And Now The Truth: "Spending Reductions = LIES" in [Market-Ticker]

Posted 2011-07-23 15:34
by Karl Denninger
in Editorial

And Now The Truth: "Spending Reductions = LIES"

As they say, "and now for the rest of the story":

On the discretionary spending front, both sides had "identical offers," said one of the officials. There would be $1.2 trillion in cuts over the course of ten years; $1 trillion in savings that would come from the draw-down of the wars in Afghanistan and Iraq; and $250 billion in savings in Medicare over the course of 10 years. Both sides had also agreed to attach a second piece of legislation, to be decided via the reconciliation budget process, that would have changed the retirement age for Medicare and changed the premium structure for Medicare Part B and D, while eliminating certain kinds of supplemental insurance. That bill would also contain changes to the way Social Security benefits were paid starting in 2015, with buffers put in to protect the lowest-income beneficiaries.

In other words:

NO domestic spending cuts whatsoever.
NO material changes to entitlement spending ($25 billion/year on Medicare is pointless.)
NO other mandatory spending cuts. Anywhere.

Remember, the deal was supposed to be about $2 trillion in total - $1.2 as outlined above, and then $800 billion in "revenue increases" (tax hikes.) The deal "blew up" when Obama wanted another $400 billion in taxes.

We're talking about chicken**** here folks - these "cuts" are not real, they are all "reductions in planned spending increases.

Boehner and McConnell are both a lying sack of crap - there are NO actual spending cuts on the table by either party. The entire Rethuglican party is a bunch of damned sell-outs.

It is time for primary challenges for each and every one of the alleged "limited government" liars and frauds. Every one of them - fire them all.

Tea Party and "limited government" my ass.

Get ready to have the US' "AAA" credit downgraded, 'cause it's coming.

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User Info	And Now The Truth: "Spending Reductions = LIES" in forum [Market-Ticker]
Icanhasbailout Posts: 9939 Incept: 2009-03-10 Imaginationland	---------- 2011-07-23 15:37:30 Permalink
Doc Posts: 58 Incept: 2007-11-29	It will take a downgrade an a stock market crash to get anything accomplished. None of them "get it". What a shame. 2011-07-23 15:39:18 From PDA Permalink
Tinsu Posts: 43 Incept: 2009-09-18 New Lenox, IL	S&P made a big show of "putting their foot down." But, my guess is that they are getting massive pressure to relent (and probably some "grease the palm" money to change their tune). So, when the boys agree to "revenue enhancements" and these "deep [fantasy] cuts in spending" how does S&P wiggle out and say something to the effect of: "Yet, this looks good. No rating cut." I just don't think they will stand up to the power that be. Do you? 2011-07-23 15:41:21 Permalink
Oldno7 Posts: 2138 Incept: 2008-11-14 RECALL STATE USA	Sounds like we are getting played from both ends. Bring it on and let's get it over with. ---------- IT'S THE SPENDING STUPID The US must become less a government of men, and more a government of LAW. When people lose everything and have nothing left to lose they lose it -Gerald Celente 2011-07-23 15:42:06 Permalink
Corn1945 Posts: 4167 Incept: 2009-04-30	I expected something pathetic, but this really takes the cake. They didn't even try to appease the bond market. 2011-07-23 15:43:03 Permalink
Andysvw Posts: 1710 Incept: 2010-06-26 Tujunga Ca	Rejected because the plan did not suck enough? They forgot to add the cavity searches and follicle taxes.The saving will come from the TSA billing medicaid for the exams. DC logic 2011-07-23 15:54:57 Permalink
Trades50 Posts: 4214 Incept: 2007-10-30 Land of Tax and Spend	Quote: Get ready to have the US' "AAA" credit downgraded, 'cause it's coming. The credit junkies need to be cut off. ---------- When the people fear the government, there is tyranny. When the government fears the people, there is liberty. - Thomas Jefferson 2011-07-23 15:55:59 Permalink
Captbill Posts: 842 Incept: 2008-07-22 Arizona's West Shore	So THIS is the deal NOW? OMFG ---------- Incredible. There's Smith and he's standing there and he's got the iceberg warning in his **ing hand, excuse me, his hand, and he's ordering more speed. Lewis Bodine, RMS Titanic 2011-07-23 16:00:37 Permalink
Reepotomac Posts: 92 Incept: 2010-04-18	Thanks Karl. put http://mycountrymyass.com at the end of that video. Wouldn't y'all love for those scumbags to hear that song while they're driving in their car? 2011-07-23 16:05:51 Permalink
Templar223 Posts: 779 Incept: 2008-04-28 Champaign, IL	Let's get on with it. FORCE the spending cuts upon our government of cowards. If the FSA wants to riot, well, then have at it. There's plenty of ammunition to take care of the ones who decide to take what isn't theirs... or to destroy what isn't theirs. We need to pour some chlorine into this pool anyway. The sooner we get this over the faster and stronger we'll recover. John 2011-07-23 16:06:43 Permalink
Zarathustra Posts: 5937 Incept: 2009-04-29 Funkytown Online	Is this the "boom?" ---------- "And in knowing that you know nothing, that makes you the smartest of all." - Socrates 2011-07-23 16:13:56 Permalink
Wakeupcall Posts: 4232 Incept: 2009-06-08 Hampton Roads, VA	I can't believe I wasted my time paying attention to this "show" when this was all that was on the table. What a complete waste. ---------- Nothing travels faster than the speed of light, with the possible exception of bad news, which obeys its own special laws. 2011-07-23 16:14:22 Permalink
Johnny Posts: 1584 Incept: 2008-10-01 Kentucky	The only thing(s) real are the tax increases? 2011-07-23 16:16:40 Permalink
Patentleathershoes Posts: 9989 Incept: 2007-09-13 On the Daisy Chain Online	Quote: It will take a downgrade an a stock market crash to get anything accomplished. None of them "get it". What a shame. Oh I think they get that entirely. ---------- "An unborn child's property rights are protected by law. His right to life is not." Ronald Reagan Last modified: 2011-07-23 16:19:15 by patentleathershoes 2011-07-23 16:18:45 Permalink
Mayorquimby Posts: 13907 Incept: 2008-09-18 The Archaic Past	So we're running a $1.7 TRILLION deficit for 2011 alone and they want to cut $120 billion per year. Interest on the debt is what - $450 billion? Can't happen. The four trillion in cuts should be the very minimum and even those wouldn't do it. Ahhhhh ** em all. And ** the sheeple too for thinking any of this is affordable. It's time we all start think about where to go. ---------- They who wish to hurt you, work within the law. - Morrissey Gold is theft. 2011-07-23 16:20:57 Permalink
Crzymorse Posts: 1183 Incept: 2010-06-25 Maryland	$2 trillion at the fed, $6 trillion in SS trust fund. 8-9 T of the 14, owed to ourselves. The other 4-5 T is being used to manipulate currency. I'm thinking we are going Japanese. 2011-07-23 16:27:16 Permalink
Tm22721 Posts: 975 Incept: 2008-01-09	Dollar hegemony has the administration convinced that Bondzilla is toothless. Where are the bond traders who descended on the WH to warn Clinton about Hillary Care ? ---------- The country is terminally ill and IT JUST WANTS A PILL. The only way up is down. 2011-07-23 16:32:28 Permalink
Kylafoon Posts: 2455 Incept: 2009-02-05 Zombie Portal Lookout	Pathetic.... Time to starve the Beast... ---------- "...But whenever we see things done wildly, but taken tamely, then the State is growing insane..." - Gilbert Keith Chesterton 1910 "I found a flaw in the model that I perceived is the critical functioning structure that defines how the world works." - Alan Greenspan, October 2008 2011-07-23 16:33:28 Permalink
Bertdilbert Posts: 2653 Incept: 2008-12-22 CA	I told you guys over and over they will not cut because to save the Fed you bust the states. Read my siggy again.... ---------- Dear Euroland: Relax, Germany has a plan for your money! Political Capital Defined: We are out of money but will tax our citizens for whatever it takes to "SAVE" the Euro. 2011-07-23 16:38:28 Permalink
Jslique Posts: 465 Incept: 2008-07-28 Melbourne Online	who is gonna lend the money. Thats what gets me. 1.7 trillion a year is a lot of money. you don't find it behind the couch. i suppose its wtf its only money. 2011-07-23 16:53:48 Permalink
Maxplanck Posts: 166 Incept: 2009-06-30 Galt's Gulch, NH	Destroy money and you destroy the division of labor. ---------- Washington DC: 61.4 square miles surrounded by reality. 2011-07-23 16:57:30 Permalink
Peteb Posts: 128 Incept: 2010-11-16	Third party... Real competition... Rule of Law... Individual rights... A true free market... A halt to government force and fraud... Now 2011-07-23 16:58:06 Permalink
Jono Posts: 110 Incept: 2011-05-25 Banned	I repeat "AMERICA DESTROYED BY DESIGN" 2011-07-23 17:09:24 Permalink
Bertdilbert Posts: 2653 Incept: 2008-12-22 CA	Quote: who is gonna lend the money. Thats what gets me. 1.7 trillion a year is a lot of money. you don't find it behind the couch. i suppose its wtf its only money. Whenever the government gets into trouble, there is a looting involved. You are currently being looted by QE. The Fed buys all the paper keeping interest rates down. You are cheated out of your interest. The money you do not get in interest is also a savings in interest payments on the money the government owes. It is a hidden tax. Nobody talks about this tax increase except Karl and he mentions it in his siggy.. In the 60's and 70's the treasury was looted of 10,000 tones of gold. In the 30's your gold was taken out of circulation and revalued. That was another looting. There is currently lots of looting going on in many different forms. The current QE is a tax on the wealthy, where are the republicans in pointing out this tax increase? Nowhere. ---------- Dear Euroland: Relax, Germany has a plan for your money! Political Capital Defined: We are out of money but will tax our citizens for whatever it takes to "SAVE" the Euro. 2011-07-23 17:19:04 Permalink

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