Best of the Week
Most Popular
1.U.S. Housing Bull Market Over? House Prices Trend Forecast Current State - Nadeem_Walayat
2.The Coming U.S. Economic Collapse Will Trigger a Revolution - Harry_Dent
3. Stock Market Crash a Historical Pattern? - Wim_Grommen
4.Global Panic - U.S. Federal Government Stockpiling Ammo – Here’s What We’re Going to Do - Shah Gilani
5.AI, Robotics, and the Future of Jobs - Aaron Smith
6.This is Your Economic Recovery With and Without Drugs - James_Quinn
7.Gold and Silver Price Getting Set To Explode Higher - Austin_Galt
8.The Something for Nothing Society - Lifecycle of Bureaucracy - Ty_Andros
9.Another Interesting Stock Market Juncture - Tony_Caldaro
10.Inflation vs the Deflationary Straw Man - Gary_Tanashian
Last 5 days
The Ultimate Demise Of The Euro Union - 1st Sep 14
Palladium Price Breaks Multi-Year High Over $900 - 1st Sep 14
When Complexity Becomes Chaos - 1st Sep 14
Designer War By Default - 1st Sep 14
Islamic State or Russia? Ten Key Questions Towards Pragmatism - 1st Sep 14
Mixed Emotions for the Gold Market - 1st Sep 14
These Clowns Are Dragging Us Into War with Russia - 1st Sep 14
Marx And The Capitalist Cancer Of Overproduction - 1st Sep 14
Scottish Banks Salivating at the Prospects for an Independent Scotland of 6 Million Debt Slaves - 1st Sep 14
Small Man Europe Is Now In “Effective State Of War” With Russia - 31st Aug 14
The Unintended Blowback Of False Flags - 31st Aug 14
Tesco Supermarket Death Spiral Latest Profits Warning and Dividend Slashed - 31st Aug 14
Dow, Gold and Silver - A Last Stand, A Fake Out And A Surge - 31st Aug 14
If U.S. Consumers are so Confident Why aren't They Spending? - 31st Aug 14
Scotland Independence House Prices Crash, Deflationary Debt Death Spiral - 31st Aug 14
Obama’s “Catastrophic Defeat” in Ukraine - 30th Aug 14
Stock Market Inflection Point Approaching - 30th Aug 14
Gold And Silver - Elite's NWO Losing Traction. Expect More War - 30th Aug 14
Corporations Join Droves of Americans Renouncing US Citizenship - 30th Aug 14
Peter Schiff U.S. Housing Market, House Prices Bubble Warning - 30th Aug 14
Russia, Ukraine War - It’s Time to Play the “Gazprom Card” - 29th Aug 14
The One Tech Stock Investment You Should Never Sell - 29th Aug 14
Bitcoin Price $500 as Current Downside Barrier - 29th Aug 14
Don't Get Ruined by These 10 Popular Stock Market Investment Myths - 29th Aug 14
Low Cost Transcontinental Gold - 29th Aug 14
Gold Bullish Central Banks Should Give Money Directly To The People - Helicopter Janet? - 29th Aug 14
US House Prices Bull Market Over? Trend Forecast Video - 29th Aug 14
The Fed Meeting at Jackson Hole Exposed Yellen’s Greatest Weakness - 29th Aug 14
AAPL Apple Stock About To Get sMACked - 29th Aug 14
A History of Unlimited Money: Learn From It or Repeat Its Mistakes - 29th Aug 14
How You Can Play to Win When Market Makers Are Calling the Shots - 28th Aug 14
EU Gas Supply Is In Real And Imminent Danger - 28th Aug 14
Central Banks at the Root of Evil - 28th Aug 14
European Bond Market: Bubble of all Bubbles! - 28th Aug 14
Employers Aren’t Just Whining: The “Skills Gap” Is Real - 28th Aug 14
The ISIS Menace - Just What We Need, Another War - 27th Aug 14
The Risky Business of Methane-Rich “Fire Ice” - 27th Aug 14
CFR Recommends Policy Shift that is Very Bullish for Gold - 27th Aug 14
Ukraine Standoff Signals Global Power Shift - 27th Aug 14
Stock Market Panic Decline Begins - 27th Aug 14
The Monopoly of the Government Education Cartel - 27th Aug 14
How to Invest in Silver Today for Double-Digit Gains - 27th Aug 14
The Big Solar Energy Breakthrough We've Been Waiting For - 27th Aug 14
U.S. Empire’s Bumpy Ride - 27th Aug 14
Gold Market and the Interest Rate Trap - 27th Aug 14
Stock Market Staring Into the Great Abyss - 27th Aug 14
A Look at the Coming 30-year Inflation Cycle - 27th Aug 14
Forex Trading - Will USD/CHF Rally Above 0.9200? - 27th Aug 14
Europe’s Depressing Economy Dog Days of Summer - 27th Aug 14
How The Coming Silver Price Bubble Will Develop - 26th Aug 14
A Nation of Shopkeepers - Supply-Side (Voodoo) Economics? - 26th Aug 14
Stock Market Bear Tracks Abound In Wall Street - 26th Aug 14
65,000 U.S. Marines Hold up a Mirror to the Economy - 26th Aug 14
Bitcoin Market Provides Clues for Investors - 26th Aug 14
The Key to Trading Success - 26th Aug 14
Will The US Succeed in Breaking Russia to Maintain Dollar Hegemony?... - 26th Aug 14
Even Mainstream Academia Worried about Massive Bubbles in Markets - 26th Aug 14
Iraq and Syria Follow Lebanon's Precedent - 26th Aug 14
Colonization by Bankruptcy: The High-stakes Chess Match for Argentina - 26th Aug 14
Dow Stock Index On The Cusp - 26th Aug 14
Prohibition Laws and Agency Regulations - 26th Aug 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Biggest lie in Stock Market History Revealed

Fiscal Cliff Deal and the U.S. Economy Swan Dive of 2013

Politics / US Economy Jan 02, 2013 - 02:50 AM GMT

By: BATR

Politics

Hold your breath, the race to the bottom is ready to escalate. The consequence of the corporate consumerism economy has reached the tipping point. The old rules that mainstream spending will dig the way back to prosperity are permanently dead. The one sure implication that is indisputable is that taxes are set to rise at unprecedented levels. With Obamacare revenue obligations coming into effect, the latest phase of centralized medical socialism spreads like a virus. Under such circumstances, how can the patient regain their health?


The Rino Republicans have proven again their slimy deceit, as demonstrated in Highlights of Senate bill averting ‘fiscal cliff’. The bipartisan house is poised to make another deal with the devil. Such legislation that refuses to enact meaningful and significant spending cuts exemplifies the depth of the efforts to dismantle the economic wellbeing of the average taxpayer.

The only beneficiary out of the tax bill from hell will be the corporate/state axis. By setting aside the automatic sequestration program reductions for a typical irresponsible useless promise the McConnell, Biden reach tentative deal on sequester, con insults the intelligence of any rational taxpayer.

"The negotiating parties reached an agreement to delay it by two months with some spending cuts to offset the delay."

Without a serious reduction in the rate of growth, much less a real shrinking in federal expenditures, deficit spending will shoot up higher than an addicted junkie. Examine the mess.

"According to the Congressional Budget Office, the last-minute fiscal cliff deal reached by congressional leaders and President Barack Obama cuts only $15 billion in spending while increasing tax revenues by $620 billion—a 41:1 ratio of tax increases to spending cuts."

This factor alone provides ample evidence that the economy will sustain another substantial hit. Treading water is no way to save yourself when you are swimming inside a whirlpool of spiraling intensity or diving into a pool drained of water.

2013 is likely to be another generous year for the financial vultures. Mergers and acquisitions may well come back ‘with a vengeance’, as international corporatists push hard for even greater consolidation. The suspect "Free Trade" cabal has enormous support and protection from the selected public officials that administer a plutocrat economy. Even under the distractions of higher taxes on the super affluent, their wealth will grow dramatically, as public subsistence becomes more dependent on government handouts.

Business is very good for the governing bureaucrat. This New Year provides immense promises for government expansion. The crowding out of the credit markets for private business will continue as an inevitable result of public sector borrowing hitting new highs.

Private firms will struggle as disposable funds become rarer. The consumer has shown remarkable restrains since the 2008 meltdown, but the internal built up demand for lifestyle replacement standards will not generate the economic activity that so many financial experts tout.

Prospects of an intensified reoccurrence of the persistent recession are far more likely. The sustainability of Federal Reserve monetization has limits. The crucial test of this desperate repurchase of debt created obligations will play out in the bond market.

Another down grade of the U.S. credit status over the next political battle of raising the borrowing limit is a major concern. The potential free fall of the Dollar and international abandonment of the reserve currency standing is probably the greatest risk to the economy.

Any credit-based economy is at the mercy of the central banksters. Disregarding the phony political rhetoric of the governance ideologues, the basic constructs of economic facts cannot be separated from the harsh reality of a credit crunch.

Inflation is embedded in the under reported consumer pricing statistics. Grocery prices will rise, while food stamps proliferate. This SNAP economy is a telltale gauge of the wellness of the basic consumer. How can anyone believe that the prospects for a healthy economy are in the cards for 2013?

The one unassailable conclusion that is born out with every turn of the financial page is that the rich become richer, while the middle class struggles even harder to make ends meet.

Many will fall into the trap that rich people are the cause of the problem. Such social envy misses a proper perspective on wealth creation. The real reason why the economy scrambles to democratize medium affluence is that the monopolists of politically protected conglomerates suppress initiative and originative employment entrepreneurial enterprises.

The entire political and tax system operates to diminish the chances of small business to compete against the virtual unrestricted capital access of major public companies. 2013 will be a watershed year that regretfully will see the systemic demise of privately held endeavors.

The replacement of free enterprise, with state/capitalism has produced a fascist economy.

When the establishment operates under the favoritism principle, the inevitable result is that crony capitalists dig the graves of independent business operators, with publicly funded shovels. How under this formula can the ordinary citizen expect to prosper when the supplanting of individual intuitive is intentionally marginalized?

The financial markets reflect uncertainty in the face of record corporate receipts. The balance sheets of companies have been rebuilt from the depth of the housing implosion, with much assistance from public indebtedness. The globalist banks practice distress acquisitions, deliberately designed to solidify interdependency at the price of personal autonomy.

With this acceleration of financial austerity for the average citizen, the gap between the corporate economy and the main street market grows exponentially. Whatever degree of cash flow that the country enjoys in this New Year, the price that will be paid to stretch out one last celebration of former fortune, will inescapably result in national poverty.

Just blaming the one percent ignores the institutional corruption that perpetrates the war against the middle class. Hoping for a thriving 2013 dismisses the abject State of the Nation. The only relevant question unanswered is whether the beleaguered taxpayer will revolt or just swallow another dose of Obama collectivism.

James Hall – January 2, 2013

Source : http://www.batr.org/negotium/010213.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

BATR Archive

© 2005-2014 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

Free Report - Financial Markets 2014