January is forecast month and the forecast for the European Common Market is grim to grimmer.
See links below to get an idea and then I'll look at it from the standpoint of its impact upon the United States and the price of gold and silver.
Understand one thing: Crisis and bad economic times always benefit elites and "investors" who have cash.
For example note that the interest rates being demanded by American investors using our money is 6-7 percent for the PIIGS (Portugal, Ireland, Greece, Italy, Spain, is high and assets in these countries are cheap. All this while paying Americans only 1-2 percent on their own money. Wow, how peculiar.
Meantime, you generally might see gold and silver prices go up and down as these "investors" put cash in and out of gold and silver, temporarily, in order to purchase the cheap assets of these now near bankrupt countries. They win on high interest rates and get to purchase cheap assets using our money while paying us nothing interest on our own money, to boot get to keep any profits from all this and if these investments fail they can send the bill to us the taxpayers, the very ones who gave them the money in the first place.
This, Virginia, is the way of the world; it is also what causes rebellions if not revolutions.
Tomorrow, a look at the impact this is likely to have on this country where we will also go to detail about all of this.
This run away and selling off from gold and silver was instigated in part by the announcement by the Federal Reserve of the United States and the European Central bank that they would fund the banks of Europe 640 billion Euros in the case of the latter and perhaps a trillion dollars in the case of the former.
So European banks get trillions of dollars and Euros in aid and three year low or no cost loans from the taxpayers of the United States and Europe; these Central banks do this by printing money, (remember these central banks control the printing of money in the US and in Europe) this money printing will surely create rising inflation which will result in rising prices for the middle classes of these these countries which in effect is a hidden tax on the middle classes--of course making the recession worse, not better.
What is going on is that the monied classes know this perfectly well and are trying to buy up the assets of the bankrupt countries (I include the US in this as well) before these rising prices actually occur three years down the road.
And they are doing it with our money which they had placed in gold and silver. Here is why. Deficits and bankruptcy means they charge usurious interest rates to these countries seeking loans. Take a look at their current demands in terms of interest rates.
Rate at which markets are willing to lend to governments for 10 years:
- Germany: 2.05%
- France: 2.83%
- Spain: 4.95%
- Italy: 5.56%
- Irish Republic: 7.41%
- Portugal: 10.80%
- Greece: 22.14%
So they are taking every dime they have to buy up low-cost PIIGS assets before prices rise and to simultaneouly charge outrageous rates. If the countries don't pay they simply foreclose and buy up that countries assets, usually with goverments willlingly cooperating, since these goverments are under the thumb of the banks and lenders anyway.
This is normal operating procedure for these economic terrorists.
Millions will suffer in the US and Europe, as they realize that their country has been literally sold off to the wall streets of the world, their water rights, their schools, their productive industries all will be sold to private investors by their governments, governments obviously controlled by the debt mongers and the predatory banks.
Recession, (let's call it what it is--on-coming depression) will be a holocast for an already devasted middle class on both continents.
Meantime the British, the real culprits in the phony derivative debacle, have essentially refused to have these speculations curtailed because in England there is no law limiting how many times a derivative can be sold and re-sold using the same collateral (ie. a mortgage.)
The current average in London is 400 times the collateral involved. In the US the average is 140 times. This is astounding.
That is why the British have resisted a speculation transactions tax, one that Sarkozy and Merkel support in order to prevent predatory banks from making Germany and France into another Greece.
The English economy is literally dependent upon continuing these fradulent financial practices to the extent that England is willing to drop valuable contacts and trade with the ECM.
But, you say, what can be done.?
Ah, something can be done, but it has to be done in the next three years.
But what about the US and the impact of all this on the US?
That tomorrow, but note that Europe is the major trading partner of the United States, and that is why the Federal Reserve is putting trillions into the banks in Europe to save them. It is in the interest of our banks here to do so, not the middle class, but the banks.
Our banks don't want the European banks to default on money that our banks have loaned those European banks. And they want to make sure that some cash is still there after these European banks have paid out money to the PIIGS.
You see how all of the convoluted system works? It doesn't make any sense in the end and these bankers know it. They are only looking to save their own bacon in the short run, store up their wealth, and to hell with the rest of the world.
Sad but true .
But there are remedies. Just as they have given themselves an extra three years, we too have three years to do something about it all.
The Euro Lemmings continue their march to the sea. France's credit rating is downgraded. Will look at this later.
Now note that if Greece defaults on its debt and/or drops out of the Eurozone trouble abounds. But with the granting of trillions in dollars and billions in Euro's by the central bank of the zone and by our Federal Reserve the end can be postponed and perhaps avoided for at least three years.
Greece in the end could be a big winner, and the American taxpayer the big loser.
France's credit rating is down will sink further, dragging Germany along to the bottom, especially in light of the Greece likely default.
It is not the end of the world, but from where I am standing, I can see the edge. We have time to back off that edge only if we re-gain our sanity and devise a plan to save Europe our major trading partner.
Things are developing fast on the European front.
Yesterday the above articles reported on the lowering of France's credit rating and on the possiblity of a Greek formal default.
But we are not told why this has occured in the French example. First thing to know is that this was no accident.
You'll recall I detailed above that Sarkozy and Merkel led the fight to install a greed and speculation tax on American speculators.
The British refused to go along with this tax idea, protecting their bankers.
.But Wall Street got angry at Sarkozy, the lead advocate of this tax and is retaliating against him because he led the fight. Obama and Gietner several months ago went to France to lobby against the idea joining the British in the effort.
Now understand that the rating agencies are controlled by wall street. Wall street banks literally pay the salaries of these rating agencies. The pretend myth is that they are independent of the Street, is just that-a myth.
The game is the following:
1. A lower rating at this point is a blow to Sarkozy 100 days from his re-election, a re-election in which he vowed not to have France have its credit rating lowered. Unpopular already, he is mostly likely to lose the election and be out of the way.
2. Now a second shoe here is the banks now have a rationale to up the borrowing rate on the French meaning financial turmoil is now added to the mix and injury to injury they make money on the higher interest rates they themselves will demand. No justice here. No conlfict of interest here.
3. Social turmoil is also more likely since this means more austerity for the French middle class, and strengthens the hand of right wing elements in France.
4. This is not unsual. This is standard operating procedure in the cut-throat financial world. The bankers and their rating agency minions did it to Obama, did it to Greece and Italy as well. Toppling governments that do not please them is happening more and more frequently and now more and more they are doing it openly.
5. This is also a warning shot across Merkel's bow in as much as she can't tax the Germans more in an election year and more debt is something that the German middle class will not tolerate. Let's see if Merkel fights on or not.
Such is the world.
Apparently George Soros agrees with the above analysis: See below
Are the bankers being sued for trillions in new lawsuit?
Think that the European Debt Crisis has not much to do with you sitting on the couch at home? Think again. Remember "depositors" means you and my paycheck in Chase, Wells Bof A and the like.
And more: How what Congress does or does not do in six months will directly affect your pocket book. Link and quotes below.
"Personal tax rates - Everybody’s, let me repeat, everybody’s personal taxes will go up in 2013 by thousands of dollars. The lowest 10% individual income tax bracket will expire, reverting to 15%. The highest 35% individual income tax rate will rise higher to 39.6%. People in between will see a 3% hike in their tax rate, on average. The overall heightening of taxes – income, payroll, health care taxes, etc. -- will suck $399 billion from the economy and into the government coffers."
"Capital gains and dividends rates - The 0% and 15% tax rates on long-term capital gains will expire, rising to 10% for lower tax brackets and to 20% for higher tax brackets. The current qualified dividend tax rates of 0% for lower tax brackets and 15% for higher tax brackets will rise to ordinary income tax rates for all individuals. Higher capital gains taxes means less investment, which means fewer jobs."
Of course the conclusion of this article is biased. Congressional inaction on jobs will create more job loss is the fact. More government income is needed to produce the dollars needed to put people to work, is my view, and that is also the view of most economists, and this is exactly what was done in the last great depression to bring us out of it.
Poor and middle classs people are now living pay check to pay check and upon getting a job will spend the money and thus companies hire more people because there is profit to be made and the economy grows. There is no growth if people are out of work and make no mistake austerity puts people out of work.
Notice above that the tax rate for wealthy individuals is 0% and a low 15% for capital gains including those speculating with our money.
The average millionaire in this country pays only 15% in taxes and that doesn't count the money on taxes that would be collected if the goverment forced corporations to repatriate their profits from overseas tax shelters. It doesn't count tax evasion savings accured in this fashion.
Dividends are not taxed at all in some cases. Who gets dividends? The rich mostly.
So the tax schedules are skewed in favor of the wealthy while the average American pays 21 to 30 percent of their income in taxes with no way to reduce that bill by hiding income overseas.
The rationale used is that these folks will invest their tax breaks and create jobs. Well we see how that has worked out. What they did in fact was to take our money( our money because we have to make up for the taxes they don't pay by higher taxes upon ourselves and having the government borrow money to cover these tax losses) and gamble with it and lost it almost bringing the world finance system to ruin. And they are set to do this again.
Clearly extreme budgeting and austerity programs don't work as the European example illustrates.
My remedy is simple. Stop giving these folks our money and let us keep our own money to invest locally in our own communities.
Some people say that the takeover of Greece, Spain, Ireland and the rest is the prototype for a new world order dominated by bankers and elites.
They argue that what we are witnessing is the end of democracy in Europe where major decisions are made by the IMF, The European Central Bank and the like. Individuals don't elect these folks yet they dominate major decisons and the populations suffer. They argue that the same thing is slowing happening in the United States as well.
See what you think. Here are the six videos and then we get back and discuss.
Private Equity Firms Under Scrutiny by NY Attorney General for Tax stragegies-Bain capital involved as well as some of the largest equity firms in the country. Subpeonas already have been issued.
"The tax strategy — which is viewed as perfectly legal by some tax experts, aggressive by others and potentially illegal by some — came to light last month when hundreds of pages of Bain’s internal financial documents were made available online. The financial statements show that at least $1 billion in accumulated fees that otherwise would have been taxed as ordinary income for Bain executives had been converted into investments producing capital gains, which are subject to a federal tax of 15 percent, versus a top rate of 35 percent for ordinary income. That means the Bain partners saved more than $200 million in federal income taxes and more than $20 million in Medicare taxes.
Who is on the subpeona list?
"Among the firms to receive subpoenas are Kohlberg Kravis Roberts & Company, TPG Capital, Sun Capital Partners, Apollo Global Management, Silver Lake Partners and Bain Capital,"
"Clayton, Dubilier & Rice; Crestview Partners; H.I.G. Capital; Vestar Capital Partners; and Providence Equity Partners."
World Debt-Who Caused it-Who Got the Money-and Who has to pay it back.
The world we live in is a construction of the banks using phony debt as a means of control.
So let's have a lookt \at the debt leader the United States. How did this happen?
How did this debt happen?
First let's today settle the question of who or what caused the deficit in the United States in the first place such that the government had to borrow all that money and who got rich of the debt we currently have.
First a little history of debt in this country and then we go to the specifics.
Turns out the greatest contributor to the greatest debt in in US history was George Bush.
See below: Debt increased from 133 billion to 1 trillion dollars during his administration. This was the Republican "starve the beast" strategy--create a debt ridden goverment and then under the cover of austerity take back middle class assets, ignoring the fact that two wars made Republican defense contractors, the banks, , the pentagon, the so-called secuity industry and wall street--rich. There is no justice here.
On top of all this is the claim that the middle class overspent and now has to tighen it's belt because the monied classes simultaneously reduced wages forcing the mddile class to put their wives, children and grannies to work and use their high interest rate credit cards to survive.
Why can't the American public see this scam is beyond me.
But a chart is worth a thousand words.
It is clear that the Republicans ran up the debt with bailouts for banks, two wars, and tax breaks for the rich.
I am suggesting this was and is no accident.
And they are poised to do it again because there are billions in profits in it for their constituents-the banks, the pentagon, the so-called security industry, the prison industrial industry, and the war profiteers.
Tomorrow lets go back for more detail and a prognosis on the above which is clearly not sustainable. It will be a re-run of 1929. See the PBS vido special on the 1929 debacle to get a look at how it all worked then.
So what will be the critical events in 2013 and will there be financial collaspe as some are predicting?
What happens to global finance next year and in the finance situation in the United States--and what will be the triggers?
Will there be change? You bet.
Lets first talk about the basic problems and then solutions.
(Note: I am not going to be talking about buying gold. Most people can't afford it and the oft-made point is that ' You can't eat gold or silver" is accurate.)
Countries may buy gold but real people can't and shouldn't. This idea in the end is just another recommendation designed to get the people invested in gold and silver richer. That is not you and I. It is the same wall street moguls mentioned above. So skip this.
Secondly we will have a look at real world and historical default and currency debasement-like that predicted for Greece. What actually happens on the ground and has happened historically?
Is the end of world?
It is for the monied classes but not for ordinary people, and we have the example of a successful currency change in Argentina. Sure the creditors lost their money but so what; Argentina now currently thrives.
In fact we have had currency changes in the United States as well, from the colonial currencies, to the confederate currency etc. Did the world fall apart? No, it did not.
The idea that it will comes from these same monied classes trying to protect their fortunes.
Thirdly, we look at the issue/warning that rampant inflation will occur and how horrible that will be. Besides higher, reasonable interest rates keep the bank speculators from getting free money at zero percent. We don't get any interest anyway from these characters so we might as well keep our money locally in our own communities and put it to work there creating jobs. Stop giving them our money is clearly the right thing to do.
But what is the real world experience?
Most times the example of the Weinmar Republic (Germany) is brought up as the horror story of what can happen, stories of currency inflation such that prices were raised three times a day and people had to take wheelbarrows of money to the store to buy groceries.
Well, who gets hurt in rampant inflation?
Mostly the rich-the creditors.
The middle classes can and will change to a new currency and suddenly the 200k mortgage can be paid back in two years rather than in thirty 30 years with the inflated currency.
That is why you hear the conservative-dominated press and economists rail so much against inflation--because the monied classes lose big. Note too the connection between inflation and growth in that a devaluated dollars means more exports hence more jobs and note currency is just paper. Look at how it was done in Argentina and in Germany, an economy now stronger than ever despite horror stories about the Weinmar republic.
And that is the lesson here for the monied classes-share the wealth or it will be shared in other, uglier ways-but it will be shared.
Right now the monied classes clearly would rather see Marshal Law, internal occupation of the American population rather than share their ill-gotten gains.
Now the bottom line fact is that there is literally not enough money in the world to repay these phony debts, consumer or national and the debts will have to be forgiven largely or by another way go into default. Elites will fight this of course. That is their history.
Look at history: few eliites have been enlightened enough to share; that is the origin of this very American republic and why we had to have a revolution against the Crown which was protecting the interests of the Bank of England and the merchant classes because in that time these institutions were bankrolling the Crown itself in its pursuit of wars with the French and other countries.
So thanks for the patience, lets get on with the analysis, first thing tomorrow we look at the triggers for the rest of this year and next and what can be done to protects ourselves.
Pensioners defrauded of their life savings.
What will be the triggers for the rest of the year and the consequences in global and US finance?
Well there are several. Let's list a few first and the go back after for the detail.
1. 70% of the trades on Wall Street are by computer. Computer glitches real or manipulated can set off a panic and that can make valuations and pricing difficult if not impossible, including gold, silver and stocks.
2. The Greek default could result in currency debasement. This would have a domino effect in the west. If not Greece then if Spain asks for a postponement of its austerity programs. Both could trigger in a month or two trouble.
3. The rising price of fuel and food is what actually set off the "Arab Spring" riots. Egypt is at that point again. The most dangerous point for a country as far as bloody revolution is concerned is when seeming gains that are followed by severe setbacks-Egypt is in this group.
It was fuel prices and food price increases which set off the Arab spring and it will be rising food and fuel prices that will do it again.
See my blog on the rapid increase in world wide food and fuel prices and who caused it at.
How close are they to more increases?
Governments around the world subsidize fuel and food prices already to avoid revolution-prices controlled by the banks. These two (fuel and food) plus arms purchases are what these countries spend their money on.
4. April is the deadline when the US government receipts in taxation come in. If lower than anticipated then expect the US credit rating to drop and interest rates to drop below zero etc., and perhaps a run on US securities and perhaps bonds as well.
5. December 31st. This the "cliff" deadline which I have written about in other places on this site. Up for action are the tax breaks for the rich, taxes on the middle class, cuts for the military, and other bread and butter items.
No telling what will happen. Uncertainty can really trigger ancillary events, most unpleasant.
But what should the average citizen do about the above situations? Stay tuned.
But first to be clear about what the average citizen is up against. School is out-here you and I have to be clear that the monied classes do not have your and my best interests at heart. Here is what I mean.
To be clear:
1. Banks, corporations and wall street love high unemployment- which means people are desperate and work for half wages-this has happened already.
2. They love recession because prices fall down drastically and since they have all of our money, have kicked us out of our homes, they have the cash and buy up these cheap homes themselves at half prices. Most forceclosed properties are bought by the banks themselves, and the down-priced homes also now have lower taxes.
3- They love war since war profiteers get rich and to boot they have made many communities in the US dependent upon the local war industries dependent upon them and the Pentagon for jobs.
4. They love privatizing schools and have attacked the public school system, depriving the schools of revenue and tax money and then come in saying the schools are failing and should be privatized into "charter" and for profit schools owned by them.
5. They love drugs and crime and fill up the jails with people of color in a new jim crow system and, in addtion, this provides jobs in rural communities run by private companies. The industrial prison complex is a jobs program for rural constentuenies and well as billions for farmers--all wall street republicans.
6. They make billions off school loans and the even the school lunch progams is run by JP Morgan Chase for profit.
See what I mean. I could go on.
But on tomorrow let's get back to what can be done to put all this back on track a sustainable track.
Possible triggers of financial trouble?
Five more triggers set to fizzle or ignite in the next six days on wall street, the banks and JP Morgan--one pundits view.
We will throw these into the mix and get back our analysis tomorrow.
Well where are we in the never-ending European Debt Crisis and what is likely to happen?
First, there is a clear anti-Merkel trend. Socialists have won elections or gained strength in France, possibilty Holland, in Italy, now it looks Spain is rebelling against austerity as well.
Second, the European Central bank while offering unlimited funds may find that nobody wants those funds with the condtions now attached and the fact of the matter is that more debt cannot cure existing debt.
If that happens what will happen? The possiblilities and outcomes:
1. Rolling default. Country after country may opt out of the zone or threaten to do so-getting concessions on the austerity plans-- which it is clear, stiffle growth.
The Germans would lose. Yes, the Germans would lose because they sell many if not most of their products to the PIIGs. Inflation would occur
and the creditor nations would lose and take the haircut, even if the zone fell apart. After all, the Greeks reason, austerity and default start to look alike except default regains Greek soververgnity and that looks good to Greeks and the other nations right now.
2. Expect a planned default- with reverberations in the United States as well. That is why President Obama is promising an increase in exports. He plans to let the US currency float thereby increasing exports. He has to to put some Americans back to work. A cheap dollar helps.
3. Meantime the Chinese and the Russians see this coming as well and are talking now about creating trade and currency aggreements between themselves which would insulate them from the dollar and its collaspe.
They are even talking commodity trades not based on currency but a form of barter. And that could work and if it does other nations could start to immulate it--trouble for the west.
JP Morgan and municiplities
Trends in the ECM
France to tax the rich and down play austerity--a trend to go world wide? Will this work in the US.? Yes, apparently, this author says.
Who works less, goes to school fewer hours, and is most productive in the world and avoided recession? Guess who?
Bush tax cuts caused the deficit?
9/29/12 German, France support financial tranactions tax
9/29/12 What was the Great Depression like?
How has QE3 gone so far?
Will reform or jail offered to bankers work in England and spread to the US. No doubt we will be impacted if this occurs because rules set in London will have global impact.
What is the end game of the monied classes--buying up cheap assets
and privatizing the world?
11/9/12 Debt as a means of control
The Debt Resistors Manual
The World Shadow Banking System-How it Works.
What are the issues in the fiscal Cliff? Video
So, we might ask, what is wrong with Obama's offer to the republicans?
First, it puts social security one the table after he ran on a platform of refusing any cuts to social security. This is a republican goal which he, Obama, is now offerting to them free of charge.
Cuts to the rate of future benefit growth is a cut no matter how you try to explain it away and, most importantly, puts future cuts and adjustments on the table for the entire safety net.
Ditto for Medicaid and Medicare.
Meidcal costs and drug costs are double in this country compared to other countries and that is soley because republicans have placed the health care system inside the for-profit gouging private sector. Take it out of privatization and our costs drop drastically.
All of this is the slippery slope and the mirage of a "fiscal cliff" helps sell the changes the republicans want and have wanted for decades.
And what does Obama get back for these concessions in the republican Plan B?--tax cuts which essentially leave income and special tax deductions in place for the rich, increases in payroll taxes for the middle class, leaves the unemployed with no money as of January 1, 2013 and Obama goes away with nothing in return. That is the essence of Plan B.
Should be called Plan BS.
Who wins here? Wall street wins again because just after a cut in the beneifts for social security wall street we will be wrting recipients telling them that they can make up for the cuts if they just allow a portion of their checks to be "invested" in a special social security fund wall street is setting up just for them.
This will be described as "voluntary" when in fact it will not be.
Social security is not part of any deficit at all but is being thrust forward because wall street wants to get it hands on the social security fund, the only large pot of government money it does not currently control.
So social security's older people will be made to pay for the wall street bailout disaster. There ain't no justice.
Only one of the two "Plan B" bill passed. What does it all mean? See below.
Even CBS questions whether there is a Fiscal Cliff.
And yet other views.
12/20/12 The proposed budget cuts no one is talking about.
Who has gotten what share of the profits between corporations, management and labor over the years?
What the provisions of Obama Care are due to come into effect in 2013 which will affect you? Several.
American Civil Liberties take it on the chin
What is going on inside Fiscal Cliff negotiations. The report today, Sunday December 30, 2012. What is the latest?
Interesting site on Occupy Wall Street and the FBI
12/31/12 What are the outlines of the latest Fiscal Cliff Deal?
See the long quote below from the Dec 31st LA Times
"Both parties were under enormous pressure from their political bases not to give in to what some, including Sen. Tom Harkin (D-Iowa), a liberal leader, characterized as simply a “bad deal.”
More than $660 billion in revenue would be raised – far less than the target Obama first set in talks with congressional leaders. The president sought $1.6 trillion in new revenue from a large deficit-reduction package, and at least $800 billion in earlier talks with Republicans over a deal on tax increases.
The agreement would set the top tax rates at 39.6% for income above $450,000 for households and $400,000 for individuals, which is a narrower definition of who is wealthy than Obama once sought, according to a source who was not authorized to discuss the negotiations. The president won reelection campaigning on asking those who earn above $250,000 to contribute more in taxes.
Investment income tax rates would also rise for those higher-income households, from the historic low 15% rate on capital gains and dividends to a new 20% rate. The president had sought to tax dividends at the same rate as ordinary income, and his earlier offer sought to initiate those taxes at the lower $250,000 income threshold.
The estate tax, which has been a key sticking point throughout the weekend of negotiations, appears to have been settled. The agreement splits the difference, setting the new rate at 40% on estates valued at more than $5 million – a compromise between today’s 35% rate and the 45% rate Democrats sought on estates of $3.5 million or more.
Americans would benefit from an extension of long-term unemployment benefits, which expired over the weekend, for one full year.
One area that hewed closer to Democratic priorities was Obama’s proposal to reinstate the phaseout of personal exemption tax credits and itemized deductions on upper-income households. They had been in place before the George W. Bush-era tax cuts began in 2001, but were done away with over the past decade and would fully expire, with the rest of the tax breaks, on New Year’s Eve."
More in the last few minutes"
Obama Caves? Apparently
What happened in the House Vote for the Fiscal Cliff?
My predictions for World trends in 2013-2014 in various areas.
Let's have a look in the following areas as to what the future is likely to bring in the United States and globally. In the coming days we will go through my thoughts and predications in a variety of areas.
(If you want back-ground on my previous predictions and how accurate they have or have not been, I suggest you read first my blog on this site entitled "My Report Card on Obama" and "What America Needs to Do to Survive" also on this site.?
After the Fiscal Cliff-What?
The arrangement, now completed, is only temporary.
The phony Washington-made Fiscal Cliff will continue in even a more heated fashion in the next three months where the issues and the deadlock battles will continue over:
1-Raising the National Debt Ceiling. Due up in February
The republicans are promising a war over this.
2-Reducing Expenditures and Raising more Revenue. The Cliff bill basically punted these issues down the road, kicking the can, so to speak. But in two months we will not be able to kick the can because we will need to save our canned goods for a rainy day.
Obama did not do a good job on the level of:
a. He did not avert a middle class tax increase in the payroll taxes most Americans pay each month. Up from 4 percent to 6.2 percent. This is a pocket book issue and hurts poor families the most and, most importantly, hurts the economy because they and businesses will now not spend that money. (Remember businesses pay half of these taxes and employees pay the other half.)
b. Medicare taxes are also part of payroll taxes and ouch.
c. He told us he needed 1.6 trillion in new tax revenue to help with the deficit and he, in this Cliff deal, got only 660 billion. So where will the rest of the money come from? The rich will say "not us" "we had our taxes raised in the Cliff deal so the middle class will have to make up the difference this time."
So one can look at the Cliff deal as one where Obama lost more than he got or sought and the difference or 1 trillion dollars-will likely have to be paid by the middle class at this date and there is no real plan about what to do to avoid this unhappy outcome.
Real anger will arise when people realize what has happened. This was done as many of the corporate and wall street free handouts were continued.
See article below:
d. Most of the Republicans now can run in 2014 on their favorite grounds- spending cuts must now "balance the budget" while Obama looks like he is advocating more "spending" and looks like a tax and spend democrat. This is a losing move for a democrat in the year before the 2014 Congressional elections.
e. The second part of this tri-fecta is the upcoming battle in April-May over the Appropriations bills. These bills are the spending bills for the government for 2013-2014.
In Washington it is one thing to pass a law but just you try and get that law funded and the repubicans many times refuse to fund a bill that they voted for. This includes the entire budget of the US Government and to boot they will for sure refuse to vote to increase the debt ceiling for bills they voted for in the first place. This is tantamount to default and the US will be seen in default because the expenditures include not just social programs, the military and the like ,but also, debt we owe to the American people, bonds and the like but to other countries who have loaned us money and the billions owed the banks.
The interest "owed" these criminal banks who loaned the Federal government our money, our daily deposits. mind you, comes to 450 billion a year.
This "debt" is phony in the extreme, is almost the size of the military budget of the United States (500-600 billion estimated) and is basically credit card debt run up to pay for the Bush Billionaire tax cuts, two wars, and the bail out of the banks. So us tax payers have to pay the bill on all this while, if there are any profits, the banks keep those profits? This makes no sense what so ever and is privitized profits for the rich and socialized losses paid for by the middle class and the poor.
f. A trigger point will be in April when the tax revenue for the Federal government will become clear and now clearly with this Cliff deal they will be short. Will less revenue than planned for the US government will fall once again into the bank debt trap where the Federal Reserve will have to loan still more money to the government (our money by the way) and the cycle spirals toward bust. And not the Federal Reserve is continuing the bail out of the banks to the tune of 85 billion dollars a month! This on top of that will likely create another fiscal crisis.
A last note on debt:
The World GNP is 70 trillion a year.
The US deficit is about 1.6 trillion.
The derivative debt the banks are holding and hiding is close to a quadrillion dollars including the hedge funds.
Therefore, our World Income is only 70 trillion a year and our World Debt is a thousand trillion.
What is wrong with this picture?
"It would be hard to overstate the recklessness of these banks. The numbers that you are about to see are absolutely jaw-dropping. According to the Comptroller of the Currency, four of the largest U.S. banks are walking a tightrope of risk, leverage and debt when it comes to derivatives. Just check out how exposed they are...
Total Assets: $1,812,837,000,000 (just over 1.8 trillion dollars)
Total Exposure To Derivatives: $69,238,349,000,000 (more than 69 trillion dollars)
Total Assets: $1,347,841,000,000 (a bit more than 1.3 trillion dollars)
Total Exposure To Derivatives: $52,150,970,000,000 (more than 52 trillion dollars)
Bank Of America
Total Assets: $1,445,093,000,000 (a bit more than 1.4 trillion dollars)
Total Exposure To Derivatives: $44,405,372,000,000 (more than 44 trillion dollars)
Total Assets: $114,693,000,000 (a bit more than 114 billion dollars - yes, you read that correctly)
Total Exposure To Derivatives: $41,580,395,000,000 (more than 41 trillion dollars)
That means that the total exposure that Goldman Sachs has to derivatives contracts is more than 362 times greater than their total assets.
To get a better idea of the massive amounts of money that we are talking about, just check out this excellent infographic."
So what does a trillion dollars look like?
What is wrong is that there is no way we will ever pay that debt and all of world politics and economic manuverings are essentially the rich, wall streets, and the Central banks of the world who lost that money in a global ponsi scheme trying to force the middle classes of the world to pay off the debt and losses they ran up but forcing the middle classes of the world into taxing themselves into poverty to pay for it while the rich preseve their wealth.
Spelling out how Banks and the finance sector use debt as a means of controlling all of society.
That friends is what is going on and constitues the major financial driver globally speaking--all going by the name of "austerity."
So, the gross driver is now identified, tomorrow, and in the coming days, we will begin to look at what will happen in 2013-2014 in the following areas:
2- Global and US Markets
5- Climate Driven Changes
One pundits view
7- Your Pension, Bonds and 2013
8- Currency Wars
(See videos-articles below for differenting views and predictions)
See you tomorrow.
The true history of the ballouts and after.
What bailouts and low and negative interest rates mean for seniors.
They are robbed our their retirement and their life savings.
Obama offering up cuts to Medicare? Say it isn't so.
Apple profits offshore could fund the sequester?
Banks getting sued over failure to follow through on mortgage settlement.
Ideas some people are putting forth to opt out of the jaws of Wall Street.
Social Security--What you need to know about who is getting screwed.
Dimon beats back stockholder revolt
The IRS scandal governed by politics?
Who Voted to keep JP Morgan Chief in his dual roles and why?
Wall Street Tries to Kill Financial Reform
Confiscation of depositors accounts-the new normal? Time for public banks-get rid of the private banks?
Time to get rid of the federal reserve bank which is not federal, not governmental, but is run and owned by the major banks in this country.
Below find great radio show on debt and banks role in all of this: Radio show-available for download only three weeks.
Wait until the gospel music is over and the first segment on a local protest. Then the debt part of the program begins. Debt show begins in at about 35 minutes into the show. Worth looking for it.
-Five things you didn't know about the true nature of the Federal Reserive Bank
More radio shows on the Fed, Banks and the Public bank option\
The World Banking System described as "corrupt" by a former insider:
Scathing Critique of the Federal Reserve Bank
The notion of economy and its history. Money as symbolic exchange and not based on anything real.
"With the relaxation of the laws against usury in early modern Europe, money became an autonomous power, acquiring its own interests and making its own demands, as if it were alive. Money behaves like a living creature when it takes on the definitive characteristic of life: the ability to reproduce. But money is not part of the natural universe. No one can touch or taste a piece of financial value. Money is merely a sign representing alienated human life, and “capitalism” is the name we give to the process of our own objectification."
Hawkes Critique of Norm Chomsky at:
Wage Slaves and Capitalism
Wall Street and the small investor.
"When it comes to Wall Street profitability the most lucrative transactions are not coming from servicing "Mom and Pop" retail clients trying to work their way towards retirement. Wall Street is not "invested" along with you but rather use you to make income. This is why "buy and hold" investment strategies are so widely promoted. As long as your dollars are invested the mutual funds and brokerage firms collect fees regardless of market conditions. While "buy and hold" strategies are certainly in their best interest - it is not necessarily yours. However, these fees are a byline to the really big money.
In reality, Wall Street is focused on the multi-million, and billion, dollar investment banking transactions, such as public offerings, mergers, acquisitions and bond offerings which generate hundreds of millions to billions of dollars in fees for Wall Street each year."
Welfare for the Wealthy?
One pundit's predictions for what will happen in 2014 in the finance world:
"The Painful Price of Subsidized Money"
How Tech companies and Wall Street who financed them have stolen the future of youth world wide.
Bank profits soar while wages stagnate. Who is getting the profits?
Where have the jobs gone?
Where have the jobs gone?
MIT study on that subject.
Obama caves in to Wall Street again. Derivatives to remain unregulated?
Why has no single wall street executive been prosecuted and gone to jail.?
Africa the next boom continent?