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Rosenberg On The Latest Helping Of "Smoke And Mirrors" From Obama

Tyler Durden's picture




 

If you feel like the market took one sniff at the much anticipated Obama, cue horns, bassoons and oboes, "American Jobs Act", and threw up all over this latest Keynesian abortion, you are not alone. Here is David Rosenberg explaining how, unlike Goldman which thought the plan is more than expected, is actually nothing more like a tiny flatulent wind in a feces-storm. He summarizes it best: " I'll put it to you this way. Assuming (i) that the House Republicans do not accept the Obama spending measures, and (ii) half of the tax relief goes into savings and debt reduction, then we are talking about the grand total of $35 billion of net new stimulus from this "jobs plan". That's principally because so much of it is merely extending what is already in the system. At an annual rate, that is a 0.2% boost to baseline GDP growth. In other words: much ado about nothin'. It doesn't even come close to offsetting the ongoing drag from the retrenchment at the state and local government levels." So anyone looking for an explanation why the market is down 4.3% since Thursday, here it is. And what is more disturbing, not even rumors of additional QE on top of the widely priced in Operation Twist, have had any impact. In other words, the time for another Hugh "I suggest you panic" Hendry soundbite is nigh.

From Gluskin Sheff's David Rosenberg

SMOKE AND MIRRORS

That is how we would describe the Obama "jobs plan". Much of it is merely rolling over existing tax relief passed in late 2010, such as payroll taxes for workers and extended jobless benefits.

I'll put it to you this way. Assuming (i) that the House Republicans do not accept the Obama spending measures, and (ii) half of the tax relief goes into savings and debt reduction, then we are talking about the grand total of $35 billion of net new stimulus from this "jobs plan". That's principally because so much of it is merely extending what is already in the system.

At an annual rate, that is a 0.2% boost to baseline GDP growth. In other words: much ado about nothin'. It doesn't even come close to offsetting the ongoing drag from the retrenchment at the state and local government levels.

The employment impact will also be negligible since labour costs were only cited by 6% as the primary concern among small businesses in the most recent National Federation of Independent Business (NFIB) survey. No wonder the equity futures barely responded after the speech ... this is a huge non-event.

It is incredible how many resources Wall Street and Bay Street economists are expending to research this initiative, especially since so much of it will never see the light of day. Then again, look at all that wasted time spent on Sunday conference calls the weekend after the U.S. credit downgrade, which was never ratified by Fitch or Moody's.

But the bottom line is that this "plan" isn't even much of a "re-election" plan either. It barely moves the needle. We may well be charitable about the assumption that half the tax relief gets spent. Look up the term "Ricardian Equivalence" — if people see this as the short-term gimmick that it is, basically raiding the Social Security fund, which everyone knows is going to have to get refilled, then very little of this relief is going to be spent.

In fact, because everyone was so focused on repairing the balance sheet back in the spring of 2008, of the Bush tax rebates that got everyone so excited about (which boosted disposable income at an epic 84% annual rate in May of that year) 17% was spent and 83% was either out in the cookie jar or used to pay down debt. The legacy of that policy move was to boost the personal savings rate temporarily, from 3.9% in April of 2008 to 6.1% as of June.

If, in fact, households behave as they did in the opening months of 2008, then in actuality we could be overstating the overall macro impact of this so-called stimulus plan. Again, assuming that the spending proposals are dead on arrival at the House floor, then all we are likely talking about in this scenario is a microscopic $12 billion add to GDP. In a $15 trillion economy, that can be considered nothing more than a rounding error.

Moreover, the entire tenor of last Thursday's speech was off base. When Mr. Obama rails at the "rich" (making $250K may mean you own the biggest mansion in Des Moines, but in New York City it may get you a parking spot in Tribeca) and "rich" oil companies, he misses the fact that over 50% of Americans don't pay taxes. This group does not include the "well off" either, no matter how the White House wants to define it. That's the issue — the middle class actually is very under-taxed relative to Canada and most other jurisdictions in the OECD. In fact, outside of Greece, the United States, for all its ingenuity, may well have the most inefficient tax structure in the world. It should be pulling in more in revenue, but when tax expenditures, or loopholes, cost the Treasury more than $1 trillion annually, something is definitely wrong.

Besides the fact that there is such a strong lobby group in the form of the National Association of Realtors, and that for some reason homeownership is considered more sacred than even mom's apple pie, how can mortgage interest deductibility AND tax-free capital gains on the same principal residence be justified. A subsidy for a place that you live in isn't an investment?

Nor does housing even add to the productive capital stock. It is, at its root, a consumption good. Why not give tax write-offs for SUVs and iPads while you're at it? The premise that homeowners make better citizens than renters was never adequately proven either, and in fact, the term "strategic defaults" was never a reference to apartment dwellers, come to think of it.

Here is what a drive towards sustainable economic growth should look like:

  • Make everyone pay a flat tax of 20% and get rid of the rest of the tax code.
  • Go back to the drawing board on Obamacare. It's a job killer.
  • Extend retirement age for social security.
  • Extend the age for eligibility on Medicare, and reduce Medicaid.
  • Take these savings and embark on a real energy infrastructure program: build massive wind and solar farms, and give massive incentives to gas producers to produce gas, change the fleet for truckers and buses all over to natural gas and switch a massive portion of electricity generation to gas turbines from coal fired.
  • Take revenues generated from a recovery and rebuild schools and give grants for re-education for construction workers to private firms who could do a better job than the government.

But the President, unfortunately, passed up the opportunity to do these things. As such, look for the economy to get worse. A hard-nosed Republican like Perry or Christie will get elected next year (at least the recession won't be totally wasted) and things will change for the better. Just like Reagan replacing Carter. The players have changed but the policy divergences have not.

In the meantime, the market will likely go down another 15-20% — that is on the premise of a recessionary bear market taking hold. And it could be worse if Europe falls apart. We are on the precipice right now; the situation is very fragile as it pertains to a Greek default in the near-term. The reality is that Germany holds the key to so much and here we have all the North American focus on the Dow and S&P 500 and yet the German DAX index has not recovered from early August lows —making new lows — as are the banks, which are down 50% this year. German investors know Europe better than U.S. investors; the latter still think we are going to
miraculously muddle through. Things will be fine in Europe and U.S. stocks are cheap — especially the banks!

But what is happening in the past two or three days is that the North American markets are succumbing to the events in the euro area — more so than by developments in the United States. The vagaries of globalization: 20-years ago, world equity markets had a 40% correlation with each other. Today that correlation is north of 80% (as we found out in 2008 when there was nowhere to hide and decoupling was confused for lags).

 

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Mon, 09/12/2011 - 14:36 | 1660355 spiral_eyes
spiral_eyes's picture

Obama is a failure because he doesn't understand what capitalism is. You can't have the government doing everything for everyone for ever. You can't have good businesses failing and bad businesses succeeding with bailouts. You have to get out of the way and let the market work.

http://azizonomics.com/2011/09/09/why-obama-is-failing/ 

Mon, 09/12/2011 - 15:03 | 1660649 LetThemEatRand
LetThemEatRand's picture

Obama is a failure, but it has nothing to do with not understanding capitalism or not taxing poor people enough.  It has to do with being a captive of an incredibly corrupt, crony capitalist system that has thrived and picked up steam since Reagan took the horns.    Real corporate tax rates are lower than they've been in a generation, but the large corporations and their apologists blame tax policy for the crisis.   Shall we put W back in office nad have him fix things with less regulation and lower taxes?  Worked great, didn't it.  Yes, Obama is a worthless tool, but going back to the tired old crony capitalism right wing agenda isn't going to help.

Mon, 09/12/2011 - 17:07 | 1661353 spiral_eyes
spiral_eyes's picture

W was the guy who initiated TARP. The biggest crony capitalist in American history... until Obama (and maybe Rick Perry)

There are fucking shitloads of better ways to improve the system than "going back to W".

Letting failed corporations fail would be the best start. And on Zero Hedge know we all know who the man who will do that is.

Ron Fucking Paul.

Mon, 09/12/2011 - 18:06 | 1661575 LetThemEatRand
LetThemEatRand's picture

Right on.  I have a lot of issues with Ron Paul (he puts too much faith in the free market to keep corporate greed in check), but he's the best of the curent herd by far.   At least he will try to dismantle the military industrial complex and he'll try to end the Fed.  I'll accept the other aspects of his platform with which I don't agree, if he can accomplish those things.   That would be a huge move in the right direction.  I don't see anyone else with the smallest chance of winning the election who truly supports either idea (and I include Perry in this -- he talks a good game but he is status quo all the way).  

Mon, 09/12/2011 - 14:33 | 1660364 Temporalist
Temporalist's picture

Where is that Hugh Hendry?  I want to hear him tear into some Keynesian dolt again; that's real entertainment.

Mon, 09/12/2011 - 14:34 | 1660366 Spitzer
Spitzer's picture

WTI up .57 Brent down .57

Oil up with the dollar. Brent down with the Euro

Mon, 09/12/2011 - 15:19 | 1660767 global
global's picture

The fact that you call WTI "Oil" while calling Brent "Brent" is slightly less indicative that you know sweet fuck all about oil markets than the general moronicness of your comment.

Mon, 09/12/2011 - 16:41 | 1661264 Spitzer
Spitzer's picture

WTI up with the dollar, Brent down with the Euro.

Happy now ?

Sweet fuck all....that was a good one. Considering you are a fuckin idiot.

Mon, 09/12/2011 - 14:36 | 1660368 Yamaha
Yamaha's picture

No more solar panels and wind "fart" farms! Also, we don't have a commitment to educate the masses - maybe I'm the only poor clild that got a job and paid for my education!

Mon, 09/12/2011 - 14:35 | 1660370 molecool
molecool's picture

How do we get this on ZeroHedge?

 

Did Tomo Rape The Market - Part Deux

http://evilspeculator.com/?p=23851

 

Mon, 09/12/2011 - 14:38 | 1660405 -1Delta
-1Delta's picture

dunno, but needs to be posted!

Mon, 09/12/2011 - 14:39 | 1660413 molecool
molecool's picture

Fuck me - > 2 years member here and I still don't know how to post articles...

Mon, 09/12/2011 - 14:43 | 1660463 fuu
fuu's picture

Tips: tips [ at ] zerohedge.com?

Mon, 09/12/2011 - 14:40 | 1660420 spiral_eyes
spiral_eyes's picture

I blogged about the reverse repo spike yesterday.

This is very frightening.

TPTB know something the market doesn't.

Warren Buffett will never take a bath again.

http://azizonomics.com/2011/09/11/big-change-for-europe/ 

Mon, 09/12/2011 - 14:44 | 1660471 -1Delta
-1Delta's picture

apparently TPTB knows something.. I mean the TOMO piece on evilspeculator apparently shows that it has bearish implications, but he points that the NY fed has no data that St. Louis does?

Mon, 09/12/2011 - 14:34 | 1660372 papaswamp
papaswamp's picture

"..actually nothing more like a tiny flatulent wind in a feces-storm. "

 

Damn it! I spilled my afternoon martini...fuck that hit me funny.

Mon, 09/12/2011 - 14:35 | 1660377 HANKREARDON
HANKREARDON's picture

BRAVO.

 

Mon, 09/12/2011 - 14:36 | 1660392 Missiondweller
Missiondweller's picture

Its amazing that all Obama has to offer is another smaller stimulus modeled after the larger failed one. Simply stunning.

Mon, 09/12/2011 - 14:46 | 1660495 DefiantSurf
DefiantSurf's picture

Nobody fucks up this bad, there is a purpose here, a plan...

Tue, 09/13/2011 - 00:18 | 1662582 StychoKiller
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This is almost like Poe's law re:  "it is difficult or impossible to tell the difference between sincere extremism and an exaggerated parody of extremism."   Only here, it's difficult to tell the difference between total idiocy and subtle, malignancy!

Mon, 09/12/2011 - 14:48 | 1660512 X.inf.capt
X.inf.capt's picture

its simple...just have to keep this economy and dollar together another 14 months, he wouldnt want to be remembered as the last president of the U.S.A.....before the dark ages....

he does have his 'legacy' to protect...and nothing else!

Mon, 09/12/2011 - 14:53 | 1660565 DefiantSurf
DefiantSurf's picture

I think history will end up being kinder to Nixon & Carter than Obama, regardless of when the crash comes, he owns it now.

 

Mon, 09/12/2011 - 15:05 | 1660641 X.inf.capt
X.inf.capt's picture

yep!

 

p.s. love the avitar. i can face the coming dark ages, but im going to be one pissed off s.o.b. when the coffee runs out!

Mon, 09/12/2011 - 14:53 | 1660568 SheepDog-One
SheepDog-One's picture

14 months will never happen, its like starting in L.A. with an empty tank saying somehow they'll make it to NYC on fumes and drafting.

Mon, 09/12/2011 - 14:59 | 1660619 X.inf.capt
X.inf.capt's picture

i do believe you have a point there, sir!

Mon, 09/12/2011 - 14:39 | 1660412 Long-John-Silver
Long-John-Silver's picture

Fail if you do, fail if you don't. It's like standing on the plank as the Boatswain's mate starts poking you in the ass with his sword. Do you just let him run you through for a quick and easy or walk off the end and play with the sharks for a few minutes.

Mon, 09/12/2011 - 14:40 | 1660421 Duffminster
Duffminster's picture

This plan is called a "jobs plan" and it should be noted the word "stimulus" once in the speech.   It is really mostly pure stimulus, pure trickled down (cut taxes) and so forth.  Stimulus won't work, austerity won't work.  There is no linear solution within the given paradigm and no non-linear solution within the current paradigm. 

Short of the government hiring 25 million government workers to stimulate job growth, nothing is going to work and while they can manipulate things to make them look better when they give a big speech (based on pure bull shit), they can raise margines, call their buddies at the bullion banks to hammer gold and whatever other mental and PR manipulatives than can introduce.  To me, its just a call to stock up on more gold and silver and prepare for blow back of 40 years of economic corruption and mismanagement in the post Nixon, gold default era.   Their only choice is currency devaluation, 20 year depression or mass social revolution.  I think the latter is more likely given the sheer gravity of stupidity, greed and fear we see in among the so called "elite."

 

 

 

Duffminster

Mon, 09/12/2011 - 15:18 | 1660756 pelican
pelican's picture

Looks like a huge war is coming to thin the herd.

Mon, 09/12/2011 - 14:41 | 1660435 Oh regional Indian
Oh regional Indian's picture

Very nice over-view.

Panic is hard to do for TV folks though. And that coupling figure in the ned is surprisingly conservative.

The US sneezes and India catches a major cold. A strong dollar move up will see indian Equities CRUSHED, all FII (Foreign Institutional Investor) float, hot money, runs liek rats.

ORI

Indian Gold Masterpiece

Mon, 09/12/2011 - 14:42 | 1660450 longhardbull
longhardbull's picture

Hmmm... why not make manufacturing work in the US... That wouldn't solve anything...

Mon, 09/12/2011 - 14:44 | 1660466 tempo
tempo's picture

The 9/11 attack was critical, but the stunning implications of globalization in 2001 was hidden by the 9/11 attack. Because of the expansion of the internet worldwide in the early part of the decade, companies started outsourcing to undeveloped countries where labor rates were $5/day w/o health care, retirement or labor laws. The 9/11 attack justified a large war and creation of the housing bubble which hid the underlying problem of $5/day labor wages worldwide and outsourcing for about 5 years. Now the underlying problems of a worldwide labor glut combined with unfunded, unrealistic entitlement promises lead to a collaspe of the US housing/equity market and unsubstainable deficits. Smoke and mirrors will not work again. The US and the EU will eventually have to compete with China's $5/day labor rates. The alternative will be more wars.

Mon, 09/12/2011 - 14:46 | 1660494 James T. Kirk
James T. Kirk's picture

The only difference between the last jobs "plan" and this one is that the Obaminator is now acting angry. I wonder how they "cue" the "angry" behavior on the telepromptor. Maybe the letters are in red when he is supposed to get riled up?

Mon, 09/12/2011 - 15:40 | 1660905 Dumpster Fire
Dumpster Fire's picture

Veto-proof majorities require little bombast.  This time it's about blame.

Mon, 09/12/2011 - 14:50 | 1660525 longhardbull
longhardbull's picture

No taxes on companies that manufacture.

Trade agreements

No minimum wage

Revise unemployment

Reduce Gov't intervention

Lock down the border, enact pay to citizenship

Aren't the answer to this mess pretty simple?

Mon, 09/12/2011 - 14:56 | 1660541 SheepDog-One
SheepDog-One's picture

Wow DOW spikes up over 100 points in 5 minutes, -180 to now only down -60....going for the +200 DOW close already? Someone is very desperate here...8 days till FOMC Ben tic toc tic toc!

Mon, 09/12/2011 - 14:55 | 1660587 RockyRacoon
RockyRacoon's picture

Why is anyone surprised or amazed?   Frankly, I could care less how much money the gov't throws around (or hides) just as long as the friggin banks don't get another dime.   I guess I've got bailout fatigue.   Tired of hearing about it and tired of "the people" not having any influence in this charade of a country.

Mon, 09/12/2011 - 14:58 | 1660613 SheepDog-One
SheepDog-One's picture

I'm only surprised that DC and Wall St hasnt been over run yet and burned down. All the 'rah rah flag waving 'better dead than red' I'm glad to be an american where at least I know Im free' yea where is everyone?

Mon, 09/12/2011 - 15:10 | 1660700 DefiantSurf
DefiantSurf's picture

the problem is that only 0.00001% of the population read ZH, the rest are watching MSM, and while they know something is just not right, they simply have no idea of the magnitude of what is really not right.

 

Mon, 09/12/2011 - 15:42 | 1660917 Dumpster Fire
Dumpster Fire's picture

Dude this was opening week in the NFL.

Mon, 09/12/2011 - 17:02 | 1661335 Ponzi Unit
Ponzi Unit's picture

Dumpster Fire, best avatar-username combo I've seen in a while. Kudos.

Mon, 09/12/2011 - 15:00 | 1660624 SheepDog-One
SheepDog-One's picture

WTF Im sitting here watching the DOW rise and fall over 100 points in minutes? Something is very wrong here, makes me nervous, and Im sick of being nervous all the time I say its time we start lopping off banker and politicians heads already!

Mon, 09/12/2011 - 15:10 | 1660701 mikmid
mikmid's picture

If we are going to start lopping heads we need a very American method. The jihadists use swords, the french use guillotines, we need something novel like chainsaws. That's it, a banker chainsaw massacre and it could become a movie.

Mon, 09/12/2011 - 15:11 | 1660708 gwar5
gwar5's picture

The only way for Obama to create jobs is to step down.

 

Mon, 09/12/2011 - 15:12 | 1660715 gwar5
gwar5's picture

The only way for Obama to create jobs is to step down.

 

Mon, 09/12/2011 - 15:22 | 1660786 pelican
pelican's picture

I just hope it doesn't totally crash until next year when I withdraw the remainder of my 401k.

Mon, 09/12/2011 - 15:32 | 1660842 benb
benb's picture

"...the plan is more than expected, is actually nothing more like a tiny flatulent wind in a feces-storm...." (Emphasis added)

I love poetry.

 

 

Mon, 09/12/2011 - 15:38 | 1660895 slewie the pi-rat
slewie the pi-rat's picture

rosie's 6 bullets are magnumZ!!!

Mon, 09/12/2011 - 15:55 | 1661004 collon88
collon88's picture

More worthless suggestions on fixing our economic problems.  I recently saw a GAO chart of projected US government spending in 2020.  Interest on US Debt is projected to be $901 Billion. Sustainable economic growth? For how long? 5 maybe 10 years? All Rosenberg's suggestions do is kick the debt grenade down the road. It's about debt, stupid! A monetary system based on debt always expands to its maximum potential and then collapses.  As others on this site have pointed out, it is a Ponzi scheme.  Tyler must have a sadistic streak to post the excretions of such an elitist squid.     

Mon, 09/12/2011 - 17:14 | 1661358 Ponzi Unit
Ponzi Unit's picture

Bring on the Jubilee. Please note that item three cites Athenian debt slaves. We are all Greeks now!

 

Debt relief existed in a number of ancient societies:

  • Debt forgiveness is mentioned in the Book of Leviticus, in which God councils Moses to forgive debts in certain cases every Jubilee year – at the end of Shmita, the last year of the seven year agricultural cycle or a 49-year cycle, depending on interpretation.
  • This same theme was found in an ancient bilingual Hittite-Hurrian text entitled "The Song of Debt Release".[1]
  • Debt forgiveness was also found in Ancient Athens, where in the 6th century BCE, the lawmaker Solon instituted a set of laws called seisachtheia, which canceled all debts and retroactively canceled previous debts that had caused slavery and serfdom, freeing debt slaves and debt serfs.
  • In addition, the Qur'an (the Muslim scripture) supports debt forgiveness unable to pay as an act of charity and remission of sins for the creditor.  

 

 

Mon, 09/12/2011 - 16:10 | 1661118 Banjo
Banjo's picture

Wealth is created at the production layer not the taxation layer. This nonsense that the middle class don't pay tax is structural inequality.

If I have a slave gulag camp in America/China/Haiti/Indonesia where the workers produce things that I make billions of dollars on AND I pay these same workers barely enough wages to cover survival e.g. food/rend/fuel to get to work.

Then you try and claim that this large "lower middle" class are paying no taxes and there is the problem is absolutely looking in the WRONG place.

Yet another reason why the empire can't change and will eventually bow out, when you can't objectively reason and only have DOGMA as a way to deploy your industry and society you are DOOMED.

Mon, 09/12/2011 - 16:37 | 1661254 Banjo
Banjo's picture

I have to comment again on this "point"

  • Make everyone pay a flat tax of 20% and get rid of the rest of the tax code.

Oh really? This is one point of your magic six step plan?

Wake up you have to tax CAPITAL because the super rich (see a post yesterday on 400% increase in billionaires in the US from 2001 to 2011) hide their wealth in Trusts and capital NOT INCOME.

YOUR DOGMA IS DOOMED!

Hahahahahahahahaha

Wed, 09/14/2011 - 04:09 | 1667205 Anonymouse
Anonymouse's picture

Utter non-sense (and the reason (among many) that I would never vote for Trump, since he proposed a wealth tax too).

Let's suppose my evil twin and I work in adjacent cubicles.  We make the same rate of pay, are married with 2.5 kids each, and live next door to each other.

I take my disposable income and spend it.  Necessities, vacations, country club, flat screen, etc.  I have nothing left to save after expenses.  In fact, I use credit cards to finance my lifestyle.

My evil twin has no life.  He works, spends time with his family.  BBQs instead of going to restaurants.  He saves his money, rarely takes vacations, and has no debt having paid off his mortgage 20 years early.

We both retire on our 65th birthday.  I celebrate with a 2 week trip to Europe.  My evil twin has another BBQ on his now-rusty Weber grill.

My net worth is $12,000 if you count what equity I have in my house (-$85,000 otherwise).

His net worth is $4.5MM.

Should he have to pay a wealth tax?

What if it was $125MM due to some amazing IPO and options investments?

Are you saying he should be taxed on his capital?  Why?

Wed, 09/14/2011 - 17:04 | 1670334 Banjo
Banjo's picture

Capital tax is not a wealth tax it is just a tax in our economy, especially an advanced economy that aids the smooth functioning of the system.

The reason it is perceived as a wealth tax is that clearly wealthy people have the most wealth 90% of all assets concentrated in the top 10% of the population.

Your example misses one crucial element and my example similarly does not outline detailed policy except very broad conceptual terms. (Dying of Money by Jens O Parson gives many clues on how we can structure an advanced economy to make it work better)

Back to the example the tax would NOT fall magically on your retirement, instead it would be payed and funds distributed as we go along year after year much like income tax. Pay distribute, pay distribute. Mind you we could have a mix of capital and income.

Another thing to consider is that if I participate in the economy by earning money and then do not participate by spending and instead choose 100% accumulation of capital  (after bare necessities) then there would not be much of an economy. So my asset accumulation and inherint value it is requried that many people spend.

So spending money is a requirement for any asset to have value, you can run a very simple though experiemnt and see where we would be if savings were 100% beyond food and the barest of essentials.

Mon, 09/12/2011 - 17:29 | 1661426 NumNutt
NumNutt's picture

The authors points regarding "drive towards sustainable economic growth", for the most part I agree with except the following two points:

  • Extend retirement age for social security.
  • Extend the age for eligibility on Medicare, and reduce Medicaid.
  • What they fuck? I am getting close to 50, if the assholes in power think that all the sudden they are going to move the goal post for me and I am going to be like "Oh well, guess I will just keep working" they can go fuck themselves. I am already not real happy with the thought of all the money I have had stolen from me to be invested in these useless programs, that I most likely will not see a dime of. Now the thought of them making that age higher just pisses me off to no end. Why not calculate how much people have paid in and refund a portion of that and allow them to invest it in a private retirment account? Oh I know why, because that would do away with the need for thousands of unionized workers to push paper around. They do something as stupid as the above two points and that would be the last nail in the coffin for me. Done. Might as well put a gun in my mouth. People tend to forget that when they change the retirement age, it is not only going to affect when you can collect SS, it will also affect when you can start drawing tax free out of private accounts as well. To top it all off, the new health care policies are going to make the standard of healthcare go down so that will mean more of us wouldn't make it to the 'new' retirement age, guess that is where the cost savings kicks in. Fucking assholes.

    Tue, 09/13/2011 - 00:29 | 1662602 StychoKiller
    StychoKiller's picture

    Plenty of IRS/SS/Govt buildings pose a "target-rich" environment for those with small-plane pilot's licenses...

    Tue, 09/13/2011 - 02:06 | 1662708 NumNutt
    NumNutt's picture

    agreed, but be careful, that kind of talk will get you a one on one interview in a dark room with guys wearing sunglasses.

    Mon, 09/12/2011 - 17:56 | 1661443 Joseph Jones
    Joseph Jones's picture

    Re. Keynsians like Obunghole who promote local governments re-hiring laid-off teachers, FD and PD: During the bubble local governments went on the most extreme hiring and spending sprees......we need to lay off about 1M public sector leaches, not hire more. 

    Lowest rank FD and PD in Anaheim, at the top of their scale (meaning after about five years) make well over $100k and get 90% benefits after 30 years and age 55 (possibly age 50, can't remember).  Battalion Chiefs make about $200k now.  For one 24 hour OT shift they are paid about $2250. 

    Anyone in the private sector doing this well?

    I know so many people collecting SSI, food stamps, and unemployment who could otherwise work it's actually insane.   

     

    Mon, 09/12/2011 - 17:43 | 1661488 Raging Debate
    Raging Debate's picture

    You make a great point Tempo about debt issuance covering up for a decade of serious outsourcing. But $5 a day wage 1) Doesn't compare with U.S. ever hear of exchange rates? 2) People in Chindia make more than $5 a day unless you want to point me to a farmer out in DeNoWhere Province still manually picking rice. 3) Factor in the energy costs of shipping raw product to them for manufacture, marking them up and shipping them back (real reason for the revolution + BoE replacing Colonial Banking).

    My point is wages are near parity if you consider the $10 employee with no benefits. The trade looks like it should have been rebalanced in 2004 but those Bankers just gotta have that new reserve currency in China. I do believe many in both the West and East are going to be unhappy with the Frankenstein Dragon they have created.

    Mon, 09/12/2011 - 17:43 | 1661489 Raging Debate
    Raging Debate's picture

    You make a great point Tempo about debt issuance covering up for a decade of serious outsourcing. But $5 a day wage 1) Doesn't compare with U.S. ever hear of exchange rates? 2) People in Chindia make more than $5 a day unless you want to point me to a farmer out in DeNoWhere Province still manually picking rice. 3) Factor in the energy costs of shipping raw product to them for manufacture, marking them up and shipping them back (real reason for the revolution + BoE replacing Colonial Banking).

    My point is wages are near parity if you consider the $10 employee with no benefits. The trade looks like it should have been rebalanced in 2004 but those Bankers just gotta have that new reserve currency in China. I do believe many in both the West and East are going to be unhappy with the Frankenstein Dragon they have created.

    Mon, 09/12/2011 - 17:47 | 1661503 honestann
    honestann's picture

    To replace one nazi with another (Obama with Perry) is no solution.  What a farse!  The only real solution is to shut down the predators-gone-wild game, which means exterminate the federal reserve and the federal government of the USSA.  The world has done fine without the USSR, and it would do even better without the USSA.  The economy of the USSA and world is so trashed at this point, the MOST government we can tolerate at this point is 8 years of RonPaul.  Otherwise, it is lights out for humanity.

    Tue, 09/13/2011 - 21:54 | 1665962 moxia19
    moxia19's picture

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