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The Science of Getting Rich: CHAPTER VII [excerpt] by Wallace D. Wattles #Gratitude

--- Gratitude THE ILLUSTRATIONS GIVEN IN THE LAST CHAPTER will have conveyed to the reader the fact that the first step toward getting ...

Sunday, November 20, 2011

Debt supercommittee looks unlikely to reach deficit deal as deadline approaches - Reading between the lines

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I always make a serious attempt to "read between the lines". In this article that's not even really required as the dirty little secrets are, nearly, laid out in plain sight.

[Here we clearly see the sheer panic of the governmental / political and financial elites.. As the short paragraph below demonstrates their urgent need not to "help the people" but rather to, in the words of this article, "help prop up the economy"].

"If lawmakers rebel against the cost, as is possible, they would bear responsibility for allowing policies such as the payroll tax cut, enacted a year ago to help prop up the economy, to lapse."
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[In the excerpt below we begin to see the consequences of government not propping up the economy via deficit spending. 6 million people losing average extended unemployment benefits of $300.00 per week = a staggering 1,800,000,000.00 [that's a 1.8 TRILLION dollar hit to the economy in 2012! The 1.8 million who would lose benefits within a month represents $540 BILLION dollars.]

Letting extended jobless assistance expire would mean that more than 6 million people would lose benefits averaging $296 a week next year, with 1.8 million cut off within a month.
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[Below we see that it seems the ONLY way to prevent total economic collapse in the United States is for the government to hand out, no strings attached, FREE, taxpayer dollars that have not yet been EARNED, ie; at least 42 cents of every taxpayer dollar spent represents new borrowing. It states below that this is the best way to "stimulate the economy because unemployed people generally spend the money right away."

Economist say those jobless benefits — up to 99 weeks of them in high unemployment states — are among the most effective way to stimulate the economy because unemployed people generally spend the money right away.

"We will have to address those issues," Durbin said.

Extending benefits to the long-term unemployed would cost almost $50 billion under Obama's plan.

*I* say that's total bullshit! It is NOT about "stimulating the economy" at all. Further it is NOT about "helping Americans get by in tough economic times" either..

What it obviously IS about is the government / congress USING BORROWED taxpayer money to place fiat in the hands of the unemployed just long enough for that fiat to be passed on to banks and other lenders to cover mortgage payments, to cover car payments, to cover credit card payments all the way down to covering grocery and utility costs for the unemployed.

Now some of you may think this is the compassionate thing to do. I disagree. It is only a way for the government and the Federal Reserve Bank to attempt to HIDE the unstable economic mess created by excessive greed and risk taking by financial elites. It is pure and simply socialism in which those Americans fortunate enough to still have a job are being required by government to PAY THE BILLS of those who lost their jobs due to the rampant greed and corruption at every level of government, banks and corporations. These entities colluded to base an entire economy on nothing but debt and to this very day they REFUSE to pay the price for that huge, intentional, blunder!

It is often said that the truth hurts and that is true in this case. I do have compassion for the people who have had their lives turned upside down by the greed and stupidity of government and corporate America.

However I strongly disagree with the tactics of our government and financial elites. They seek only to HIDE the truth from the American people. To move fiat around on the books to prop things up. To legalize accounting fraud at the banks and other corporations. To continue to pile on debt to fix the problem of too much debt!

As painful as it might be for millions of Americans and American businesses this MUST STOP. These actions by government and major corporations are UN-American. They have completely privatized profits and socialized risk and loses.

All government and corporations continue to do is force the sh*t to continue to roll downhill, away from them, and their crony capitalists friends, into the lap of working Americans by cutting what small pieces of the American pie we have managed to achieve for ourselves until there is none left at all.

As long as things in the economy run smoothly via exponentially increasing credit expansion government and financial elites want to claim we have a capitalistic system. However, at the same time, when things crash due to their own greed and corruption the elites want to disallow the parts of capitalism that they do not ike! Which are recessions, depressions and deflation!

You cannot have it both ways! We either HAVE capitalism, with all it's benefits and downsides, or we have something entirely different.

At the moment we have something entirely different.

This system can never stand again. It is done!

Greg
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Little progress made after months of negotiation
BY THE ASSOCIATED PRESS
NEW YORK DAILY NEWS

Sunday, November 20 2011, 1:21 AM
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WASHINGTON — If the deficit-cutting supercommittee fails, Congress will face a crummy choice. Lawmakers can allow payroll tax cuts and jobless aid for millions to expire or they extend them and increase the nation's $15 trillion debt by at least $160 billion.

President Barack Obama and Democrats on the deficit panel want to use the committee's product to carry their jobs agenda. That includes cutting in half the 6.2 percent Social Security payroll tax and extending jobless benefits for people who have been unemployed for more than six months.

Also caught up in what promises to be a chaotic legislative dash for the exits next month is the need to pass legislation to prevent an almost 30 percent cut in Medicare payments to doctors. Several popular business tax breaks and relief from the alternative minimum tax also expire at year's end.

A debt plan from the supercommittee, it was hoped, would have served as a sturdy, filibuster-proof vehicle to tow all of these expiring provisions into law. But after months of negotiations, Republicans and Democrats were far apart on any possible compromise, and there was no indication of progress Saturday.

Failure by the committee would leave lawmakers little time to pick up the pieces. And there's no guarantee it all can get done, especially given the impact of those measures on the spiraling debt.

Instead of cutting the deficit with a tough, bipartisan budget deal, Congress could pivot to spending enormous sums on expiring big-ticket policies.

If lawmakers rebel against the cost, as is possible, they would bear responsibility for allowing policies such as the payroll tax cut, enacted a year ago to help prop up the economy, to lapse.

Last year's extensions of jobless benefits and first-ever cut in the payroll tax were accomplished with borrowed money.

The 2 percent payroll tax cut expiring in December gave 121 million families a tax cut averaging $934 last year at a total cost of about $120 billion, according to the Tax Policy Center.

Obama wants to cut the payroll tax by another percentage point for workers at a total cost of $179 billion and reduce the employer share of the tax in half as well for most companies, which carries a $69 billion price tag.

"The notion of imposing a new payroll tax on people after Jan. 1 in the midst of this recession on working families is totally counterproductive," said Sen. Dick Durbin of Illinois, the No. 2 Democrat in the Senate.

Letting extended jobless assistance expire would mean that more than 6 million people would lose benefits averaging $296 a week next year, with 1.8 million cut off within a month.

Economist say those jobless benefits — up to 99 weeks of them in high unemployment states — are among the most effective way to stimulate the economy because unemployed people generally spend the money right away.

"We will have to address those issues," Durbin said.

Extending benefits to the long-term unemployed would cost almost $50 billion under Obama's plan. Preventing the Medicare payment cuts to doctors for an additional 18 months to two years would in all likelihood cost $26 billion to $32 billion more.

Lawmakers also had hoped to renew some tax breaks for business and prevent the alternative minimum tax from sticking more than 30 million taxpayers with higher tax bills. Those items could be addressed retroactively next year, but only increase the uncertainty among already nervous consumers and investors.

This time, Obama wants them to be paid for. But a move by Democrats to try to finance jobs measures with hundreds of billions of dollars in savings from drawing down troops in Iraq and Afghanistan has gotten a cold shoulder from top Republicans.

"I've made it pretty clear that those savings that are coming to us as a result of the wind-down of the war in Iraq and the war in Afghanistan should be banked, should not be used to offset other spending," said House Speaker John Boehner, R-Ohio. He did not address whether war savings could be used to extend expiring tax cuts.

Those savings are the natural result of national security strategies unrelated to the federal budget. Deficit hawks say tapping into them is simply an accounting gimmick.

"It's just the worst of all worlds if that were to happen," said Maya MacGuineas, president of the Committee for a Responsible Federal Budget.

But without the war money at their disposal, lawmakers simply can't pay for the payroll tax cut and jobless benefits. Liberals such as Durbin are fine with employing deficit financing, especially if the alternative is playing Scrooge just before the holidays.

"Many people will hate to go home for Christmas saying to the American people, 'Merry Christmas, your payroll taxes go up 2 percent Jan. 1 and unemployment benefits are cut off.'"

Source

2 comments:

  1. Greg, I agree with you that the US government is trying very hard to keep itself going financially - and on the backs of the current and future taxpayers. All governments are trying in various ways to do just the same.

    While you don't mention it here, what's become of the rumors of government seizure or (more) tax on 401k plans (& possibly IRAs too)?

    Governments (those in them, behind them and close friends of them) will do everything they can think of to stay in power. These people are less honest than robbers, because while they arrange to expropriate your money - via the threats of physical force or its actual initiation by enforcers - they insist that they are doing you a favor. A robber simply takes your money w/o any such pretense.

    The major problem here regarding the mess the US government has made of the economy in this country (and similarly in other countries by those governments) is that the greater majority of the populace has swallowed for years the propaganda the government has put out - that being that the government's job is to "run the country", which includes "being in charge" of the economy. You & I both know that "the economy" is really just the collection of all the transactions of monetary value between individuals. When the government becomes a 3rd party, via its almost countless number of regulations, it distorts the choices of all parties to all transactions. Even more important (and often not considered) are the choices that never become available because of government regulations. Government is the ultimate interferer and destroyer!

    Government is death to creativity even while it pretends to nurture it, because it stifles what it can't control.

    Government is the death to self-responsibility while promoting security, because those individuals who want security above all else will both yield responsibility to and defer authority to government. When people view government as the seat of responsibility and authority they are pawns to that government, good only as taxpayers and cannon fodder.

    The technological advances have in the past ~20 years moved faster than the US government has been able to control and direct. This has enabled a growing number of young and previously ignorant older individuals to become aware of what has taken place in previous generations of government and currently. The curtain has been pulled from around the Wizard manipulating the controls of OZ. More than the original single child are crying that "the Emperor has no clothes!".
    [cont'd]

    ReplyDelete
  2. Kitty Antonik Wakfer has left a new comment on your post "Debt supercommittee looks unlikely to reach defici...":

    [cont'd, delayed due to tech difficulties]
    But the most important fact is still the biggest open secret - that the enforcers are the key to what keeps any government in operation, especially once the majority of the population realize that laws/edict/mandates/regulations/etc are a bunch of hooey, and even downright harmful. These words only become reality because there *are* government enforcers, those willing to threaten and actually initiate physical force to compel individuals to do something they would not do of their uncoerced choice. And there are plenty of instances, more each year and well documented, of enforcers initiating physical force - even to the point of death - as they enforce various "orders" from above.

    The solution to this entire situation must come from each individual - and it can because the technology exists for virtually all people to be in touch with each other. Representatives served a purpose in the past, but they are no longer necessary.
    I have provided this list before, but it warrants repeating:

    1. Do not make use of "government services" that can be obtained privately;
    2. Initiate/support cooperative efforts that replace "government services";
    3. Do not work for or do business with governments of any form in any capacity;
    4. Preferentially associate with those who do not work for governments - positive social preferencing;
    5. Do not voluntarily associate with those who continue to work for government despite being encouraged not to do so - negative social preferencing;

    6. Last but not least - and actually primary to the preceding, Practice self-responsibility and encourage the same by all others, especially children and young people.

    It is clear that a better society is the desire of most, if not all, of the activists against government's high taxes, privileges to some and choice-limiting regulations. However, it needs to be understood that the withdrawal of sanction and the practice of self-responsibility are both necessary for any real changes in human society which will benefit each member all at the same time. More: http://selfsip.org/focus/protestsnotenough.html

    Posted by Kitty Antonik Wakfer to Ancient Warrior's Ancient Battles at November 21, 2011 1:26 PM

    ReplyDelete