Pretty much sums up not only the present and future of US budget cuts, but everything else about the US:
- PANETTA SAYS NO IDEA `WHAT THE HELL IS GOING TO HAPPEN' ON CUTS
He added the following:
- PANETTA SAYS SEQUESTRATION CUTS `SERIOUSLY THREATEN' STRATEGY
- PANETTA SAYS `MOST IMMEDIATE THREAT' IS FISCAL UNCERTAINTY
And in other news:
- DEPUTY SECRETARY CARTER AUTHORIZES STEPS TO REDUCE SPENDING
- CARTER SAYS DEFENSE OFFICIALS CAN DISMISS TEMPORARY HIRES
Don't worry Leon: nothing will happen on cuts, because there will be no cuts, as reducing the US deficit will mean the Fed has to monetize less Treasurys, which means less reserves are created, which means the Primary Dealers have less dry powder to buy 3x beta stocks and less IG9 or 19 collateral, which means less "wealth effect", which means the 1% status quo is unhappy.
And the status quo can never be unhappy.