imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Subscribe Calendar Publish RSS
latest news
best of news



CopWatch LA


A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List


IMC Network: africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech
printable version - js reader version - email this article - view hidden posts - tags and related articles

Fiscal Cliff Reality

by Stephen Lendman Saturday, Dec. 22, 2012 at 11:34 PM

class war

Fiscal Cliff Reality

by Stephen Lendman

Political Washington theater continues. Republicans and Democrats agreed years ago to erode America's social contract en route to eliminating it altogether.

Crisis conditions create opportunities. Former White House chief of staff, Rahm Emanuel, explained.

"You never want to let a serious crisis go to waste," he said. "What I mean by that is that's an opportunity to do things you couldn't do before."

He didn't mean populist ones. He had harsh neoliberal ones in mind. They're institutionalized. Ordinary people and America's most disadvantaged suffer most. The worst is yet to come.

Both sides agree. They're on board to give bankers, warmakers, other corporate favorites, and super-rich elites a bigger piece of the pie. Getting it depends on stealing it from most others. It's happening in real time. Grand larceny writ large looms.

Washington scoundrels also want more money for corporate America, for super-rich elites, to militarize space, fund America's imperium, and wage global wars on humanity. Fiscal cliff hype hides their real agenda. It's hugely ugly, destructive and repressive.

So-called negotiations, headlines, and hype are noise. Both sides will choose their time, place, and explanations to announce final deal terms.

December 31/January 1 are fictitious deadlines. Cuts can come any time. They can be made retroactive to yearend. One deadline alone matters.

On March 27, America runs out of money. It's when debt ceiling limit is reached. US law requires Congress authorize borrowing amounts to fund federal programs.

Doing it means raising the ceiling by late March or sooner. Agreement in principle is baked in the cake. Announcement can come anytime before March 27. Expect details to be finalized along the way.

Corporate approval sealed a done deal. Promised tax cuts bought support. Neither side of the isle dares disagree. Pre-holiday headlines conceal more than they reveal.

"Boehner Cancels Tax Vote in Face of GOP revolt," said the New York Times. The Washington Post headlined "Bonner abandons plan to avoid 'fiscal cliff.' "

"Boehner's 'Plan B' Collapses," said the Wall Street Journal. Claiming rebellion in Republican ranks is nonsense. Worse still are hyped fears about tumbling over the fiscal cliff.

Brinksmanship is for show and headlines. The Congressional Budget Office (CBO) estimates a 4% GDP hit without agreement by both sides.

Cancelling Thursday's vote was tactical. Both sides remain on board in principle. Agreement in some form can come post-Christmas, post-New Year's or later. March 27 is the only deadline that matters. Expect no problem reaching it in time.

Why act now when doing so looks like capitulation. Toughmindedness keeps party faithful loyal. As long as corporate bosses remain on board, resolution will come in time to avoid trouble.

Fiscal cliff hype is political and media scoundrel deception. In reality, no short-term apocalyptic times loom. Suggesting it is doublespeak duplicity. Scare headlines comes at the expense of reality.

Most people don't understand so they believe them. They'd know otherwise if they relied on legitimate alternative sources for news, information and analysis.

Media scoundrels avoid it. They and politicians thrive on deception. It's prioritized to pursue policies benefitting America's 1% at the expense of all others.

In its November 2012 report, the CBO estimated a $503 billion 2013 economic hit if tax cuts expire and spending cuts become effective January 1. Another $682 billion will follow in 2014.

Only $85 billion in 2013 represents spending cuts. It amounts to $20+ billion per quarter. It's matters little in a $15 trillion economy. In 2013, it's expected to exceed $16 trillion.

The other $418 billion represents expiring Bush era tax cuts and ending the 2% payroll tax holiday.

Imposing it was a stealth scheme to drain hundreds of billions from the Social Security Trust Fund. Doing so irreparably weakens its ability to pay future benefits.

Assuring it or creating that impression remain policy. At issue is  wrecking the program. Privatizing may come first. Medicare and public pensions face similar threats. So do Medicaid, education, food stamps, and other social safety net protections by other means.

Dark forces never rest. Their bottom line is thirdworldizing America. They're on track toward doing it.

Increasing or cutting taxes have little economic effect. Mainstream economists understand but don't explain. Nor do media scoundrels. They prefer scare tactic headlines.

Productive economic investment matters most. Job creation relies on it. Incomes are generated. When people have money they spend it.

Tax cuts corporations got were hoarded. Corporate America has $2 trillion stashed away. It's largely not invested. Throughout 2012, business investment declined.

Other amounts are used for stock buybacks, acquisitions, dividends, offshore activities, and speculation.

It bears repeating. Fiscal cliff hype is nonsense. What matters is how what's planned affects economic activity in 2013 and longer-term.

Harming it domestically will be exacerbated by rapidly declining global manufacturing, trade and exports. Economist David Rosenberg worries about a troublesome "sea of uncertainty."

Major global debt imbalances aren't resolved. The world is awash in excess labor and product markets capacity. Without business investment, growth isn't possible. Decline continues.

Force-fed austerity exacerbates it. It's counterproductive when stimulus is needed. At the same time, money printing madness creates the illusion of prosperity or efforts made to restore it.

Bernanke committed to fund America's growing deficits. He'll buy half of new government debt issuance next year. Interest rates will stay near zero.

Expect this madness to work until it doesn't. The fullness of time will explain when. When day of reckoning time arrives, the mighty will tumble with others.

The entire financial system may crash. Crisis conditions may exceed the worst of 2008. Harder than ever times may follow. They'll likely persist long-term.

It's hard imagine prospects this grave aren't addressed responsibly. It should have been done years earlier. Doing it now is key. Instead, politicians in league with corporate bosses want maximum shorter-term gains at the expense of letting the devil take the hindmost.

In 2013, greater economic drag will deepen. Expect it to continue in 2014. It'll persist longer-term. That threat is real. Fiscal cliff hype is fake.

Deal terms will be announced. Whether this year or early next doesn't matter. Bipartisan agreement assures harder than ever hard times. Political solutions exacerbate real problems.

Instead of addressing them responsibly, they'll persist. Ordinary people will be hardest hit. America's social contract will be shredded. That's what fiscal cliff hype is all about.

Stephen Lendman lives in Chicago and can be reached at

His new book is titled "Banker Occupation: Waging Financial War on Humanity."

Visit his blog site at and listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.
Report this post as:
Share on: Twitter, Facebook, Google+

add your comments

Local News

Public art project aspires to save California N18 3:42PM

Songwriter, Author, Philanthropist P F Sloan Died On Nov 16 N17 4:48PM

A Plea For Support From Will B N15 4:23PM

10 Shocking Realities of the TPP N09 4:47PM

KPFK needs your VOTE ! or lose it. O31 4:51PM


KPFK is losing and reducing it's main programmers, so can Fresh ones emerge there instead? O26 5:58PM

Fall 2015 National Immigrant Solidarity Network Monthly News Alert! O26 7:58AM

A master-plan is needed to support renter protections in Northern California, & elsewhere O25 9:48PM

KPFK Updating: a coup? or failure? or.... O25 5:04PM

Kapparot Chicken Slaughter Causes Outrage: Activists Demand Change O06 1:59PM

Update on WHAT IS HAPPENING AT KPFK and what can be done & elections O05 12:39AM

A Letter (sent) to L.A. Slut Walk O03 12:51PM

Protesters Enact Symbolic "Die In" to Unwelcome Narendra Modi to Silicon Valley S28 3:52PM

More Local News...

Other/Breaking News

Parangon d'une grande infestation N26 11:03PM

The Shortwave Report 11/27/15 Listen Globally! N26 3:56PM

An humble opinion N26 1:59PM

Activistas de los Derechos Humanos Unen Fuerzas en Honor al Derecho a la Democracia N25 3:13PM

VIDEO: What "Orwellian" Really Means N25 1:49PM

US Forces South Africa To Import Sick Birds N25 9:10AM

Presidential Candidates Criticize Pfizer Merger N25 8:19AM

Turkey's Downing of a Russian Fighter Jet Moves the Doomsday Clock Very Close to Midnight N25 5:46AM

NATO is harboring the Islamic State N25 4:43AM

Paraphysique de l'Etat d'urgence N25 1:23AM

Casino Capitalism and Profit Maximization N25 1:18AM

Democracy Now, Military Times, Guardian Articles On Soldiers Refusing To Drop Drones etc N24 9:10AM

First Amendment Under Covert Attack N23 6:27PM

Insanity of the police/fbi community N23 1:35PM

No to Racism and War! N23 6:02AM

(A-Radio) Northern Europe 1: Musta Pispala festival in Finland N23 12:36AM

Paranoïa ou la vérité d'une société N22 11:54PM

Wicked fbi and their mischievous police friends N22 11:22AM

“None Dare Call It Conspiracy:” How U.S. Elites Made Islamist Militants the New Red Menace N21 5:05AM

Monsanto Patenting World's Seeds, Controlling World's Food, Causing Cancer, Killing Bees, N20 9:59AM

Indigenous Hispanic areas also Economic Rights US N20 8:14AM

Paraphysique de l'hybris pirocratie N19 11:44PM

The Shortwave Report 11/20/15 Listen Globally! N19 5:07PM

(A-Radio) Eastern Europe 5: Anarchist Black Cross Warsaw N19 2:20PM

Paraphysique de lapalissade N19 6:17AM

Paris Attacks - Bourgeois Terrorism N18 2:03PM

Declarations of Independence N18 9:35AM

(A-Radio) La FAGC y la comunidad de La Esperanza - un proyecto de vivienda anarquista N18 7:18AM

More Breaking News...
© 2000-2003 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy