The hype about the fiscal cliff includes some bipartisan agreement that austerity measures need to be taken or we will fall "off the cliff". The Republicans want big cuts on Medicare, Social Security and other safety net programs that are vital to these fixed income populations. The Democrats want smaller cuts to these same programs, appearing to be the "nicer" of the two slashers. Once again we're stuck between the worst evil serial killer John "Freddy Krueger" Boehner and lesser evil Barack "Jason Voorhees" Obama and either way we can expect the feel a slicing blade on our skin sometime next January. Notice there are no voices of reason saying that maybe we shouldn't be cutting into the flesh of ANY of the social safety net programs and just tax the top 5% of the wealthiest citizens, end corporate subsidies and then close a few of our many overseas military bases that are completely useless and are wasting taxpayer dollars (Chile, Germany, etc...) as suggested by Ron Paul.
We the people will fight the politician serial slashers and use their own bladed weapons against them. We are working on rebuilding the guillotine to deal with our own out of control bipartisan royalty exactly as was done by Maximillien Robespierre and the Jacobins during the French Revolution.
"The ‘Fiscal Cliff’: where do they get all these non-issues?"
by Anthony Migchels on December 21, 2012
"While the self-declared ‘awakened’ claim victory through the ‘Internet Reformation’, the Money Power continues its relentless drive towards a long term global depression, setting the stage for the collapse of the American Empire. The West is to be ‘realigned’ to submit to deindustrialization and living standards comparable to that of the BRIC nations. The ‘Fiscal Cliff’ is just a good excuse to force through destructive austerity measures that will further the deflation in the economy.
The ‘Fiscal Cliff’ is a set of mandatory spending cuts and tax hikes if Congress does not raise the Government’s statutory spending limits. The debt ceiling will also have to be raised to allow the Government to borrow enough to finance its budget for 2013.
Of course, in itself this is not very exciting. But if the GOP folks do not work with the Democrats, the Government will be forced to cut spending drastically overnight. This would mean a substantial drop in demand in the domestic economy and economists expect a 3% decline in economic activity as a result, which would be pretty disastrous.
More important is the deficit that needs financing, which is projected to be about 1 trillion over 2013, or 5.5% of GDP. Is that deficit a problem?
Yes and no.
It’s a problem because it is caused by some truly insane spending.
Medicare is just a subsidy to the diabolical pharmaceutical cartel that is making trillions per year world wide with poisoning people with vaccinations, chemo therapy, radiation poisoning and many more terrors. It is killing as many as 760 thousand Americans per year in the process. Natural healing based on spiritual wholeness, diet, exercise and energy therapy would heal 99% of the sick at a fraction of the cost.
Worse still is the maintenance of the American Empire, costing about 1 trillion per year. The United States spends more on war and Imperialism (‘defense’) than China, Russia, France, Germany, Japan, Britain, Israel, India, Brazil and scores of other nations combined. Hence, presumably, the ongoing need to ‘rebuild America’s defenses’.
True, the Empire is far less lethal than allopathy, but it is an abomination nonetheless.
Furthermore, the Government pays 450 billion per year in debt service to the Chinese, the Japanese and the International Banking Cartel. While it could refinance the debt overnight interest-free and inflation-free via the Federal Reserve bank. Of course, that would damage the business case of Barclays, Bank of America, Citi Bank and others, who happen to own the Federal Reserve Bank.
But purely financially speaking, there is no problem. The Federal Reserve Bank buys up about 90% of whatever the Treasury is offering the Bond Market. There are no other buyers. The Asians are tired of America and the banks are not lending. This means that all new debt is financed interest-free. The Federal Reserve takes a very low interest rate on the Treasuries at the moment, and the Fed, since the sixties, pays back all profits it makes to the Government anyway, meaning any interest the Government pays is reimbursed.
This means that the Government can continue these deficits basically indefinitely.
But….but….musn’t our kids pay this debt back?
No, the debt will never be paid back, because it is our money supply. If we pay off the debt, we would lose our money supply. Furthermore, the problem is not debt, it’s Interest. Even Greece could pay off all its debts in 20 years if it used what it loses to debt service now to repay the debt.
If we ever chose to pay off the debt, we will simply print enough debt free money to pay it off. This would maintain the same money supply, but debt free.
True, all the serious looking pundits are now explaining for the umpteenth time that ‘everybody knows you cannot spend more than you take in’ and while they do not explain why they did not think of this before they incurred all the debts, this narrative does have a certain allure to the common man.
The problem, however, is that if the Government seriously diminishes spending this just feeds the deflationary spiral that we are already in: it would mean even less demand in the economy. For instance: the recent budget cuts of 16 billion that the Dutch Government recently promised, have been calculated to imply 12 billion less income for the State next year because of declining economic activity as a result of the cuts. It is the same nonsense that has destroyed Greece and Ireland. That’s the insanity on steroids that Ron Paul was selling as ‘the power of ideas’.
And inflation? Does all this borrowing not lead to rising prices?
Ah, yes. Inflation……
Throughout the 19th and 20th centuries the bankers have been scaring us with the inflation bogey man, hiding that money was and is actually scarce. And since the Money Power’s gold dealers took over the ‘Truth Movement’ (which they are now renaming the ‘End the Fed Movement’) through all the libertarian outlets masquerading as the ‘Alternative Media‘ they have been badgering us with the same drivel too.
To begin with: inflation does not mean ‘rising prices’, it means ‘a growing money supply’. A growing money supply can lead to rising prices, but rising prices can also be caused by other problems. Supply shocks for instance. Oil comes to mind when thinking of those.
Similarly, deflation means a declining money supply.
And the fact is: there is no inflation. We are in a crushing deflation. The money supply is crashing.
This graph shows the decline in credit flowing through the shadow banking system. A truly crushing deflation.
There is a massive deleveraging going on. People, both in the real and financial economy, are paying off debts, and every dollar repaid to the bank is a dollar less in circulation. That’s one of the implications of a debt based monetary system, after all.
Worse still: the velocity of circulation has imploded since the crunch started. This means that every dollar in circulation changes hands less often, making them less effective. A dollar spent twice finances 2 dollars of trade per year, if it goes around just once, it pays for only 1 dollar of trade. Have a look at the data on velocity below and try to grasp what this means for the economy:
As you can see velocity almost halved (!), meaning a slump of almost 50% in the ‘real money supply’, which is defined as money supply times velocity.
Don’t tell me prices are not rising!
Prices are not rising.
If you look at housing and financial assets, they’re all down big time since their peak in 2008.
However, prices for energy and food are rising, there is no doubt about that. This is not caused by inflation (a growing money supply) but by speculation by that special breed of Satan’s critters we call ‘speculators’. Billionaires, Hedge Funds and investment banks, driving up prices for commodities, especially oil and food. This is a double whammy for the economy: strapped for cash and credit, and rising prices in the primary sector (agriculture and mining) that eventually force their way throughout the economy. Oil prices are further pressured up by the Zionists in the Gulf of Hormuz, which just shows how elegantly the broader Money Power strategy comes together in its various projects.
This combination of depression through deflation (a crashing money supply) and rising prices through speculation in the primary sector is called ‘stagflation’ and we discussed it here some time back.
But aren’t the Fed supposed to be some soulless ghouls?
Of course they are.
But in the scenario under discussion, the Fed is just doing what one expects from a normally operating national bank.
The real depravity of the Federal Reserve Bank and the Cartel at large is shown in the astounding 16 trillion in easy credit it handed to hundreds of major international banks at close to zero rates in the aftermath of Lehman’s demise. Citigroup alone got a mind numbing 2,5 trillion in credit lines, only a small fraction of which apparently has been repaid since.
This is where the crime is and also where real inflationary pressures might come from, although much has gone to simply prop up busted balances, and thus not adding to the money supply.
The Money Power wants a massive, global depression. In Europe it’s organizing it through the Euro ‘Crisis’, ‘forcing’ the Governments into self defeating austerity, aggravating an already catastrophic deflationary nightmare. The United States is in a much better position, because the Federal Reserve is just buying up all the US debt for basically nothing. This, the ECB cannot do. Until recently, anyway, because it means Germany and the other northern nations are underwriting southern debt.
The ‘Fiscal Cliff’ hoax is exactly the kind of excuse they need to ‘look responsible’ while furthering the wider agenda. It’s completely bi-partisan. Whether you have a black democrat coke snorting, mass murdering sodomite banker stooge in the White House, or a white republican one does not matter.
Both are Goldman Sachs property.
It does not matter whether they let the ‘cliff’ transpire, or whether they ‘compromise’ with drastic cuts for the coming year: the effect will be crashing demand in the economy, furthering depression.
They’re only bickering about the details. Whose voters will pick up the tab? The Democrats in California, or the Republicans in the South?
Eventually America will be busted in the Middle East and they will lose their petro-dollar based hegemony. This is when a new monetary system will be introduced. The only questions are how big the bang will be with which the US will go down and if the new system will be World Currency or the final preliminary one.
The ‘Fiscal Cliff’ is just one of those many non-issues facilitating the way forward." http://realcurrencies.wordpress.com/2012/12/21/the-fiscal-cliff-where-do-they-get-all-these-non-issues/
"The “Looming Fiscal Cliff” Is a Hoax: Tax Reform As Wealth Privatization Scam & The Phony Crisis Industry
”Nothing’s “looming.” Nothing. There’s just some language in a law Congress passed last year. If they don’t want it to happen they can un-pass that law. It’s a simple as that. And do you want to know something? They don’t want it to happen. It’s a part of a long-range plan to scam the public into transferring even more of its wealth to the wealthiest among us: first by giving them lower tax rates, and then by cutting a program the public has already paid into. That way there’ll be less pressure to increases taxes on the wealthy later on. (They may also want to raid Social Security’s trust fund to pay for the deficits caused) -Richard Eskow. While the President meets with senior banking corprocrats to discuss how to avoid the latest manufactured crisis, corprocrat controlled media outlets avoid discussing the obvious and easy means to avoid austerity cuts. Probably because both parties have agreed that austerity is necessary. Especially on public programs that are not contributing to deficit like Social Security. How long will Demopublicans engage in their latest farcical dance masquerading as “negotiations” before they decide to sell their country to the highest bidders? “Ignorance Is Strength”
By Richard Eskow @ The Campaign For America’s Future:
They’re dashing through the corridors of power in Washington with appropriately grim expressions this week. Congressional leaders are talking about the upcoming ‘fiscal cliff,’ which journalists are dutifully describing as a “looming crisis.”
In fact, if you do a Google News search for articles containing the words “fiscal cliff” and “looming” you’ll get 72,000 hits (as of Wednesday evening). We know because we tried it.
But nothing’s “looming.” Nothing. There’s just some language in a law Congress passed last year. If they don’t want it to happen they can un-pass that law. It’s a simple as that.
And do you want to know something? They don’t want it to happen.
This phony crisis is a lot like this scene in Mel Brooks’ Blazing Saddles, where Cleavon Little as The Sheriff pretends to take himself hostage to escape an angry crowd. You may remember the gag line, which included a word we won’t use: “Nobody move or the $^((*&^(* gets it.”
Brooks crafts his throwaway lines pretty carefully, too. Look for the earnest man who says “I think he means it,” or the woman in the crowd who says “Won’t somebody help that poor man?”
Here’s how the “fiscal cliff” scam’s being played: Congressional Republicans are holding the guns to their own heads. Democrats are the town leaders, dutifully laying their weapons down.
And the American media are the gullible townfolk, carefully writing in their notebooks about the “looming” threat to their sheriff.
Viewers of MSNBC know that progressives like Chris Hayes and Lawrence O’Donnell are dutifully trying to remove the word “cliff” from the nomenclature, since the effects of this law would be gradual — more like a “slope,” as they said the other night. They’re right about the “slope” part.
But it’s a tactical mistake to even engage in this kind of discussion, because there’s really no “slope” either. There’s just a law.
John Boehner’s law.
Sure, the President agreed to that law as part of a deal to settle deficit talks last year. At the time the Republicans were about to shut down the entire government. The GOP forced this law into existence.
That means the “fiscal cliff” is theirs. They own it.
Anyone who opposes disastrous, European-style austerity measures needs to stop talking about this in urgent terms. And nobody should characterize it as anything but what it really is: A deed performed by Republicans in Congress, which the same Congress can easily reverse.
That’s not just more accurate. It also places the responsibility for this pseudo-crisis exactly where it belongs.
A Gun to the Head
The motives for the hoax are easy to understand. As a Campaign for America’s Future/Democracy Corps poll reaffirmed after the election, the public overwhelmingly opposes any of the fiscal measures being negotiated as the result of this fictitious “crisis.” A majority of voters, cutting across party lines, opposes virtually all of the ideas being discussed – including cuts to Social Security and Medicare benefits, and reductions in anti-poverty programs.
Voters strongly support some steps that aren’t being debated because of this phony “crisis,” like increased investment in jobs and economic growth. These negotiations are likely have the opposite effect instead, leading to more cuts in these programs. In fact, of the many “debt deal” provisions being debated today, only tax increases for the wealthiest Americans have the majority’s approval.
No wonder Congressional Republicans are holding a gun to their own heads.
Unfortunately it’s pointed at our heads too. If Republicans get their way the entire country will be hit with austerity cuts that increase the poverty rates, hurt most people’s standard of living, and create even more unemployment.
This phony crisis is the GOP’s way of saying “Nobody move or the country gets it.” And if the public doesn’t make its voice heard, it will.
Here’s more proof that both the “fiscal cliff” and the “emergency” deficit talks surrounding it are a fraud: They include two issues that don’t belong in a deficit discussion at all. One’s Social Security, which is forbidden by law from contributing to the national deficit.
The other is the scam known as tax “reform” and “tax code simplification” – which, in plain English, means a lowering of top tax rates for millionaires and billionaires – supposedly in return for reduced “tax expenditures” and increased “tax revenues” to be named at a later date.
Why would deficit talks include two ideas that won’t reduce the national debt, especially when “tax simplification” will undoubtedly increase that debt substantially? That’s an easy one: Because this phony “crisis” has nothing to do with deficits.
It’s a;; part of a long-range plan to scam the public into transferring even more of its wealth to the wealthiest among us: first by giving them lower tax rates, and then by cutting a program the public has already paid into. That way there’ll be less pressure to increases taxes on the wealthy later on. (They may also want to raid Social Security’s trust fund to pay for the deficits caused by their tax breaks.)
These “deficit” moves would transfer even more of our national treasure to the extremely rich – including those on Wall Street who created our economic crisis in the first place. That, and not a “fiscal cliff,” is what’s “looming.”
The Phony-Crisis Industry
In the past the President has sometimes seemed willing, even eager, to press for a larger “Grand Bargain.” He’s taking a tougher line today, especially about taxes on the wealthy, and should be applauded for that. He should also be urged to take an equally strong position on Medicare and Social Security, which he hasn’t done yet.
Everyone involved needs to understand that, thanks to some new fiscal and electoral math, the anti-austerity team is holding the winning hand now.
It’s true that a tougher Presidential stand would disappoint some people, especially the highly-paid professional “deficit hawks” from both parties. That includes people like former Clinton White House functionary Erskine Bowles, who ghoulishly described this artificial crisis as a “magic moment” to impose austerity measures on the American people.
Bowles is a Director of bailed-out investment bank Morgan Stanley. That means that, unlike most Americans, he would do very well under the lower tax rates proposed in these “deficit” discussions.
A repudiation of this pseudo-crisis would also embarrass professional scaremongers like Douglas Holtz-Eakin, who warned of “big financial market repercussions” if the nation goes over the “cliff.” But we haven’t seen any repercussions before.
The word for talk like that is “nonsense.” (Well, that’s one word for it.) Nobody’s going over any “cliff,” least of all the Republicans.
Let’s be clear: It would be a bad thing if the provisions in this bill took effect for any length of time. But it’s time to call Boehner’s bluff. Good Democrats can’t let themselves be railroaded into austerity by this phony crisis, while the other kind – the Erskine Bowles Democrats – shouldn’t be allowed to use it as cover.
Boehner knows he’s in a weak position, which is why Republicans have quietly been looking for ways to delay the “cliff.” Democrats should take note of that and recognize the motives behind it.
The President should go on television and say to Congress: If you won’t accept the will of the people, undo your reckless law. Democrats on the Hill should insist on up-or-down votes for provisions that the public wants. This charade won’t stop until the GOP’s bluff is called.
Boehner insists that Congressional Republicans, along with everybody else, are standing on a “cliff.” It’s time somebody dared them to jump. http://theoldspeakjournal.wordpress.com/2012/11/19/the-looming-fiscal-cliff-is-a-hoax-tax-reform-as-wealth-privatization-scam-the-phony-crisis-industry/
Along with Dennis Kucinich, Rush Holt and Ron Paul, Oregon Congressman Peter De Fazio is joining the chorus of dissidents who question the legitimacy of the so-called fiscal cliff crisis;
"As stated by Congressman Peter De Fazio (D-Or), the so called “fiscal cliff” is a gross exaggeration. In a Monday interview with MSNBC, DeFazio stated that he believes there exists a greater opportunity for negotiating a bipartisan compromise early next year.
Peter’s argument is a logical one. Pointing to a “lame duck” Congress containing several staunch, firmly planted Tea Party members, De Fazio looks to avoid a replay of the great party divide of 2011-12, by negotiating a compromise acceptable to both parties in early 2013.
DeFazio also see’s value in allowing Republican Leaders the opportunity to vote in a middle class tax cut, while preserving their oath to not raise taxes. As suggested by Minority Party Leader Nancy Pelosi, such a motion would be presented to the floor in the event that the “fiscal cliff” deadline expires December 31.
In this chess game of national party politics, saving face is second only to staying in office. Peter DeFazio, now in his 14th term, is a political chess master, independent enough to call the shots the way he sees them. With Obama coming into his second term swinging, it’s up to the old guard to not only assure the constituency that the issue at hand will be solved, but to acknowledge the right of the opposition to not only express opposing views, but to maintain a certain amount of dignity, while compromising a previously touted political stance.
While Obama promises bipartisan cooperation, the record indicates elsewise. It will be left to senior politicians such as DeFazio to negotiate a fiscal policy that works for the majority of Americans, not just those earning in the 2%. http://www.examiner.com/article/oregon-congressman-peter-defazio-fiscal-cliff-a-gross-exaggeration
From the moment I learned about the impending “fiscal cliff,” I was skeptical. Rep. Rush Holt (D-NJ) recently wrote in an email blast with a subject line “An Artificial Crisis” something that should be shared widely.
Washington and the talk shows are captivated by talk of the “fiscal cliff”: the combination of automatic spending cuts and revenue increases scheduled to take effect at the end of the year. Unfortunately, this is the wrong conversation for America to be having.
The fiscal cliff is an artificial crisis created by renegades who used America’s statutory debt limit to hold the nation hostage in August of 2011. (How absurdly irresponsible to say we will teach ourselves a lesson by not paying our debts!) Just as the cliff was created by a vote of Congress then, it could be dispensed with by a vote of Congress today. Yet negotiators in Congress and at the White House are continuing to operate within the narrow, artificial framework imposed by last year’s hostage-taking: debating, for example, whether cuts to Medicare should be balanced with an appropriate increase in marginal tax rates to 39.5 percent.
We would do better to put today’s challenges in their proper context. From time to time in our history America has faced very large public debts before, most notably after the end of Word War II. Each time, we got to work, worked hard as Americans always do, and built the economy by building and doing things. We did not wring our hands over what America cannot do, but rather set about doing what we can do. There’s no question that the debt is an important problem – but the United States is not, as some would have us believe, defined by its debt. It is defined by its people, its infrastructure, its creativity, its innovation, its drive. We are not a “poor debtor nation,” as one might think listening to the debate this month. Our budget deficit is not an existential crisis.
Remember that, as recently as a decade ago, the United States had a balanced budget and was paying down the debt – not because of a gimmick or a response to a perceived crisis or a constitutional balanced-budget amendment, but because of rational lawmaking and policies that led to a thriving economy. We are still the richest, most productive, most capable country in the world. We should be asking how we will set about making certain that all Americans have food, housing, schooling, jobs, and vibrant culture. If we do those things, the resulting growing economy will make our fixation on a phony fiscal crisis recede into the past.
Those renegades held us hostage in 2011; we shouldn’t hold ourselves hostage today by arguing within the false framework they set then.
What do you think? http://scienceblogs.com/deanscorner/2012/12/02/the-big-fake-fiscal-cliff/
We may sooner find evidence of the mythical chubacabra (goat sucker), believed to be a mutant hairless coyote with a serious case of the mange. The chubacabra may survive by sucking the blood of feral pigs with their vampire like fangs. Sounds like the chubacabra would make a nice pet for our politician bloodsuckers who are preparing to push the people of the U.S. off of the fiscal cliff.
"Blood Sucking Chupacabras, Mutants, and Mangy Coyotes- Oh My!
By Dana Goolsby
"The mythical blood-sucking beast from Mexico known as the chupacabra has been roaming the Pineywoods since 2004. Some say the hideous vampire beast is nothing more than a mangy coyote. Others think the beast is a mutant result from the 2003 Space Shuttle Columbia crash that slung debris across East Texas. Still, others contend the hairless creature is a hybrid canine, as the result of breeding among feral dogs and coyotes. The difference in this East Texas legend and other mysteries that have eluded area residents and scientists for years is the hard evidence that proves there is an ugly, hairless, dog-like critter meandering about.
Since 2004, when Pollok area residents shot and killed a hairless, four-legged canine creature under their house, reports of chupacabra sightings have been a regular occurrence in the Pineywoods. The Mexican legend of the chupacabra has only been circulating for about 15 years, and is believed to originated in Puerto Rico. Most people who get a look at the bald beast describe the animal as having blue-gray skin, almost hairless, with mange; a large over bite, giving the animal a rat-faced appearance with extremely long canine teeth; smaller front legs than hind legs, and as having a tail similar to a rat. Some say the ghoulish creature looks like the living dead; a canine zombie.
Mange, also known as sarcoptes scabiei, is a popular explanation used to explain away the grotesque beast commonly seen throughout the state. In humans and nonhuman animals alike, is a condition where mites burrow under the skin of its host and secrete eggs and waste material, thus triggering an inflammatory response from the immune system. Such an infestation can be life threatening for canines such as coyotes, which haven’t evolved especially effective reactions to sarcoptes infection. Some scientists are suggest parasites created the chupacabra, transforming canines into the very goat suckers who are on the prowl.
East Texans aren’t sure about what exactly the animal is, but some people suspect a mutation occurred after the 2003 space shuttle crash. A ranch manager in Eastern Anderson County said he never saw “anything like it until the space shuttle crashed.” Since the crash the rancher claims he has seen three chupacabras, which he believes are mutants.
“I’ve seen plenty of mangy coyotes in my day but none that ever looked that bad,” he said.
Mexican folklore has passed down the legend of the chupacabra in several forms. Most popular are the lizard-like being description and the hairless dog description which is commonly reported in Texas as well. In Mexican culture the lizard-like chupacabra is said to have leathery or scaly, greenish-gray skin and sharp spines running down its back. The creature is said to be approximately three to four feet tall and hops like a kangaroo. This Mexican monster has been described as having a panther or dog-like face with large teeth, and a long, forked tongue. The beast is said to hiss and screech when angry or alarmed.
The word “chupacabra” literally means goat sucker. The creature so often spotted in Mexico and Texas is credited with sucking the blood of livestock, especially goats. The growing legend of the chupacabra has sparked interest among trained zoologists and amateur enthusiasts. The chupacabra oddity falls third into the realm of cryptozoology, right behind the two most famous cryptid creatures Bigfoot and Loch Ness." http://www.texasescapes.com/DanaGoolsby/Blood-Sucking-Chupacabras-Mutants-and-Mangy-Coyotes.htm
We are dealing with some mangy bloodthirsty goat suckers in human form that seem to be occupying Washington DC, claiming to be our friends and serving the people when they really serve the bankers and Wall Street.
When Democrats behave similar to Republicans and are enablers we cannot pretend that they are our friends any longer. Instead of beinging fooled by Barack "Jason Voorhees" Obama's skin color and thinking he has the interest of working people in mind because of his background as an activist, we need to face the hard truth that our beloved "hope for change" black President has sold us ALL out to the banking cartels and Wall Street.
Oh-oh, here comes KRS ONE with some words of wisdom for the goatsuckers in DC!!
"The house nigga will sell you up the river
so to master he'll look bigger."
"For every Jesus there must be a Judas."
"You be the King and I'll overthrow your government."
"In the face of intelligence ignorance dies." http://www.youtube.com/watch?v=-SLy_1laAFY