OFF THE CLIFF!

[Gaspar]

Never let a crisis go to waste, even if it's a manufactured crisis.

All of this smoke has been good for the president.

First congressional pay raises, now, in the dark of the night, he has renewed the George Bush Warrentless Wiretap program for 5 more years.

It will be exciting to see what he signs tonight at midnight.

http://hosted.ap.org/dynamic/stories/U/US_OBAMA_SURVEILLANCE_LAW?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-12-30-17-49-22

[shadows]

Never let a crisis go to waste, even if it's a manufactured crisis.

All of this smoke has been good for the president.

First congressional pay raises, now, in the dark of the night, he has renewed the George Bush Warrentless Wiretap program for 5 more years.

It will be exciting to see what he signs tonight at midnight.

http://hosted.ap.org/dynamic/stories/U/US_OBAMA_SURVEILLANCE_LAW?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-12-30-17-49-22

I am sure relieved seeing that congrees is getting their well earn pay increase to help the working who are very near succumbing to the 50% poverty data list. 

[Teatownclown]

Do you ever get the feeling that Eric Cantor has been programmed by some foreign power? Or that he's been blackmailed into screwing up everything   by Obama foes? http://www.nytimes.com/2013/01/02/us/politics/house-takes-on-fiscal-cliff.html?_r=1&; It's angry people that need the help. And to think EC is the future. The horror.

And then there's John McCain. Feel lucky this Manchurian candidate never got to be President:

WOLF BLITZER (HOST): Are you going to use the raising of the debt ceiling in February or March, Senator McCain, as leverage to get what you want from the president?
McCAIN: I think there's gonna be a whole new field of battle [laughs] when the debt ceiling rolls around. Most of us have pledged that we're gonna have to... before we vote again to address the debt ceiling — even though it may be at great political cost — we've got to address spending, and that means entitlements. We've got to sit down together and get us back on a path... look, we just added, what was it, $2.1 trillion in the last increase in the debt ceiling, and spending continues to go up. I think there's gonna be a pretty big showdown the next time around when we go to the debt [limit].
http://thinkprogress.org/economy/2013/01/01/1381771/john-mccain-gop-will-destroy-americas-solvency-unless-entitlements-cut-drastically/

Both Cantor and McCain will help the minority of recalcitrant Americans screw it up for everyone else.

[heironymouspasparagus]

I guess I am a little bit curious how Medicare is an entitlement when recipients pay $100 a month for the coverage.  Sounds like an insurance policy more than a handout...

I wonder how much the members of Congress have to pay for their insurance coverage?  I bet it's a whole lot less than $100 a month.  And the pay is certainly several times the average Medicare recipient.

[Gaspar]

So, what was in the bill?

Well, they simply delayed sequestration, kicking the can down the road to March when we will have to go through this game of "Chicken" again, and discuss debt ceiling increases.  Unfortunately this means that we maintain economic uncertainty at its current level again, with little hope that the Senate will take up a budget at all this year.

It increased taxes for individuals and most small businesses making $400,000 or more.  Estates worth as much as $5 million — $10 million for married couples — will go untaxed. And an inflation adjustment will guarantee that the size of the exemption will grow to $15 million for couples by the end of the decade, so the very wealthy not pulling down a salary are spared from this legislation.  Taxes on capital gains taxes and dividends will increase from 15% to 20% (plus a 3.8% surcharge from the Affordable Care Act), but only for  high earners so they will seek shelter in other investments, and likely be more encouraged to move money overseas or just keep it out of taxable inventsments.


The pee-ons (the middle class) will not see a change in rates, but all of our taxes will go up starting on your next paycheck because they eliminated the current payroll deduction. Because the majority of small businesses will see a tax increase, the price of goods and services will rise or a reduction in labor to fill the gap. 

The final result according to the CBO is that the bill contains $41 in new taxes for ever $1 reduction in spending, and ultimately adds $4 Trillion in new debt.  BUT. . .without a debate in 2 months on the debt ceiling, we are right back where we started, so basically nothing productive came out of this.

The only POSITIVE part of the bill is that the House rejected President Obama's executive order to give them all pay raises.  Congress also learned that the only way to bring President Obama to the negotiating table is to hold out until the very last second.  Unfortunately that's not how anything productive gets done. 

Knock yourself out reading it: http://www.gpo.gov/fdsys/pkg/BILLS-112hr8eas/pdf/BILLS-112hr8eas.pdf

You can't sustain spending at this level.  You just can't.  We're making money far too cheap, and it's forcing other countries to do this same.  This is the road to all bad things. We've been down it before.  So have many other countries. http://www.time.com/time/photogallery/0,29307,1879735_1846041,00.html

[Gaspar]

http://www.suntimes.com/business/17339509-420/house-ends-fiscal-cliff-drama-in-257-167-vote.html

Good news!  Now that the President has signed another bill increasing the deficit, it looks like he's ready to reduce it, but probably not until after March when he will demand an increase in the debt ceiling so that he can continue to spend more.

[Townsend]

Gives you an idea of how well the Congress is working:

John Boehner Told Harry Reid 'Go F--- Yourself' Outside the Oval Office

http://news.yahoo.com/john-boehner-told-harry-reid-f-yourself-outside-103332376.html

The fiscal austerity crisis has been temporarily averted, but given the apparent animosity between the current leaders of Congress its a miracle that any deal was made at all. Politico has a rather lengthy breakdown of the last week or so of negotiations that led to last night's budget bill and it leads off with an anecdote illustrating the current state of American politics. As they arrived for a much-hyped meeting with the President last Friday afternoon, Speaker of the House John Boehner spotted House Majority Leader Harry Reid approaching just steps from the Oval Office. According to "multiple sources," Boehner pointed his finger at Reid and without any other fanfare said, "Go f*** yourself." When Reid asked him what he was talking about, Boehner simply repeated his curse and moved on.

To be fair to Boehner, just hours earlier Reid had called him a dictator on the floor of the Senate, telling the whole country in a widely-televised speech that the Speaker cared more about protecting his job than doing what was right for the American people. And it won't be the first nor the last time a Congressperson swore a fellow lawmaker. Still, it maybe helps explain why the two sides seem more intent on destorying each other than actually passing useful laws.

The Politico story also has plenty of other tidbits on the back room shenanigans the lead to the deal, if you're into that sort of thing.

[AquaMan]

http://www.suntimes.com/business/17339509-420/house-ends-fiscal-cliff-drama-in-257-167-vote.html

Good news!  Now that the President has signed another bill increasing the deficit, it looks like he's ready to reduce it, but probably not until after March when he will demand an increase in the debt ceiling so that he can continue to spend more.

Sounds like someone is obsessed. Like they say in the military..."this sounds like a personal problem"...

[Gaspar]

Gives you an idea of how well the Congress is working:

John Boehner Told Harry Reid 'Go F--- Yourself' Outside the Oval Office

http://news.yahoo.com/john-boehner-told-harry-reid-f-yourself-outside-103332376.html

Would be a nice change since he's been F--- us for way too long.

[Townsend]

Would be a nice change since he's been F--- us for way too long.

OK, since that's what you take away from this, how so?

[Hoss]

OK, since that's what you take away from this, how so?

Come on. Don't you know that Gas went to the Grover Norquist School of Business?

[guido911]

Check your pay stubs people. I read the payroll tax is going back to 6.2% on everyone (who of course pays those taxes).  

[Townsend]

Check your pay stubs people. I read the payroll tax is going back to 6.2% on everyone (who of course pays those taxes).  

There's more.  It's a bit of a soul crusher considering the headshake inducing spending that will occur.

[guido911]

T. It must freak you out to have Hoss constantly kissing your donkey in this forum.

[guido911]

There's more.  It's a bit of a soul crusher considering the headshake inducing spending that will occur.

You would know better than I since I have not really followed, or really cared, about this mess. We have been so close to complete and total collapse of our economy and life as we know it so often I am immune.