Best of the Week
Most Popular
1.BrExit House Prices Crash, Flat or Rally? UK Housing Market Affordability Crisis - Nadeem_Walayat
2.Stocks Bull Market Climbs Wall of Worry, Bubble? When Will it End? - Nadeem_Walayat
3.Gold Price Is Now On Its Way To All-Time Highs - Hubert_Moolman
4.Deutche Bank Stock Price Crash - The EU Has Problems Far Beyond the Brexit - Harry_Dent
5.UK interest Rate PANIC CUT! As Banks Prepare to Steal Customer Deposits - Nadeem_Walayat
6.Gold and Silver Bull Phase 1 : Final Impulse Dead Ahead - Plunger
7.Central Bankers Fighting An Unprecedented Global Economic Slowdown - Gordon_T_Long
8.Putin Hacking Hillary for Trump, Russia's Manchurian Candidate? - Nadeem_Walayat
9.Stock Market Insiders Are Secretly Selling, Cycle Top Next Month - Chris_Vermeulen
10.Gold Sector - Is it time to Back up the Truck? – Mortgage the Farm? - Peter_Degraaf
Free Silver
Last 7 days
Can Stocks Survive Without Stimulus? - 25th Aug 16
Why Putin Might Be on His Way Out - 25th Aug 16
Bond Guru Gary Shilling - The Bond Market Rally of a Lifetime - 25th Aug 16
A Zombie Financial System, Black Swans and a Gold Share Correction - 25th Aug 16
OPEC’s Output Freeze: What Has Changed Since Doha? - 25th Aug 16
Merkel Prepares For a Deliberate Crisis While White House Plans For a Disastrous Succession - 24th Aug 16
Suspicious Reversal in Gold Price - 23rd Aug 16
If Trump Can’t Pull Off a Victory, Expect a Civil War - 23rd Aug 16
Ceding ICANN and Internet Control to Globalists - 23rd Aug 16
How to Spot an Oversold Stock Market - 23rd Aug 16
Gerald Celente Sees Worst Market Crash, New Military Conflict, Gold Spike to $2,000/oz - 23rd Aug 16
EU Olympics Medals Table Propaganda Includes BrExit Britain - 22nd Aug 16
BrExit Win's Britain Olympics Success Freedom Dividend, Economy Next - 22nd Aug 16
Stock Market Top Forming, but Slowly - 22nd Aug 16
(Really) Alternative Banking Systems - 22nd Aug 16
Vauxhall Zafira Fires - Second Recall Issued - Inspection Before Bursting into Flames? - 21st Aug 16
Will the Stock Market Bubble Pop Regardless if the FED Never Raises Rates? - 21st Aug 16
US Government Spending - 3 Big Stories Not Being Covered – Part III - 21st Aug 16
Silver Analysis - 20th Aug 16
SPX New Highs, Correction Next? - 20th Aug 16
Housing Bubble - The Marginal Buyer Holds The Pin That Pops Every Asset Bubble - 20th Aug 16
Gold Miners Q2 2016 Fundamentals - 19th Aug 16
Which Price Ratio Matters Most in a Fiat Ponzi? - 19th Aug 16
Big Policies, Bigger Failures - 19th Aug 16
Higher Crude Oil’s Prices and USD/CAD - 19th Aug 16
Here’s Why You Should Look for Dividend Stocks and How - 19th Aug 16
Deglobalization Already Underway — 4 Technologies That Will Speed It Up - 19th Aug 16
These 6 Charts Show Why the Average American Is Fed Up - 18th Aug 16
SPX Easing Lower - 18th Aug 16
Low / Negative Interst Rate’s Legacy - 18th Aug 16
The 45th Anniversary of The Most Destructive Event In Modern Monetary History - 18th Aug 16
USDU - An Important Perspective on the US Dollar - 17th Aug 16
SPX Completes Wave 1 Decline - 17th Aug 16
How to Quickly Spot Common Fibonacci Ratios on a Chart - 17th Aug 16
When Does a Forecast Become a Trade? - 17th Aug 16
Kondratiev Wave - The Financial Winter Is Nearing! - 17th Aug 16
Learn "The 4 Best Elliott Waves to Trade -- and How to Trade Them" - 16th Aug 16
Stock Market Bears Turning Bullish At New All Time Highs - Time to Get Worried? - 15th Aug 16
Job Seekers Sacrificed to the Inflation Gods - 15th Aug 16
A Look At Commodities and Financial Markets Trading Week Ahead - 15th Aug 16
Stock Market New Top Forming? - 15th Aug 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

How to Trade Elliott Waves

U.S.S. Titanic To Face More Icebergs than the Fiscal Cliff

Politics / US Politics Dec 16, 2012 - 11:58 AM GMT

By: Danny_Schechter

Politics

2012 has been the l00th anniversary of the famous Titanic disaster. The Captain of that “unsinkable” ship was warned that there were icebergs ahead but he was too busy, out to set a speed record on the way to New York.

The warnings were ignored and we know what happened. What we don’t know is why other urgent warnings go unheeded.


Take the repeated warnings that the easy availability of hand guns and assault rifles would lead to more massacres of innocents. The National Rifle Association operates with impunity (even as it bans weapons in its offices.)
When action is not taken, you increase the likelihood of more deadly incidents like the ones in malls and even elementary schools.

Take the predictions of a storm surge tied to climate change threatening the New York/New Jersey coastline. They were acknowledged but downplayed because right-wingers and their think tanks spent a decade in bogus quibbling about “junk” science.

Now New York City is facing a billion dollar plus clean up bill, and even the small army of the biggest names in rock and roll who did an inspiring benefit for storm victims did not question the denial factor in government and the media.

And now, as the fourth quarter of economic activity tapers down for the holidays, and companies close for the New Year, forecasters avoid making dire predictions for fear of being seen as alarmists or “doom and gloomers.”

Many seem to fear that if they say things will get worse, the very act of saying it may make it happen. Talk about the arrogance of power!

But that hasn’t stopped Paul Craig Roberts an Assistant Treasury Secretary in the Reagan Administration from warning on USA Watchdog.com:

“America is going to crash big time… The real problem is not the fiscal cliff. The dollar is on very thin ice. “

Dr. Roberts says, “They can’t stop hemorrhaging the debt, and the way they cover that is to hemorrhage the dollar.” In this real time scenario, Dr. Roberts goes on to say, “When you have debt pouring out and dollars pouring out, the dollar can’t keep its value forever. At some point, people will run away from it, and it will start abroad.”

Dr. Roberts thinks there is “an impending collapse of the exchange value,” and the U.S. dollar could unexpectedly plunge in buying power. Dr. Roberts contends, “All of a sudden, people walk into Walmart, as usual, and they think they’ve walked into Neiman Marcus.” Dr. Roberts says there are no quick fixes to the bulging debt because “there’s no way to close this deficit when corporations are moving the tax base off-shore.”

Note his allusion to shopping reflects the fact that 70% of the economy is based on consumerism. A bullish Christmas Shopping season is supposed to make up for a whole year of dramatic ups and downs

It starts on the day after the Thanksgiving holiday with heavy sales and deep discounts called “Black Friday.”

And this year shopping marathon seemed off to a good start. The crowds grew and initial reports said that sales were up. But, as the press reported. that the big day was driven by aggressive discounts and earlier than ever shopping hours.

The Washington Post later reported that “Black Friday is a bunch of meaningless hype because strong sales results around Black Friday actually predict slightly weaker holiday sales overall.”

The National Research Federation’s estimates for Black Friday spending are widely disseminated but not believable either because they are based on a consumer survey, not real data, with their accuracy open to question.

“Even a legitimate boost in sales can indicate variously that consumers are feeling flush, or that they’re desperately chasing door busters because money is tight. While the U.S. Commerce Department doesn’t break out Black Friday sales, its figures suggest that the final tally for holiday spending isn’t likely to be as stratospheric as the trade group’s weekend numbers suggest.”

The Wall Street Journal now admits consumer spending is “wobbly.”

In fact, every year, the initial reports show a shopping boom, but later filings by credit card companies reveal a fall-off. In January next year, stores are likely to be flooded with returns by shoppers who realize they can’t afford all their goodies. This proves Christmas shopping it is not the economic miracle it is always cracked up to be.

Meanwhile there are other economic indicators that show there may be more pain than gain, as these headlines attest:

• Home Seizures are way up as the flow of foreclosures pick up

• A delay of Bank of America’a return to selling mortgage securities shows the bust is limiting the housing market’s revival.

• More and more bank scandals offer evidence of massive fraud and manipulation. Cash fines substitute for prosecutions assuring the frauds will continue. A new report by the center for Responsible Lending confirms that predatory lending has not been checked.

•The Federal Reserve Bank is twisting up its “Operation Twist” and pumping more money—money they print—into, reports ML-implode.com, “buying $45 billion of longer-term Treasury bonds per month in addition to the $40 billion per month of agency mortgage backed securities announced in September. By dropping the sales component of operation twist, it means that the entire $85 billion of asset purchases will add to the Fed's balance sheet as none of it will be sterilized.''

None of these issues are discussed in any comprehensible detail in our media. The focus since the election has been on a contrived distortion—the so-called “Fiscal cliff.”

Writes Paul Street, “The fiscal fixation is childish and irresponsible in a country plagued by mass unemployment, endemic job insecurity, and related widespread poverty

But that’s not all that gets lost in the current mass-mediated deficit mania. Let’s assume that “the deficit” is a genuine problem with grave long-term implications for the U.S. economy (i.e., crippling interest payments, loss of national sovereignty, and more). Two obvious solutions are to (1) cut U.S. “defense” ...expenditures and (2) initiate serious health care reforms on the model of the health insurance systems that prevail in other industrial powers.”

None of that is likely to happen as tax policy gets all the attention, It looks like Republicans now will compromise on their opposition to increasing taxes on the ultra rich in exchange for more cuts in social programs—the so-called “entitlements.”

The rich can afford to pay a bit more although they will probably find more loopholes to keep actual payments down, but people dependent on federal assistance will be hit hard.

The net result of all of this will decidedly not be more economic fairness. A deal between the White House and the Republican dominated Congress will be reached, but its not one that will please progressives.

The “Fiscal Cliff” may then disappear as an issue but icebergs of economic volatility are still rushing our way. Mayday, Mayday!

News Dissector Danny Schechters film and book Disinformation. For more information, Http://www.plunderhecrimeofourtime.com.

News Dissector Danny Schechter has made a film and written a book on the “Crime Of Our Time.” (News Dissector.com/plunder.) Comments to dissector@mediachannel.org

© 2012 Copyright Danny Schechter - 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