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Treasury Resumes Pillaging Retirement Accounts To Fund Deficit Spending Until Debt Ceiling Raised

Tyler Durden's picture


Back on January 5, when we first broke the news that the US debt ceiling has been reached, and breached, yet again, we said "And now the Social Security Fund pillaging begins anew until Congress signs off on the latest interim debt ceiling increase." Sure enough, operation rape and pillage is a go.


In other words: Congress better pass the debt ceiling prontt, or else it will have to explain to government retirees the tens of billions in deficit funds, i.e., marketable debt, already issued will permanently offset the level in G-fund holdings.

Lastly, any comparison to similar acts of commingling performed by other insolvent entities in recent months is purely coincidental and no Obama handlers were thrown in jail as a result of this post.


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Tue, 01/17/2012 - 16:27 | 2072096 Mongo
Mongo's picture

Financial rape & pillage

Tue, 01/17/2012 - 16:35 | 2072119 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

"Operation Rape and Pillage is a go!"  Yelled Bernanke from his newly refurbished Treehouse.

"Timmah!"  Yelled little Timmah Geithner as he ran at a dummy they had put on a tricycle at the base of the tree.  The dummy had "Stupid 'Mercan" written on its chest in black sharpie.

Timmah was wearing a plastic knights helmet, a cape, and held both a plastic sword and shield.  He battered the dummy until it fell off of the tricycle.

"Keep your shield up Timmah!  Shield up!"  Bernanke said as he held his Malibu and Rum close to his chin.

"Timmah."  Said Timmah as he imitated Ben.

"I have to ready the press for QE...whatever we are calling the next one.  You stay out here and practice your technique."

"Timmah."  Said Timmah obiebiantly, as he took a deep breath and lifted the dummy back on the tricycle.  He circled the tricycle with eyes wide, before charging at it with his sword raised.


Tue, 01/17/2012 - 16:37 | 2072128 Pladizow
Pladizow's picture

I think Washington and Wall St. have an ongoing bet/challange as to who can most brutally ASS RAPE the US taxpayer!

Perhaps an 8mm snuff film will be released shortly!

Tue, 01/17/2012 - 16:41 | 2072145 Obummer
Obummer's picture

Ladies and gentlemen, fellow Americans, good citizens of the world. Today I find that once again I must talk to you about our Federal debt ceiling.  We have an opportunity here, at this moment that is so critical for the future our great country.  For in front of us we have the opportunity to set a new course for America, one that will take us to places un-dreamed of just ten years ago.

I've said it before, and I'll say it again; the key to our prosperity is to win the future.  Well, my office has delivered a proposal to Congress that will allow us to do exactly that.  But our plan will not just win the future in the future.  We will win the future TODAY.  Not tomorrow, not next week, not next year, not in 2025.  Today.  That's right folks, our proposal will win the future in the present.  We have proposed debt ceiling target enhancements that can pull our success out of the future and into today, and we will win the future today.  Let me say that again, I know it sounds incredible, but we CAN win the future today.  All we have to do is adopt these enhancements to the debt ceiling target.

You may hear some elements of society say that debt is damaging the economy, that the debt ceiling should not be targeted for additional enhancements.  It seems to us that these may be extremists who do not want what is best for America.  Well, we are watching the situation closely.  And to these extremists let me be clear; the debt ceiling target will be met, and it will be exceeded.  We do this for the greater good of Americans of all walks of life.

We have no choice but to succeed in this. 

As long as I am President I will make sure that we succeed in this.

Thank you, good night, and God bless America.

Tue, 01/17/2012 - 16:44 | 2072170 SilverIsKing
SilverIsKing's picture

Standing ovation!!!!  Bravo!!!!

What a great American that Obummer is.  We are so lucky to have a man like him at the helm of the greatest nation on earth, or what was once the greatest nation on earth.  I just can't remember.

Tue, 01/17/2012 - 16:56 | 2072227 redpill
redpill's picture

So much negativity in this thread.  Sounds like they just did some routine rehypothecation.  What could go wrong?



Tue, 01/17/2012 - 17:03 | 2072255 Bay of Pigs
Bay of Pigs's picture

No doubt. Fire up the band!

Hail to the Chief.


Tue, 01/17/2012 - 17:17 | 2072296 TheSilverJournal
TheSilverJournal's picture

So many are dependent on continued government spending which makes it very difficult to cut including :

  • government retirees
  • government workers
  • entitlement recipients
  • improved property owners
  • bank despositors

Tue, 01/17/2012 - 17:38 | 2072367 oddjob
oddjob's picture

Promises to retirees and government bond buyers from bankrupt governments are likely to be repaid with inflation.

Tue, 01/17/2012 - 18:27 | 2072522 Captain Kink
Captain Kink's picture

No mention of "tax payer" or "working stiff" on your list. Bummer.  I can't even comment seriously on this.  Tell me you forgot the /sarc.


govt retirees:  ask any airline pensioner from the 70s or 80s whether they should be treated differently

govt workers:  ask european (esp greek) govt workers about this

entitlement recips:  can't afford it, got to change it, at least for future recips


Tue, 01/17/2012 - 19:32 | 2072706 Henry Hub
Henry Hub's picture


  1. Wall Street Banksters
  2. Military Industrial Complex
  3. CIA & Homeland Security
  4. Israel
Tue, 01/17/2012 - 18:02 | 2072444 Grinder74
Grinder74's picture

No doubt. Fire up the band!

Hail to the [T]hief.



Tue, 01/17/2012 - 18:02 | 2072448 General Decline
General Decline's picture

You know, I really don't like where that deck chair is right now. I think it would look better over there. Nope, a little to the left....a little more.... Perfect! Right there.
What? What do you mean the bilge pumps can't keep up anymore? Who cares! That deck chair looks marvelous over there!

Tue, 01/17/2012 - 17:04 | 2072260 VanillAnalyst
VanillAnalyst's picture

this is such bullshit.... goddam pyramid scheme government

Tue, 01/17/2012 - 18:51 | 2072598 Chupacabra-322
Chupacabra-322's picture

The Bail Outs List Obtained by Bloomberg News FOIA request and Lawsuit

Citigroup: $2.5 trillion ($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)

FYI: The total amount of money given to various named and unnamed entities since 2008 is now 29 Trillion Dollars or 1/2 of ALL the money printed by the Federal Reserve since 2008….and people wonder why the economy is not growing?

Mitt Romney Top campaign contributors for 2012 3rd quarter

*Goldman Sachs …………………$354,700
*Credit Suisse Group ……………$195,250
*Morgan Stanley ………………….$185,800
HIG Capital ……………………….$176,500
*Barclays ………………………….$155,250
Kirkland & Ellis…………………..$129,100
*Bank of America …………………$121,500
PricewaterhouseCoopers ……..$118,250
EMC Corp …………………………$117,300
*JPMorgan Chase & Co ………..$109,750
The Villages ……………………….$92,500
Vivint Inc ……………………………$88,250
Sullivan & Cromwell ……………..$78,750
Marriott International …………….$75,837
Bain Capital ……………………….$69,500

*UBS AG …………………………….$64,250
Wells Fargo ………………………..$63,000
Blackstone Group ………………..$57,300
*Citigroup Inc ……………………….$56,550
KKR & Co ………………………….$53,900

Does America Really want Mitt “Obama” Romney? I see a conflict of interest here in these lists. I see bigger bailouts and more debt on America. Romney IS bought and paid for by the bankers. The media is pro Romney because it does not want to lose its investments!

Obama Campaign Contributors

University of California……….. $1,648,685
Goldman Sachs………………… $1,013,091
Harvard University……………. $878,164
Microsoft Corp………………….. $852,167
Google Inc ………………………. $814,540
JPMorgan Chase & Co………….. $808,799
Citigroup Inc……………………… $736,771
Time Warner……………………… $624,618
Sidley Austin LLP………………… $600,298
Stanford University……………… $595,716
National Amusements Inc……… $563,798
WilmerHale LLP ………………….. $550,668
Columbia University …………….. $547,852
Skadden, Arps et al ……………… $543,539
UBS AG…………………………….. $532,674
IBM Corp…………………………… $532,372
General Electric……………………. $529,855
US Government …………………… $513,308
Morgan Stanley……………………. $512,232
Latham & Watkins…………………. $503,295



Tue, 01/17/2012 - 20:16 | 2072788 JPM Hater001
JPM Hater001's picture

Excuse me while I pick my jaw up off the ground.

Tue, 01/17/2012 - 21:31 | 2072941 Chupacabra-322
Chupacabra-322's picture

@ JPM Hater001,

I actually had a case of Violent Explosive Diarrhea after posting the figures.

Tue, 01/17/2012 - 16:47 | 2072186 The Swedish Chef
The Swedish Chef's picture

You forgot "Make no mistake...", O Great Telepromteur.

Tue, 01/17/2012 - 16:52 | 2072211 Roy T
Roy T's picture


Also forgot "Let me be clear"

Tue, 01/17/2012 - 17:05 | 2072265 redpill
redpill's picture

Also forgot,

"previous administration"


"saved or created"

"there are those who say"


but a solid effort nonetheless


Tue, 01/17/2012 - 17:18 | 2072297 knukles
knukles's picture

The closing was transcribed wrongly.
It should have read "Alluah Akbar.  It is God's will.  Jihad shall be done.  Kill the infidels.""

Tue, 01/17/2012 - 18:03 | 2072451 Grinder74
Grinder74's picture

Aargh, why do you have to pick on the peaceful Muslims?  Everyone knows there are just as many Buddhist terrorists that make me nervous when I see them in traditional Buddhist garb.

Tue, 01/17/2012 - 20:41 | 2072842 non_anon
non_anon's picture

don't fuck with the monks

Tue, 01/17/2012 - 20:38 | 2072833 gravedestruction
gravedestruction's picture

Who the heck? Wait a minute - walks like a duck - quacks like a duck - hmmm...

Wed, 01/18/2012 - 01:13 | 2073497 Freddie
Freddie's picture

Hope & Change.

I actually know seniors and baby boomers who voted for the islamic Mugabe.  Boy are their lives f***ed now.  Their lives are essentially over.

(post under review by DHS)

Tue, 01/17/2012 - 18:44 | 2072574 valley chick
valley chick's picture

Once again the "G" fund is the target...screw you assholes in out of it in 2011 before the first rape.....BITCHEZ !

Got physical?

Tue, 01/17/2012 - 20:15 | 2072787 UP Forester
UP Forester's picture

They're still searching for the "G" spot.

Tue, 01/17/2012 - 16:37 | 2072131 Caviar Emptor
Caviar Emptor's picture


Tue, 01/17/2012 - 16:57 | 2072230 francis_sawyer
francis_sawyer's picture

As one "pillages"... One is obliged to bellow...


Tue, 01/17/2012 - 17:44 | 2072393 catacl1sm
catacl1sm's picture

you forget "bitchez".

Tue, 01/17/2012 - 17:43 | 2072388 JohnG
JohnG's picture

Been a while.  Please do more of these. :)

Tue, 01/17/2012 - 19:25 | 2072688 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Please send all requests to my muse.

PO Box:

On my Shoulder

Tue, 01/17/2012 - 16:57 | 2072232 navy62802
navy62802's picture

Financial terrorism.

Tue, 01/17/2012 - 17:02 | 2072251 falak pema
falak pema's picture

As Alan Greenspan was known to say, with Paulson, Rubin and Summers saying "Hear Hear!" 

"Financial rape, irrational exuberant impulse, is impossible!  Sub Prime investor with skirts up runs faster than Squid/PD with pants down!

Tue, 01/17/2012 - 20:29 | 2072812 Endurus
Endurus's picture

My only question is how long before the government rapes and pillages (restructures) the private sectors 401k's and IRA's.

Tue, 01/17/2012 - 22:42 | 2073144 Buck Johnson
Buck Johnson's picture

They are just setting precedent when they decided to go after teh 401k's of everybody.

Tue, 01/17/2012 - 16:26 | 2072097 Dr. Richard Head
Dr. Richard Head's picture

The Federal Reserve - pilfering the nation's money and coffers since 1913.

Tue, 01/17/2012 - 16:28 | 2072102 HamyWanger
HamyWanger's picture

If you think that ensuring vital stability in the banking system is "pillaging" then yeah, right... 

Before the Federal Reserve, there was a banking panic and a depression every fifteen years. 

Tue, 01/17/2012 - 16:30 | 2072112 tekhneek
tekhneek's picture

You have a whorish mouth.

Tue, 01/17/2012 - 16:32 | 2072116 HamyWanger
HamyWanger's picture

And I haven't even mentioned the continuous monetary deflation which was slowly killing every vital force in our economy. 

America has never witnessed more prosperity and technological innovation than since the day the FED was created. Nerdy libertarians and redneck confederates MUST FACE IT. 

Tue, 01/17/2012 - 16:37 | 2072124 dumpster
dumpster's picture

hammy only one/ half thing to say to your doppy views in your diaper clad penis

use other parts of body beside the dick to view the world

Tue, 01/17/2012 - 16:57 | 2072233 falak pema
falak pema's picture

he can't he breathes thru the pin head. No other pores, he is in cabin 223 on the Costa Concorde. Just an analogy, but that boat is as good as the Poseidon adventure for real! 

Tue, 01/17/2012 - 16:35 | 2072126 EscapeKey
EscapeKey's picture

That's right, that's why the US economy was in continuous decline throughout the 19th century.

Tue, 01/17/2012 - 16:38 | 2072137 HamyWanger
HamyWanger's picture

What??? What are you talking about, moron???

U.S. GDP was up every single year since 1913, with a few exceptions. You should go back to junior high. 

Tue, 01/17/2012 - 16:39 | 2072140 EscapeKey
EscapeKey's picture

There's something rather ironic about you calling me a moron, yet failing to realize 19th century = 1801..1900.

Tue, 01/17/2012 - 16:42 | 2072156 LawsofPhysics
LawsofPhysics's picture

Don't feed the trolls.  Pretty clear who the moron is.

Tue, 01/17/2012 - 16:43 | 2072165 Vergeltung
Vergeltung's picture



Tue, 01/17/2012 - 21:10 | 2072901 gravedestruction
gravedestruction's picture

This certainly will come to a fowl end...

Tue, 01/17/2012 - 16:44 | 2072168 HamyWanger
HamyWanger's picture

OK, I admit I read too quickly. But that doesn't change my point.

The American economy was indeed in harsh and continuous decline throughout the 19th century (1801-1900). 

Poverty and misery were WIDESPREAD, notably among rural populations and African-Americans. Half of the US population was living under the poverty line. Do some research

Tue, 01/17/2012 - 16:51 | 2072206 SilverIsKing
SilverIsKing's picture

Because there was no central bank?

Tue, 01/17/2012 - 17:20 | 2072302 knukles
knukles's picture

Because Hamy can't read quickly. His lips don't move fast.

Tue, 01/17/2012 - 20:17 | 2072794 UP Forester
UP Forester's picture

I think Hamy thinks with a lisp....

Tue, 01/17/2012 - 21:15 | 2072907 gravedestruction
gravedestruction's picture

"a lisp" - gotta think about that one...

Tue, 01/17/2012 - 16:52 | 2072208 NotApplicable
NotApplicable's picture

What this, a troll apologizing? This is an outrage!

We need better trolls.

Tue, 01/17/2012 - 17:07 | 2072271 Bay of Pigs
Bay of Pigs's picture

Yes, where is GoldenMiddleFinger and William the Bastard when you need them?


Tue, 01/17/2012 - 17:10 | 2072285 Careless Whisper
Careless Whisper's picture

@ HammyWanger

Glad to see you're out of rehab.

Wed, 01/18/2012 - 04:23 | 2073694 boattrash
boattrash's picture

Sorry to see Hamwanker back on the Crack-pipe so soon though.

Tue, 01/17/2012 - 17:17 | 2072295 SheepDog-One
SheepDog-One's picture

The trolls these days are inept losers....must mean we're at the market top here.

Tue, 01/17/2012 - 18:25 | 2072517 Almost Solvent
Almost Solvent's picture

Where's a real troll, like Master Bates or that other guy, Harry Wagner. 


These new trolls are Lame-O

Tue, 01/17/2012 - 16:56 | 2072228 The Swedish Chef
The Swedish Chef's picture

Yeah, poverty among African-Americans was all due to the lack of a central bank. The fact that they were just released from slavery had absolutely nothing to do with it. 

Tue, 01/17/2012 - 17:04 | 2072263 economics1996
economics1996's picture

Blacks did okay up to about 1870, and then the southern Democrats started oppressing them.

Tue, 01/17/2012 - 16:58 | 2072237 economics1996
economics1996's picture

Briefly you seem like one of my business students who believe the shit they read in college.  The shit in the economic text books is fairy tales.  It is designed to get students to believe the Fed is good, printing money is good, and the federal government spending money is good.  Its complete bull shit.

From 1873 to 1913 workers wages increased more than at anytime in our history.  Especially 1870 to 1880.  Economists confuse deflation with lower living standards.   If you look at prices level and wages for that period price level went down FASTER, and wages rose slightly.

Read Rothbard History of Banking if you do not want to look like a idiot in public, especially on this forum where most of these readers are pretty fucking up on finance.

Tue, 01/17/2012 - 17:02 | 2072252 economics1996
economics1996's picture

You can also read Rothbard's "America's Great Depression" for a good explination of money, time, consumer, and capital users.  

Printing money is theft, plain and simple. 

Tue, 01/17/2012 - 17:05 | 2072267 bob_dabolina
bob_dabolina's picture

Hamy is Tyler's foil. Everyone can relax.

Tue, 01/17/2012 - 17:47 | 2072402 catacl1sm
catacl1sm's picture

I got the audio book of that one.

Tue, 01/17/2012 - 18:31 | 2072534 Fred C Dobbs
Fred C Dobbs's picture

One could also watch The Secret of Oz on youtube.


Wed, 01/18/2012 - 04:28 | 2073697 boattrash
boattrash's picture

Or you can look at purchasing power of the dollar, 1913 to present.

Tue, 01/17/2012 - 17:27 | 2072313 falak pema
falak pema's picture

In NEw Orelans during that period they had what was known as the French Quarter index; the number of girls on the block. It truly was the Belle Epoque and the french quarter thrived from the port activites of New Orelans, especially at turn of century. 

People forever visited the cabarets where they danced the can-can so hard it broke the floor boards; those river steamers were a place of floozy buzz. And it fed the Jazz tradition that was born. "Summerime" was boootiful in New Orelans. 

French lace, lazy Louisina Creole, Cajun spicy bell pepper food, were the name of New Orelans. 

Tue, 01/17/2012 - 17:04 | 2072256 bob_dabolina
bob_dabolina's picture

I know you're trolling hard and I'm liking your style but I just wanted to add that between 1865-1900 was a period of intense economic despair and hardship. I think it was probably worse than the great depression.

Tue, 01/17/2012 - 17:49 | 2072405 catacl1sm
catacl1sm's picture

Certinaly due to the lack of Central Bank. What was Lincoln thinking!

Tue, 01/17/2012 - 16:45 | 2072171 PianoRacer
PianoRacer's picture

All you can do is shake your head...

If I had to pick a three letter word to credit the growth in the 20th century, it would be spelled O-I-L, not F-E-D.

We prospered DESPITE the fucking Fed, not because of it. And now this dickbag want to give the theives credit?


Tue, 01/17/2012 - 16:58 | 2072234 55 men
55 men's picture

SLAM... da da da...da da da...SLAM......Let the boys be boys....That was sweet Escapekey!

Tue, 01/17/2012 - 16:46 | 2072174 The Swedish Chef
The Swedish Chef's picture

You are absolutley right. I can only compare it with my own accelerating meth habit. I have never had so much fun, gotten so much done and I have never wasted so little time on sleeping, eating and having erections as I have the last copule of smokey weeks. If you excuse me, I´m gonna blaze up a nice stem o´ crank. FUCK HEALTH!

Tue, 01/17/2012 - 16:48 | 2072190 azzhatter
azzhatter's picture

Yep, increased almost as much as debt but not quite. 

Tue, 01/17/2012 - 17:09 | 2072278 carlnpa
carlnpa's picture

In the same period of time the dollar lost 97% of its 1913 value.

Continuous planned inflation anyone?

Any common moron can grow GDP with that type of inflation.

Tue, 01/17/2012 - 16:40 | 2072146 Caviar Emptor
Caviar Emptor's picture

Right. In the 19th century there were more businesses than banks, and that's just wrong. Now I walk out my door and pass 12 bank branches within a short walk. Progress! 

Tue, 01/17/2012 - 16:42 | 2072154 EscapeKey
EscapeKey's picture

It certainly is. Because as they all insure eachothers debt, there's no risk whatsoever.

Tue, 01/17/2012 - 21:09 | 2072896 gravedestruction
gravedestruction's picture

"that's why the US economy was in continuous decline throughout the 19th century"

1813 came after the war of 1812 right?

Tue, 01/17/2012 - 16:51 | 2072194 dwdollar
dwdollar's picture

Yeah right...

Technological innovation in 1912 = electrifying a country, achieving a vastly more productive economy

Technological innovation in 2012 = subsidizing alternative energy, achieving nothing except false promises and making wealthy bankers even more wealthy at the expense of the few productive people still left

Tue, 01/17/2012 - 17:09 | 2072283 DosZap
DosZap's picture


America has never witnessed more prosperity and technological innovation than since the day the FED was created. Nerdy libertarians and redneck confederates MUST FACE IT. 

YOU give the FED credit for American ingenuity, and genius?,who on the Fed,ENDOWED us with all this ability,that was never present until the White Knights rode in,Xmas Eve 1913?.

I give credit to Americans hard work, and diligence........................the Banks created nothing, just like the Fed.

Tue, 01/17/2012 - 17:51 | 2072412 catacl1sm
catacl1sm's picture

Can you name another famous federal govt invention that came into being on Christmas eve?

Tue, 01/17/2012 - 18:30 | 2072530 Hephasteus
Hephasteus's picture

The federal reserve.


Wed, 01/18/2012 - 01:19 | 2073509 Freddie
Freddie's picture

Also ObamaCare.

Wed, 01/18/2012 - 08:28 | 2073836 Ace Ventura
Ace Ventura's picture

Not sure if it was Christmas Eve or not, but the 16th Amendment, followed shortly by the IRS? Completely coincidental timing with the creation of the fed though. Totally. For sure.

Tue, 01/17/2012 - 17:38 | 2072372 docmac324
docmac324's picture

Your icon as the American flag, based on your opinion is offensive.

The Federal Reserve is only 2nd to religion in killing more people than any other entity or belief.


Wed, 01/18/2012 - 00:58 | 2073462 FlyPaper
FlyPaper's picture


Arizona has never witnessed more prosperity and growth in its econony since the day the sun started shining in Arizona.   

Might there need to be some evidence of correlation in your hypothesis?

Tue, 01/17/2012 - 16:50 | 2072203 azzhatter
azzhatter's picture

My standard of living was going up fast because I received so many credit cards.  Was living large. I forgot to read the fine print that says I have to pay it back- oh shit I don't have any income

Tue, 01/17/2012 - 17:06 | 2072268 economics1996
economics1996's picture

Buy one of them printing presses from the Federal Reserve.  It will solve all your problems.

Tue, 01/17/2012 - 17:01 | 2072249 SheepDog-One
SheepDog-One's picture

And now we just get one long constant depression, except youre not allowed to call it that as the Emperors robes are deemed 'splendid'.

Tue, 01/17/2012 - 17:06 | 2072270 GOSPLAN HERO
GOSPLAN HERO's picture

Hamy was skull-phucked at a tender age.

Tue, 01/17/2012 - 17:23 | 2072308 knukles
knukles's picture

Jesus man, that's wrong even by my standards.
Not about Hamy, as that makes sense; but giving peadeophiles ideas....

Tue, 01/17/2012 - 17:41 | 2072272 francis_sawyer
francis_sawyer's picture


"Before the Federal Reserve, there was a banking panic and a depression every fifteen years..."


The Fed was conceived in 1913... Besides the funding (of both sides) of WWI & the Bolshevik Revolution... The Great Crash (on Wall Street happened in October 1929 ~ though insiders were advised to get out as early as February that year)...

That's 14 years...

- a decade later the World was at War (funded by bankers on both sides)

- fifteen years after that war was concluded, the war in Vietnam began the escalation process

- within a decade after the Gulf of Tonkin... Bretton Woods was dissolved (on its heels was an oil embargo)

- Within the same decade, the Iranians ousted the Shah, then, (bankers funded Saddam Hussein to fight the new regime)

- Within that same decade, there was another stock market crash, a Japanese real estate & financial crash, & Hussein went rogue on his former backers)

- a decade after that, the NASDAQ bubble burst & Glass-Steagal was dissolved

- the result were financial "tricks" which resulted in a housing bubble & consumer credit bubble (not to mention 2nd invasion of Iraq)

- the aftermath of this & the credit derivatives ponzi, resulted in the financial meltdown of 2008



Tue, 01/17/2012 - 17:13 | 2072289 Killer the Buzzard
Killer the Buzzard's picture

<--- Hyper-ironic comedy a-la MDB

<--- Dropped on head as an infant

Tue, 01/17/2012 - 17:27 | 2072318 iamoneman
iamoneman's picture

Before the Federal Reserve, there was a banking panic and a depression every fifteen years. 

Awesome, Now it's every 4,8,10

Tue, 01/17/2012 - 17:30 | 2072333 LongSoupLine
LongSoupLine's picture



ok Hamy...then explain how this is ANY different than what MF Global did to it's clients. 

Buuuzzzzz...time's up...that's what I thought you ape ass. 

Tue, 01/17/2012 - 18:23 | 2072511 cranky-old-geezer
cranky-old-geezer's picture



Fuck off Hamy, we have MDB to entertain us now, and he way outclasses you :)

Tue, 01/17/2012 - 17:13 | 2072290 Manthong
Manthong's picture

If I get this right , there is good news in this..

Seems to me that when Timmy drained FERS there was no need to suspend payments because like in any good Ponzi, you keep the dividend payments going from principal you stole.

Since the fund has already been drained, the principal duly squandered and Timmy is broke, now he has to quit paying the fake dividend.

Normal con men go to jail at this point, but these villains don’t even have the dignity of Madoff to knock it off and turn themselves in, or the dignity of Mark Rich to flee the country.

The good news I suppose, is that the Federal retirees now get to join together and sing Kumbaya in hopes for divine intervention..

and you know who does the divine intervening nowadays.


Tue, 01/17/2012 - 16:27 | 2072100 a growing concern
a growing concern's picture

We've been Corzined!

Tue, 01/17/2012 - 16:29 | 2072107 HedgeAccordingly
HedgeAccordingly's picture

PILLAGE .. saudi's pillaging crude's offer -  OIL refuses to close under 100 

Tue, 01/17/2012 - 17:56 | 2072431 CPL
CPL's picture

Pilliage what?


An offer that can't be honored ever?  Sucker's bets with the Chinese moving hard on the House of Saud.  Unless going long with fiat, there is no reward in that situation.

Tue, 01/17/2012 - 16:29 | 2072108 tekhneek
tekhneek's picture

Strappin' on the sandpaper condom with baby powder lube in hand, eh Bernank?

Tue, 01/17/2012 - 17:08 | 2072276 GOSPLAN HERO
GOSPLAN HERO's picture

Hamy is a strap-on.

Tue, 01/17/2012 - 16:31 | 2072113 CalibratedConfidence
CalibratedConfidence's picture

Good, I'm suspending my tax payments this year

Tue, 01/17/2012 - 16:54 | 2072226 Dr. Richard Head
Dr. Richard Head's picture

I find that filing for an extension every April, then filing taxes on October, then waiting for IRS bill tends to delay much of the need to pay taxes.  Sure having 12 dependents on my withholding form helps a bit. Rinse and repeat - it's the American way.

Tue, 01/17/2012 - 16:33 | 2072115 CrashisOptimistic
CrashisOptimistic's picture

What Geithner meant is it can only be blocked by a 2/3 vote in both houses of Congress (a veto override).  A refusal to raise the ceiling by majority vote in Congress can be vetoed by Obama.

This is all part of Boehner's deal, that will now have the Sequester undone such that his 1:1 dollars of spending cuts per dollar of debt ceiling increase turns out to be 900Billion (only $4 Billion in 2012) and 1.2 Trillion from supercommittee.  All 2.1T over 10 years.

So the sequester from the failed supercommittee will now be undone in legislation (and it will also undo the other 896 Billion of the 900).  The headlines are out today that this sequester will be stopped.

It's all complete bullshit.  Spending will never be cut.  Taxes will never be raised.

Apocalypse Rev 2.0 is inevitable.

Tue, 01/17/2012 - 16:38 | 2072139 EscapeKey
EscapeKey's picture

When they talk of spending cuts, they actually talk of reduction in the growth of future spending. And then they quote some over-optimistic projected return over 10 years, which has never once actually come true.

But hey, vote your favourite corporate agenda republicrat in. That'll totally solve the problem.


Tue, 01/17/2012 - 16:52 | 2072204 CrashisOptimistic
CrashisOptimistic's picture

It's true that spending cuts are from a baseline budget curve, and it has a rate of growth in it, but that's not all that inappropriate.

Population rises. Inflation occurs.  A country of 400 million people does need more government expenditures than a country of 300 million.  Breakeven spending per capita and inflation adjusted would in fact be an upward slope.  So a cut from that does equate to a cut.


The point is . . . they aren't even doing that.

Tue, 01/17/2012 - 16:32 | 2072121 cossack55
cossack55's picture

Well thats good news. Have you seen how over-crowded the jails/prisons are?

Tue, 01/17/2012 - 17:58 | 2072435 CPL
CPL's picture

yeah, but imprisoning people is now a military matter under NDAA.


You can join up as an internment specialist if you wish.  18k a year, food rations and a warm cot.  Sounds like a dream job.

Tue, 01/17/2012 - 21:30 | 2072939 gravedestruction
gravedestruction's picture

Three hots & a cot

Tue, 01/17/2012 - 16:32 | 2072122 Joe Sixpack
Joe Sixpack's picture

Can ZeroHedge certify that no government workers were harmed in producing this article?

Tue, 01/17/2012 - 16:33 | 2072123 Everybodys All ...
Everybodys All American's picture

Uner what law does Geithner have this priviledge? No one in Washington has any concept of a budget.

Tue, 01/17/2012 - 16:59 | 2072242 pods
pods's picture

Under the corporate bylaws for the US government.  They can do whatever they want, whenever they want.

Technically it is not lawful, but since we operate under the bankrupt 14th amendment trust, we are not operating under law, mere color of law.

That is why a court may say that taking property for public benefit is fine and dandy.
And that the preamble clause "to promote the general welfare" allows the US corporate government to assume any power that they so choose.

They merely play lipservice to the sheep to keep them placated from time to time.


Tue, 01/17/2012 - 17:04 | 2072261 LawsofPhysics
LawsofPhysics's picture

True, every word. Amazing the sheep still have the right to bare arms, for now.

Tue, 01/17/2012 - 18:08 | 2072466 MrBinkeyWhat
MrBinkeyWhat's picture

Yes it is true, you can still wear short sleeved shirts in the USA (Fuck Yea)TM. Some of us crusty bastards bear arms. At all times. ;-)

Tue, 01/17/2012 - 16:40 | 2072142 Jlmadyson
Jlmadyson's picture

Crazy times we live in. They will not stop until the final penny has been drained.

The never ending debt trap will come down upon us all.

Tue, 01/17/2012 - 16:45 | 2072173 LouisDega
LouisDega's picture

Are you a taxpayer?

Tue, 01/17/2012 - 16:40 | 2072149 distopiandreamboy
distopiandreamboy's picture

If the American people ask why their Social Security checks are in the pockets of Federal employees and Govenrment contractors the Government will respond en masse: "I have no recallection of authorizting such actions"

Tue, 01/17/2012 - 16:41 | 2072151 Vergeltung
Vergeltung's picture

but, but, I thought raising the debt ceiling was bad leadership? that's what Good King Barack said when he was a mere squire in 2006......

Tue, 01/17/2012 - 16:43 | 2072158 dumpster
dumpster's picture

Apocalypse Rev 2.0 is inevitable

stop this bible thumping view .

to think some person 2500 years ago was selected to view today and its results .  Borders on the insane .

but it figures .. the world is mad .

this revelation bullshit give license for the killing in the middle east ..

ah but the bible says the last days approach .. so to be faithful kill um quickly before the great dawn /






Tue, 01/17/2012 - 16:42 | 2072161 bob_dabolina
bob_dabolina's picture

With politicians like this what country needs an enemy?

Tue, 01/17/2012 - 16:46 | 2072176 azzhatter
azzhatter's picture

I guess Geithner's Xmas stint with Keebler is over for this year

Tue, 01/17/2012 - 16:46 | 2072178 Hansel
Hansel's picture

Raise the debt ceiling or your pension fund gets it!  Isn't democracy wonderful.

Tue, 01/17/2012 - 16:47 | 2072181 fonzannoon
fonzannoon's picture

Look at this ramp up till the close. They are just really having fun with it now.

Tue, 01/17/2012 - 17:11 | 2072288 SheepDog-One
SheepDog-One's picture

A .3% 'ramp up'? Im totaly underwhelmed.

Tue, 01/17/2012 - 16:48 | 2072187 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

C does a faceplant to end the day!  Damn, and CNBC said everything was priced in....

Tue, 01/17/2012 - 16:50 | 2072198 Joebloinvestor
Joebloinvestor's picture

Gee Timmy gets to comment on the US after being laughed out of the far east.

This guy isn't even relevent anymore.

Tue, 01/17/2012 - 17:31 | 2072340 francis_sawyer
francis_sawyer's picture

He ever was? at some point in time?

Tue, 01/17/2012 - 18:53 | 2072601 NotApplicable
NotApplicable's picture

Well, he used to be the spokesmodel for TurboTax. That counts for something.

Tue, 01/17/2012 - 16:53 | 2072215 non_anon
non_anon's picture

ha ha, issuing IOU's for IOU's and we be screwed

Tue, 01/17/2012 - 16:53 | 2072216 mr1963
mr1963's picture

Good. About time government workers feel like the rest of us instead of the normal raping and pillaging they do.


Tue, 01/17/2012 - 16:53 | 2072217 falak pema
falak pema's picture

the last frontier of the financial scam; the pension horizon. The baby boomers need to be burnt at the stake; take their pensions, they don't deserve it! So goes the knee on, Oligarchs.

Tue, 01/17/2012 - 16:54 | 2072219 Dr. Engali
Dr. Engali's picture

Just raise the ceiling to infinity for cripes sake. Just give them a blank check and let them spend. It doesn't matter. The sooner it burns down the sooner we can have the Nuremberg trials for those traitors in Washington.

Tue, 01/17/2012 - 16:57 | 2072231 Jim in MN
Jim in MN's picture

OT, interesting Fukushima development:

Preparations going on for reactor endoscopy

Preparations are under way to use an endoscope to examine the inside of a containment vessel of the damaged No. 2 reactor at the Fukushima Daiichi nuclear power plant.

At the No.1, 2, and 3 reactors of the plant, the nuclear fuel has melted down, but the exact state of the fuel and details of the inside of the containment vessels are yet to be confirmed. This is causing a big problem for the operator, Tokyo Electric Power Company, in its continued efforts to stabilize the cooling of the reactors and its plans to decommission them. The reactors were damaged by the March 11th earthquake and tsunami.

On Tuesday, 10 groups of 4 workers each entered the first floor of the No.2 reactor building from the northwestern side. The workers drilled a hole in the containment vessel to insert an endoscope. An industrial endoscope that can withstand high levels of radiation will be used.

The utility says the workers were exposed to up to 3 millisieverts of radiation. The company says the workers had rehearsed the job at the No. 5 reactor, the same type as the No.2, in order to minimize their exposure.

TEPCO says Tuesday's operation went smoothly and it will insert the endoscope on Thursday as scheduled. It hopes to gain the first internal view of one of the damaged reactors since the accident.

Tuesday, January 17, 2012 20:26 +0900 (JST)

Tue, 01/17/2012 - 17:28 | 2072320 knukles
knukles's picture

Hey, the one I got's they can use. 
Still greasy.
Knew it'd be good for something.
I wind up with the damnedest things.

Tue, 01/17/2012 - 17:53 | 2072421 JohnG
JohnG's picture

I wonder if reactor fart radioactive hydrogen after those....

(if you don't get it you've never had an endoscopy.....)

Tue, 01/17/2012 - 17:58 | 2072433 catacl1sm
catacl1sm's picture

What do they plug the hole with, a cork?

Tue, 01/17/2012 - 17:07 | 2072273 junkyardjack
junkyardjack's picture

They can't survive off of treasury yields anyway, I doubt they will even notice that the $15 wasn't deposited into their bank accounts

Tue, 01/17/2012 - 17:11 | 2072287 marcusfenix
marcusfenix's picture

why do they bother to continue to mention this sham? there is no such thing in DC as a debt ceiling, it's a political talking point myth, like so many other things that the parasites in Washington babble on about. 

DC needs to be walled off and isolated from the rest of the country, they don't represent us anyways, let them live out there delusions and fantasies on their own. I think "we the people" would be fine without them, it certainly couldn't be any worse.  

Tue, 01/17/2012 - 17:14 | 2072291 NotApplicable
NotApplicable's picture

Sounds like it's about time to go over to the Post Office and ask them how they feel about this theft of their retirement.

Nothing quite like stirring up a union of psycopaths who are well-ingrained in the system.

Postal: It's a verb for a reason.

Tue, 01/17/2012 - 17:14 | 2072292 Seasmoke
Seasmoke's picture

stealing the public employees pensions, sounds like a great reason AGAINST raising the debt celinig

Tue, 01/17/2012 - 17:29 | 2072331 knukles
knukles's picture

They're really gonna get your ass, now.

Tue, 01/17/2012 - 17:19 | 2072298 JamesBond
JamesBond's picture

this shit all depends on U.S. citizens willingly bending over to receive it.....


Tue, 01/17/2012 - 18:54 | 2072607 NotApplicable
NotApplicable's picture

But it hurts if you don't bend over!

Tue, 01/17/2012 - 21:40 | 2072962 gravedestruction
gravedestruction's picture

A fowl end indeed...

Tue, 01/17/2012 - 17:25 | 2072314 ozziindaus
ozziindaus's picture

Robbed from all directions indeed. Banks recapitalize through the FED and park it in Treasuries. Guess who pays the interest on that?


Tue, 01/17/2012 - 17:26 | 2072316 Desert Irish
Desert Irish's picture

So what's the big deal? There's a $100 trillion already in unfunded liabilities between Social Security, Medicare and Medicade - the damn things broken anyway, the funding shortfall is never going to be made up, so screw the seniors.   sarc/


Tue, 01/17/2012 - 17:36 | 2072362 francis_sawyer
francis_sawyer's picture


The seniors will still get their checks (for now)... First... The ECB has to monetize its next trillion (or 10)... Then it's our turn...

OBOMNEY needs your vote in November... The checks keep coming at least until then...

Tue, 01/17/2012 - 17:28 | 2072322 Don Levit
Don Levit's picture

Does anyone have a link that can provide current figures on how much of the 2 retirement plans are comprised of Treasury securities?  Have these Treasury securities been loaned to the Treasury to pay for current expenses, as have the Treasuries in the Social Security trust fund?  It is my understanding the defined benefits plan is funded 100% by Treasuries.  The defined contribution plan works like a 401(k) with diversified investments.

I know that the pensions fior federal workers is coinsidered a liabiliity, and is listed on the balance sheet at $5trillion.

On a year-to-yaer basis, though, does the cash outgo exceed the cash income, as in Social Security?

Don Levit

Tue, 01/17/2012 - 17:35 | 2072358 yogibear
yogibear's picture

Bow down when Obama enters. Hail to the Commandeer and thief.

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