I got a kick out of yesterday's 200 point short covering
I was less than enthusiastic with that plan for two reasons. (1) The 3.7 trillion dollar reduction is chump change and will do nothing to pare existing debt levels. (2) Once again, these politicians continue to pillage the low and fixed income wage earners (Social Security) by reconfiguring how the CPI is calculated. They have already low- balled and manipulated the numbers inside the CPI to such an extent that they have rendered it useless as a measure of inflation anyway. The CPI along with the birth/death model inside the employment report is a perfect example of... "Figures Don't Lie, Liars Figure."
Gold and silver prices were slashed and burned late in the day as Obama humbly took credit for resolving things. Tonight the House has suddenly passed a 6 trillion dollar deficit reduction plan. There was no talk of this earlier in the day...but I am glad to hear of it. The Tea Party likes it- which means it will be watered down or die in the Senate or get vetoed if it gets kicked down the road to 1600 Pennsylvania Av.
When looking at existing debt rather than budget deficits...remember that in order to pay down principal on your existing debt- you must have enough free cash flow to fund current expenditures and enough money left over to hack away at the principal on the debt you have incurred. This is the trap the U.S. is caught in. We have borrowed and spent so much money that we can barely pay the interest on existing debt at these ridiculously low rates. Politicians are going to add an additional 2 trillion to existing debt levels and then pray like hell for a miracle. Like an additional 15 million tax paying jobs materializing out of nowhere. They need free cash flow badly but it ain't coming. Maybe ever. If that's the case and it sure looks like it is- we're toast. This is the end game. Adding two trillion in debt at this point means nothing. None of it will be re-paid.
And all of these spineless legislators will try to get re-elected next year. They will bank on the fact that the voters (a) are idiots (b) that we will forget about their chickenshit behavior in wrestling with the budget and the debt ceiling (c) and that most of the baby boomers will all be dead when finally someone far younger declares, "We are bankrupt."
Remember that bumper sticker, "We're spending our children's inheritance?" Shit, we've taken that phrase supernova. Boomers should have bumper stickers that say, "Hey kids...how does our ass taste?"
Personally, I think the boomers are the greediest and most selfish generation this country has ever known. I am ashamed of my generation. Truly. Not that we'll care. We are a generation of economic sociopaths. Clearly we don't give a shit about anyone other than ourselves. That's what the 112th Congress is telling you right now. Boomers. Lawyers. Sociopaths. Let someone else pay the bill as long as we get ours.
That's the legacy my crowd leaves behind.
The stock market has become completely unhinged from reality as well. The boomers are manipulating that until it implodes. In fact, I am in awe at the willingness of bankers and people like Ben Bernanke to keep indices and equities levitating with funny money. The stock market is no more an indicator of the health of this country than the CPI is an accurate measure of real inflation. Sooner or later, this charade has to end. I can't wait to see the final version of the budget and listen to all of our legislators declaring how hard they fought, all the blood that they shed, and maybe President Screw Off taking credit as the grand facilitator.
Oh yea. The question. Are baby boomers economic sociopaths? Maybe even psychopaths? Well, not all of us. However, that representative sample of our generation was highly skewed with politicians- judging from all of the self serving sociopaths that we managed to elect. I hope subsequent generations can do better than we did. Shouldn't be too hard. Perhaps our kids will elect people with sound values- or maybe even someone with a math degree that isn't a lawyer. Or mentally ill.
Read this. This is what an FBI profiler says about politicians. Think about our current crew. http://www.examiner.com/law-enforcement-in-national/serial-killers-and-politicians-share-traits