Punting is wrong answer for 'fiscal cliff'
Reports out of Washington suggest President Obama is pushing a short-term postponement of the issue. Not only will that not solve the problem, it increases the pressure on the debt ceiling fight to come.
As the country barrels towards 2013 with no "fiscal cliff" deal in sight, headlines are crossing Friday that the politicos are about to revert to what they always do when faced with tough choices on taxes and spending cuts and the dreadful long-term debt trajectory: They punt. Keep the charade of government largess and low taxes going just a little bit longer.
Not only will this not solve the problem (as I've said before, the issue is out-of-control healthcare costs) it makes the situation worse by increasing the pressure on Washington when the debt ceiling fight starts in January. The Treasury has said it will hit its borrowing limit on Dec. 31 -- but the hard deadline, thanks to emergency cash management, will be in February or March.
Here's why this deal should be viewed with skepticism.
Details. The latest suggests Obama is proposing a 60-90 day deal that would extend the Bush tax cuts for those making less than $400,000 a year, delay or replace automatic spending cuts (from the congressional deficit "super committee" failure), keep extended unemployment benefits, and fix issues related to the Alternative Minimum Tax and the Medicare "doc fix."
This is exactly the kind of hollow, kick-the-can option the credit rating agencies have been warning Washington to resist. Moody's recently said that a last minute kick-the-can deal would be the worst possible outcome since it would fail to stabilize the country's debt to GDP ratio. Fitch warned that it would consider a downgrade if the political gridlock continued and the fiscal cliff debate dragged well into 2013.
Remember that Standard & Poor's cut our AAA rating last summer, in large part, because of our dysfunctional politics.
Markets are already expressing their displeasure with this option, as the Dow Jones Industrial Average slices down through its 50-day and 200-day moving averages for the first time since the November wipeout. Volatility is surging. And investors are scrambling into safe haven assets like the U.S. Dollar and Treasury bonds.
Disclosure: Anthony has recommended QID and TMF to his clients.
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Enough is enough!
The Middle Class is getting squeezed and we pay the majority of the taxes. I remember the only way our politicians listen to us is when we march in the thousands on their door steps. That is what we will do on August 28, 2013 - the Middle Class Rights march on Washington, D.C. THEN THEY WILL KNOW NOT TO MESS WITH THE MIDDLE CLASS AGAIN!!!!
Welcome to Obamaville. Four more years of a terribly expensive, very bad dream.
if only we could punt you, your fckd up messiah obama, reid, pelosi and every communist scumbag that has caused this "cliff" disaster off that cliff!!, this is an entire democrapic disaster, the democraps own this mess, that idiot john boehner is just bendin' over and goin' along with it, so no surprise there, he may as well be a democrap himself, totally useless!! but as long as you dirtbag libs burn with the rest of society now, it's all good, you've gained nothing having this black bitch re-elected, NOTHING!! and guess what mid class AMerica! you're gonna get hammered with new taxes, not the RICH, but the MID CLASS as well, enjoy!
Hey reeffer...what story are you talking about that "Americans" are not buying? Not buying that you can't spend your way out of debt? Not buying that you can't tax a country into prosperity? Not buying that if you confiscate ALL WEALTH.....not just the wealthy's money....EVERYBODY'S money, every last dime and asset of every living sole in this country it WILL NOT be enough to pay off the debt and will only fund the government less than a year?
If that's what you're talking about, you are right, we ain't buying it! By the way, conservatives and republicans are MORE AMERICAN than any fool who thinks this idiot in chief has the best interest of the country at heart.
I expect a little more then a punt...Maybe an extra point that hits an upright and teeters on the crossbar.
With a flag....
Next week should show us an end run going for the two...
If that doesn't happen, we are stuck on the one; Going the opposite direction.
Why can't the Republican Conservatives understand that Americans are not buying their story. The country elected President Obama knowing what he believed in but the Conservatives don't seem to understand that. Our President has come more than half-way to meet the Republican Conservatives demands but it seems to make no difference. Anyone with any intelligence knows that we have to decrease spending and to increase revenue. It is time for everyone to work together and to fix the problems that this country faces.
This is a good article by Anthony.
The cliff will hurt, the can kicking will hurt, but the Fitch downgrade will REALLY hurt.
I do not understand why our elected officials cannot see the ramifications of another downgrade.
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