imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Subscribe Calendar Publish RSS
Tell the NSA: StopWatching.US

Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

CopWatch LA

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List





IMC Network: www.indymedia.org 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 - json version - email this article - view hidden posts - tags and related articles
link:

Fiscal Cliff Reality

by Stephen Lendman Saturday, Dec. 22, 2012 at 11:34 PM
lendmanstephen@sbcglobal.net

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 lendmanstephen@sbcglobal.net.

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

http://www.claritypress.com/LendmanII.html

Visit his blog site at sjlendman.blogspot.com 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.

http://www.progressiveradionetwork.com/the-progressive-news-hour

http://www.dailycensored.com/fiscal-cliff-reality/
Report this post as:
Share on: Twitter, Facebook, Google+

add your comments


Local News

Protest Israeli Shelling of Gaza J21 1:58AM

#SaveTheInternet Rally J20 11:24AM

PACIFICA is shify-ing more J18 8:55PM

Radical Women Study Group J16 4:43PM

KIDS REPLANT WILSHIRE FRUIT TREES UPROOTED BY VANDALS J16 2:34PM

Emails Needed by Thursday, July 17 to Save the South Central Farm (Again) J15 4:40PM

Is AFT Pres Weingarten On The Take? J12 7:45AM

LA Living in Vehicle Law Found UnConstitutional J11 12:22PM

KPFK News covers the Che Cafe struggle J10 9:33PM

Public Comment on South Central Farm Site J07 10:44PM

Successful Protest at new Burbank Hobby Lobby on 4th J06 5:17PM

Protesters Violently Arrested in Murietta J05 12:44AM

Gallery Opening Highlights Journalist’s Creativity, Insights, and Passions J03 11:52AM

Indymedia On Air - Che Cafe show J02 10:27AM

Save the Che: Letter from Zack de la Rocha J29 8:47PM

Political Thriller Citizen Koch Premieres in Los Angeles J28 2:35AM

Veteran and Families of Military hold Press Conference J18 7:36AM

Furious Homeowners Occupy Lobby of Fannie Mae in Pasadena J16 4:15AM

Change Links Revival J12 12:09PM

Election Day with Occupy Los Angeles: Know Your Rights Juror Education Rally J05 9:39PM

United We Stand Festival Ignites a Wave of Action for Indy Journalists and Active Citizens J05 7:36PM

San Pedro Born Activist Yuri Kochiyama Dies J02 12:04PM

NEW REPORT EXPOSES GOVERNMENT SPY NETWORK USED AGAINST OCCUPY MOVEMENT M28 10:14PM

Producers/Community Oppose Cancellation of MM M26 7:06PM

Black Flag "Nature of Anarchism" Special Issue Now Available M26 6:32PM

An Open Letter To Sonali Kolhatkar, Host Of Uprising On KPFK M26 5:46PM

Los Angeles community members unite in Hollywood to #FarmLA and Plant Against Monsanto M26 3:37PM

Venice Beach: Over 500 students and local community leaders march against violence M24 7:22PM

More Local News...

Other/Breaking News

Capitalism and War: Pope Francis J22 4:18AM

Geekouts Link's for June and July 2014 J22 1:14AM

ADI holds Week of Action Against Circus Suffering J21 11:41AM

phantom protests J21 7:35AM

Précis de la tyrannie ou les 64 bourgeoisies J21 3:32AM

The Abiding Economics of John Kenneth Galbraith J19 3:19PM

The Word J18 1:12PM

Burn Cut Poison: Toxic Trillion Dollar Cancer Industrial Complex Of Radiation, Surgery, Ch J18 10:17AM

Abrégé de déictique J18 2:04AM

The Shortwave Report 07/18/14 Listen Globally! J17 2:54PM

carta a mi hija J17 1:40PM

SANTA MONICA ACTRESS TANNA FREDERICK TO VIETNAM TO INSTALL WATER FILTERS J17 11:21AM

Nationwide Air Conditioning and Heating Company Hiring in Southern California J17 9:18AM

Ariz. law enforcement: Marijuana shouldn't be legalized J16 5:27PM

Philippines: 5 Makabayan bloc legislators got P481M pork barrel J16 1:31AM

Lauren Kuby - Harry Mitchell - Tempe City Council J15 1:48PM

The Average Vegan Weighs 23 Lbs Less Than The Average Nonvegetarian J15 9:08AM

TTIP Undermines the Constitutional State J15 7:03AM

5,000 Show up in los Angeles Rally J13 7:40PM

Andrew Myers wants dispensaries to have monopoly on growing marijuana??? J13 8:22AM

Protest against Jewish terrorism & genocide in Palestine J12 7:28AM

israel training Georgia police J12 7:22AM

Paraphysique du capital J11 2:26AM

The Shortwave Report 07/11/14 Listen Globally! J10 5:29PM

Those missing IRS emails??? J10 8:16AM

Free Trade Agreement: Special Rights for Corporations J10 5:53AM

Castoriadis_pdf_Library J09 7:44PM

Tom Hanks- Tom Hanks: The CIA's Guy in Hollywood J08 4:26PM

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