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Posted on 11/25/2012 12:07:33 PM PST by John S Mosby
Stocks shook off their post-election slump Monday, in part because of optimism that the president and Congress will reach a compromise on the nation's budget by the end of the year.
If they don't, there will be automatic tax increases and huge cuts in federal spending -- that so-called fiscal cliff.
It's a time bomb, according to Lloyd Blankfein, chairman and CEO of Goldman Sachs, and one of the world's most influential bankers. His message to Washington? Make a deal.
(Excerpt) Read more at cbsnews.com ...
In Sept, right about the time of Benghazi, "Pedro" Bernanke announced the Federal Reserve would begin buying 40BILL a month of mortgage backed securities... guaranteed to devalue private property and let the govt. become our landlord. Bankers to the marxists.
"The few who understand the system, will either be so interested from it's profits or so dependent on its favors, that there will be no opposition from that class." — Rothschild Brothers of London, 1863
"Give me control of a nation's money and I care not who makes it's laws" — Mayer Amschel Bauer Rothschild
"Give me control of a nation's money and I care not who makes it's laws" — Mayer Amschel Bauer Rothschild
"Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States" — Sen. Barry Goldwater (Rep. AR)
"I have never seen more Senators express discontent with their jobs....I think the major cause is that, deep down in our hearts, we have been accomplices in doing something terrible and unforgivable to our wonderful country. Deep down in our heart, we know that we have given our children a legacy of bankruptcy. We have defrauded our country to get ourselves elected." — John Danforth (R-Mo)
-----Freepers Wake! Dawn broke long ago!!---Here is the line of horse crap:
(CBS News) Stocks shook off their post-election slump Monday, in part because of optimism that the president and Congress will reach a compromise on the nation's budget by the end of the year.
If they don't, there will be automatic tax increases and huge cuts in federal spending -- that so-called fiscal cliff.
It's a time bomb, according to Lloyd Blankfein, chairman and CEO of Goldman Sachs, and one of the world's most influential bankers. His message to Washington? Make a deal.
BLANKFEIN: Their job is to make the country function, not to -- it's not a winning game, it's a get-along game.
PELLEY: Washington playing with fire?
BLANKFEIN: Yes.
An interview with Lloyd Blankfein is as rare as a look inside the Goldman Sachs money machine. He showed us one of seven trading floors at his Manhattan headquarters. Goldman is one of America's most successful investment banks. It had net earnings of $4.4 billion dollars last year. When we asked Blankfein how to reduce the federal budget deficit, he went straight for the subject politicians don't want to talk about.
BLANKFEIN: You're going to have to undoubtedly do something to lower people's expectations -- the entitlements and what people think that they're going to get, because it's not going to -- they're not going to get it.
PELLEY: Social Security, Medicare, Medicaid?
BLANKFEIN: You can look at history of these things, and Social Security wasn't devised to be a system that supported you for a 30-year retirement after a 25-year career. ... So there will be things that, you know, the retirement age has to be changed, maybe some of the benefits have to be affected, maybe some of the inflation adjustments have to be revised. But in general, entitlements have to be slowed down and contained.
PELLEY: Because we can't afford them going forward?
BLANKFEIN: Because we can't afford them.
We wondered whether he thinks the government needs more revenue in the form of higher taxes.
BLANKFEIN: In the long run, there has to be more revenue. And, of course, the burden of that revenue will be disproportionately taken up by wealthier people. That's just logical.
PELLEY: So higher taxes on wealthier people?
BLANKFEIN: More taxes on wealthier people, to the extent that we need to raise more revenue, and we do need to raise some more revenue.
PELLEY: Why is an increase in revenue, in tax money, necessary? Why can't you just cut your way out of the deficit?
BLANKFEIN: For sure certain people in this country wouldn't like the society you would have if you did that, and personally, I don't think I would like it either, if we went as far as to close our entire budget deficit in that way.
PELLEY: What kind of society would it be?
BLANKFEIN: I think it would be one where the safety net would be more porous and lower to the ground.
every time they say “Make a Deal”, I hear “Pretend to fix the problem”
Your hearing is fine.
First thing they should do is admit that this problem is going to affect EVERYONE. Then they need to make it clear why this is happening: Government has outspent its ability to pay back its debts.
They should not pretend that this can be remedied by “taxing the rich” or cutting defense.
They need to make it clear that entitlements will be cut, government jobs must be cut, subsidies must be cut etc etc
But they won’t.
Nope.
They will continue to blame Bush, Republicans, the rich while pretending some “deal” will avoid all the pitfalls. While they celebrate the “deal” that saved America they will inflating the currency, a tax increase by inflation on everyone.
The 47% won’t be aware that inflation is being used to cut their benefits and income in real terms. They will only be aware of price increases and they will blame “big business” and “right-wingers”.
It is so much easier for the politicians to do that and hope it works than to do what should be done.
What’s frustrating is all the Republicans have “control” of is the House, and “it’s the best I could do” Boehner is the “leader.”
Let’s tell our Republican congresspersons to vote for a true conservative as leader, the next time the opportunity comes up.
He's right, before we turn into Greece.
For over a decade you pushed bad mortgage securities default swaps to "hedge" risk
He sold CDS on MBS?
knowing all along this was bad paper
Then why would he sell CDS on it?
and pushed these to the largest govt. providers of mortgage finance Fannie Freddie,
He sold mortgages to Fannie and Freddie or he sold them CDS?
Bernanke announced the Federal Reserve would begin buying 40BILL a month of mortgage backed securities... guaranteed to devalue private property
I thought it would trigger inflation, making housing more valuable?
LOL, I loved the way this Democrat scumbag Pelley led Blankfein by the nose to promote tax hikes on “the rich”. Blankfein knows - - or should know - - that even if “the rich” were taxed out of everything they own, the money wouldn’t cover the tip of the national debt iceberg. Of course, Blankfein is just another Democrat scumbag himself, so I’m sure he was happy to be led by the nose by that punk Pelley to bolster the rats’ scheme of getting the GOP to commit party suicide by going along with their tax hikes.
The "fiscal cliff" actually refers to the math regarding exponential growth functions. It is NOT "so-called", it is real and inescapable.
Entitlements consume 56% of the total 2010 Federal Budget....
SS: 19%
Medicaid: 8%
Unemployment: 16%
Medicare: 12 %
Since they are increasing at slightly under 10%, this means a growth doubling every 7 years.
Questions for you non-math types.....What is 2 x 56%? Where in the 7-year doubling period are we, exactly? How do you fund all the rest of government, the departments, the agencies, and services, if entitlements consume 112% of your total budget, of which almost half is ALREADY on borrowed money?
Cliff indeed.
The "fiscal cliff" actually refers to the math regarding exponential growth functions. It is NOT "so-called", it is real and inescapable.
Entitlements consume 56% of the total 2010 Federal Budget....
SS: 19%
Medicaid: 8%
Unemployment: 16%
Medicare: 12 %
Since they are increasing at slightly under 10%, this means a growth doubling every 7 years.
Questions for you non-math types.....What is 2 x 56%? Where in the 7-year doubling period are we, exactly? How do you fund all the rest of government, the departments, the agencies, and services, if entitlements consume 112% of your total budget, of which almost half is ALREADY on borrowed money?
Cliff indeed.
That’s a great post right there. You nailed it.
Let’s tell our Republican congresspersons to vote for a true conservative as leader, the next time the opportunity comes up.
= = = = = = = = = = = = = = = = = = = = = = = = = = = = =
There needs to be a coordinated effort here, getting the message to the sitting Congressmen/women that a vote for Boehner is a good way to start the end of their career.
They have to be made to realize if ‘they’ don’t do right their will be a move to either replace them in the primaries and if they get nominated the only ‘sure thing’ is voting across the aisle.
These guys aren’t even a glimpse of a speed bump, no sense thinking we have something and ‘hang on to a slim glimmer of hope’, just give it to the other side and be done with it.
The Senators that are on the 2014 ballot need to be given the same message. Keep laying down and it will cost you.
If nothing else, make them SPEND that war chest they all have stowed away.
I ain’t that smart but I got it. There is no way the politicians, or some of them, don’t understand this.
I ain’t that smart but I got it. There is no way the politicians, or some of them, don’t understand this.
BUMP
Giant shoe stomping on the face of America, forever.
I stole that from somewhere.... Heinlein I bet.
It isn’t a deal. IT’S A TRUCE!! But they will come for our money eventually!
http://confoundedinterest.wordpress.com/2012/11/25/japanese-and-spanish-house-price-deflation/
This is full of crap and a schill for Barry et al.
The wealthy, some of whom I know, are going go back to their advisors and look fir opportunities to reduce their obligations to Fed.
Try taking a long term view on their portfolios buying muni’s and bonds not in America but in other countries that have better yields than our D ick head gubmint delivers.
Hell, the numbers on return are astounding. However only the real wealthy will be buying into as the requirement for entering first spends starts @ $100k and some require a million or more.
Further, if you’ve been for a few years you don’t actually own much as your homes, art, cars and kettles of physical gold and silver are held in trusts and the best part? Theyzzz dunn been paid off years ago.
No rent, no mortgage, no car payments and an emergency stash that is untraceable if it’s sold.
Their travel can be front loaded by purchasing extra hours on Netjet. So, instead of paying a million bucks to fly charter, they’ll simply spend an extra three or four million to get them through the next 4-6 years and they’ll take that against their earnings this year.
Then they will take big pile of cash they have been quietly saving in their rainy day stash and take more earnings this year to get them through the next few years.
Over simplification but, that’s about how it will go.
The government will never achieve their revenue goals because the wealthy will simply limit their income and even move to tax free bonds.
A big FU to the theives of DC.
If they trully need more revenues they need policies that will sour investment, creating jobs and start sticking it to China, forcing them to compete on a level field.
They will create more taxpayers and they could raise the tax thresholds on all income requiring more people to pay taxes and then raise their rates.
“Then why would he sell CDS on it?”
Because he knew it would be paid for with a TARP, provided by his GS governmental employees whenever he needed, and that they would never have to eat it.
And thats what happened. The US government gave 10 billion of TARP funds to GS. Amazing, he can talk about the need for containing entitlements, as he enjoys the mother of all entitlements.
Wonder what a capitalist investment bank would look like? You know, one that doesn’t get governments funds anytime it it’s about to lose a bunch on bad investments.
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