Pulling the wool over the sheeples eyes. Nothing to see here, move along now.
IMHO, “Fiscal Cliff” has always been a media meme used by the government to score political points with the public, depending on whoever (as in which party) gets to take the most credit for averting it. “Oh look what we averted.” Once again, it’s the Hegelian Dialectic in full swing; thesis -> antithesis -> synthesis; or to put it another way: problem -> reaction -> solution. My belief is this was all planned and laid out beforehand, utilizing the politics of fear as a weapon against people who lack information about the seriousness of the situation we’re in. Now all of sudden, they announce a deal at the last minute. Oh yea! A deal. Now we can all be relieved right? Well what’s in it?
Reality: we’re so far off the cliff that we’re just trying to figure out how to land and extend the time it takes to hit.
“More than 80 percent of households with incomes between $50,000 and $200,000 would pay higher taxes. Among the households facing higher taxes, the average increase would be $1,635, the policy center said.” http://www.bloomberg.com/news/2013-01-01/senate-passed-deal-means-higher-tax-on-77-of-households.html
Peter Schiff: http://www.youtube.com/watch?v=c8Fxn4of1dg
Ron Paul: http://www.zerohedge.com/news/2012-12-29/ron-paul-fiscal-cliff-we-have-passed-point-no-return
Ambrose Evans-Pritchard: http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/9773911/Stocks-to-soar-as-world-money-catches-fire-Calvinst-Europe-left-behind.html
Dubai is just a harbinger of things to come for sovereign debt – Jeremy Warner
These are the exact things Peter Schiff and Gerald Celente were warning about a while back. The issue with this surprise Dubai news is not that they may default on $80-90 billion in debt (the news that came out today). Rather, looking into the near future, this event may be a foreshadowing of things to come with the large industrialized nations. That’s why there was a global sell-off.
In 2007 to 2008, a financial crisis came upon the private sector. And so what did governments do? They bought up the debt amounting to trillions of dollars ($15.3 trillion to be exact). So now governments around the world hold an unsustainable amount of debt. Now what? Jeremy Warner explains it well here:
“The fear is that threatened default in this tiny desert kingdom is just a harginger of things to come for government debt markets as a whole. According to new estimates by Moody’s, the credit rating agency, the total stock of sovereign debt worldwide will have risen by nearly 50 per cent between 2007 and 2010 to $15.3 trillion. The great bulk of this increase comes not from irrelevant little states like Dubai, but from the big advanced economies – America, Europe, and Japan.”
“Up until now, markets have assumed that the ruinous fiscal cost of addressing the financial and economic crisis was probably just about affordable to the major economies. That view may be about to be challenged.”
These issues here (amongst others) are exactly why the government should stay out of the free market. Let the companies crash that need to crash. Get rid of the entire category of “too big to fail” and let the market do what it needs to do. Governments, when they intervene, wind up distorting and elongating what should have been a two year economic meltdown at max, only for some form of short-term economic gain. Now, governments are looking like they can’t pay the bills. Lo and behold: Keynesianism in action!
Now we’ll have to see if the rest of Celente’s predictions and forecasting comes true, which is that governments, as a response to not being able to pay debt bills, will have to raise taxes, which will then in response cause some form of a tax revolt among the people. You think the tea parties were crazy? Just wait and see if they try to do this.
I’m just not sure why the FOMC (Federal Open Market Committee), after having been wrong on multiple assessments of the economy in the not so distant past, would be so quick to say we’re now on the fast -track to recovery when the stats and the history of past crises does not lend us that kind of optimistic conclusion. From Ambrose Evans-Pritchard (Archive):