Authored by William Robert Barber
The Congressional Budget Office has spoken… with a caveat or more the sage(s) of Washington have foretold (to the nation) a fiscal eventuality; this foretelling is labeled “The 2013 Tax Cliff.” The harbingers of the CBO have predicted the economic consequences of two fiscal possibilities: The first being founded on congress extending the so-called “Bush tax cuts” and the second to be if congress allowed these tax cuts to expire.
The CBO warning is that the economy could fall into dire condition sometime in 2013 if taxes wold rise and spending fell. The wizards of the budget office adamantly suggest, “Such fiscal tightening will lead to economic conditions in 2013 that will probably be called a recession if taxes rise and spending falls on schedule in January.” Further, those that are in the business of predicting, declare that unemployment will increase to about 9%.
Interestingly, economists of renown as well as administrations of both political parties are insistent on the truthfulness of the “multiplier” effect wherein $1.00 of federal funding creates $1.50 of gross revenue; I assume in their view, summoning the belief in indeterminism and chance, and the probabilities of complex systems rendering in its finality an empirical verdict carry intellectual validity at Harvard, Princeton, and the ideological beliefs of liberal progressivism.
Naturally, the progressive politicians just love the very idea of the “multiplier” concept. They consider such a solution in keeping with enhancing the feasibility of government intrusion into the classroom, the individual’s personal space, and private enterprise. The Obama-Read-Pelosi team of political elites blend in well with the soothsayers, Krugman-Geithner-Summers; all these folks are good at is pushing the economic results out into the futuristic stratosphere with promises of better days if only more government funded stimulus was legislated.
The feds having established and developed extra-statutory means to falsify the nation’s balance sheet with super-enriched debt-liquidly coupled with monetizing that very debt is now poised, with an Obama election victory to finalize the impairment of this nation state. Outrageously, this debt has the viability and market acceptance simply because there are buyers standing in line to purchase U.S. debt instruments. The willingness of buyers to purchase is based on a number of all-important principles of understanding:
1, Chinese goods must be purchased by the USA
2. The USA must be the most powerful nation on earth; by air, land, and sea
3. Russia must remain a threat to Europe, North Korea must intimidate Japan, and China must continue to advance its marital prowess in Asia
4. Trade to remain free of excessive restrictions and is exercised worldwide
5. The federal government must curtail self-indulgent spending, rein in entitlements, spread the tax base, lower taxes on individuals and enterprise, and repeal and replace ObamaCare
Economists create models to help forecast the future… Well, the economy is a capricious of intent, inconsistent in pattern, indecisive as to appeal, and assessable to the point of indeterminate. Good luck with your models…
Seems to me that when one spends more than one earns borrowing is an unsustainable measur