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Guest Post: Sudden Impact

Tyler Durden's picture


Submitted by Jim Quinn of The Burning Platform

Sudden Impact

I'm a big fan of Clint Eastwood movies. Below are two of the greatest scenes in movie history, with two of the greatest, most quoted lines in history. The lines are:

“Go ahead, make my day.”



For some strange reason these two lines came to my mind as I watched President Obama announce the GREAT TAX COMPROMISE OF 2010. In both scenes the criminals came to their senses when confronted with Dirty Harry. Our criminal Congress and criminal President reached for the gun, because they feel lucky. We know what happens next when confronted with a .44 Magnum.

Obama and his new Republican friends agreed to add $1 trillion to the National Debt in the next two years. That is 30% of our entire budget and 7% of GDP. Here are some words of wisdom on this subject, spoken a few years ago:


I have no issue with low taxes. I would like lower taxes. But, we’ve all become Keynesians if we agree with the “Compromise” that was reached yesterday. Republicans have not kept taxes low. They’ve insured that future generations will have higher taxes so they can enjoy the good times in 2011 and 2012. Watching CNBC last night was revolting. I thought Larry Kudlow was going to cum in his pants, he was so excited. His band of nitwits and numbskulls were positively giddy, as they were sure this would lead to a surging stock market.

The big surprise was the 2% payroll “tax cut” for 2011. The SS tax would be reduced from 6.2% to 4.2% for one year. This will provide a tax cut of $1,000 for the average American family making the median income of $50,000. It will cost $120 BILLION. This is certainly an interesting idea when Social Security has already promised to pay out $17.5 trillion more than it will ever bring in. The Washington DC Politician solution to a massive entitlement liability is to make it larger, so that we can buy a new 52 inch HDTV today.

A $1,000 tax cut comes to $20 per week for the average family. Now here is where the Federal Reserve and their politician protectors in Congress and the White House screw you while your not looking. As the world realizes that American politicians have no intention of cutting deficits, the USD will continue to weaken. This is what Ben Bernanke wants. It makes our debt burden easier to pay back while screwing our foreign lenders. The result of the weakening dollar has been a dramatic surge in oil and food prices. The average American family drives 25,000 miles per year in their two cars. The average car gets 20 mpg. Therefore, the average family is using 1,250 gallons of gas per year. Gas prices are at a two year high and will go higher as the dollar weakens. The entire $1,000 “tax cut” will be utilized to pay the higher price for gas. This doesn’t take into account the much higher food prices headed down the track, along with higher cost for all the crap we import.

The ruling elite have convinced you that the tax cut will benefit you, when the inflation they have created has actually made your poorer. Thank you sir may I have another.

The 10 Year Treasury surged 16 basis points this morning to 3.08%. This is the highest level since July and is now up .68% since Ben Bernanke indicated QE2 was on the way. QE2 was supposed to REDUCE long term interest rates. Mortgage rates are going up, not down. Housing prices are already in free-fall again. Higher mortage rates will destroy the housing market. Obama, Bernanke, and Congress have created the perfect storm. Keep partying today, for tomorrow will be painful.

Crook: [during a diner robbery] What’s you doing, you pighead sucka?

Harry Callahan: Every day for the past ten years, Loretta here’s been giving me a large black coffee- except today she gives me a large black coffee and it has sugar in it. Alotta sugar. I just came back to complain.

Crook: Say what, sucka?

Harry Callahan: Well, we’re not just gonna let you walk out of here.

Crook: Who’se we sucka?

Harry Callahan: [slowly drawing his .44 Magnum] Smith and Wesson… and me.

[Callahan dares a crook to shoot his hostage]

Harry Callahan: Go ahead, make my day.
Bank Robber: I gots to know.


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Comment viewing options

Tue, 12/07/2010 - 17:24 | 787007 HelluvaEngineer
HelluvaEngineer's picture

OK, so I bought silver at 4PM.  Who thinks I'm an idiot?

Tue, 12/07/2010 - 17:27 | 787022 damnitalready
damnitalready's picture

Don't feel bad, I bought in yesterday at about $30 as well... For the long term I think this is still a buying opportunity..

Tue, 12/07/2010 - 17:46 | 787096 DoChenRollingBearing
DoChenRollingBearing's picture

Indeed, feel bad for me!

I will buy back in at $35 if I get back soon enough to America!  If ´they´kick it down lower, well then you don´t have to feel badly for me.

Tip o´the Day:

If Boehner does not let Ron Paul become Chairman of the Monetary Policy Committee, then we are screwed AND PMs will rocket.

Tue, 12/07/2010 - 19:56 | 787438 jesse livermoore
jesse livermoore's picture

when silver is trading at  100 an oz in 2012 you wont feel at all bad about buying at 30...............

Wed, 12/08/2010 - 00:09 | 788007 Minion
Minion's picture

Why do all you gold bugs get excited when the price goes up in dollar terms?  Look at a chart of DBA:$GOLD and report back on how much more food you will be able to buy if the dollar is no longer available?

Silver, on the other hand, looks like it's just been let out of a cage, like a wild animal finally set free.  15:1 might be coming back.

Tue, 12/07/2010 - 17:31 | 787030 Spalding_Smailes
Spalding_Smailes's picture


"South Florida," he said, "is working off of a totally new economic model than any of us have ever experienced in the past" according to a realtor who predicted that a land shortage will support higher prices indefinitely."

 - "Trading Places: Real Estate Instead of Dot-Coms", in the NYT.

I think what may happen -- I don't think you'll see a reduction in [intangible] value; let's put it that way. Value and price are different things. You probably won't see a reduction in value, but maybe in prices, meaning you can pay less but it's worth more.

 - Realtor Beverly Pindling, quoted in the Orlando Sentinel

Wed, 12/08/2010 - 09:00 | 788327 deez nutz
deez nutz's picture


Its only worth what the next guy is willing to pay.  No demand - no worth.  Realtors are screwed, they know it and will say anything to sell houses. 

That is a classic statement full of empty calories. 

Tue, 12/07/2010 - 17:39 | 787068 NOTW777
NOTW777's picture

rough mid BB is 27.30 - maybe tomorrow

Tue, 12/07/2010 - 17:41 | 787078 hambone
hambone's picture

The only thing you have to fear is the government of America doing the right thing.  You and your investment are safer than a AAA rated Treasury.

Big O just declared a 2011 $2T deficit a victory for the American people.  As long as O and his like are in power, Silver is real money.  Now if tea partiers actually accomplish a debt ceiling suspension, may want to think twice bout silver.

Tue, 12/07/2010 - 18:40 | 787254 Max Hunter
Max Hunter's picture

in one afternoon we added 900 billion over 2 years to the debt. This is the same as the total anual debt in 2004 that drove the deficit hawks to tears at the time.. Wow... It's a new age we are in..

I would think this day should be bullish for PM's.

Wed, 12/08/2010 - 08:21 | 788301 Bicycle Repairman
Bicycle Repairman's picture

"Now if tea partiers actually accomplish a debt ceiling suspension, may want to think twice bout silver."


Anyone who thinks the political class is going to solve this problem, raise your hands.  Anyone?

Tue, 12/07/2010 - 17:44 | 787092 still kicking
still kicking's picture

Last time Blythe put the hammer down on Silver I had bought in about 30 cents off the high, I then got beat down for almost a month but am still higher than when I bought in.  Long term picture, the government is destroying the dollar so whether you buy in at $11 or $30 or even $50 what is the real value of the silver 5 years from now when the US can no longer meet its debt obligation and the dollar is worthless.....keep buying.

Tue, 12/07/2010 - 17:47 | 787093 tahoebumsmith
tahoebumsmith's picture

Everytime the tide has gone out, it has been replaced with a bigger wave. The Tsunami is still 100 miles off shore so wax up that silver surf board and get ready to ride the wave of discontent. When the dollars crashes hard and the hangover sets in, you will have something to show for your intuition.

Tue, 12/07/2010 - 19:12 | 787324 Two Face
Two Face's picture

It's funny how the storyline for the "Rise of the Silver Surfer" trailer takes on an entirely new meaning when viewed within today's context.

Tue, 12/07/2010 - 17:49 | 787108 Commander Cody
Commander Cody's picture

I do, for not buying it much sooner.  To hell with Georgia!

Tue, 12/07/2010 - 17:53 | 787124 MarketTruth
MarketTruth's picture

Buying silver at 4pm is smart.

In the great and almighty wisdom:
Buy the fucking dips.

Tue, 12/07/2010 - 17:55 | 787131 Victorio
Victorio's picture

Not me Helluva. The 4:20pm spot price I just paid will never be revisited... (yes I am 100% sure) Let's go Team Silver!!! Let's Get Physical!!!

Tue, 12/07/2010 - 18:29 | 787214 unky
unky's picture

nobody is god and i think its impossible to predict the short term prices. but keep in mind that we also have a high volatility now in the silver market. we can have 3 days in a row an increase by 10% and then go down by 8%, just hold the silver for the longer term

Tue, 12/07/2010 - 18:59 | 787298 breezer1
breezer1's picture

as long as you have physical then you are ahead of the herd. get more if you can.

Wed, 12/08/2010 - 05:13 | 788213 Non Passaran
Non Passaran's picture

Not I. You'll be okay - just give it a week (methinks). A small dip is no big deal.

I expected a pullback, but of course I wasn't sure and I didn't want to sell too much and miss the train. So I sold about 10% of my position at just above $30. I plan to buy back as soon as the money appears in the account (tomorrow?) so I wouldn't mind to see the price move sideways for another 36 hours :-)

By the way, I bought physical gold every day of this week, so yesterday I lost a bit, but I am fairly confident in the long run I won't even remember.

Tue, 12/07/2010 - 17:24 | 787009 Gringo Viejo
Gringo Viejo's picture

PMs are being "masacreed"....Silver having it's teeth kicked out....Great entry point....I hear the train a comin'.....LAST train to Shortsville!

Tue, 12/07/2010 - 17:28 | 787024 HelluvaEngineer
HelluvaEngineer's picture

I can see silver going to 27.50ish, but somehow I don't think it will.

Tue, 12/07/2010 - 17:33 | 787041 Spalding_Smailes
Spalding_Smailes's picture

Mr. Hendrix , Turdddddddddd ......


Update ?

Tue, 12/07/2010 - 17:53 | 787119 DoChenRollingBearing
DoChenRollingBearing's picture

@ thetruth,

Thanks for the link.  The Master has spoken.

Still no one in jail yet!  The whole thing stinks!

But strong hands will beat the paper-baters.

Tue, 12/07/2010 - 17:56 | 787120 Spalding_Smailes
Spalding_Smailes's picture
by Turd Ferguson
on Tue, 12/07/2010 - 10:26

........"The Monkeys pulled this same shit yesterday. Crude rolled over and they sat tight for a few minutes and then BAMM. Hit gold and see if they can get the ball started rollin to the downside. Didn't work yesterday. Won't work today.

Feb11 gold is already $4 off its lows at 1420. Too much momentum, too strong of dip-buying by the BoS and too much POMO ($8B today). All commods will grind higher from here today. Gold will be back pushing 1430 by this afternoon.

Btw, all that really matters today would be a close above the old all-time high from 4 weeks ago today. That number to watch is $1426."........


Why was $1426 important.

Thanks for link. I was hoping for update .

Tue, 12/07/2010 - 17:58 | 787135 thetruth
thetruth's picture

there actually is new info on the site that was just posted and a rather nice chart.  not sure why it didn't show up for you.  maybe try again?

Tue, 12/07/2010 - 18:00 | 787141 Spalding_Smailes
Spalding_Smailes's picture

It did.

I just wanted to see what changed from his a.m. call ....

Tue, 12/07/2010 - 18:04 | 787156 thetruth
thetruth's picture

yes that didn't work out so well

Tue, 12/07/2010 - 17:49 | 787106 DoChenRollingBearing
DoChenRollingBearing's picture

Tranquilo, tranquilo.

Unless you are a trader, today is almost nothing. Hang on to your PMs, maybe buy more. Think longer term.

Tue, 12/07/2010 - 18:01 | 787142 thetruth
thetruth's picture

i am levered so was not too happy

Tue, 12/07/2010 - 17:34 | 787044 RobotTrader
RobotTrader's picture

50% chance of a "Nipple Top" today.


Poor General Jim got his "Formula" ass-backwards.

Stocks and bonds got sold off today, but as usual, PM's went down even faster.

If the gold bugs want $1,650 gold, they better start cheerleading and trumpeting a huge economic recovery.  Recovering economy = bigger investment demand for gold = higher gold prices.

As of today, General Jim needs gold to go up $9.30/day for the next 27 trading days to reach $1,650 by January 14.

With today's setback in stocks, it is probably not going to make it.

Tue, 12/07/2010 - 17:53 | 787126 malek
malek's picture

Cute! We'll talk on January 15th...

My target is $2000, but I put no date on it... sometime in the next 5 years is fine for me.


Tue, 12/07/2010 - 18:05 | 787157 Gringo Viejo
Gringo Viejo's picture

Ah continue to think in linear terms. You see not that the world has changed and that Wall Street paper no longer trumps Asian physical purchases.. Know this well...when your farts have need not ask if you've shit yourself. Thus endeth the lesson.

Tue, 12/07/2010 - 18:16 | 787046 hambone
hambone's picture

This is what happens when you are lender of last resort (bagholder) for Spain, Ireland, Greece, California, New Jersey, Illionois, and various other bankrupt muni's, states, cities, corporations, pensions, countries round the world.  Bondholders attack the deep pockets, the BAGHOLDER.  Looks like it's now Fed vs. Vigilantes of the world.

Good luck vigilantes short the hell out of America...Burn, Ben, Burn!!!  We can only begin to heal once the cancer is removed.

Tue, 12/07/2010 - 19:13 | 787325 mmlevine
mmlevine's picture

Wishing the vigilantes short the hell out of America is going a little far don't you think?  You're hoping that the banks and hedge funds steal more money out of your pocket - assuming you're a tax paying American - like me.

I might be the odd man out on the 2% SS tax break.  I think the idea is the least of all evils.  I hate deficits as much as anyone else but at least with a tax cut (however small) I get a few extra bucks in my pocket to spend as I wish. 

Tue, 12/07/2010 - 19:35 | 787383 hambone
hambone's picture

Nope, I don't think it's far enough.  I'm hoping running massive deficits will be  punished as it should be by bond markets and massive unserviceable debt isn't allowed to be hoisted on future generations any longer. 

BTW - yeah, my wife and I are among the "rich" according to Obama but a few extra fiats in my pocket at the expense of my kids future isn't the change I was hoping for when I wrongly voted for O.

Wed, 12/08/2010 - 01:10 | 788113 Violetta (not verified)
Violetta's picture

so you don't buy this stuff about inflation negating it?

Tue, 12/07/2010 - 17:34 | 787049 Popo
Popo's picture

Interrest rates to the moon. This collapse is just getting started.

Bondzilla is rising.

Tue, 12/07/2010 - 17:51 | 787113 Quintus
Quintus's picture

To the moon?  The entire global financial system will fall flat on its face before rates reach the top of the stairs.

Tue, 12/07/2010 - 17:36 | 787057 Convolved Man
Convolved Man's picture

Return to the Planet of the Apes - 2010

We have good news and bad news.

It was revealed to our top monetary policy makers that time travel will be successfully invented and due to deteriorating economic conditions in the future, the best economic historians of the future have traveled to the present time in order to provide sound guidance to mitigate the coming global economic calamity.  We have followed their advice, which has been the basis for the recent bailout, stimulus, low Fed funds rate, and quantitative easing programs.

However, the latest emissaries from the future, talking monkey-men, arrived today and their recommendations are that we now institute sacrificial offerings of Keynesian devotees on a golden alter to appease the deficit spirits.

If this radical approach does not work, the monkey-men are prepared to travel further back in time and prevent the invention of financing.

Tue, 12/07/2010 - 17:37 | 787059 RobotTrader
RobotTrader's picture

Biggest winners today were the "worst of the worst" banks.

No doubt, money is fleeing the resource space, and piling into beaten down banks.

Tue, 12/07/2010 - 17:41 | 787077 rocker
rocker's picture

I took a chance on AIB and IRE yesterday.  Sold both today.  Just for the trade.  They still suck, just like ours.

Wed, 12/08/2010 - 00:04 | 787997 Minion
Minion's picture

Reminds me of General Dynamics a couple months ago.  It looked terrible, then exploded thru all resistance like an icbm fired from a chinese sub.

Wed, 12/08/2010 - 08:29 | 788306 Bicycle Repairman
Bicycle Repairman's picture

What is the value of merely reporting what went up or down in the market on a given day after the fact?

Tue, 12/07/2010 - 17:42 | 787082 Cheesy Bastard
Cheesy Bastard's picture

Josey Wales:  When I get to likin' someone they ain't around long.


Tue, 12/07/2010 - 17:59 | 787138 Misean
Misean's picture

Bounty Hunter: A man's gotta make a living.

Josey Wales: Dying ain't much of a living.

Tue, 12/07/2010 - 18:56 | 787292 Cheesy Bastard
Cheesy Bastard's picture

+1. Nice.

Tue, 12/07/2010 - 17:42 | 787087 wretch
wretch's picture

If you reason that PMs will only go higher in the medium to long term, the dips are simply delays. Expect delays.

Tue, 12/07/2010 - 17:48 | 787095 Rogerwilco
Rogerwilco's picture

People who are better off keeping their mouths shut:

Jean-Claude Trichet

Ben Bernanke

President Obama.

All three opened their mouth over the past week and showed the world they haven't a clue between them. The next stage is desperation and deleveraging (again) as Bernanke tries to defend the USD and keep the banks alive. Hope you all enjoyed $30 silver while it lasted.

Tue, 12/07/2010 - 17:49 | 787109 Rider
Rider's picture

Hate them punks who steal my money to give some else.

Tue, 12/07/2010 - 17:55 | 787130 Misean
Misean's picture

A man's got to know his limitations.

Tue, 12/07/2010 - 18:02 | 787148 cosmictrainwreck
cosmictrainwreck's picture

One of my fave lines.....tell it to the goons in DC and Wall-eye Skreet; hope to hell some of them get introduced to same

Tue, 12/07/2010 - 18:04 | 787154 b_thunder
b_thunder's picture

Two things:

“Deficits mean future tax increases, pure and simple." 

A true statement, unless the government has already decided that the only way out of debt is  a DEFAULT.  And, as any deadbeat who's about to file for bankruptsy realizes, he can live large and run up that credit card debt as much as he can !  Vacations, trip to Vegas, gifts to others.  In bankruptsy (at least before 2005 law) it didn't matter how much he owed...


"The entire $1,000 “tax cut” will be utilized to pay the higher price for gas"

Well , the moeny will float to Russian oligarchs, Arab Sheicks, Hugo Chavez,  Nigerian warlords and, of course, Xxxon, Conoco, BP and Chevron.  And then it will trickle down as dividends top thr richest folks in the nation.  And that will be taxed @15%  How can that be bad???



Tue, 12/07/2010 - 18:04 | 787155 tony bonn
tony bonn's picture

if rates are going up in the presence of the market warping rate shifting mind blowing world of qe quackery you know that the fingers in the dyke will give way to arthritis....

as in every other juvenile prank by the kleptocratic financial terrorists to manipulate free markets, this fratboy stunt will turn out bad.

fuck you ben. i hope your chaunuka turns to incindiary ashes you goddamned punk.

Tue, 12/07/2010 - 18:17 | 787187 lolmaster
lolmaster's picture

What kind of comf@g wrote this article? $1000 in tax breaks is another $500 of gold and $500 of silver in my pockets. You're welcome to donate yours, I hear the IRS takes check ( so does your buddy George Soros)

Wed, 12/08/2010 - 08:33 | 788307 Bicycle Repairman
Bicycle Repairman's picture

Do you drive a gasoline-powered car?  Do you eat food?  Perhaps that tax break money goes towards paying higher prices for those items.

Tue, 12/07/2010 - 18:33 | 787225 Ripped Chunk
Ripped Chunk's picture

"Smith & Wesson Automag, if used properly it will remove the fingerprints"

Tue, 12/07/2010 - 18:35 | 787229 monopoly
monopoly's picture

Buy silver you bet. But there are corrections, and this may be one. The long term is assured, but we can have painful short term setbacks. So, just do not bet the farm all in one day. Or would you rather own NFLX. lol


Long all, but do take profits on ramps. Always buy the dips, or try to.

Tue, 12/07/2010 - 18:41 | 787257 Freewheelin Franklin
Freewheelin Franklin's picture

My understanding is, people are dumping their 10-years, to front run the Fed's purchase of 2, 3 and 5 year purchases. If that makes any sense.

Tue, 12/07/2010 - 19:04 | 787304 jmc8888
jmc8888's picture

When I watched Obama's thing, I saw his subconscious projecting the 'I'm bullshitting' by constantly bringing up analogies that were EXACTLY what I (barrack the cock) was saying wasn't happening.  Also lots of seemingly freudian slips...which can be misleading...but one after another....that's something else.

Lots of talk of compromise (as if he's done anything else).  Then his captured ass trying to say that 'it wasn't happening'.  It was really quite funny.  Parsing the words was quite easy with that complete bs speech. 

Then I looked at the bottom of the screen where they show the quotes and I saw one that amounts to a democrat saying 'everyone needs tax cuts and they are justified'  (sorry not a quote just a rough paraphrase).  It would be like a Republican says they were for welfare and capital investment or against monetary wars. 

Barrack 'the Cock' NerObummer...what a captured, twisted, fascist, nero he is. 

Trillions for the rich


13 months of unemployment insurance

Which side got 99 percent of the deal???....and the other side 1 percent?

...AND you're giving an extra 10 bucks a paycheck to the average worker, and thus the amount going into the social security coffers goes down 16.67 percent.  Anyone think we should be stealing contributions from Social Security to stimulate the economy? 

Did we mention that these are tax cut extensions, not fresh cuts (not that it matters so much anyways).  So to stop the few percentage points decreases in GDP in a failing monetary system, we made social security less solvent, and let poor fucks destroyed by the banksters get another 13 months of crackers and cheese...and the bankesters and rich people get 5 trillion.   Wow where can I turn shit into shinola like that?

Wow, can I buy a Honus Wagner baseball card for 5 bucks?  Why not, the idiots seem to get something akin to this deal.  For a crisis THEY created.

But fascist Quinn, still thinks the problem is SPENDING on NEEDED things, rather than the WASTE on bailouts, inappropriate tax cuts, bogus wars, lack of capital investment on the order of DECADES...which of course lowers our economic capability from a more optimal place.

Budgets are broke because the system is broken.  Rather than point at 1 billion broken budgets, and 1 billion non-fixes by cutting, and blame 1 billion people on how THEY fucked up by not being complete Scrooges, how about getting to the root cause of 1 billion broken budgets? 


Seems to me it's alot easier to destroy the ant hill than kill each ant individually.  Seems to me and anyone with a brain, it's better to go after the actual things destabilizing the econony rather than force everyone to bend to it. 

It's just obvious to me for at least some time now that those who have no solutions, have none because they lack the true American Spirit.  So it's no doubt that those who do not understand the SPIRIT of the CONSTITUTION, cannot come up with ANY IDEAS on how to turn our IDEALS into REAL things.  In other words, stupid people have no way of turning idealism into realism.  It's not that it's not possible.  They just lack the American spirit to do so. 

Thus you're asking the WRONG people.  Why ask a bunch of british minded monetarists that happen to be American by birth, how to act like an American in full spirit?  I know they act like a Monetarist.  But an actual American? Not really. Few and far between.  Why ask The Bernank why he doesn't institute Glass-Steagall.  Simple, he doesn't have an American spirit, he has a monetarist bankster spirit.  Remember many despots thought they were doing god's work too.

Is that a Glass in your pocket? Or is your -Steagall happy to see me?

Tue, 12/07/2010 - 20:04 | 787451 Hedge Jobs
Hedge Jobs's picture

"Austerity" coming to an american town near you in 2011!

Tue, 12/07/2010 - 20:05 | 787457 mynhair
mynhair's picture

What, they voted this crap in?

Geez......cart before the horse, and all.

Tue, 12/07/2010 - 20:32 | 787527 walcott
walcott's picture

buy physical silver whenever! There soon won't be any to be had.

Just witnessed supply evaporate within seconds last night for one supplier.


Morgans gone in an instant. Friday their flat pack 55-63 proof sets out of stock.

Don't kid yourself it's a very precious metal baby!

Tue, 12/07/2010 - 21:39 | 787707 gookempucky
gookempucky's picture

Don't kid yourself it's a very precious metal baby

So true-dealer I go to has no silver-nobody selling-his 2 main suppliers told him to pound sand.

Tue, 12/07/2010 - 21:49 | 787720 mynhair
mynhair's picture

So, did the the Irish Parliament vote?

Tue, 12/07/2010 - 23:30 | 787915 gwar5
gwar5's picture

I guess Rising interest rates have to be on the horizon at some point. 

How old is Mr. 17% Volcker? Is he young enough to make a comeback?

Wed, 12/08/2010 - 00:34 | 788063 prophet
prophet's picture

Forgive me for sticking to the topic, but the 2% cut in social security taxes means a little more goes into the 401k and the rest becomes taxable income, raising general tax revenues, reducing near term deficits and raising the social security privatization idea a notch.  Interesting that the republicans were able to pull this off having the democrats claim it was one of their ideas.  As for increasing the unfunded liability one needs to understand how paying less into social security for a year effects ones future entitlement before claiming that it increases the future unfunded liabilities. 

Wed, 12/08/2010 - 00:58 | 788095 Jim Quinn
Jim Quinn's picture

Please enlighten us as to why taking in $120 billion less SS taxes, while still being obligated to make future payments does not increase future unfunded liabilities.

Please assess the impact of the 25 basis point increase in one day on the interest on the National Debt.

Wed, 12/08/2010 - 10:48 | 788610 prophet
prophet's picture

I'm saying you have to do the math before you conclude the effect, thats all. 

I'm wondering how on an individual by individual basis cutting a persons contribution to the fund by 2% of pay will effect their future benefits.  For younger people the effect may be quite large.  It is quite possible that those people who pay reduced taxes will be getting reduced benefits based solely on their contributions and not any future changes in the program and that the net effect is a reduced future unfunded liability for those people. 

You need to have worked through the benefit calculations or tried to navigate the morass of conflicting specifications to glean some detail on the possible outcomes.  

BTW, the the social security administration absolutely refuses to provide the people getting benefits with the detailed calculations of their benefits.  There is no way for people to verify they are getting the right benefits. 

Wed, 12/08/2010 - 05:17 | 788216 blueskyscottsdale
blueskyscottsdale's picture

the numbers spin so fast you may get dizzy
