picture

Austerity died the day they started it.  I don't think any of these profligate European governments met anywhere near their "targets."

Tue, 04/24/2012 - 08:24 | 2369367 francis_sawyer
francis_sawyer's picture

Drove my Chevy (Volt) to the levee & THE BATTERY died...

& them good ol boys were drinkin whiskey & rye...

Tue, 04/24/2012 - 08:24 | 2369371 lolmao500
lolmao500's picture

Ask any Obamabot and they will tell you that austerity is bad and that Krugman is a genius.

Tue, 04/24/2012 - 09:00 | 2369478 Calmyourself
Calmyourself's picture

Calling Max, ohhh Max...

Tue, 04/24/2012 - 08:25 | 2369372 Everybodys All ...
Everybodys All American's picture

No one implemented austerity. Give me a break.

Tue, 04/24/2012 - 08:48 | 2369399 bigdumbnugly
bigdumbnugly's picture

austerity was a stillborn.

Tue, 04/24/2012 - 08:49 | 2369439 bernorange
bernorange's picture

The spice must flow.

Tue, 04/24/2012 - 08:34 | 2369402 GetZeeGold
GetZeeGold's picture

 

 

Whatever Daddy is giving us.....we're taking it!

 

Tue, 04/24/2012 - 11:28 | 2370038 docj
docj's picture

Indeed. The Narrative is that "austerity" has been tried and found wanting. Truth is austerity has been entirely untried and we all know it's been similarly unwanted.

Tue, 04/24/2012 - 08:31 | 2369377 DormRoom
DormRoom's picture

The Problematic of Europe can be summed up thus:

 

"ALL Europeans ARE EQUAL BUT SOME Europeans ARE MORE EQUAL THAN OTHERS"

 

see. North/South fault lines.

Liquidity, or should I say access to liquidity, reinforces the problematic.

 

Tue, 04/24/2012 - 08:28 | 2369378 fonzannoon
fonzannoon's picture

I wonder if this Peter now understands what the other Peter (Schiff) means when he always says "we can take a lot of pain now or take apocolyptic pain later"

It's always going to be later

Tue, 04/24/2012 - 09:16 | 2369537 Sam Clemons
Sam Clemons's picture

Is Peter Schiff still bullish on European equities?

Tue, 04/24/2012 - 09:22 | 2369558 Vince Clortho
Vince Clortho's picture

Apocalypse Later 

starring B Bernanke.

the sequel to Apocalypse Now?

Tue, 04/24/2012 - 08:28 | 2369381 stock trout
stock trout's picture

Jubilee!

Tue, 04/24/2012 - 13:37 | 2370546 DosZap
DosZap's picture

Jubilee!

 

Better not say that the Jew haters will be all over you.

Tue, 04/24/2012 - 08:28 | 2369383 rsnoble
rsnoble's picture

Today's probably going to be a DJ +200 Apple day. I say this because most stocks that have sold off into earnings end up surprising. And all the other euphoric bullshit. If this doesn't happen it will be totally out of character and may put an end to this "building a base" nonsense.

Tue, 04/24/2012 - 08:31 | 2369393 smb12321
smb12321's picture

Austerity is a big deal ONLY because government became such a huge player in the economy.  Of course if the State is supporting half the population by some form of payment, cutbacks will be deeply painful.  But that very spending is the reason we are in the predicament we face.   The larger the involvement of the State with the economy, the less its intervention will affect things.   If our economic history has proved anything it is that the growth of government aligns with the growth of public debt.  

 

Tue, 04/24/2012 - 08:32 | 2369395 LongSoupLine
LongSoupLine's picture

Austerity is dead, hence...gold and silver. Period.

Tue, 04/24/2012 - 08:38 | 2369406 Quinvarius
Quinvarius's picture

Austerity cannot possibly work in the real world of fiat currency.  You could write a book on it.  Austerity is the way they enforce a recession to keep you from spending all that money they are printing.  It is the only way to slow velocity and the advent of hyper inflation until they are ready for it.  I mean really--Print trillions for the banks and make the public starve?  How is that true austerity?  That is merely control freak ponzi desperation.   

Tue, 04/24/2012 - 08:40 | 2369414 Badabing
Badabing's picture

Going to have to figure out another word for ending retirement benefits!

Tue, 04/24/2012 - 09:02 | 2369485 Yes_Questions
Yes_Questions's picture

 

Everworker..

Tue, 04/24/2012 - 09:12 | 2369518 Badabing
Badabing's picture

LOL

Tue, 04/24/2012 - 08:42 | 2369418 proLiberty
proLiberty's picture

Like so many things in life, just what do you mean by "austerity"?  

It appears that the working definition means government creating money out of thin air with which to transfer to an ever-growing dependent class, primarily those who are paid to "work" in government and those paid to be "taken care of".   But money is not resources, and this mirage is not "sustainable", no matter how if conforms to the Keynesian equation of C + I + G.

In the Keynesian reality, cutting air-backed money creation mechanically must lead to a reduction in economic growth.  But this is all a mirage.  And great will be the collapse thereof.  It works perfectly until it stops working.  And with electronic settlement, it can collapse faster than humans can move to stop the HFT flash crash.

 

 

 

Tue, 04/24/2012 - 08:46 | 2369419 falak pema
falak pema's picture

The age of KRUGMANOMICS has arrived; print to infinity and damned be he that cries "hold enough!"

As a corollary to this fiat fueled empire with no holds barred, debase the denari of silver and gold; ad nauseum. Have to, the one eyed lead the blind, who have had their PM orbits pierced out! 

Tue, 04/24/2012 - 08:43 | 2369422 peekcrackers
peekcrackers's picture

The IMF  have copy right on Austerity

 

Tue, 04/24/2012 - 10:12 | 2369708 nick howdy
nick howdy's picture

Does that mean I have to get permission before I starve?

Tue, 04/24/2012 - 12:38 | 2370309 peekcrackers
peekcrackers's picture

sure dose ... you will be growing  food .. salve.  

Tue, 04/24/2012 - 10:44 | 2369848 Money 4 Nothing
Money 4 Nothing's picture

Who do you think the Treasury Dept. is? IMF.

Tue, 04/24/2012 - 12:37 | 2370317 peekcrackers
peekcrackers's picture

Nope that would be the RIS  .. IMF is a part of the UN

Tue, 04/24/2012 - 08:55 | 2369453 disabledvet
disabledvet's picture

Spending by governments is done to create consumption...this is true even in China...which courtesy of "Marxism coming first" had/still has pensions, social welfare, etc. As a consequence ALL government money goes into the one "development project" humans love: real estate. Hence in the the USA and soon globally "trillion dollar deficits as far as the eye can see." why? Because real estate as the sin quo non of development is BEYOND BELIEF expensive. That's why I say "take the other side of that trade" (since the government money always pours in) and "invest in viability." nat gas, solar, cloud...even though prices have collapsed (since when is great stuff dirt cheap bad?) the government NEEDS these investment spaces "for their always unworkable plans" to succeed. In other words "you're securing the profit motive" and not (if you can of course) "just making money." Obviously "good luck making money in that space." of course "I'm the foremost advocate of Utilities" and NOt of the space directly "for all you home gamers out there." and they have been GREAT performers (best in class last year)...and should interest rates CONTINUE to plunge globally they could very easily end up being "the government itself."

Tue, 04/24/2012 - 08:55 | 2369459 CustomersMan
CustomersMan's picture

 

  The question about spending for growth, and when is it good?

 

  Well, if we issued our own money through the U.S. Treasury, like what was set-up under the Constitution and not the FED.

 

  We could begin dozens of infrastructure, capital expenditures, for the future, that would be assets. It might include some DARPA based research and development, or high speed rail lines, or cold fusion, or recovery programs for chemical , nuclear waste removal, and certain suppressed technologies, or nanotechnology that turns waste into energy, repair bridges and roads.

 

  If we issued our own currency instead of FED RESERVE NOTES based on debt, it could reduce our cost for these projects by 50% and would add to the value of the country, and anyone holding the currency would have an interest in our progress.

Tue, 04/24/2012 - 09:18 | 2369546 nick howdy
nick howdy's picture

Not enough inputs and too many outputs makes this a Ponzi Scheme by any measure...So what to do? The simplist thing is to get more input and dare I say that means taking that fucking cap off..107,000..So our elite say they care about "society",  that's BS...

Leaving it the way it is leaves me trapped to pay without getting anything for my trouble...All I can say is Fuck You "Mr Helper"... 

Tue, 04/24/2012 - 09:00 | 2369480 insanelysane
insanelysane's picture

Eventually, the total amount of debt will exceed the total amount of currency available to be used for debt.  Ctrl-P cannot outpace Ctrl-S.  There are a lot more spenders than printers and the printers are arrogant SOBs but they will not win.

Tue, 04/24/2012 - 09:03 | 2369486 XitSam
XitSam's picture

"Good" austerity and "bad" austerity? Bruce thinks that social programs that keep the velocity of money up is "good" austerity. And if that doesn't work?

Tue, 04/24/2012 - 09:06 | 2369499 nick howdy
nick howdy's picture

Human beings be forced into debt slavery to save the banks and bank$ters?  It is the bankers and politicians themselves who have made a pact with their Satan.. They have caused all this...

If you are born into a system that constantly promotes your dependence on it ..Who's fault is that? Do you blame the slave for his enslavement?

The "elite"  inbreeds are the ones who have done this...They make the decisions, force your complicity through propaganda and deception, and try to convince you that what they do in their "leadership" is in your self interest...

It's a lie. It's immoral as was the debt that was created to enslave us..The people who should pay are not the citizens who have been conned into believing the lie...

These conman needs to pay....One way or the other....We'll have to do it before we enter the Neo-Fuedalistic/Fascist state clampdown, which will occur if we keep on this path...

 

Tue, 04/24/2012 - 09:24 | 2369565 Vince Clortho
Vince Clortho's picture

excellent post

Tue, 04/24/2012 - 10:09 | 2369700 nick howdy
nick howdy's picture

Thanks Vince, being a 10 year old prognostic prodigy is "hard work". 

Tue, 04/24/2012 - 09:15 | 2369530 casey13
casey13's picture

The choice the Germans face.

They can print within the Euro and keep the economic ties or they can leave the union and end up like the Swiss; printing to keep their currency from getting too strong.  

Tue, 04/24/2012 - 09:16 | 2369538 eddiebe
eddiebe's picture

There is no accountability at the top. Yes Mr.President, let's play the blame game.

Tue, 04/24/2012 - 09:52 | 2369659 toady
toady's picture

Billions of people scream out, "GOD DAMMIT! Everyone but me must submit to austerity!

Tue, 04/24/2012 - 09:53 | 2369660 HAhyperion
HAhyperion's picture

Yes currency reversion and debt restructuring long overdue.  "Spending" or "stimulus" if properly INVESTED say infrastructure can influence growth.  All prior spending was just given to bankers to sop up their losses and did not move into broader real economy.  And any government spending, if proper seeding, takes time to blossom.  Think China and the decades long strategy.

Western societies have become addicted to the quick fix.  But there are no quick fixes left.

Once the addicts hit rock bottom, I hope that all banking becomes local, regional or national again.  

Global finance was an abject failure as the world is not ready for global governance.

 

Tue, 04/24/2012 - 10:05 | 2369689 Catullus
Catullus's picture

TXU is losing customers like no one else. Amazing how retail customers can pick up that they're a cash flow hedge to a $7 gas lock. They're being charged $60-70MWh in margin that get passed on to wholesale. Those earnings are transitory if I ever saw them. Losing 10% of your customer base a year is not a good sign.

Whoever rolled their 2014 to 2017 unsecureds is a monumental retard. Someone is sitting on a 50% haircut at least.

Tue, 04/24/2012 - 10:10 | 2369702 KickIce
KickIce's picture

Austerity Definition:

A word often used by politicians and central banks but drowned out by the sound of printing presses in the background.

Tue, 04/24/2012 - 10:30 | 2369753 mess nonster
mess nonster's picture

Currency reversion and/or debt restructuring will be the ultimate end-game.

Now that is what I call stating the obvious.

Another Civil war analogy: Slavery was widely seen as an "unsustainable" institution. Yet, like the debt/spending dead-end we are on today, there was no easy way to go "cold turkey". For Albert Pike, slavery was the perfect vehicle for the institution of a Federal unification/power grab of the independent States.

The plan Pike devised was genius, (if you're a Satan-worshipping scumbag). He blew slavery up into a huge issue, and with it threatened the Southern States into a perfect storm of fear and agitation. Enter the "useful idiots" called Abolitionists, who performed their asignment perfectly. Then via the Scottish Rite Lodge in Charleston, he manipulated the Seccessionist militia to attack the federal garrison at Ft. Sumpter, thus initiating a war the South was, by design, destined to lose.

Yes, the real issue was States Rights, but the real goal was to uterly crush and extirpate that notion forever.

Today, "patriots" and "constitutionalists" are under the very same attack. Are noble and Christ-based ideals embedded in what such people fight for? Undoubtledly. Are they smart to use any material weapons at all? No. The Satanic leviathon is too big. It wants, lusts, for a confrontation, so it can crush and devour its opponents.

Iran is not led by a spiritual leader for nothing. He can see that war is not to that nation's advantage. The weapons of our struggle are spiritual. Drop beneath the radar, friends, because the opposition movement to Obama and his ilk (Romney) is all part of the Plan.

That goes for all the "alternative" news sites, Rense, WDIM,  Above Top Secret, Prison Planet, Steve Quayle, etc, etc, etc, etc, etc. Yeah, you get better news there, but don't think knowing what's going on is the same as stopping anything. Prepare spiritually. We're all Branch Davidians now, we're all Randy Weavers now.

Tue, 04/24/2012 - 11:11 | 2369970 shutupnsing
shutupnsing's picture

Why does everyone from Squawkbox to Surveilance speak the word "austerity" fluently and can't form the word "socialism"...ever? http://shutupnsing.wordpress.com/2012/04/24/austere-is-an-adjective-socialism-is-a-snake-love-is-a-verb/

Do NOT follow this link or you will be banned from the site!