Best of the Week
Most Popular
1.UK General Election BBC Exit Polls Forecast Accuracy - Nadeem_Walayat
2.UK General Election 2017 Seats Final Forecast, Labour, Conservative Lib-Dem, SNP - Nadeem_Walayat
3.UK General Election 2017 Forecast: Conservative 358, Labour 212 Seats - Nadeem_Walayat
4.Theresa May to Resign, Fatal Error Was to Believe Worthless Opinion Polls! - Nadeem_Walayat
5.UK House Prices Forecast General Election 2017 Conservative Seats Result - Nadeem_Walayat
6.The Stock Market Crash of 2017 That Never Was But Could it Still Come to Pass? - Sol_Palha
7.[TRADE ALERT] Write This Gold Stock Ticker Down Now - WallStreetNation
8.UK General Election Results Map 2017 vs 2015 vs Opinion Polls - Nadeem_Walayat
9.Orphaned Poisoned Waters,Severe Chronic Water Shortage Imminent - Richard_Mills
10.How The Smart Money Is Playing The Lithium Boom - OilPrice_Com
Last 7 days
Is the Tech Stock Market Bloodbath is Finally Here? - 28th Jun 17
Crude Oil Sinks 20%: Why "Oversupply" Isn't the Half of It - 28th Jun 17
Important Money Management Tips For Teenagers - 28th Jun 17
The Coming Battery Bonanza - 28th Jun 17
Overlooked Stock Investments To Keep An Eye On in 2017 - 27th Jun 17
The Federal Reserve And Drug Addiction – A Prediction - 27th Jun 17
Charts Show Why Emerging Markets Will Be an Essential Part of Your Portfolio Going Forward - 27th Jun 17
Former Lehman Brothers Trader: I Bet My Reputation That Stocks Bubble Will Pop In A Year - 27th Jun 17
US Bonds and Related Market Indicators - 27th Jun 17
Stocks At Record Highs: Market Sentiment Still Bullish - 27th Jun 17
Stock Market Running Out of Steam - 27th Jun 17
Gold Back With A Vengeance As Bitcoin Bubble Bursts - 26th Jun 17
Crude Oil Trade & Nasdaq QQQ Update - 26th Jun 17
Gold and Silver Ongoing Consolidation May End Soon - 25th Jun 17
Dollar May Become “Local Currency of the U.S.” Only - 25th Jun 17
Sheffield Great Flood of 2007, 10 Years On - Unique Timeline of What Happened - 24th Jun 17
US Stock Market Correction Could be Underway - 24th Jun 17
Proof That This Economic Recovery Narrative is False - 24th Jun 17
Best Cash ISA for Soaring Inflation, Kent Reliance Illustrates the Great ISA Rip Off - 24th Jun 17
Gold Summer Doldrums - 23rd Jun 17
Hedgers Net Short the Euro, US Market Rotates; 2 Horsemen Set to Ride? - 23rd Jun 17
Nether Edge By Election Result: Labour Win Sheffield City Council Seat by 132 Votes - 23rd Jun 17
Grenfell Fire: 600 of 4000 Tower Blocks Ticking Time Bomb Death Traps! - 22nd Jun 17
Car Sales About To Go Over The Cliff - 22nd Jun 17
LOG 0.786 support in CRUDE OIL and COCOA - 22nd Jun 17
More Stock Market Fluctuations Along New Record Highs - 22nd Jun 17
Understanding true money, Pound Sterling must make another historic low, Euro and Gold outlook! - 22nd Jun 17
Green Party Could Control Sheffield City Council Balance of Power Local Election 2018 - 22nd Jun 17
Ratio Combo Charts : Hidden Clues to the Gold Market Puzzle - 22nd Jun 17
Steem Hard Forks & Now People Are Making Even More Money On Blockchain Steemit - 22nd Jun 17
4 Steps for Comparing Binary Options Providers - 22nd Jun 17
Nether Edge & Sharrow By-Election, Will Labour Lose Safe Council Seat, Sheffield? - 21st Jun 17
Stock Market SPX Making New Lows - 21st Jun 17
Your Future Wealth Depends on what You Decide to Keep and Invest in Now - 21st Jun 17
Either Bitcoin Will Fail OR Bitcoin Is A Government Invention Meant To Enslave... - 21st Jun 17
Strength in Gold and Silver Mining Stocks and Its Implications - 21st Jun 17
Inflation is No Longer in Stealth Mode - 21st Jun 17
CRUDE OIL UPDATE- “0.30 risk is cheap for changing implication!” - 20th Jun 17
Crude Oil Verifies Price Breakdown – Or Is It Something More? - 20th Jun 17
Trump Backs ISIS As He Pushes US Onto Brink of World War III With Russia - 20th Jun 17
Most Popular Auto Trading Tools for trading with Stock Markets - 20th Jun 17
GDXJ Gold Stocks Massacre: The Aftermath - 20th Jun 17
Why Walkers Crisps Pay Packet Promotion is RUBBISH! - 20th Jun 17

Market Oracle FREE Newsletter

The MRI 3D Report

Taxmageddon Holding Hands While Jumping Off the Fiscal Cliff

Politics / Taxes Nov 14, 2012 - 06:16 AM GMT

By: BATR

Politics

Best Financial Markets Analysis ArticleThe rapid approach of the Thelma & Louise bipartisan plunge into the financial abyss is upon us. It is simply unbelievable, that the prospects of rational tax salvation by the end of the year, measured by every statement coming out of the Washington political cabal, will materialize. Extending the current tax rates from automatic rescission on January 1, 2013, as a stopgap method for an enactment of a lasting political rapprochement, is the best that might occur. The net effect will be a perspicacious downturn in economic activity, a new round of layoffs, rising permanent unemployment and a plunge in consumer confidence. Wall Street will make hay by shorting the market while placing blame on the uncompromising hacks that refuse to cut a deal.


As for the message from the latest election, let no one forget. With all haste during four more years, the implementation of expansive socialism from an Obama administration is inevitable.

The backbone from the establishment loyal opposition is well known for their spineless tendencies. The righteous outrage from the Tea Party representatives, silenced during much of the last campaign, is slated for confinement to a corner room in the basement. The careerist political class, in all their sordid glory, readies their next heist and tax increases.

Curtailing entitlements is unthinkable to the Obama collectivists. Cutting back on government baseline budgets only pass through the distorted image of a fun house mirror. The discipline of automatic sequestration reductions is too much for big government, so look for the final bargain to cost the taxpayer dearly.

Remember the current administration is quite content to operate their criminal syndicate without passage of a budget. By what stretch of the imagination would anyone accept that there will be changes to this equation? Obama wins by default and the business community gets to pay the tab.

The prescription of Speaker John Boehner relies upon a medicine that will kill you softly. The House of Representatives is so fearful of a federal government shutdown that capitulation to the hardball of the Obama’s central government regime will be the end result. Good faith negotiations under these circumstances are like begging for crumbs from a banquet feast of Henry VIII.

Going back to the government shut down, when Newt Gingrich was speaker, illustrates the dilemma. President Clinton skated from responsibility and blame for shutting down portions of the federal government. The unreliability of the House to keep the gravy train rolling was the condemnation heard by the mass media.

Gingrich offered a different assessment under the Government Shutdowns section of his Get the Facts site.

"While the shutdown produced some short-term pain, it set the stage for a budget deal in 1996 that led to the largest drop in federal discretionary spending since 1969. The discipline imposed by this 1996 budget let to a balanced-budget deal in 1997, the first of four consecutive balanced budgets – an achievement Congress and the White House had not achieved since the 1920s. Overall spending grew at an average of 2.9 percent a year while Newt was Speaker, the slowest rate in decades, and Americans created 11 million new jobs…"

The triangulation strategy of Bill Clinton allowed for absorbing budgetary reforms, while still keeping his appeal to his political base. Barack Obama has no such need for misapprehension. Taxmageddon is another opportunity to take advantage of another manufactured crisis. The facts constitute that a second Obama term is a recipe for total economic warfare against productive businesses.

Add the destructive increases of taxation from Obamacare and the consequences of a full-blown recession in 2013 are unmistakable. Surely, the RINO’s within Congress want cover to share the pain while pointing the finger at the newly elected second term administration and Democrats in Congress.

Holding hands while jumping off the cliff makes good politics for the entrenched ‘pols’ of both parties that are destroying the economy.

Ron Paul sums up nicely, Election shows U.S. 'far gone'.

Paul "said in the wake of this week's elections that the country has already veered over the fiscal cliff and he sees no chance of righting ship in a country where too many people are dependent on government.

People do not want anything cut," he said. "They want all the bailouts to come. They want the Fed to keep printing the money. And they don't believe that we've gone off the cliff or are close to going off the cliff. They think we can patch it over, that we can somehow come up with some magic solution. But you can't have a budgetary solution if you don't change what the role of government should be. As long as you think we have to police the world and run this welfare state, all we are going to argue about is who will get the loot."

Taxmageddon is just a mere illusion for the voters who re-elected Obama. The sugar daddy will get those bigoted fiscal conservatives to keep the checks in the mail. Somehow, the precarious financial status of the postal service escapes those 47%ers.

When the double-dip recession begins, the nonexistent mortgage loans will trash the "so called" housing market recovery even harder. Soon the economic destruction of many middle class neighborhoods will take on the appearance of the Rockaway backyard after a visit from Sandy, the hurricane.

Yet, the advantages of embracing taxmageddon as a grand occasion for soaking the rich will be the excuse to increase revenue enhancements on what is left of Middle America. Yes, the public voted for cooperative government. That often heard "fair shared" demand to pay higher taxes is exactly what is in store for an already broke country.

Big government wins and independent financial wealth loses. Remember according to Obama, you never earned your money to begin with. Driving off the cliff together will bond citizens to the same fate as those famous female desperadoes, T & L. Maybe this is fitting, since the feminine vote got Obama re-elected. All hail the pimp-in-chief, four more years in hell.

Source : http://www.batr.org/negotium/111412.html

Discuss or comment about this essay on the BATR Forum

http://www.batr.org

"Many seek to become a Syndicated Columnist, while the few strive to be a Vindicated Publisher"

© 2012 Copyright BATR - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife