Skip to comments.Merry Cliffmas
Posted on 12/25/2012 3:23:37 PM PST by Kaslin
Okay, so it's the night before Christmas and all through the House (of Representatives) not a creature is stirring, not even John Boehner. Congress is off for the holiday, and the President is out in Hawaii. And here we are, one week from fiscal calamity.
Surely, if this Fiscal Cliff doesn't get sorted out it will be one of the worst failures of Congress and the President of all time. Nevertheless, both Boehner and Obama agree there's still time. For me, if the few goons in Congress and the White House procrastinated all year only to hold all of America hostage until the last minute. They don't deserve to go off for a holiday.
And so the market is set to open flattish on the day. For that matter, markets around the world seemed to take a breather today. People seem to acknowledge that whatever comes out of this circus in Washington is going to really set the tone for the world economy for Q1 2013. And the thing is, 2013 could be pretty good as things had been looking a tad brighter, namely in China, up to this point.
Since collapsing to a four-year low earlier this month, the Shanghai Composite is up 10%:
Back here in America, there's obvious concern on behalf of consumers and businesses alike, but that doesn't mean we've tapped out. ComScore gave out some holiday online shopping figures that suggest spending is in fact up decently from a year ago, although people appear to have left it to the last minute this year. Overall online retail sales are up 16% since November 1, with a big boost coming just last week.
One question here may be whether or not retailers resorted to last-minute discounts to get buyers to budge.
Don't they always?
Overall online retail sales are up 16% since November 1, with a big boost coming just last week.
IOW, our increased spending has boosted China's economy.
Stop and think, the wealth of the middle and lower class has dropped drastically in the last four years. The same happened in the 30's. However nobody starved, there were no riots, some became more dependent upon the government but that is what the current idiots voted for. And besides the great Zero thinks he is as potent as FDR so he can fix it.
In simple terms, NO PROBLEMO. Let the cliff happen.
I like THAT one much better :-)
Welcome to the US permanent state of crisis. Our Alfred E. Newman president is handling everything.
My question is, on Jan 1 the budget resets to a lower number right? And going forward, next year’s baseline will be based on that lower number? Just wondering ...
That's because the Baraqqi Regime is (temporarily) getting away with spending $1.40 for every $1 of revenue, and using the money to buy votes.
The US is like that family in 2007 riding a wave of false prosperity based on maxxed out credit cards and helocs on houses with negative equity.
The 2010 lame duck Senate minority Rs created this time-bomb exactly two years ago by forcing an extension of all the Bush tax cuts for two more years. Remember that Obama got the Pelosi lame duck House to extend them for those two years.
If instead the upper income taxes had went up in early 2011 and the the economy slowed (for any reason) then Obama would have had less chance of this second term. Republicans would have had an issue. ‘Raising taxes hurt the economy’
That two year extension was the best luck O had(I think he may have planned it) , now it is trap for Republicans because they have the House now.
So if Republicans give in to partial extension now then Dems will be sure to repeat over and over on TV that Republicans gave gave in and raised taxes (the dog whistle), then the R party breaks out into civil war and self destructs and Pelosi picks up the House in 2014.
If they don't give in (which is unlikely) then Obama pins the bad economy on them for the raising taxes (in voters eyes), again to take back the house in the 2014 midterms. In fact he will do this even if they do give in after a certain period of time.
Those 2 year tax cut extensions were a huge trap. It is like Dems plan strategically long ahead, Republicans simply react to the crisis of the day.
let it fall,let it fall, let it fall.
Qe infinity is now funding Asia’s growth.
I agree with the ‘lets blow it all up cos we got nuthin to lose’ club that this will be an very exciting and entertaining show to watch since none of us can guess the exact details of how it turns out.
But after 4 years I have concluded that no one in this R party congress has a clue how to win one of these fights. Obama and the Dems are always 10 steps ahead of them. And they make use of polls.
With all the whining and complaining about Boner if none of them steps up and challenges him to be Speaker themselves then it is a good sign we are screwed. That means they all (R House members) know their side will lose. Yes, even those Tea Party 'Lions' who go woof-woof when its safe for them personally.
That is the way I understand it.
It cuts the hell out quite a few programs, on the bad side, the taxes will go up...for everyone.