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We will go over the "fiscal cliff", and here's the reason why.

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posted on Nov, 30 2012 @ 06:51 AM
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Let me start by saying that my political leanings are as a social moderate and fiscal conservative.

President Obama yesterday proposed:
1. $1.6 trillion in tax increases
2. $400 Billion in spending cuts but wouldn't provide any specifics on where they come from
3. $50 Billion stimulus (I don't understand why since the economy is doing so "good")
4. Give the President the authority to raise the statutory debt limit without approval of Congress.

He knows full well the the Republicans won't accept this and did it on purpose. The 2 political sides are so far apart that they won't come to agreement before Dec 31 of this year. So tax rates will go up for ALL taxpayers on Jan 1, 2013.

In addition, Sequestration kicks in on Jan 1, 2013.
This means that the government has to start cutting spending:
1. $500 Billion in defense spending over 10 years
2. $700 Billion in non-defense spending over 10 years.
This will result in a large number of layoffs in various industries, especially those that are defense related.

And, (oh by the way), the statutory debt limit will be reached sometime in late December of this year. That means the government can't borrow anymore money. The Treasury estimates that they can move money around for about 8 more weeks without borrowing to prevent the government from "shutting down". That puts it around the first of March, 2013. The Republican House won't approve an increase in the debt limit until taxes are rolled back and a corresponding decrease in spending are agreed upon.

So my conclusion is that starting Jan 1, ALL taxpayers will start paying more taxes, numerous layoffs will start occuring and the economy will start heading south again, i.e. double dip recession.
Come March, the government will start shutting down. How long this lasts I don't have a clue. However, I believe it will last long enough to cause significant pain to a large majority of americans.
The President will now agree to lowering taxes and decrease spending so that that the debt limit can be raised.

Why will this happen?
Because the President doesn't really care about the next 2 years. He is looking forward towards 2014 and getting a Democratic controlled House. He figures that he can blame the Republican controlled House for the government shutdown and pain felt by the majority of americans.
Once he has that, he can move forward with his socialist/liberal agenda.
Any thoughts?




posted on Nov, 30 2012 @ 07:24 AM
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I agree with most everything you said except the "double dip recession". You can't double dip if you never left recession. Only outright lies make anybody think we ever left recession. There has been no real job growth, and the so called economic growth, anemic as it is, is a fabrication. It is an illusion caused by speculation to which the market reacts as though "something real" has happened.



posted on Nov, 30 2012 @ 07:29 AM
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reply to post by DarthMuerte
 


I don't disagree with you about the double dip. I was just using the government's official position as to us not being in a recession



posted on Nov, 30 2012 @ 08:19 AM
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I have a feeling they (as in both sides) are letting this thing go to get out of the Bush tax cuts extension and still save face with their "lofty" constituents.

It goes over the cliff, the Defense gets cut (which 500 billion over ten years is not that big of a deal)...the other cuts...not specific, but do not care...needs to happen. We have got to balance this budget if we are serious about not enslaving our children and grand children with impossible debt.

Congress can then immediately pass a tax cuts for middle income citizens and make it retroactive...yes...the can do that.

They are going to do this to stop Grover Norquist and his cronies from giving the Repubs a black eye for yielding on dropping the Bush tax cuts. If it goes over the cliff, they will be poised to pick and choose what to legislate as "new" and what to let go.

Dog and pony show....erm..."Elephant and Donkey" show.

Stimulus? Yeah that has worked. But...it is the equivalent of one years worth of defense spending that is being cut...and being someone who works in construction engineering, they actually do NEED to put some money into our infrastructure. (Get the point...cut the defense, use that money somewhere else?)

Money is cheap right now. You can pay now to fix it or pay more later to replace it...pretty damn simple actually.
edit on 11/30/2012 by Jeremiah65 because: (no reason given)



posted on Nov, 30 2012 @ 08:31 AM
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reply to post by fltcui
 


You are not mentioning anything that most of us that keep track of the economy already know.

Now thanks for putting it in very nice terms for those that do not understand what is happening can see it better.

US deficit and spending budget is unsustainable and have reached a point in time from where it can not return.

One thing you are forgetting is that amid all the "proposed" scam of taxes and cuts, the Fed ability to infused billions of dollars that add to trillions yearly, into the Wall Street banking elite is not even addressed, as today is been secret close doors meeting in which Wall Street wants more.

Sadly but truth, America government taxing more the working class with the unspecified ways to cut spending but promises only will add more burden on the tax payer.

Yes, January is going to be the beginning of massive lay offs for government as part of the already budget cuts within the government from last July.

That is why the president is so much into extending infusion of funds to aid the jobless, help hard-pressed homeowners and perhaps extend the expiring payroll tax cut coming January is going to be a lot of people in need of financial help, they see the tidal wave of more unemployment and they want to look like they care.

What a scam we got of government, this is not just one side but both side of the elite ruling class that has taken hold of our nations Capitol.

Americas economy is nothing but an illusion and illusions are nothing but fake realities.



posted on Nov, 30 2012 @ 11:01 PM
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There is no fiscal cliff, just some made-up well sounding marketing trick to pass more cuts in programs and more gifts to those who ship our jobs overseas to slave labor camps.

And yes, we will go over it because this will wipe the slate clean. Obama will win out of this because he'll keep pushing for only the 98% tax cuts and if the R's will go on record to vote against it they will be screwed.





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