Must-read of the week: The White House unveils new plan to slash federal deficit

By The Daily Crux:

Earlier this week, a White House commission revealed a plan to reduce the federal budget deficit by hundreds of billions of dollars a year, or $3.8 trillion over the next 10 years.

We're all for cutting the size and cost of the federal government , but it's important to realize the projected annual deficits over the same period total $7.7 trillion... meaning the government will still be adding another $4 trillion to the $13.7 trillion and growing federal debt.

It's also important to note that while 75% of the savings come from cuts to Social Security, Medicare, and defense spending, 25% comes from increased taxes... most of which are expected to target the middle class.

Naturally, the plan has drawn criticism from both liberals and conservatives... and highlights just how unlikely it is any meaningful reductions to the deficit will be passed.

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More from Washington:

Gov't budget expert reveals U.S. debt far worse than Greece

Obama shocker: White House now in talks of reducing taxes

Gov't OUTRAGE: Fannie and Freddie to were paid to "manage" the Wall Street bailout

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Must-read letter from top manager Jeremy Grantham

From Pragmatic Capitalism:

In his latest investor letter, Jeremy Grantham makes my rants against the Federal Reserve look like child’s play:

If I were a benevolent dictator, I would strip the Fed of its obligation to worry about the economy and ask it to limit its meddling to attempting to manage in?ation. Better yet, I would limit its activities to making sure that the economy had a suitable amount of liquidity to function normally.

Further, I would force it to swear off manipulating asset prices through arti?cially low rates and asymmetric promises of help in tough times – the Greenspan/Bernanke put. It would be a better, simpler, and less dangerous world, although one much less...

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More from Jeremy Grantham:

Jeremy Grantham: Stocks are seriously overpriced

Jeremy Grantham: Lessons every investor should know

Top manager Grantham makes huge bet on blue chip stocks

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Must-read: Market veteran Art Cashin on the coming hyperinflation

From Zero Hedge:

We present today's thoughts by Art Cashin on the coming hyperinflation (and no, it does not mean very high inflation - it means a complete and total collapse in the monetary system - which is what Ben Bernanke is attempting to achieve), without commentary.

AN ENCORE PRESENTATION

(Today we will revisit one of the most devastating economic events in recorded history.It all began with the efforts of a few, well-intentioned government officials.)

Originally, on this day (-2) in 1922, the German Central Bank and the German Treasury took an inevitable step in a process which had begun with their previous effort to "jump start" a stagnant economy. Many months earlier they had decided that what was needed was easier money. Their initial efforts brought little response. So, using the governmental "more is better" theory they simply created more and more money.

But economic stagnation continued and so did the money growth...

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More on hyperinflation:

Buy gold, silver, and tiny bottles of scotch

Legendary trader Vic Sperandeo sees serious risk of hyperinflation

Porter Stansberry: U.S. is headed for one of the worst inflations in history

View the original article here