Frontrunning: July 29

Tyler Durden's picture
  • Amid Debt Battle, More Americans Say Economy Getting Worse (Gallup)
  • Treasury Faces Pressure to Detail Backup Plan (WSJ)
  • Debt-Increase Dispute Tests Boehner’s Power (Bloomberg)
  • U.S. Economic Growth Probably Slowed (Bloomberg)
  • IMF Board Holds Informal Board Meeting On EU's Greek Financing Deal (WSJ)
  • Why are we in this debt fix? It’s the elderly, stupid (WaPo)
  • France Seeks Rapid Adoption of Greek Bail-Out (FT)
  • China Regulator Said to Tell Banks Provisions for Bad Loans Are Inadequate (Bloomberg)
  • How Democrats Missed Their One Chance To Put Rating Agencies in Their Place (New Republic)
  • Perth’s Tumbling Home Prices Outpace Australia, APM Says (Bloomberg)
  • Japan Bank Earnings Diverge (WSJ)
  • Making Change: The Simplest Practical Gold Standard System (Forbes)

European economic update:

  • Euro-Zone CPI Estimate (YoY) for July 2.5% - lower than expected.Consensus 2.7%. Previous 2.7%
  • France Producer Prices for June -0.1% m/m 6.1% y/y – in line with expectations.Consensus -0.1% m/m 5.9% y/y. Previous -0.5% m/m 6.2% y/y
  • France Consumer Spending for June 1.2% m/m 1.8% y/y.Previous -0.3% m/m -1.5% y/y (revised from -0.8% m/m -1.8% y/y)
  • Italy PPI for June 0.1% m/m 4.7% y/y – higher than expected.Cosensus -0.1 m/m 4.6% y/y. Previous -0.2% m/m 4.8% y/y
  • Italy CPI (NIC incl. tobacco) for July 0.3% m/m 2.7% y/y – higher than expected.Consensus 0.2% m/m 2.6 y/y. Previous 0.1% m/m 2.7% y/y
  • Italy CPI - EU Harmonized for July -1.7% m/m 2.1% y/y – lower than expected.Consensus -1.0% m/m 2.9% y/y. Previous 0.1% m/m 3.0% y/y
  • Norway Unemployment Rate for July 2.8% - as expected.Previous 2.5%
  • Sweden GDP s.a. for Q2 1.0% - higher than expected.Consensus 0.6%. Previous 0.8%
  • Sweden GDP w.d.a. for Q2 5.3% - higher than expected.Consensus 5.0%. Previous 6.4%
  • Sweden Wages - Non-Manual Workers for May 1.7%.Previous 1.8%
  • UK GfK Consumer Confidence Survey for July -30 – lower than expected.Consensus -26. Previous -25
  • UK Net Consumer Credit for June 0.4B – higher than expected.Consensus 0.3B. Previous 0.3B (revised from 0.2B)
  • UK Net Lending Sec. on Dwellings for June -0.1B – lower than expected.Consensus 1.0B. Previous 1.0B (revised from 1.1B)
  • UK Mortgage Approvals for June 48.4k – higher than expected.Consensus 46.0k. Previous 46.4k (revised from 45.9k)
  • UK M4 Money Supply for June -0.5% m/m -0.7% y/y.Previous 0.1% -0.3% y/y
  • UK M4 Ex OFCs 3M Annualised for June 0.8%.Previous 1.6% (revised from 1.0%)

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Careless Whisper's picture



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Catullus's picture

Oh Robert Samuelson:

By now, it’s obvious that we need to rewrite the social contract that, over the past half-century, has transformed the federal government’s main task into transferring income from workers to retirees. In 1960, national defense was the government’s main job; it constituted 52 percent of federal outlays. In 2011 — even with two wars — it is 20 percent and falling. Meanwhile, Social Security, Medicare, Medicaid and other retiree programs constitute roughly half of non-interest federal spending.

These transfers have become so huge that, unless checked, they will sabotage America’s future. The facts are known: By 2035, the 65-and-over population will nearly double, and health costs remain uncontrolled; the combination automatically expands federal spending (as a share of the economy) by about one-third from 2005 levels. This tidal wave of spending means one or all of the following: (a) much higher taxes; (b) the gutting of other government services, from the Weather Service to medical research; (c) a partial and dangerous disarmament; (d) large and unstable deficits.

Older Americans do not intend to ruin America, but as a group, that’s what they’re about. On average, the federal government supports each American 65 and over by about $26,000 a year (about $14,000 through Social Security, $12,000 through Medicare). At 65, the average American will live almost 20 more years. Should these sizable annual subsidies begin later and be less for some? It’s hard to discuss the budget realistically if you ignore most of what the budget does.

That’s been our course. Obama poses as one brave guy for even broaching “entitlement reform” with fellow Democrats. What he hasn’t done is to ask — in language that is clear and comprehensible to ordinary people — whether many healthy, reasonably well-off seniors deserve all the subsidies they receive. That would be leadership. Obama is having none of it. But the shunning is bipartisan. Tea Party advocates broadly deplore government spending without acknowledging that most of it goes for popular Social Security and Medicare.

The DC insiders are calling for default on the welfare programs.  Why? Because it means you'd have to gut their jobs.  Means testing is default. 

And I love the opening line "rewriting the social contract".  Social contract theory is such a magnificent load of bullshit that it boggles the mind that anyone would even mention it.  When it becomes inconvienent for the government to abide by the "contract", they just rewrite it.  HA HA HA.  But they're not robbing you.  You're paying into the "cost of society" as laid out by the contract! It's just that you miserible fucks just decided to live longer!  It's all your fault!  Epic Fail.

SheepDog-One's picture

Their 'social contract' basically states the politicians phony baloney jobs are guaranteed and do whatever they want because theyre better than you, know better then you, and are guaranteed a position over you because youre too dumb to provide for yourself.

MoneyWise's picture

"At 65, the average American will live almost 20 more years. Should these sizable annual subsidies begin later and be less for some? "

How about Republican spent Half+ of today Deficit
on Wars, Bailout packages for their buds on Wall Street
and all kinds of TARP's now playing caring guys and
asking to cut spending? What spending??? I tell you what,
if those creeps are going to pass AUG 2 with no real solution,
I'd suggest Obama from AUG 3 completely cut off Pentagon
"Offensive" spending, it immoral cutting off SS benefits while
keep bombing all over the world. No deal from Republicans
No more Pentagon spending, cut all Republican protected
programs.. 0% funding starting from AUG 3..

RETURN OUR 3 trillion $$$ you spend on IRAQ/AFGHANISTAN
and we don't have to rise ceiling then, or you going to
be cut off completely. Stop playing games!

SheepDog-One's picture

Dont foget this huge story everyone is missing, western Euro elites and Obamas grab for oil and gold in Libya backfires wildly in their face as Libya openly mocks NATO as losers and to get the hell out now. BTW really hate to be those Libya rebels, theyll be hanged by their nuts. LIBYA DECLARES VICTORY OVER NATO?‏ - YouTube

The West slowly backing away from the Libyan military operation – Global Public Square - Blogs

These are the real stories, western elites just got their asses handed to them in their attempt to 'land grab' Rock Ridge, Blazing Saddles style. No free oil, no free billions in stolen gold, and Gadaffi now not surrendered or dead, but a massive powerhouse on the region.

jmc8888's picture

Stupid headline.

Why are we in debt? It's the FRAUD stupid.

It isn''t the elderly.  What fucking morons.

It's the FRAUD.


Cancel the fraud, via Glass-Steagall

The extremist wants to pay off the fraudulent debt, either by cutting, printing, or taxing.  So are you an extremists? probably.

Don't want to be one? Pass Glass-Steagall and really get to the heart of the problem.

It ain't the fucking elderly.  What a chickenshit pass the buck mentality is that? The elderly being used as the scapegoat for Wall Street, ain't nothing new.  But apparently the morons haven't figured that out.

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