Congress has no discretionary spending left

Economists can forget about infrastructure spending.  Almost all your taxes, from now on, go to local pension stuffing, social security and healthcare workers.  There is no alternate universe that generates any budget increase for discretionary spending.  Hence, G no longer does price discovery, not the Swamp, or the Yawkers or the Californians.

Another result, the consumer collapse, here is a fair review of that

Economy and Markets: Lately, retail has been on my mind. When I am traveling or out shopping with my wife (I don’t buy anything but she sure does!) I love to people-watch and see what they’re up to. I see a lot of people walking around the mall but not too many arms filled with shopping bags. Maybe they’re there for the exercise.

Last week I talked about how Wal-Mart is a great economic indicator since everyone shops there, and the fact that they disappointed earnings can’t mean anything good for the economy.

And while Wal-Mart’s problems may not be due solely to weak consumption, it’s doubtful the economy’s as strong as ivory tower economists believe it to be. Because from the looks of it, a few other retailers have dropped earnings bombs.

The consumer pays for the entitlements, ultimately.  They are at the end of the supp;y chain.