Peak Political Polarization As Obama's Budget Increases Rhetoric

Tyler Durden's picture

As President Obama discusses the fact that budget cuts can't restore economic growth and House Speaker Boehner says the Budget Plan is 'bad for job creation', perhaps the two parties have something they can actually agree on? Sarcasm aside, as this incredible chart, via JP Morgan's Michael Cembalest, shows, Congressional polarization is at an all-time high. In some strange Keynesian way, we are to believe that a 0.2% increase in the $3.8tn fiscal 2013 budget is belt-tightening and of course we await the M.A.D. argument for extensions here and there that has been so successful back in the heart of democratic Greece.

Source: JP Morgan

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Corn1945's picture

Default and get it over with. People who are still buying US government debt deserve to lose their money at this point.

You only need the computational power available at the 99cent store to tell you the US is never going to pay this money back.

cat2's picture

Of course jobs can be printed, the Soviets called it GULAG.

TruthInSunshine's picture

Sen. Barack Obama, D-Ill

March 16, 2006

"The fact that we're here today to debate raising America's debt limit is a sign of leadership failure. Leadership means 'The buck stops here.' Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better. I therefore intend to oppose the effort to increase America's debt limit."

U.S. National Debt was then officially 8.2 trillion USD, or about half of where it will officially be at year end 2012 (doubling of the debt in 6 years)


*Of course, the real national debt is a minimum of 60 trillion, and if one includes all projected entitlement spending, actually 202 trillion. But those are minor details.

redpill's picture


Speaking of Soviets... increased political polarization, government paralyzation, deterioration of government services, systemic disruption.  These are classic mile markers on the road to Soviet-style subversion that was conducted on numerous countries by the KGB.  The process is such that these events are pushed until acute crisis occurs (2008), and there is so much chaos that a new "savior" leader is installed with grand promises, but whose job is actually to create a false image of improvement while offering increased handouts and beginning to lock down the society with various control mechanisms.  Eventually he is to be succeeded by an even more authoritarian figure and the process toward complete control becomes nearly unstoppable short of massive military intervention.  It's never clear when the exact point of no return happens, but it will come if the population does not stop it.

Former KGB types laugh at the notion that societal subversion has some inherent connection with Marxists/Leninists or what not.  Silly Americans get caught up on whether something is "far left" or "far right" - stupid.  The reality of course is that Marxism/Leninism is a massive piece of propaganda anyway, the end result (as with the USSR) is not improvement for workers but rather enslavement for everyone.  This theme can be applied to any number of radical rhetorical approaches whether they be fascism or nazism, etc.  Doesn't matter, it's all just words, it's all just the distraction to get the population in a lather so they can be subverted most effectively.  In the end it is about total control, it doesn't matter the path or whether the subversion comes with a cloak of nationalism, socialism, or what not.

At early stages, megalomaniacal authoritarians love things like OWS or the Tea Party, they want to use those groups to create chaos and eventually crisis (later they'll be silenced, one way or another).  The process of debt enslavement and igniting of civil unrest such as in Greece is key.  Greece is ripe and juicy for authoritarian takeover, be it a military dictatorship as they've had before, or another similar form of absolute control.  I guarantee you the Russians are laughing their ass off at the whole thing, they see EXACTLY what is going on.

Ron Paul would be such a massive disruption to the timeline in the US that they will never ever let him be a nominee, much less President.


economics1996's picture

Fuck these guys, start thinking the federal government will be gone in a decade and prepare your state government accordingly.

redpill's picture

If George Washington or Thomas Jefferson were brought back from the grave, I assure you they would assert our government is already long gone.

trav7777's picture

the object of torture is torture.  The object of power is power.

donsluck's picture

Dear trav, eventually yes. But it doesn't start that way. There are always legitimate rationalizations along the way, which is where we are, as a society. We are working on the rationalizations, which takes time. On a financial blog, timing is critical.

greyghost's picture

hey reporting something obama organizing "truth teams".

SheepDog-One's picture

Here we call it 'FEMA camps' where the sheeple will be given concrete shelter and meager food and 15 hour/day forced labor details till they drop.

Sudden Debt's picture

I don't know....
This american doesn't look like the kind of guy you mess with...

macholatte's picture


Georgia Ballot Challenge: Obama Walks On By



Several back-to-back hearings were held on Thursday the 26th of January 2012 on the status of whether President Obama is Constitutionally eligible under Article II Sec 1 requirements as a "Natural Born Citizen" and appear on the Georgia primary presidential ballot.

Read more:



Captain Kink's picture

Wow, the msm has played right along...I thought this issue was decided.  Looks like Mr. Soetoro has some explaining to do.

trav7777's picture

like on a connecticut SSN?  lol

There are more skeletons in this closet than the average serial killer's

tarsubil's picture

Obama's smiles and laughter are genuine. He knows it is all a joke and can't but laugh at it all.

Problem Is's picture

I wonder if...

CREEP-Committee to RE-Elect the President worried about not being on the Georgia ballot with 15 electoral college votes at stake...

Put that in the Teleprompter and order the Useful Idiot Barry Soetoro to read it...

GeneMarchbanks's picture

Please China, pull the plug.

SheepDog-One's picture

Pretty damn sad when our only hope for any salvation is communist China pulling the plug on ourselves like a coma victim.

GeneMarchbanks's picture

What is really sad is they won't. I've been looking for geo-political experts on China on the web and there is basically no consensus which means even the good ones are somewhat puzzled. It's as if they are loving the current tempo of transition.

riphowardkatz's picture

Because consensus equals fact?

GeneMarchbanks's picture

Facts are one thing trends another. Interpreting trends isn't about facts it's about motivation.

CrimsonAvenger's picture

If China pulls the plug on us, they pull it on themselves. Ain't gonna happen.

SheepDog-One's picture

China is all stocked up on commodities, they dont care.

seek's picture

They're trying to transition of a mixed model of domestic and exports (more to EU than US) that isn't US dependent.

Arguably they already have "pulled the plug." If the Fed is buying 90% of the treasuries issued, that means China and others aren't.

So in this case "pull the plug" means dump the USDs they already have, since they're not buying more. And what are they using for payment when they go out and buy commodities and mines across the world? USDs. So they're "secretly" dumping, ie making someone else the bagholder for USD.

This is basically the early stages of a loss of confidence in the USD (e.g. hyperinflation.) They're just getting out early while they getting is good, once the people they're buying from realize, then the excitement really starts to happen. Individual people will be the last ones to wake up to this little game.


monkeyshine's picture

It's only hyperinflation if people want to buy things. There is inflation perhaps in commodities and stocks, but not in houses and cars. TVs and computers and the food are all in the middle with food higher and TVs lower. The classic inflation models depend on core items, but as there are more and more items to buy there is a need for more currency. If people only want to buy a few things, printing more creats at least in part a liquidity trap. You will end up with tulip mania for gold and AAPL shares, and bargain basement prices on electric vehicles and computers.

You see it now in your description. China is buying natural resources, and dumping TVs. Both are priced in dollars.

Azannoth's picture

They are not pulling the plug yet because they would be actually helping the US at this moment, they will wait for the US to enter another full-scale military conflict before sticking the knife in the back, you don't want to give your enemy the slightest chance, they will only act when the US will no longer out of it's own will be able to reverse course, right now pulling the plug would be extremely painful but not fatal to the US

Atomizer's picture

Obama's Truth Teams are already working on the case.

Caviar Emptor's picture

 Saudi tanks heading north towards Tabuk which is located some 90 kilometers from the Halat Ammar border crossing with Jordan.

Supposedly to spearhead joint Syria peacekeeping force


Add in this tidbit:


France Warns against Outside Military Action in Syria


Crude climbs over $100


cat2's picture

Technically, can it go more than 100% polarized?

JPM Hater001's picture

YES! that's vaporized...

taniquetil's picture

It's high time we boot all of these jokers out of office. We've been tricked for the past 3 years into believing that shiploads of government spending is the answer, and yet somehow we're still all going along for the ride with these retards.


Seriously does no one see that Obama is printing a metric shit-ton of money just to buy off voters? The next 4 years will see unemployment dropping as the Prezzy spends infinite billion dollars on bullshit construction projects, just in time to blame the high unemployment on whoever follows him and realizes that a yearly $2 trillion deficit is a dumb fucking idea.

V in PA's picture

We've been tricked for the past 30 years into believing that shiploads of government spending is the answer



SheepDog-One's picture

'Distance' between the parties? I was never invited to any of their parties at all.

2 wings on the same vulture feasting on the carcass...theres no 'differences' at all, this is a puppet show.

V in PA's picture

Amen! And it is pointless articles like this that feed the illusion of two parties.

kito's picture

funny how its only polarized when they need to rally their respective herd to keep the two party status quo maintained. otherwise, they get along beautifully and agree wholeheartedly when stripping americans of their rights through the patriot act, ndaa, sopa, bailing out banks, feeding wall street, etc. they also never seem to be too polarized when giving themselves raises, trading stock info, taking cushy "research" vacations, dining together at the finest restaurants, etc.........

tony bonn's picture

"...we are to believe that a 0.2% increase in the $3.8tn fiscal 2013 budget is belt-tightening..."

this is exactly what clinton and democrats argued in 1990s - a deceleration of budget growth was a budget cut...but then, again, this is from the same man who wanted to argue the definition of "is"


vote_libertarian_party's picture

Surest way to enrage my wife (who considers Al Gore and the Clintons as right wingers)


Her:  They've already cut billions and billions from the Federal gvt.

Me: When?

Her: Last year...this year.

Me: Do you have any numbers or departments to base that on?

(I then get the death ray scowel)

ZakuKommander's picture

No polarization when it came to reappointing Bernanke.  

Problem Is's picture

The Bernank

The Corz's bearded, cue-bald brother...

VelvetHog's picture

Peak polarization?  Not yet.  When things start to tank then it will ramp up as the finger pointing begins in earnest.  We have a while yet.

Caviar Emptor's picture

Obama platform (or any other POTUS regardless of party): 

-Austerity program + Corporate Welfare Program. 


It nets out to an even deeper hole. In part because corporate profits are consumer-dependent. So one pulls the other down. Perfect!

Problem Is's picture

Obama Bin Lyin' Economics:

NBLB-- No Bankster Left Behind

ghostfaceinvestah's picture

America needs austerity NOW!  Our standard of living is way too high for a country that is running deficits equal to 8%+ of GDP.

Mark123's picture

More sub-prime lending cried the President!  Aye aye Mr. President replied the money lenders.


And the people came forth and purchased the ipads, flat screens and  chevys with their new credit.  It is a miracle - the consumer led recovery is upon us!!