This page has been archived and commenting is disabled.

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


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 02/13/2012 - 13:43 | 2154084 Corn1945
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.

Mon, 02/13/2012 - 13:45 | 2154092 Ahmeexnal
Ahmeexnal's picture

Jobs will be printed.

Can't do that you say?


Mon, 02/13/2012 - 13:47 | 2154106 cat2
cat2's picture

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

Mon, 02/13/2012 - 13:54 | 2154132 TruthInSunshine
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.

Mon, 02/13/2012 - 14:16 | 2154259 redpill
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.


Mon, 02/13/2012 - 14:22 | 2154328 economics1996
economics1996's picture

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

Mon, 02/13/2012 - 16:08 | 2154820 redpill
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.

Mon, 02/13/2012 - 14:26 | 2154357 trav7777
trav7777's picture

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

Mon, 02/13/2012 - 15:45 | 2154735 donsluck
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.

Mon, 02/13/2012 - 22:15 | 2156173 algol_dog
algol_dog's picture



Mon, 02/13/2012 - 14:51 | 2154471 greyghost
greyghost's picture

hey reporting something obama organizing "truth teams".

Mon, 02/13/2012 - 13:51 | 2154133 SheepDog-One
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.

Mon, 02/13/2012 - 14:31 | 2154381 Sudden Debt
Sudden Debt's picture

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

Mon, 02/13/2012 - 13:58 | 2154183 AL_SWEARENGEN

Yes we can = Thank you satan

Mon, 02/13/2012 - 13:47 | 2154102 macholatte
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:



Mon, 02/13/2012 - 14:03 | 2154233 Captain Kink
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.

Mon, 02/13/2012 - 14:31 | 2154382 trav7777
trav7777's picture

like on a connecticut SSN?  lol

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

Mon, 02/13/2012 - 16:08 | 2154823 tarsubil
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.

Mon, 02/13/2012 - 14:33 | 2154392 nevadan
Mon, 02/13/2012 - 14:32 | 2154385 Problem Is
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...

Mon, 02/13/2012 - 13:44 | 2154085 GeneMarchbanks
GeneMarchbanks's picture

Please China, pull the plug.

Mon, 02/13/2012 - 13:50 | 2154123 SheepDog-One
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.

Mon, 02/13/2012 - 13:55 | 2154150 GeneMarchbanks
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.

Mon, 02/13/2012 - 14:11 | 2154272 riphowardkatz
riphowardkatz's picture

Because consensus equals fact?

Mon, 02/13/2012 - 14:46 | 2154456 GeneMarchbanks
GeneMarchbanks's picture

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

Mon, 02/13/2012 - 13:51 | 2154129 CrimsonAvenger
CrimsonAvenger's picture

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

Mon, 02/13/2012 - 13:54 | 2154149 SheepDog-One
SheepDog-One's picture

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

Mon, 02/13/2012 - 14:23 | 2154340 seek
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.


Tue, 02/14/2012 - 13:05 | 2154487 monkeyshine
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.

Mon, 02/13/2012 - 14:59 | 2154503 Azannoth
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

Mon, 02/13/2012 - 13:45 | 2154090 Atomizer
Atomizer's picture

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

Mon, 02/13/2012 - 13:59 | 2154091 Caviar Emptor
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


Mon, 02/13/2012 - 13:45 | 2154094 cat2
cat2's picture

Technically, can it go more than 100% polarized?

Mon, 02/13/2012 - 14:35 | 2154402 JPM Hater001
JPM Hater001's picture

YES! that's vaporized...

Mon, 02/13/2012 - 13:48 | 2154101 taniquetil
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.

Mon, 02/13/2012 - 13:53 | 2154139 V in PA
V in PA's picture

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



Mon, 02/13/2012 - 13:49 | 2154116 SheepDog-One
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.

Mon, 02/13/2012 - 13:50 | 2154124 V in PA
V in PA's picture

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

Mon, 02/13/2012 - 13:51 | 2154126 kito
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.........

Mon, 02/13/2012 - 13:52 | 2154136 tony bonn
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"


Mon, 02/13/2012 - 13:52 | 2154138 vote_libertaria...
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)

Mon, 02/13/2012 - 14:06 | 2154248 Killtruck
Killtruck's picture

"Facts are stubborn things."


Mon, 02/13/2012 - 13:56 | 2154161 ZakuKommander
ZakuKommander's picture

No polarization when it came to reappointing Bernanke.  

Mon, 02/13/2012 - 14:36 | 2154406 Problem Is
Problem Is's picture

The Bernank

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

Mon, 02/13/2012 - 13:57 | 2154171 VelvetHog
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.

Mon, 02/13/2012 - 13:58 | 2154185 Caviar Emptor
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!

Mon, 02/13/2012 - 14:38 | 2154412 Problem Is
Problem Is's picture

Obama Bin Lyin' Economics:

NBLB-- No Bankster Left Behind

Mon, 02/13/2012 - 13:58 | 2154187 ghostfaceinvestah
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.

Mon, 02/13/2012 - 14:20 | 2154326 Bwahaha WAGFDSMB
Bwahaha WAGFDSMB's picture

You say that like you think austerity could get us out of the pickle we're in.

Mon, 02/13/2012 - 13:59 | 2154193 Mark123
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!!



Mon, 02/13/2012 - 14:08 | 2154254 john39
john39's picture

the dem repub puppet show is just a distraction for the people who think that they are too smart to fall for distractions like the whitney houston death.   gotta make sure that the cattle don't realize that the hammer is about to drop.

Mon, 02/13/2012 - 14:18 | 2154288 V in PA
Mon, 02/13/2012 - 14:57 | 2154495 ChacoFunFact
ChacoFunFact's picture

Drones by 2015

Mon, 02/13/2012 - 14:16 | 2154305 Raskolnikoff
Raskolnikoff's picture

Rick Perry had it right, he mentioned Ponzi and Social Security in the same sentence, he also had another with treason and the Federal Reserve's policy. Yeah, you can chant all you want about both parties being the same and the guy really didn't mean what he said, BUT at least someone on the political stage said something like that. Go ahead and throw rocks at this, we as a voting group should demand more of this rhetoric.

Mon, 02/13/2012 - 14:33 | 2154391 john39
john39's picture

perry's mention of those issues had a purpose.  no way did he deviate from the script, it was part of the show.  Maybe to make east/west coast intellectuals think anyone staking this position is a dumb redneck. 

Mon, 02/13/2012 - 15:31 | 2154646 Raskolnikoff
Raskolnikoff's picture

anyone that uses the the term 'redneck' should be ignored, you have nothing to offer for serious consideration

Mon, 02/13/2012 - 14:51 | 2154472 TeresaE
TeresaE's picture

RP has been saying such for over 30 years.

Perry was a democrat 30 years ago.

Figure it out.

Mon, 02/13/2012 - 15:30 | 2154642 Raskolnikoff
Raskolnikoff's picture

people are not robots, they change their minds, go ahead and breath. (since you nagged me about figuring it out)

Mon, 02/13/2012 - 14:23 | 2154337 monopoly
monopoly's picture

It just does not matter now all. 15 T, 16 T, 17 T. Not until our ahem "trading partners" decide enough is enough. And with 18% of the population dependent to some extent on govt. benefits, well, gonna be a while.

Mon, 02/13/2012 - 14:42 | 2154439 trav7777
trav7777's picture

minor problem in this prisoner's dilemma.  To do that they have to come up with an alternative to the dollar and either default on or repay the entire Z1 which they've been borrowing against since Bretton Woods.  Nobody trusts - nor should they - anyone else in the room with the reserve currency.

The yuan?  GTFO here...a dollar peg, predatory nation.  Putin?  LOL.  The yen?  Hah...the pound?  NFW.  They are all on the horns of a dilemma and there is no easy way out of this.  If push comes to shove as many think it will, the US has naval supremacy which MATTERS for any nation that requires maritime imports.

Pipelines will be hard to defend as well, because our base structure gives us effective air superiority and even supremacy in many parts of the world.  If war breaks out, we could legitimately seize all of saudi, iraqi, UAE, and kuwaiti production within a few days.

The US learnt the REAL lesson of WW2; the victors had OIL SUPPLY.  The losers didn't.  The war hinged on that ONE THING alone.  It was the cause of the war and failure to achieve goals intended to rectify the imbalance was why the losers were defeated.

The only present way to disturb this imbalance is a nuclear free-for-all.  No winners there.  I am not the only person who sees this and I guarantee you that all over the world in significant nations, people are trying to figure out how to play chips in this game in significant nations.

Mon, 02/13/2012 - 14:58 | 2154500 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1 

Nice treatise there trav.

Mon, 02/13/2012 - 15:57 | 2154776 donsluck
donsluck's picture

Unfortunatly, there is certainly an element of pure evil in investing. Money has a way of being amoral.

Mon, 02/13/2012 - 14:28 | 2154361 lolmao500
lolmao500's picture

Keynesian economics... the most insane concept of it all.

If I could time travel, I wouldn't go and kill Hitler, I would go and kill Keynes.

Mon, 02/13/2012 - 16:25 | 2154921 SDS Trader
SDS Trader's picture


Mon, 02/13/2012 - 14:29 | 2154371 lolmao500
lolmao500's picture

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

Their argument is that the budget increase is less than the GDP fudged numbers increase.

Mon, 02/13/2012 - 14:48 | 2154462 ebworthen
ebworthen's picture

Obummer's voice had some Bernanke quaver and lilt as he said we needed to tax the rich to support Education, Social Programs, and "a strong military".  Right.  Can you say "insincere"?

Mon, 02/13/2012 - 14:51 | 2154476 marcusfenix
marcusfenix's picture

...and the 2012 GOP presidential candidate is...

Jeb Bush?

oh yes, it could happen, it doesn't look like any of the current contenders are going to be able to lock the nomination down by summer, Mittens is fading fast in Michigan with Santorum leading but he himself is well behind in delegates. RP is dividing the conservative vote even further and Flipper has all but faded from the picture, yet is still able to siphon some delegates from Mittens, enough maybe to keep ObamaRomney from sealing the deal.

enter that most rare of political conventions, the brokered one, and who might be waiting in the wings to ascend to the stage and save the GOP from itself and America from the terrorists and Obamacare?

Jeb Bush, of course.

now it could be that the central planners have already written the GOP off and are grooming Jeb to come in as the savior in 2016 after giving Obama 4 more years as the head teleprompter, still, W has seen a spike in popularity recently and the PTB's may choose to strike while the iron is hot.

imagine another Bush manning the front desk, Globalists of the world rejoice.

Mon, 02/13/2012 - 14:59 | 2154504 DoChenRollingBearing
DoChenRollingBearing's picture

Jeb Bush in 2012 or even 2016?  No way.  Even Team R is not interested in Bushes...

Mon, 02/13/2012 - 14:53 | 2154481 AC_Doctor
AC_Doctor's picture

Another massive black hole  budget from the Brown Clown.  What did you expect, more financial rerforms and entiltlement cuts?

Mon, 02/13/2012 - 14:56 | 2154492 redpill
redpill's picture

Not like he actually had anything to do with it, and not like the budget has anything to do with reality!

Mon, 02/13/2012 - 15:04 | 2154511 Zero Govt
Zero Govt's picture

JP Morgan surely means political posturing is at an all-time high

..because behind the scenes the 2 parties have never been closer together

They both want to continue spending, both want the Fed to monetise their debt and both want to brand/treat every US citizen as a terrorist (until proven innocent)

Mon, 02/13/2012 - 15:03 | 2154517 Sizzurp
Sizzurp's picture

Austerity will eventually come to the USA, but only when the bankers decide it is necessary to continue paying interest on the debt they own.

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