Best of the Week
Most Popular
1.The Trump Reset, US Empire's Coming Economic, Cyber and Military War With China (2/2) - Nadeem_Walayat
2.Now Is the Time to Buy Gold - 5th Jan 17 - John Grandits
3.CIA Planning Rogue President Donald Trump Assassination? Elites "Manchurian Candidate" Plan B - Nadeem_Walayat
4.The Trump Reset - Regime Change, Russia the Over Hyped Fake News SuperPower (Part1) - Nadeem_Walayat
5.Most Popular Financial Markets Analysis of 2016 - Stock Market Crash Postponed Again - Nadeem_Walayat
6.No UK House Prices Brexit Crash 2016 Despite London Weakness, Forecast 2017 - Nadeem_Walayat
7.President Trump Understands the NSA, CIA... LIE, America's Intelligence Agencies Crime Syndicate! -Nadeem_Walayat
8.President Donald Trump's 2017 New Year Message, BBC Fake News, Was 2016 a Dream? - Nadeem_Walayat
9.Major Stocks Bear Market Still Looms - Zeal_LLC
10.Biased 2017 Forecasts - Debt, Housing and Stock Market (1/2) - James_Quinn
Last 7 days
Will the CIA Assassinate Rogue President Donald Trump Like JFK? - 19th Jan 17
Bonds, Dollar, Stocks, Gold, Silver Major Markets at Turning Points - 19th Jan 17
Populism; the Danger? What About Debt? - 19th Jan 17
Gold Price 50-DMA Breakout - 19th Jan 17
Turkey, 'Axis of Gold' and End of US Dollar Hegemony - 19th Jan 17
The Most Important Market Chart on the Planet - 19th Jan 17
Trump Deficits Will Be Huge - 19th Jan 17
Stock Market Trading Patience Pays Off with CHK Using Momentum Reversals - 19th Jan 17
Gold - How to "Buy Low and Sell High" Like a Pro - 19th Jan 17
State of the Global Stock, Financial and Commodity Markets Report 2017 - 19th Jan 17
The Hunt for Russia's Next Enemy - 18th Jan 17
Returning Gold Bulls - 18th Jan 17
Biotech Breakthrough Could Create A $11.4 Trillion Opportunity - 18th Jan 17
Bitcoin and Gold - Outlook, Volatility and Safe Haven Diversification - 17th Jan 17
Stock Market Uptrend on Borrowed Time - 17th Jan 17
The One Stock to Retire On - 17th Jan 17
Trump anti-Communist Counter Revolution - 17th Jan 17
US Stock Market Update as the Trump Inauguration Approaches - 17th Jan 17
The American Crisis - Common Sense 2017 - 17th Jan 17
Obama Leaves, Hope Arrives, Will Stupid Stay? - 17th Jan 17
Damage Inflicted by Precious Metals Manipulation Is in the “Multi Billions” - Keith Neumeyer - 17th Jan 17
Gold Price Forecast 2017 Update - Video - 17th Jan 17
The Story of the U.S. Regime Change Plan in the Philippines - 16th Jan 17
Gold Price 2017 Trending Towards $1375 as Forecast - 16th Jan 17
'Deep State' CIA Director States We are Not NAZI's, Warns Trump Does Not Understand Russian Threat - 15th Jan 17
UK House Prices Forecast 2017 - Crash or Bull Market? - Video - 15th Jan 17
SPX Stocks Bull Market Update - 14th Jan 17
President Trump vs the Deep State that Hides in Plain Sight - 14th Jan 17
The Impact of Sir Alex Ferguson's Retirement on Man United's Share Price - 14th Jan 17
What Can Stock Market Tell You About Politics? - 13th Jan 17
Big Gold Buying Coming 2017 - 13th Jan 17
A Bullish Case for Gold 2017 - 13th Jan 17
Will Stocks Bull Market Continue to Charge or is it Time to Sell the News - 13th Jan 17
Gold and Silver Off To Shining Start to 2017 - 13th Jan 17
Gold’s Fundamental Outlook for 2017 - 13th Jan 17
Is trading stocks and shares just as luck-based as roulette? - 13th Jan 17
Trump CIA Like Nazi Germany - Fake MI6 Intelligence leaked to Fake News Mainstream Media - 13th Jan 17
USD in Decline. SPX and TNX May Follow - 12th Jan 17
CIA War On Trump - Leaks Fake MI6 Intelligence to Fake News Broadcast Media - 12th Jan 17

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

State of Global Markets 2017 - 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.


© 2005-2016 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