March has finally arrived. One of the
coldest February’s in recent history is a thing of the past. Since March in our
part of the world has come in like a lamb must we fear that it will go out like
a Lion? That applies to the weather; in politics it already is Lion season.
We do know that this is the time for March
Madness. Not only will it mean the time of the NCAA basketball tournament, but
our brilliant statesmen in DC are going to go down with the nation steadfast
committed to their principles. It matters not whether they are right or wrong
they will try to convince the world that
the other party and its leadership are so self-centered that they cause the country go to hell by not backing down of
their positions about decreasing the
debit.
Unfortunately our President has not forgotten
his political roots and is trying to convince everyone including Assemblyman
Green that it is those dastardly Republicans who by refusing to make any
changes in income tax loopholes that are responsible for the “sequestration”
and the mandatory greatest spending cut in history.
Forgotten, that when this deadline was
established to prevent going over the "Cliff" in January the Republicans did agree
to permit an increase in the tax rates for families earning over $400,000.00
The Democrats did not come up with any of the reductions in spending programs that
had been inferred as part of the “deal”.
Sure to reduce the debt we need more income
which can be obtained in part by much needed changes in the tax laws and a
further increase in Federal Taxes.
BUT we cannot continue to spend more than
we earn. That means better controls on
spending for programs, even reducing the scope of some programs. That will be
unpopular with the masses of the electorate; therefore the Democrat Socialist refuses
to compromise
The usual solution of raising the debt
limit and borrowing more does not work.
Until both will back down we will be on the
edge of economic disaster. All it will take is for the Democrats to initiate trimming
various programs and the Republicans to acknowledge that the greater the income
the greater should be the tax responsibility.
It is also time to return to local
politics. The Council working meeting is Monday. A preliminary look at the agenda
suggests that the introduction of the budget will not occur at the earliest
until April.
The upcoming meeting should be subject
matter on Sunday.
Doc -- there are other problems looming that Capital Hill - either party - doesn't talk about.
ReplyDeleteThe Federal Reserve has been buying distressed mortgages from the banks for several years now. 2009-2010 Fed bought $1.1 trillion in mortgages. In 2012 Fed bought 4$9.5 trillion in mortgages.
- this has taken the bad assets off the banks' books, and put them on "our" books. The taxpayer will take the loss, not the bank shareholder.
The Federal Reserve has been printing money. This has devalued our dollar.
- this means our money buys less. It also means entitlement payments "cost" less, in real terms. So everyone on social security, welfare, etc. is actually getting less than they got 4 years ago. The numbers are the same, but the value is less.
Real income has been flat since 2000.
Cheap credit and financialization has boosted stock valuations far above the REAL economy. The stock bubble burst is coming.
The Fed is doing all it can to artificially prop up the housing market.
- Banks are holding foreclosed homes off the market (called shadow inventory), to create "demand", to try to get housing prices to rise.
- We have 19 million vacant dwellings and 90% of housesholds have declining REAL income.
- If the near zero interest rates go up, property taxes continue going up, housing pricing can only go down.
The government has inflated phantom assets to collateralize government debt using zero-interest rates, money printing, a monetization of Federal debt.
This house of cards will collapse eventually.
Olive