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Fiscal Cliff = Greek Austerity?



August 23, 2012 – Comments (4)

I would be willing to bet that both political parties will repeat the kabuki dance of last summer, and avoid the impending fiscal cliff at the last minute. Left unfettered, it would increase the income tax and cut fiscal spending. Funny, that sounds eerily like the austerity package to close her budget deficit that EU/ECB/IMF have imposed upon Greece as a condition of financial rescue.

How is it working for Greece? This a quote from Bloomberg: Samaras/Greece is talking to Juncker/ECB,

Greece stands by its commitments even after the economy contracted by a fifth over the past three years, the standard of living dropped by a third, pensioners lost a fifth of their incomes and half the country's youth is unemployed, he said.

4 Comments – Post Your Own

#1) On August 23, 2012 at 11:26 PM, awallejr (33.35) wrote:

This is just Kudlow crap.  There isn't any "fiscal cliff."  First if Congress does nothing all it means is the rich have to pay more in taxes.  The under $250,000 will as well but that is because the Republicans won't extend the Bush tax rates for them.  Wait.  The reason?  Because they want their rich buddies to share as well.  Hell we don't want Romney's tax rate to be 13%.  We want it to be 2% because afterall he creates the jobs (outside the country that is).

As for the cuts.  Republicans shout we need to cut.  But wait.  We don't want cuts to defense because our rich defense industry buddies want to still be paid.  But we do want to squeeze the middle class even more by taking away entitlements.

I find this the lowest point in political history in my life.  The greed and selfishness is so overwhelming.

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#2) On August 24, 2012 at 12:51 PM, Melaschasm (71.31) wrote:

OP) Technically the big cuts are just reductions in the rate of spending.  While some specific departments may have actual cuts total federal spending is currently budgeted to be higher in 2013 than 2012.

#1)  You are right, there is not a fiscal cliff.  You are wrong about the taxes, both parties are equally to blame.  Obama refuses to sign the republican tax cut extension, and the republicans refuse to pass a partial tax cut extension.  Romney's tax rate will not be effected either way because he has been paying the capital gains tax rate, which was not changed by Bush.  The 'Bush Tax Cuts' reduced the tax rate on ordinary income and dividends.  And you are wrong about spending.  Even the evil Paul Ryan spending plan increases entitlement spending faster than defense spending.  He just increases entitlement spending slower than Obama.

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#3) On August 24, 2012 at 2:48 PM, awallejr (33.35) wrote:

Except Boehner is nothing but a bullsh*tter in th end.  He was on Kudlow and said how he doesn't believe in compromise.  He believes in common ground.  Obama sent a bill to extend the Bush tax cuts for basically 93 % of the people.  Boehner wants that part too.  There ya go, common ground.  But he blocks it because his rich buddies (which includes himself) don't gain.

My comment on Romney was directed at his proposals should he become President.  All I hear is how tepid this recovery has been and that we need low taxes to help it improve.  Except we have KEPT the low taxes. It is nothing but contradictory selfish arguments being made.

The main reason why this recovery is slow is because the housing bubble crash eliminated what 12 million jobs.  Those jobs are gone.  That industry that made those jobs will never grow back to the point of suporting them. 

So there needs to be another catalyst to create the industries to absorb them.  And the only area I can see is if we did engage on a massive energy program to make this country energy self sufficient.  The one thing I do agree with Romney.

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#4) On August 24, 2012 at 3:09 PM, jerryguru69 (96.07) wrote:

#1),  #2), #3)see what I mean about a 'kabuki dance'? 

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