A Matter Of Perspective - The Cliff

So What Really Happened?

I'm sure all the minimal minded liberals in the nation were wringing their greedy paws and cheering the avoidance of the fiscal cliff. In reality what we will experience, if Obama continues to get his way, isn't avoidance but an absolute economic train wreck. The 64K dollar question as Obama boarded Air Force One in the middle of the night and snuck off like the unethical thief that he is seems to be, "What's next Obama?" What did you solve other than to kinda-sorta live up to the class warfare pledge that you campaigned on. You couldn't run on your record so you became the pitiful attack dog that community organizers are prone to be.

One thing is quite apparent from watching the dog & pony show we just witnessed at the end of 2012. Most of those elected bubble heads are grossly unattached from the reality the common sense citizen on the street is aware of. We're broke. They've overspent and overspent and now expect to compensate for that by reverting to the theft of tax payer money that they have down to a science.

I hope the mutton heads out there feel all warm and fuzzy now that tax hikes have been reigned down on "the rich" and you now feel that tax fairness across the land has been achieved. But guess what? It hasn't been and they've bamboozled you with the smoke and mirrors routine anew. If you think the fiscal cliff has been eliminated it has not been. They just moved it on down the road with their usual kick. Children learn "kick the can" playing street games. What you are witnessing is the adult version on the backs of our present and future children.

The True Perspective

The graph above puts the true nature of what was done, or really what wasn't accomplished, for the "math challenged" among us. We know you're out there. Is a picture worth a thousand words? You can bet this one is.

Let me explain it in plain English. That $62 billion in extra revenue a year doesn't stack up well against the $1,089 billion FY 2011 budget deficit. The FY 2012 deficit will be higher. Place a bet on that if you can find a bookie to take it. Using the ten (10) year projection these clowns like to cloak things in the Congressional Budget Office (CBO) has this magic trick not reducing the federal budget deficit by even a skinny penny. Their figures crunch out with this can kick actually adding just shy of $4 trillion to our national debt during the ten year period in question.

What a great deal we got. Payroll taxes will go up for 77% of the working people in this nation due to their actions and in actions. It wasn't only about the rich. Obama duped you again for those who believe even a single word he says. Any spending cuts were postponed again because our circus clowns have no intention of cutting spending with Obama at the helm. Is the federal government going to grow and get bigger? Find that bookie and place a "yes" bet on that too.

So put a chain on your wallet because they're far from done.

So lets talk about the pork in this bill that the US Senate sent to the House of Representatives. Pork you ask? That's the Washington way in case you aren't paying attention. The Senate did the same thing to the disaster aid bill for the victims of Hurricane Sandy but that can be the subject of a whole different Hub truth be known. This tax bill was packed with pork for the Democrats constituencies, and here you thought it was just a tax increase on the rich did ya? About that bridge in Brooklyn I have for sale...

Inside those 154 pages that Senators had six (6) minutes to try to dissect before the voting began were subsidies for electric vehicles. Now whose fingerprints would be all over that deal? Tucked away in there are special tax subsidies for the movie and television industry. That shouldn't raise any eyebrows among liobwerals I'm sure. Or how about that $12.1 billion wind energy subsidy no one wanted to address head on outside of this fiscal cliff garbage deal? And let us not forget about the tax credit for first time home buyers in the Washington DC district. Why is that in there? There is more in there. Be certain of that. It's like Obamacare. The more we find out about is in it, fog or no fog, the less palatable it becomes.

In case you were asleep again at the fiscal wheel we sailed right past the last national debt increase figure that brought on the present furry of fiscal suicide. But they have a plan. Treasury Secretary Geithner (remember the tax cheat?) is jiggering the numbers to stave off the fact that no agreement was again reached before facing that particular cliff. That's exactly how all this sequestration nonsense originated in the first place.

Look on the bright side folks. Anyone making more than $50K a year will pay at least an an additional $1,000 in payroll taxes. This wasn't just about taxing the rich brainiacs. This was about using smoke and mirrors to mask some very unplesant news. There is a tax increase that hit every wage earner in America on January 1st of 2013. You mean Obama wasn't talking about that? How convenient of him.

Yeah Right! Makes Sense To A Community Organizer...

The next few months should be gut wrenching to the average American who is beginning to realize now that spending is totally out of control. It must be dealt with. Obama and his political party might not want to deal with it but it must be dealt with. The world credit markets will make that happen if our elected officials fail to make it happen.

Those of us who run a household know that we can only "jigger the numbers" for so long and then... Stay tuned and for goodness sake start paying attention if you haven't been.

Quote Of The Day: "You cannot legislate the poor into freedom by legislating the wealthy out of freedom. What one person receives without working for, another person must work for without receiving. The government cannot give to anybody anything that the government does not first take from somebody else. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that, dear friend, is about the end of any nation."

"Like"It, "Tweet" It, "Pin " It, "Share It" With Your Followers. Time to let em read it.


As Always,

The Frog Prince

PS - I thought I might make a ribbit or two as people were beginning to email or call me asking "Where you at?" Just collecting my thoughts after this last election about how ignorant the average American can be.

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Comments 21 comments

shiningirisheyes profile image

shiningirisheyes 3 years ago from Upstate, New York

Jim - Outstanding write and I couldn't agree more! I have reached a point, and so have many of my friends and family, where I belief zero, zip, nada of what is being told about this incredibly rotten situation the heads of this wonderful country have gotten us into!


The Frog Prince profile image

The Frog Prince 3 years ago from Arlington, TX Author

irish eyes - Since Obama assumed office it has escalated to a downhill ride quickly. It isn't only him, it is all of them. They are more intent on keeping their jobs than they are on the welfare of this nation. Collectively they have been screwing us all for years.

This and the diaster aid bill are two examples of the corruption and back scratching that has permeated our nation's Capitol.

TFP


Old Poolman profile image

Old Poolman 3 years ago from Rural Arizona

Jim, it is with a sigh of relief that I see you back on the job of keeping us on the ball. I look forward to seeing more hubs like this, and will wait patiently for a hub showing the Pork that was buried in the disaster relief bill for hurricane Sandy victims. This kind of crap must stop.

It is great to see you back in the saddle my friend.


Barefootfae profile image

Barefootfae 3 years ago from Skye

My problem is who exactly is representing us against all this nowadays?

It certainly isn't the GOP any longer. Oh you will hear big talk about it but at the end of the day they cave. Every time.


tsadjatko profile image

tsadjatko 3 years ago from maybe (the guy or girl) next door

Gave it a Useful, Awesome and Interesting - would be Funny and Beautiful if it wasn't all so sad and so true.

We are looking down the gun barrel of a genuine government default and then and only then will there be necesary huge spending cuts. The only thing I'm not sure about is that the market will go down when we default - the closer we get to it the higher it wants to go - anything can happen in this topsy-turvey world. It wouldn't surprise me if Al Gore (all time hippocrit of hippocrits) was elected President in 2016.


Naomi's Banner 3 years ago

You are spot on. The problem has not changed only becoming more and more blatantly obvious! I see all kinds of stories like this but Americans don't seem to be getting it. I know you are telling us the truth but what is the answer? Write about that my dear friend. Write about what the American regular Joe citizens can do to fix this mess.....or has it gone so far that we can't? As always Frog you open our eyes to the dirt but I beg you to come up with the solution cause regular Joes like me are overwhelmed in not really knowing what to do.

It would be nice if we could do what our forefathers did and fight our mother country to gain our freedom back but how many of our " law abiding " American citizens are willing to make that sacrifice.

Is it fixable...?

I am a citizen who is fed up to here..and would help do my part but what would that be? I pray and continue to pray that we bring God back to our nation and that our Leaders hear from God the one who holds all the wisdom in his hands .

Write about that Frog tell us what we can do.....!!!!


The Frog Prince profile image

The Frog Prince 3 years ago from Arlington, TX Author

Naomi - What you are asking me here I can't answer here as it would be too controversial. I will, however, think about an "advice Hub" for concerned people such as yourself. You just asked some very good questions that I hope other readers can also address here.

The Frog


drbj profile image

drbj 3 years ago from south Florida

Good to have your sensible analysis back on HP, Jim. Too bad our estimable (?) representatives seem to have their brains in their butts.


Stu 3 years ago

This is all really more business as usual from DC. No spending cuts, giant deficits, and not a word about monetary restraint that threatens to destroy the US dollar and US dollar denominated financial securities once the liquidity trap ends and "big inflation" rears its head. Obama and the Congress are literally hurling us toward an "inflationary depression" of the worst order.

At root of it all is the abject failure of the federal government to adhere to federalism. Arrogation of State powers to the federal government results in chronic overspending, because the federal government can borrow endlessly and print money. Federal transfer programs alone, all of which violate enumerated powers, cost over $2 trillion per year in cash. Enforcement expense associated with other usurped State powers comes in at a bit under $1 trillion per year.

The upshot is that we could run a $1 trillion federal current account surplus, without raising a penny in new taxes, if the federal government simply devolved usurped powers back to the States on an orderly, phased-in basis. We could pay off the entire official $16 trillion of official federal debt within 15-30 years, depending on interest rates on Treasury rollovers. And the off balance sheet debt could be largely abrogated, rather than liquidated in cash, by phasing out the big federal transfer programs, and ending implied but non-contractual "full faith and credit" guarantees (a nice way of saying "bailouts") for federal housing agency bonds. This is all rough medicine, but the fiscal crisis can be solved.

The monetary crisis is another matter. With a bank reserve ratio of 10%, we only need about $1.7 trillion of Federal Reserve fiat money to support a $16 trillion economy due to the money multiplier (the never ending cycle of depositing and lending that expands Federal Reserve fiat money via fractional reserve banking). Once the Federal Reserve prints more than $1.7 trillion of fiat money in our current size economy, the dollar starts to lose value due to oversupply of cash (inflation). At present, the inflationary effect of Federal Reserve overprinting has been minor, because weak demand for loanable funds has left enormous amounts of excess Federal Reserve fiat cash in bank vaults (or equivalently loaned back to the Federal Reserve for a tiny bit of interest each year). The Federal Reserve has been printing untold trillions of fiat money for domestic stimulus, domestic bank bailouts, and bailouts of European governments and banks. Once loan demand picks up (i.e., the liquidity trap ends), much of this surplus fiat cash will cascade into the economy as loans, and be inflated by a factor of about nine due to the money multiplier (fractional reserve banking). Hyperinflation could easily result. And there is no easy way to "unprint money." Sure, you can sell more federal debt to soak up excess cash, but this just worsens the fiscal crisis, and if we ever decide to end the debt selling, all the principal comes flying back into the economy as the bonds mature. Another method is to restructure the currency so every "old dollar" buys something like 5 cents (amount here conceptual, not computed) of the "new money", so Federal Reserve fiat money goes back to the required $1.7 trillion to avoid inflation. Such "mass revaluation" does little to reverse the original theft of value associated with the prior overprinting. We would simply be replacing inflation with undercompensation of those who were not beneficiaries of the overprinting (the claims of the beneficiaries of the overprinting would in effect dilute the proportionate share of the new money going to all others). In either case, the recipients of the overprinting make out like bandits, garnering wealth earned by others; Federal Reserve overprinting always results in a permanent shift of wealth, sort of like transfer programs, but using money dilution instead of forced transfers of cash.


Angela Blair profile image

Angela Blair 3 years ago from Central Texas

Glad to see you giving us the real skinny again -- been missin' your clever way with words while you lay all the facts out in a truly understandable way. Wish I could see even a few bright spots on our horizon but I can't -- looks like we're definitely into tolerating whatever happens next as I can't see where the general populace is being heard at all by anyone representing us in Washington. Best/Sis


WillStarr profile image

WillStarr 3 years ago from Phoenix, Arizona

Hey Jim!

"That $62 billion in extra revenue a year doesn't stack up well against the $1.089 billion FY 2011 budget deficit."

I think you meant either $1.089 trillion, or $1,089 billion. but we got it anyway.

Obama is robbing Americans two ways:

1) He is borrowing money that we can never pay back

2) He is printing money to pay some of what he spends

The result is a national credit downgrade and a devalued dollar. So, since our pay, and savings are in dollars, he is robbing us by stealing the value out of our dollars.

That is why gasoline is now permanently higher, and food prices are soaring. The dollar is now worth only four cents! Another four years of this madness and the dollar will become worthless and collapse, and all your 401k's combined won't buy a loaf of bread.

That is what Obama is doing to the US!

That is why gold and silver are soaring!

Obama is stealing everything we own, and the new political class won't lift a finger to stop him. The media is silent. We are on our own.


Old Poolman profile image

Old Poolman 3 years ago from Rural Arizona

Why is it that so few can see the true picture of what is happening to our currency and our country. Will at least a few wake up before it is too late? Or perhaps it is already to late and our fate is already sealed thanks to the President, the media, the do-nothing congress, and so many citizens who seem to love this President so much.

I most likely won't be here, but it will be very interesting to see what the history books have to say about this President, if they are still allowed to write the truth that is.


tsadjatko profile image

tsadjatko 3 years ago from maybe (the guy or girl) next door

Why is it that so few can see the true picture ?

Because they are lazy and frankly don't care enough. Why is that? Mainly the dumbing down of our society through liberal indoctrination in the schools, universities and main stream media.

Count it a blessing you won't be here but will be in a place where the truth does matter. Hope I'm there with you.


Ed Fidecaro 3 years ago

Hey Froggie,

Haven't chatted for awhile - I've been sooooo depressed, but it's time to take up the fight again. Now that BO has laid the foundation for making the argument that ALL money belongs to the government, he's quickly switched gears and has started an all out assault on the Second Amendment, having seen the great success achieved assaulting the First. As I've said many times we are witnessing the purposeful destruction of our country by an Islamo-fascist. That's okay, the country survive BO, but how do we survive the idiots that twice elected him to office? I fear for our nation.


The Frog Prince profile image

The Frog Prince 3 years ago from Arlington, TX Author

Ed - Any attempt to destroy the Second Amendment won't have a very good outcome. I have to believe Obama knows that unless he thinks he was elected to succeed King George III.

TFP


breakfastpop profile image

breakfastpop 3 years ago

Those who supported Obama are in for a big shock. Taxes have already gone up for everyone and more is on the way. The people who remained blind the second time around are going to regret their choice. Voted up interesting and awesome.


teaches12345 profile image

teaches12345 3 years ago

It is only the beginning. We are just seeing the first steps of change (planned from way back) as to how our economy may see some pull resulting on budget problems and needless expense. We shall see. . .


Old Poolman profile image

Old Poolman 3 years ago from Rural Arizona

A guy told me today he didn't care if taxes went to 100% as long as the government continued to provide for our needs. I didn't even bother to comment back to him.


WillStarr profile image

WillStarr 3 years ago from Phoenix, Arizona

"A guy told me today he didn't care if taxes went to 100% as long as the government continued to provide for our needs."

And that is what is wrong with America and why America will fail unless we change our ways and soon.


Pollyannalana profile image

Pollyannalana 3 years ago from US

It is getting so disgusting, I lose the fire to scream about it anymore. He has his many sheepals who will not open their eyes and we are getting outnumbered.


tsadjatko profile image

tsadjatko 3 years ago from maybe (the guy or girl) next door

Google [Gao report unsustainable] - you will not find one article on it by the main stream media...God forbid this information should affect his majesty's inauguration speech! But you will find this by the true media,

The Government Accountability Office warned in a report Monday that if cuts are not made to mandatory spending — including Social Security and Medicare — there will be a fundamental gap between spending and revenue as more baby boomers retire. “Significant actions to change the long-term fiscal path must be taken,” the GAO warned. http://www.breitbart.com/Big-Journalism/2013/01/22...

the only media that actually strives to fullfill the "Journalists Creed", that journalists must be public trustees with the full measure of responsibility to the public. That accuracy and fairness are fundamental to good journalism. That a single standard of truth must prevail for all, that suppression of the news is indefensible."

"The Journalist's Creed is like the doctor's Hippocratic Oath, but for journalists. Imagine if all physicians chose to ignore the Hippocratic Oath? We'd all get sick. In this case, we are all becoming badly infected with Marxism,"

(http://www.youtube.com/watch?v=881cyFeJSxc ).

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