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Momentarily Stepping Back From The Trees To Show These Two Charts Of The Forest

Tyler Durden's picture





 

Every time we get too bogged down by details, minutae, nuances, footnotes, rumors, lies, or, at the very bottom of the bullshit pyramid, Eurocrat promises, and think that maybe, just maybe, there is a way to fix the mess we are in, we take a quick look at what is in store (most recently recapped by Deutsche Bank in the form of the following two charts) and quickly realize that all concerns about a happy ending have been for nothing.

Self-explanatory chart #1:

And self-explanatory chart #2:

 


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Tue, 06/26/2012 - 15:09 | Link to Comment slaughterer
slaughterer's picture

Let's just nickname these charts "The Bernanker Boner Charts" here on ZH ;-)  Makes it easier for all of us.  

Tue, 06/26/2012 - 15:09 | Link to Comment Winston Churchill
Winston Churchill's picture

John Williams over at SGS says it will end 2014 ,if not before.

Only a politician could think you could kick a can that far.

Tue, 06/26/2012 - 15:20 | Link to Comment Manthong
Manthong's picture

Those charts are likely way too conservative.

There is no way the system will survive through next year without present tax policy being extended and additional tax cuts and even tax credits or government stimulus checks being dropped from helicopters.

The party is just beginning.

Tue, 06/26/2012 - 15:52 | Link to Comment Aziz
Aziz's picture

They cut all the forest down to print Benny bucks.

Tue, 06/26/2012 - 16:02 | Link to Comment idea_hamster
idea_hamster's picture

"at the very bottom of the bullshit pyramid, Eurocrat promises"

Cramer isn't at the bottom of the bullshit pyramid?  Perhaps he's the peak -- the ultimate evolution of the bullshit pyramid?  Not sure which is the business end of this metric...not that it matters.

Tue, 06/26/2012 - 17:31 | Link to Comment old naughty
old naughty's picture

with all the Ivy-Leaque education and "prestigious" prizes won, you would have thought "they" would see the forest already !!!

How wrong we were.

Tue, 06/26/2012 - 17:41 | Link to Comment Pinto Currency
Pinto Currency's picture

 

Why fret?

Greenspan says you can't recognize a bubble till it has burst.

You just have to wait and then clean up.

Wed, 06/27/2012 - 07:52 | Link to Comment DavidC
DavidC's picture

Nah, they can't see the wood for the Ivy...

DavidC

Tue, 06/26/2012 - 17:44 | Link to Comment Marginal Call
Marginal Call's picture

I'm gonna miss all the cotton trees. 

Tue, 06/26/2012 - 18:48 | Link to Comment Fedophile
Fedophile's picture

Cotton is no tree and polymer is the future.

Tue, 06/26/2012 - 19:01 | Link to Comment koperniuk666
koperniuk666's picture

Fedophile - love the name - well thought up! 

but why do you have a picture of an 'arse'?

surely a catholic hanging out of the back of a young banker would be more appropriate?

Tue, 06/26/2012 - 19:30 | Link to Comment Marginal Call
Marginal Call's picture

Yeah, that was a joke responding to a comment about  Benny cuttin down the forests.  Those polymer notes melt in the dryer.

 

Don't forget to empty your pockets. 

Tue, 06/26/2012 - 19:31 | Link to Comment ProtectiveFather
ProtectiveFather's picture

http://en.m.wikipedia.org/wiki/Cotton_Tree

The seeds of those things are annoying.

Tue, 06/26/2012 - 19:46 | Link to Comment Temporalist
Temporalist's picture
Hemp car made by FORD: 'Bio-degradable auto parts' green car dream of celebrity manufacturing giant

http://www.examiner.com/article/hemp-car-made-by-ford-bio-degradable-aut...

Wed, 06/27/2012 - 00:07 | Link to Comment Overfed
Overfed's picture

Sheeit. I've got a couple of old Jeep trucks that are starting to look pretty biodegradable these days.

Tue, 06/26/2012 - 18:38 | Link to Comment Stoploss
Stoploss's picture

To sustain that, a whole lot of oil will have to be liberated, and a whole lotta shit will have to be blown up. Im not sure there is enough oil and shit to get to that number.

Tue, 06/26/2012 - 19:48 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

Maybe, yes, maybe, no, but it won't be for lack of trying.  And it's not so far fetched to think that they could pull it off.

Wed, 06/27/2012 - 03:14 | Link to Comment cynicalskeptic
cynicalskeptic's picture

Would be so much simpler (and cheaper) to simply monetize toilet paper.......   and as a bonus your  'money' would still have some utility value when its buying power goes to zero (which is what's going to happen with whatever fiat currency is issued)

 

remember, you couldn't even use 100 trillion zim dollars to wipe your butt in the end of THAT cluster f**k.......    (banknote paper clogs the plumbing)

 

http://www.freakonomics.com/2008/12/18/freak-shots-when-money-goes-down-...

Wed, 06/27/2012 - 09:30 | Link to Comment monad
monad's picture

Thats why we're switching to electrons. There aren't enough trees.

Tue, 06/26/2012 - 16:11 | Link to Comment JeffB
JeffB's picture

They're also not counting all of the debt. The 1st chart is showing a debt to GDP of under 80% when in actuality, it is already over 100%. www.usdebtclock.org/

They apparently don't count inter governmental debt, presumably because we "only owe it to ourselves" as though they don't really have to pay on the bonds held in the "Social Security lockbox".

If you add in the "unfunded" and "off-the-books" items, and the guarantees on the GSEs etc. the numbers go even higher.

It's quite sad when even the grossly manipulated numbers can't be made quasi palatable.

 

Tue, 06/26/2012 - 18:14 | Link to Comment socalbeach
socalbeach's picture

If SS runs a deficit of say $50 billion in 2014 (I made that number up), then in 2014 the Treasury has to issue $50 billion extra in bonds to pay the recipients, the same as if the lockbox didn't exist.  That $50 billion would then show up as extra debt in 2014, the year it was spent.  I assume the deficit projections above are already taking into account the extra social security spending in future years. 

Whoever dreamed up the SS intra-governmental debt and lockbox ideas deserves some kind of prize for obfuscation.  That debt isn't worth the paper it's written on, the money it represents has already been spent, and the debt is not marketable.

Tue, 06/26/2012 - 20:50 | Link to Comment Captain Kink
Captain Kink's picture

off balance sheet...been going on forever.

Tue, 06/26/2012 - 19:09 | Link to Comment Bunga Bunga
Bunga Bunga's picture

240% in 30 years also means maximum 3% government deficit over that period and that is rather the best case. Since deficit is currently running closer to 10% and pocket calculators can't lie, we would reach modest 1,700% in 30 years.

Tue, 06/26/2012 - 16:17 | Link to Comment masterinchancery
masterinchancery's picture

These charts do NOT include all the off the books debt in excess of 7 trillion, very dishonest of the CBO, train wreck ahead.

Tue, 06/26/2012 - 17:33 | Link to Comment Not Too Important
Not Too Important's picture

Greg Palast, who studied with Milton Friedman in Chicago, seems to think the Euro was specifically designed to cause these crisis, and it's really all wildly successful:

http://www.gregpalast.com/the-euro-is-a-big-success-no-kidding/

It certainly will bring in the NWO for pennies on the dollar.

Tue, 06/26/2012 - 18:48 | Link to Comment JeffB
JeffB's picture

Interesting article, though I seem to be in fundamental disagreement with Mr. Palast on some things and probably on his overall economic paradigm.

For instance, he seems to think the Euro is bad because the countries can't devalue their currencies to get out of their quagmire, but also complains about Mundell's plan to have the Euro force "'structural reforms' – a euphemism for worker-crushing schemes. They cite the nebulous theory that this "internal devaluation" of each nation will make them all more competitive.

Monti and Draghi cannot credibly explain how, if every country in the Continent cheapens its workforce, any can gain a competitive advantage."

---

If he studied under Friedman, I'm a little surprised Mr. Palast wouldn't see how reducing the cost of regulations and labor could possibly make the Euro nations more competitive. Perhaps he's looking at it as a zero sum game and they're all only competing with each other. But that's not really the case. They're competing in a world market, of course, and even if it was only among themselves, reducing costs and improving productivity would increase the size of the pie they're splitting.

It would be more plausible to me if he was saying that the evil PTB had set up this sysem knowing it would be relatively easy to get the nations to blow out their budgets and then the whole system would be in far worse trouble when the inevitable crash after the central bankers' artificially induced bubbles started bursting.

Whatever.

Tue, 06/26/2012 - 19:35 | Link to Comment Marginal Call
Marginal Call's picture

The Greeks (and Spain) can't just cut their labor costs, when they joined the Euro their property values rose up to the income levels of the richer countries.  They either need a real estate crash, or a currency devaluation.

 

They are in a catch 22.  The bankers are taking Europe without a shot. 

Tue, 06/26/2012 - 19:47 | Link to Comment JeffB
JeffB's picture

They could default on their debt. In fact, that's probably their best option in my opinion.

Their real estate market, like most in the western world should be allowed to drop to market clearing levels. Allowing the central bankers to keep trying their Sisyphean task of perpetually propping up their perverted market  is a recipe for disaster.

 

Wed, 06/27/2012 - 07:02 | Link to Comment blindfaith
blindfaith's picture

 

Don't forget to consider the Real Estate bubble in Canada, Australia, China, Vietman, Indonesia, Japan, the rest of Asia, most of Central America, most of South America, and anywhere else that has decided to play 'musical chairs' get rich-turn-it-over ponzi game playing with fiat money.

Default on debt...blasphemy, I tell you !!!!  We will make it illegal to default and we will start with student loans.

Tue, 06/26/2012 - 15:14 | Link to Comment FL_Conservative
FL_Conservative's picture

When you find yourself in a hole....stop digging.

Tue, 06/26/2012 - 15:41 | Link to Comment francis_sawyer
francis_sawyer's picture

So I guess Obama was just kidding when he said he was going to cut the defecit in half by 2014... Oh well, back to the campaign trail...

Tue, 06/26/2012 - 15:49 | Link to Comment FL_Conservative
FL_Conservative's picture

Actually, he thought YOU were kidding that you'd actually hold him to his word.  Liberal Democrats excel at writing checks their asses can't cash.

Tue, 06/26/2012 - 16:07 | Link to Comment roadhazard
roadhazard's picture

Several repubican administrations have done the same thing. But you keep thinking your shit don't stink.

Tue, 06/26/2012 - 16:16 | Link to Comment pismo10
pismo10's picture

Liberals are liberals it does not matter whether you call the dem or republican, it is still the same mindless disease.

Tue, 06/26/2012 - 16:22 | Link to Comment roadhazard
roadhazard's picture

You need to quote fl_Conservative, not me.

Tue, 06/26/2012 - 16:44 | Link to Comment bobnoxy
bobnoxy's picture

You're a mindless disease.

Tue, 06/26/2012 - 17:51 | Link to Comment CABill
CABill's picture

The Democrat-Republican party is a illusion of choice.

https://en.wikipedia.org/wiki/Democratic-Republican_Party

The Republicans were against the Central Bank back in the day.

"a struggle between the Treasury department and the republican interest"

"The Republicans distrusted Hamilton's national bank and rejected his premise that a national debt was good for the country; Republicans said they were both forms of corruption. They strongly distrusted the elitism of Hamilton's circle, denouncing it as "aristocratic"; and they called for states' rights lest the Federalists centralize ever more power in the national governments."

Tue, 06/26/2012 - 19:33 | Link to Comment Taint Boil
Taint Boil's picture

 

 

 

 

Increase in national debt per president chart. But hey this doesn’t matter, what is important is what Fox News says.

 

 

Thu, 06/28/2012 - 00:15 | Link to Comment ultraticum
ultraticum's picture

Two questions for the chartist: 1) Where's Barry? 2) Who controlled CON-grease?

Tue, 06/26/2012 - 23:33 | Link to Comment SmokeThatHog
SmokeThatHog's picture

You are a douche.  Go back to Drudge and fuck yourself.  All politicians spew the same shit, the Republicans just take money from dumbass bluehairs like you.

Wed, 06/27/2012 - 07:34 | Link to Comment blindfaith
blindfaith's picture

 

Dear Fl Cuntservative

Why are so many Floridians so thick headed and uneducated on facts?

"Liberal Democrats excel at writing checks their asses can't cash."

Recall, G. Bush came into office with a handsome surplus, and left office with one of the biggest deficiets in history.  Had no problem handing out wads of checks/money, in cash, directly to every person in the country to 're-start' the recession he ushered in. Had no problem obgligating the US taxpayer to pay for the support and rebuilding of Iraq and Afghanstan for the next 30 years ( how about that as a fucking check written and no cash to cover it).  Shall I go on?  Shall I bring up the great master Ronald and how he drove up the debt so high he had no choice but to raise taxes? 

Open you mind, open your one eye, you are either on Zerohedge to become educated or your just another TROLL plant to piss everyone off with your West Coast/Orlando/Daytona/West Palm Beach hanginfg chad we-are-the-one-and-only-answer crap.

You PHONY tea party types cry like babies over issues you, yourself, helped to create and still, even right NOW, profit from. But, that is the whole idea..blame someone else but offer no sound, logical, realistic, workable solutions.

Tue, 06/26/2012 - 16:04 | Link to Comment Patriot Eke
Patriot Eke's picture

Maybe he misspoke and meant the US population, not the deficit.

Tue, 06/26/2012 - 18:19 | Link to Comment TWSceptic
TWSceptic's picture

Instead he cut our liberties in half, at least he cut something right?

Tue, 06/26/2012 - 15:46 | Link to Comment grid-b-gone
grid-b-gone's picture

When the government finds itself in a hole, and the private sector has stopped digging, it borrows to buy more shovels and diggers to make up for the lost digging capacity.

The problem is, they don't dig in the private sector holes, but just dig their own unnecessary holes at an even faster rate.

Tue, 06/26/2012 - 15:50 | Link to Comment FL_Conservative
FL_Conservative's picture

When the private sector stops digging, the government offers amnesty to illegals.

Tue, 06/26/2012 - 16:25 | Link to Comment grid-b-gone
grid-b-gone's picture

Well, they offer amnesty to the illegal children of illegals, but the children then become the legal relation needed to legally sponsor mom and pop for permanent status, screwing those back in the homeland patiently waiting to do the same thing legally.

Tue, 06/26/2012 - 16:41 | Link to Comment CH1
CH1's picture

those back in the homeland patiently waiting to do the same thing legally.

That's a very ignorant, very political comment. (And to me, "political" equates to "brain poison.")

If you actually give a damn about reality, I'll help you along:

Poor guys in Mexico have about a .00001% chance of immigrating legally.

Legal immigration is reserved for rich kids who want to party at US universities.

THAT is reality.

AND, there is a non-political term for immigration, used by people who have dropped out of the state cult...

It's called Moving.

Wed, 06/27/2012 - 07:39 | Link to Comment blindfaith
blindfaith's picture

 

Who do you think emplys most of the illegals?  Tyson? Seafood industry?  vegitable growers?  Rich families who don't wnat to pay a minimum wage ot social security taxes.

 

You sir are a TROLL and  Plant

Tue, 06/26/2012 - 15:57 | Link to Comment Dr. Engali
Dr. Engali's picture

Shovel ready jobs.

Tue, 06/26/2012 - 16:10 | Link to Comment Offthebeach
Offthebeach's picture

( MrPanosBlog voice ) "Digging? I. Hear. CHINEEEEESE PEOPLES!"

Tue, 06/26/2012 - 15:16 | Link to Comment ebworthen
ebworthen's picture

Yeah, and I'm sick of paying for his Viagra.

Tue, 06/26/2012 - 16:30 | Link to Comment km4
km4's picture

Who's Propping Up the U.S. Treasury Market?

http://www.thestreet.com/story/11595827/1/whos-propping-up-the-us-treasu...

 

In applying this principle to the logical/financial contradiction of the U.S. Treasury market, I was left with only one possibility: that B.S. Bernanke is secretly (and illegally) counterfeiting U.S. dollars -- and using those bogus dollars to prop up the U.S. Treasury market. There is simply no other viable theory for how this "lead zeppelin" continues to (supposedly) generate the highest prices in history for this thoroughly and obviously worthless paper.

Tue, 06/26/2012 - 16:44 | Link to Comment RockyRacoon
RockyRacoon's picture

Interesting article.  I wonder how one goes about proving the theory?

Tue, 06/26/2012 - 16:58 | Link to Comment MsCreant
MsCreant's picture

I have been saying this (it's not like others here have not). I said it over at Mish's site and got hammered for it. Folks claimed that "Bernanke wouldn't do that because it would destroy the system." IT IS THE ONLY EXPLANATION. The thing is, you would have all these "mechanisms" and "vehicles" to pipe it in via many lines, not just one. But as things collapsed, you absolutely could put in the numbers any where you wanted to target. Who would stop it? How? An audit might prove it because the whole story would not hold together. The check book would not balance. But we can already see that from out here any way.

 

Tue, 06/26/2012 - 17:24 | Link to Comment emersonreturn
emersonreturn's picture

MsCreant:  thank you. +1

Tue, 06/26/2012 - 18:56 | Link to Comment francis_sawyer
francis_sawyer's picture

Checkbook doesn't balance?... GET RIGHT OUT OF TOWN!

Easy solution...

You aint broke if you still have checks (to kite) in the checkbook...

~~~

Now ~ How many of you GENIUSES on ZH... with your plentiful economic backgrounds & practical experience... Think the OUTCOME will evolve in a different way?

Go ahead... francis_sawyer is waiting for your delicate input (& the clock is ticking)...

 

 

Tue, 06/26/2012 - 17:53 | Link to Comment SIOP
SIOP's picture

km4,  Thank you for posting that article,

"...focused upon one particular aspect of this absurdity: the highest prices for U.S. Treasuries at a time of maximum supply. This, in itself, is an absolute financial contradiction...."

Thats exactly something that has been bothering me for a long time.

Tue, 06/26/2012 - 19:06 | Link to Comment JeffB
JeffB's picture

Of course they're propping up the Treasury market. They're not really trying to hide it as far as I can tell. ZH had an article that showed they were in effect purchasing some 60% of the Treasuries from some recent auctions.

I think their only limitation is that they can't purchase them directly from the Treasury. Of course they can and do get around that rule very easily. Buying similarly dated Treasuries just before or just after the auctions has virtually the same effect, particularly if they telegraph their intentions ahead of time to their partner dealers. In fact, it's probably done through prior arrangement. The dealers buy them at auction and turn right around and sell them to the Fed for a risk free profit. There've been at least a couple of articles to that effect on here as well.

Tue, 06/26/2012 - 15:08 | Link to Comment El Viejo
El Viejo's picture

I think your outlook for GDP is optomistic. (retirees)

 

Tue, 06/26/2012 - 15:08 | Link to Comment CrimsonAvenger
CrimsonAvenger's picture

So federal revenues are going to spike from 15% to 21% of GDP (roughly) in two years? I just shot whiskey out of my nose, which hurts like hell if you haven't done it before.

Tue, 06/26/2012 - 15:10 | Link to Comment Ghordius
Ghordius's picture

well, in theory it would be possilble, though it would involve MegaCorporations paying the same percentage in taxes as the small and medium companies... what's next, oligarchs paying the same tax rates as their secretaries?

Tue, 06/26/2012 - 15:17 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Exactly, oh the horror.  Isn't kleptocracy, crony capitalism, and fascism great?  I will keep the profits, you little people pay for my losses and bad behavior because I own your representation.

Tue, 06/26/2012 - 15:19 | Link to Comment you enjoy myself
you enjoy myself's picture

right, because then multinationals will continue to domicile in the country with the highest corporate rates in the world.  i hear CA, IL, and NY are having great success with their tax revenues by using static analysis.

Tue, 06/26/2012 - 16:24 | Link to Comment Things that go bump
Things that go bump's picture

Well, I certainly hope the doorknob doesn't hit them in the butt. 

Tue, 06/26/2012 - 15:33 | Link to Comment El Viejo
El Viejo's picture

Possibly Ghordius.

Let's face it. the whole landscape is changing. Boomers retiring causing less GDP. More renters and less home owners. Europe not buying our exports. Massive govt layoffs to reduce the deficit. It's like an earthquake. Things are bouncing all over the place. Bernanke has fired his guns and the major contraction may not have even happened yet.

Tue, 06/26/2012 - 16:20 | Link to Comment zrussell
zrussell's picture

Benny has NOT fired all his guns. #5 of his speech is not done.

Tue, 06/26/2012 - 16:19 | Link to Comment JeffB
JeffB's picture

I believe on average some 9,000 baby boomers are to hit age 65 every day for the next couple of decades or so.

 

Tue, 06/26/2012 - 15:13 | Link to Comment GeezerGeek
GeezerGeek's picture

Milk is so much better than whisky for such occassions. As far as your main point, the CBO revenue estimate must have been done by someone taking too much Delusional. The only way to 21% is if tax revenues are flat and the GDP contracts mightily.

Edit: unless they plan on suddenly taxing all those tax-deferred retirement accounts, in which case it would be a one-time event.

Tue, 06/26/2012 - 15:29 | Link to Comment Winston of Oceania
Winston of Oceania's picture

More like confiscate to shore up existing union and public pensions and create a national pension incorporating SSI to continue the ponzi.

http://www.ronpaulforums.com/showthread.php?168297-Here-s-the-20-page-quot-GRA-quot-plan-(aka-401k-Confiscation)-briefing-paper

Tue, 06/26/2012 - 19:32 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

"Edit: unless they plan on suddenly taxing all those tax-deferred retirement accounts, in which case it would be a one-time event."

Clinton wanted 15% of all IRAs in his first year, so this is part of the "solution set."

Tue, 06/26/2012 - 15:25 | Link to Comment Bangin7GramRocks
Bangin7GramRocks's picture

If there weren't so many regulations and taxes, "job creators" like Arod, Kim Kardasian, DuPont heirs and Rockefeller heirs could get down to the business of growing this damn economy!
TEAM AMERICA! FUCK YEAH!

Tue, 06/26/2012 - 15:24 | Link to Comment Winston of Oceania
Winston of Oceania's picture

www.youtube.com/watch?v=s6VrCkOLFq4

 

You got it backwards, been thirty years since I've done it and i still don't reccomend it.

Tue, 06/26/2012 - 15:31 | Link to Comment mirac
mirac's picture

Done it with Scotch...

Tue, 06/26/2012 - 15:47 | Link to Comment Strider52
Strider52's picture

Yes, I've snorted whiskey and drank cocaine, h/t Pat Travers:

Snortin' whiskey & drinkin' cocaine
Been snortin' whiskey & drinkin' cocaine
Got this feelin'
I'm gonna drive that girl insane

You're like a bad rumor baby
You're all over town
You're like a bad rumor baby
You're all over town,all over town
I may be confused,
But you know I sure ain't down

I'm a fast movin' baby
I can show you around
I got so much cocaine
Ain't never comin' down
Snortin' whiskey, drinkin' cocaine
Got this feelin' I'm gonna drive that girl insane
Insanity!

Tue, 06/26/2012 - 16:52 | Link to Comment yrbmegr
yrbmegr's picture

Current law has the Bush Tax Cuts expiring at the end of this year.  Prior to the Bush Tax Cuts, federal revenues were about 21% of GDP.  The Bush Tax Cuts dropped them down to 14-15%.  That's where the rise comes from.

Tue, 06/26/2012 - 17:49 | Link to Comment bobnoxy
bobnoxy's picture

Exactly, but fact-based postings tend to stir the crazies in here.

Tue, 06/26/2012 - 15:10 | Link to Comment Jason T
Jason T's picture

revenue estimates won't be met.  not enough jobs to collect taxes on from.  

Tue, 06/26/2012 - 15:30 | Link to Comment RallyRoundTheFamily
RallyRoundTheFamily's picture

This  +1

Tue, 06/26/2012 - 15:46 | Link to Comment Poetic injustice
Poetic injustice's picture

Jason T,

Government will create 500 new agencies, including squirrel counting and crow sexual behaviour study agencies, and earn taxes from their salaries.

So numbers will be even exceeded, a triumph for Bernanke policy!

 

Tue, 06/26/2012 - 16:11 | Link to Comment roadhazard
roadhazard's picture

I am going to apply for a grant to study the effect of Elvis sightings on the sex life of frogs.

Tue, 06/26/2012 - 16:20 | Link to Comment MsCreant
MsCreant's picture

I know Elvis croaked...you may have a good argument there.

http://froggift.com/parade/paradeSC.htm

Tue, 06/26/2012 - 16:25 | Link to Comment roadhazard
roadhazard's picture

haha, great catch. That's what I'm talkin' 'bout.

Tue, 06/26/2012 - 16:36 | Link to Comment Patriot Eke
Patriot Eke's picture

How exactly does the government generate revenue from a government job?  Our taxes pay for the government job, and the taxes the government employee pays helps in what way exactly? LOL

Tue, 06/26/2012 - 15:57 | Link to Comment Gief Gold Plox
Gief Gold Plox's picture

Easily solved. Raise taxes to the moon and bleed the working class till they can't take no more. Once they too are on food stamps too, you own their enslaved asses for reals. Hm... almost sounds like a doable plan.

Tue, 06/26/2012 - 16:17 | Link to Comment MsCreant
MsCreant's picture

Nice smile Goldie Plox.

Why raise taxes when you can print?

Tue, 06/26/2012 - 17:00 | Link to Comment Gief Gold Plox
Gief Gold Plox's picture

Why, thank you.

Erm.... Uh-uh, I know. Ink shortage! It's happened before :P

Tue, 06/26/2012 - 18:15 | Link to Comment machineh
machineh's picture

'Why raise taxes when you can print?'

That's what MMTers say, as they claim that taxes are just a useful throttle mechanism on the vigorous magic beanstalk of unlimited money printing.

When the going gets tough, the feeble-minded retreat into delusion.

ZIRP me up, Ben, there's no intelligent life down here!

Tue, 06/26/2012 - 18:26 | Link to Comment TWSceptic
TWSceptic's picture

But but Apple ... and Facebook ...

Tue, 06/26/2012 - 15:11 | Link to Comment crawldaddy
crawldaddy's picture

The only thing that will save the US financially speaking, is that the rest of the world is in a worse spot.

Tue, 06/26/2012 - 15:11 | Link to Comment lotusblue
lotusblue's picture

Who's buying?Too much production. infinite growth within finite system-unsustainable

Tue, 06/26/2012 - 17:54 | Link to Comment walküre
walküre's picture

No problem. More energy efficient appliances, furnaces, cars etc coming to the market every year.

Incentify the upgrade every year and we have consumption. We also have more debt and more garbage but that's ok.

Tue, 06/26/2012 - 15:12 | Link to Comment Village Smithy
Village Smithy's picture

But we are the "cleanest shirt in the dirty shirt pile". Doesn't that count for something?

Tue, 06/26/2012 - 15:14 | Link to Comment Winston Churchill
Winston Churchill's picture

Not when the laundry is on fire.

Tue, 06/26/2012 - 15:12 | Link to Comment you enjoy myself
you enjoy myself's picture

its ok, we just need to lengthen the depreciation schedule for private jet owners and we'll be fine.

Tue, 06/26/2012 - 15:13 | Link to Comment Kastorsky
Kastorsky's picture

Flanders and Swann - There's a hole in my budget

 

http://www.youtube.com/watch?v=3ecEMxrdULQ

Tue, 06/26/2012 - 15:13 | Link to Comment JustObserving
JustObserving's picture

If the US Govt. were a US corporation, it would be expected to follow GAAP rules.  Then we would be adding $119.47 trillion in unfunded liabilities to the US debt of $15.814 trillion.  That would add about 800% to the US debt to GDP ratio - so it woud be about 900% right now.

 

Tue, 06/26/2012 - 15:19 | Link to Comment I Am Not a Copp...
I Am Not a Copper Top's picture

The U.S. IS a Corporation

Tue, 06/26/2012 - 15:24 | Link to Comment Lem Motlow
Lem Motlow's picture

Not really. A corporation is only expected to carry on its books debts that it is legally obligated to pay. The Supreme Court has held that the US has no legal obligation to pay social security benefits, and of course the same would be true of medicare. So if the US were a corporation, those liabilites would not have to be on its books.

Tue, 06/26/2012 - 15:32 | Link to Comment blunderdog
blunderdog's picture

Everyone should note this, it's actually one of those important FACT thingies:

The Supreme Court has held that the US has no legal obligation to pay social security benefits, and of course the same would be true of medicare.

Tue, 06/26/2012 - 16:18 | Link to Comment El Viejo
El Viejo's picture

But politicians know they would immediately be handed a pink slip if they touched either. Old people vote! And boomers are the biggest block of old people and getting bigger every day. What's coming is means testing.

Tue, 06/26/2012 - 16:22 | Link to Comment MsCreant
MsCreant's picture

They will seize retirement accounts like they have done in other countries. Then steal that for other purposes too... and leave an IOU.

Tue, 06/26/2012 - 21:41 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

hey, ms_C

even cash is IOUs from the FED

owes me what?  a dollar!  here's a dollar and it sez the bank owes me:  a dollar!

i lived my whole life trying to figure when this would pass out and die;  if it doesn't pass out friday and die next week, have i lived in vain?

...not that there's anything wrong with that...

i just read rosie's stuff about "fiscal";  i think these forests are fiscal forests, BiCheZ

...happiness is a warm bong...

Tue, 06/26/2012 - 17:56 | Link to Comment walküre
walküre's picture

The Supreme Court has also established that a citizen has to pay taxes. Why? Because the game is rigged and only a few people are allowed to win.

Don't ask what your country (bullshit) can do for you, ask what you can do for your country.

Propaganda 1.1

Tue, 06/26/2012 - 15:42 | Link to Comment JustObserving
JustObserving's picture

Every congressman and senator should explain to his/her constituents that there is a good chance (virtual certainty) that they will not get any social security or medicare payments when they retire.  Considering that only about 10% of Americans have enough saved up for retirement, that should endear voters to their representatives.

It is pollitically impossible to cut social security or medicare no matter what the supreme court says.

Tue, 06/26/2012 - 15:55 | Link to Comment francis_sawyer
francis_sawyer's picture

& there's always the lovable printing press

Tue, 06/26/2012 - 16:10 | Link to Comment marathonman
marathonman's picture

Any politician playing on the third rail of American politics gets electrocuted.  That's by design.  It's a great way to ensure that there is never enough money to fund all the promises so the government debt gets bigger and bigger and the wealth of the middle and upper class gets redistributed to your TBTF bank.  It is a beautiful system, no?  And most people are none the wiser.

Tue, 06/26/2012 - 16:18 | Link to Comment roadhazard
roadhazard's picture

"none the wiser."

Because the redirect is to point at the welfare queens, the poor, old people and hippies. 

Tue, 06/26/2012 - 16:28 | Link to Comment MsCreant
MsCreant's picture

It's already gone. The math does not work. Does not matter what we vote, wish, hang, shoot, or do. There is kick the can and the printing press.

Edit: I forgot rearranging the deck chairs on the Titanic by stealing more of your money in the mean time through taxes and seizing retirement accounts.

The deal is to cook up a story that will keep folks believing things are working. That is the real meaning of seeing the forrest and not concentrating on the trees.

Tue, 06/26/2012 - 19:44 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

The government spends money on lots of things and can tax and print.  As long as there as one cent can be placed in government coffers, the retired will expect their SS.  When that last cent is gone, then and only then, it's gone. 

Whenever SS disappears, the legitimacy of the American government disappears.  They know that.

Tue, 06/26/2012 - 18:17 | Link to Comment AlamoJack
AlamoJack's picture

Lem, I could not find that ruling.  Do you have a hint that could get me there??

Tue, 06/26/2012 - 15:27 | Link to Comment prodigious_idea
prodigious_idea's picture

Great figues and no disagreement on the need to disclose liabilities.  But your contention only means that the GAAP rules would be changed to accomodate the entity. <sarc>

Tue, 06/26/2012 - 15:15 | Link to Comment ebworthen
ebworthen's picture

Unsustainable, Untenable, Unicornian.

Tue, 06/26/2012 - 15:33 | Link to Comment RallyRoundTheFamily
RallyRoundTheFamily's picture

Unicornian LOL is that trademarked?

Tue, 06/26/2012 - 16:06 | Link to Comment ebworthen
ebworthen's picture

I'd better trademark it right here:  "Unicornian" by me ;-)

Tue, 06/26/2012 - 18:17 | Link to Comment machineh
machineh's picture

Say, boy -- is you one a them 'Unicornian Kalifornians'?

Why don't you just BEND OVER?

Tue, 06/26/2012 - 15:15 | Link to Comment asteroids
asteroids's picture

It's all about demographics. In order for taxes to have real effect, the young (if they can find work) are going to have to earn a hell of a lot  more than what they are making now and pay higher taxes to boot.  That will require politicians to create jobs. Not going to happen. What will happen regardless, is that folks are going to retire ASAP and try to get all the benefits they can. You can't stop the clock and human nature.

Tue, 06/26/2012 - 15:23 | Link to Comment you enjoy myself
you enjoy myself's picture

and the young will also have to figure out how to discharge staggering amounts of student debt.  good luck with that.

Tue, 06/26/2012 - 15:20 | Link to Comment slaughterer
slaughterer's picture

These charts make me feel like this:

http://www.youtube.com/watch?v=Y9r2AgeUEtg

 

Tue, 06/26/2012 - 15:25 | Link to Comment Imminent Collapse
Imminent Collapse's picture

A country boy can survive.

Tue, 06/26/2012 - 15:25 | Link to Comment Beevreetr
Beevreetr's picture

TYLER, Whats up with this cyber raid Im hearing about?

Tue, 06/26/2012 - 15:36 | Link to Comment Tyler Durden
Tyler Durden's picture

Always easier to explain lack of access to funds due to cyber "terrists"

Tue, 06/26/2012 - 15:58 | Link to Comment dwdollar
dwdollar's picture

Is that the real code on sky.com?

http://news.sky.com/story/952931/fraud-ring-in-hacking-attack-on-60-banks

It's got the word "VIRUS" embedded in it? LOL...

It would take a grueling 60 seconds to determine who the thief is, by identifying the account(s) being credited.

Tue, 06/26/2012 - 15:28 | Link to Comment resurger
resurger's picture

It seems John Perkins was right all the time.....


Trans-Pacific Partnership (TPP)

"In June 12, a leaked copy of the investment chapter for the Trans-Pacific Partnership (TPP) was made public. This copy was analyzed by Public Citizen’s Global Trade Watch and has been verified as authentic.  This agreement has been negotiated IN SECRET for 2-1/2 years and no information has ever been released until this leak. So why have the details of this negotiation been so secret? This agreement has been framed as a “free trade” agreement and yet out of 26 chapters only two have anything to do with trade. The other 24 chapters grant new corporate privileges and rights, while limiting governments and protective regulations."-

“The liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it comes stronger than their democratic state itself. That, in its essence, is fascism – ownership of government by an individual, by a group”

  while this TPP agreement should frighten anyone who is still breathing, the threat does not end as the corporations make their ultimate grab for power. Here are some of the other forces that are potentially focusing the power of the corporate state:

National Defense Authorization Act of 2012 (NDAA) Citizens United Ruling Corporate domination of media Privatization of Prisons Lack of Prosecution For Financial Fraud Lack of Protection for Whistleblowers Corporate Spying On Americans Increasing Use of Drones for Domestic Surveillance Militarization of  Police Forces

Read more

http://www.marketoracle.co.uk/Article35265.html


 

 

Tue, 06/26/2012 - 16:31 | Link to Comment resurger
resurger's picture

I can't believe this was written in 1992!!!!!

 

Skip to page 11 if you dont have the time , maybe most of the things written there became true.... (90% of the things)

It's really nice how he puts it, since 1992, he put himself in Article-20 Years Forward contract, and like if he is with us right now .. Fucking geenyoos Colonel Charles J. Dunlap

 

Kindly read it ... I will read it again tomorrow.

 

Here is the link :

http://www.carlisle.army.mil/USAWC/Parameters/Articles/1992/1992%20dunla...

 

Back in 1992 the Pentagon’s Joint Chiefs of Staff held a "Strategy Essay Competition."

The winner was a National War College student paper entitled, "The Origins of the American Military Coup of 2012." Authored by Colonel Charles J. Dunlap, Jr. the paper is a well documented, "darkly imagined excursion into the future." The ostensibly fictional work is written from the perspective of an imprisoned senior military officer about to be executed for opposing the military takeover of America, a coup accomplished through "legal" means. The essay makes the point that the coup was "the outgrowth of trends visible as far back as 1992," including "the massive diversion of military forces to civilian uses," particularly law enforcement.

Tue, 06/26/2012 - 15:26 | Link to Comment Bastiat009
Bastiat009's picture

Stocks outperform PM again today.

I like teasing you guys especially with facts.

Tue, 06/26/2012 - 15:37 | Link to Comment RallyRoundTheFamily
RallyRoundTheFamily's picture

golfclap

Tue, 06/26/2012 - 15:40 | Link to Comment dwdollar
dwdollar's picture

So did a few Ponzi schemes I know.

Keep playing until you're Corzined. Then cry and bitch at how unfair life is.

Tue, 06/26/2012 - 16:00 | Link to Comment Bastiat009
Bastiat009's picture

Seriously, I was just stating a fact which may not be all that relevant but at least I am not saying that today started in 2005.

Tue, 06/26/2012 - 16:29 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Possession is the law.  Won't blink an eye until gold is back under $300 (where my dollar-cost average is).

Even then it won't matter, physical and paper are two different things for two different econimies.

Tue, 06/26/2012 - 19:53 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

If you follow the day-to-day too long, you'll go crazy.  So keep it up.

Tue, 06/26/2012 - 16:07 | Link to Comment fuu
fuu's picture

I just knew you were going to post today after being absent yesterday.

"Bastiat009, posting more on the down days since September 2011"

http://i48.tinypic.com/33atqxg.jpg

Tue, 06/26/2012 - 16:56 | Link to Comment prodigious_idea
prodigious_idea's picture

Drop in PM prices just makes the purchase seem like that much more of a bargain.

Tue, 06/26/2012 - 15:27 | Link to Comment Seasmoke
Seasmoke's picture

to avoid the hangover, just keep drinking

Tue, 06/26/2012 - 15:30 | Link to Comment prodigious_idea
prodigious_idea's picture

I missed the good part, then I realized
I started looking and the bubble burst
I started looking for excuses
Come on in
I've gotta tell you what a state I'm in
I've gotta tell you in my loudest tones
That I started looking for a warning sign

When the truth is
I miss you
Yeah the truth is
That I miss you so

A warning sign
It came back to haunt me, and I realized
That you were an island and I passed you by

Tue, 06/26/2012 - 15:30 | Link to Comment disabledvet
disabledvet's picture

Interesting that it wasn't until the 911 attack that the deficit started to go down.

Tue, 06/26/2012 - 16:31 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Exactly backwards, unless you forgot your < sarc > flags.  Try again.  Gow about one more unfunded war, come on, for the gipper.

Tue, 06/26/2012 - 15:32 | Link to Comment wcvarones
wcvarones's picture

The CBO is a bunch of dopes.  A few years ago, they said that the deficit would be less than 3% of GDP in 2013.

They use some kind of retarded static model that ignores incentives and contractionary fiscal policy.

They think the fiscal cliff would be a non-event.

Tue, 06/26/2012 - 15:36 | Link to Comment prodigious_idea
prodigious_idea's picture

From the CBO (http://www.cbo.gov/publication/42905) - like this is gonna come true:

Much of the projected decline in the deficit occurs because, under current law, revenues are projected to shoot up by almost $800 billion, or more than 30 percent, between 2012 and 2014—from 16.3 percent of GDP in 2012 to 20.0 percent in 2014. That increase is mostly the result of of the recent or scheduled expirations of tax provisions, such as those initially enacted in 2001, 2003, and 2009 that lower income tax rates and those that limit the number of people subject to the alternative minimum tax (AMT).

Under current law, CBO projects that revenues will continue to rise relative to GDP after 2014 largely because increases in taxpayers’ inflation-adjusted income will push more income into higher tax brackets and subject more of it to the AMT.

Tue, 06/26/2012 - 15:38 | Link to Comment prodigious_idea
prodigious_idea's picture

I am NOT vouching for the WP, but here's their infographic:

http://www.washingtonpost.com/wp-srv/special/politics/budget-2010/

Tue, 06/26/2012 - 16:35 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Gee look, social security is paid for,  How the fuck does anyone get away with calling it an entitlement?  Tell you what, don't take it out of my paycheck or that of my employees fuckers.  Corporation "are people".  Bullshit, let me know when a TBTF corporation dies on the battlefield motherfuckers.

Tue, 06/26/2012 - 15:45 | Link to Comment random thoughts
random thoughts's picture

Why not throw in the Ryan plan?  At least the Republicans have a plan.  For you Dems- how's the Senate coming on the budget, by the way?

Tue, 06/26/2012 - 15:57 | Link to Comment prodigious_idea
prodigious_idea's picture

Who gives a fuck what my voter registration card says?

Tue, 06/26/2012 - 16:41 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Still believe the two-party lie, that's a good sheep.  They take social security out of my paycheck and that of my employees, how the fuck can you call that an entitlement dumbass?  How about I keep the money and you corprate welfare fucks go fuck yourself.

I have an idea, how about another unfunded war, that out to fix it.  stupid fukcing moron.

Gee look who is supporting Romney, the same financial houses and banks that got Obama elected in 2008.

I'll write in Ron Paul and sleep well, too bad idiots like yourself keep buying the two party bullshit.  Go look up the definition of "integrity" moron. 

 

Neither major party talks about PROSECUTING THE FUCKING FRAUD, gee I wonder why.  stupid beyond fucking belief.

Tue, 06/26/2012 - 18:26 | Link to Comment AlamoJack
AlamoJack's picture

Pffsssst!  Yeah Ryan's plan cuts the deficit by $1T in....wait for it....because you'll have to....in 40 PHUCKING YEARS!  Ron Paul will do it in ONE.

Tue, 06/26/2012 - 16:04 | Link to Comment Fantasy Planet
Fantasy Planet's picture

Stock minimum one year Unicorn meat.

Tue, 06/26/2012 - 16:07 | Link to Comment mt paul
mt paul's picture

long

red lines...

Tue, 06/26/2012 - 16:11 | Link to Comment RobotTrader
RobotTrader's picture

Meanwhile, Wall St. laughs and scoffs at these "Debt Crisis Endgame" predictions by bidding the prices of Treasuries up even faster!

Tue, 06/26/2012 - 18:58 | Link to Comment Bunga Bunga
Bunga Bunga's picture

When comes the surprise announcement you promised us two weeks ago?

Tue, 06/26/2012 - 16:22 | Link to Comment Undecided
Undecided's picture

This shit will end once the New Fed charter is signed next feb.

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