Fiscal Cliff Averted In Senate But Not House

huffington post headline

Here is a screenshot of the The Huffington Post.  There is anger on the left over the budget deal.  Anger on the right, too.  Both left and right refuse to understand how Congress must operate and thus, have rendered it nearly impossible to function as a government which isn’t so odd since this happens everywhere, it seems.  Democracies don’t always function fully and even break down very badly.  It really depends on a stable population that is contented especially a secure and very large middle class. When a society evolves into a lumpen proletariate/rich elite society, it is destabilized. And three generations of tax cuts, huge trade deficits and continuous, wild war spending has driven the US economy and political entity off of many cliffs.  And this latest budget deal has little to do with fixing what went wrong way back when we started down this stupid road to the edge of destruction.


Obama had to make the deals he made because the House is controlled by Republicans who refuse to negotiate anything.  The real news here is the Senate.  For once, it voted nearly in unison, for something that wasn’t about Israel wanting more money and more diplomatic control of our State Department.  An interesting development I didn’t expect.  Washington Post:

washington post headlines about fiscal cliff


This all began with the stupid Bush tax cuts.  I have a fair memory still, sort of, and I remember him lying to voters, telling them they are overtaxed and needed tax cuts to fix the budget SURPLUS.  So people voted for him, barely, actually, he really lost the election in Florida but the Supreme Court fixed that by announcing, Americans really have no right to vote for President so counting the votes was basically not required!  This ruling still stands, and it is a place marker of how our democracy has been removed from our ability to control events along with the later Supreme Court ruling allowing a flood of funny money bribes to twist election results.


We are not seeing any tax hikes we are seeing a return to the earlier, saner status quo.  Except for some tax cuts.  I knew when Bush lied about the tax cuts that the GOP would try to make these permanent.  These ‘temporary’ tax cuts were supposed to goose the economy which was falling into the doldrums after the tech bubble popped.  Greenspan dropped interest rates to bankers very low at the same time.  Naturally, lending flourished.  Then 9/11 happened and the US cheerfully went to war against all Muslims.  This proved instantly to be very, very expensive and so no tax hikes happened.

the US trade deficit shot up with Bush tax cuts

That is, the Bush administration decided to sell China the resulting overspending bonds and China went from owning less than $50 billion in US bonds to over a trillion dollars in US bonds.  And our trade deficit, once the Bush tax cuts happened, shot upwards from less than $100 billion in red ink in 2000 to over $200 billion in the red a mere 5 years later.  The tax cuts and the easy lending by the Fed are both directly tied to our huge negative numbers in trade and government costs.  This disastrous Bush tax cutting brought to us by the GOP has been a total disaster to the US and because we are now used to pay taxes far less than required, we want to continue doing this and continue the trade deficit, too.


Typically of our sectarian political landscape, when droughts, hurricanes, earthquakes and tornadoes ravage the GOP-dominated states, the Northeast votes for aid but when the Northeast is hit with severe natural disasters, suddenly, these same GOP freeloaders suddenly discover they have to balance the budget even though they, themselves, unbalance it continuously whenever they have the political power.  So aid for the communities ravaged by Hurricane Sandy is stalled.


Palin regrets calling GOP lawmakers ‘wusses’ on deficit talks  and calls them ‘wobbly’ instead.  She is angry that we are running deficits, an anger she never expressed even once when GOP Presidents ran up immense deficits.  This disingenuous double standard means they can act all high and holy when out of power and then run riot like a gang of Caligulas when in power.  The GOP howls about ‘socialists’ while they and their rich buddies practice socialism especially with wild military spending.  Also, all of Congress wants a communist state type of government which is why these bills get passed:  Obama Signs FISA Warrantless Wiretapping Program Extension 


On Thursday, the Senate rejected three amendments to the House-passed bill. The measures would have extended the Foreign Intelligence Surveillance Act for three years instead of five, declassified FISA court opinions and clarified that the Fourth Amendment to the Constitution protects U.S. citizens from intelligence-related searches done overseas.


The reason these bills are being passed is so we can fight the Muslim wars here at home even as armed lunatics gun down innocent school children and not one of them is Muslim.  Arms sales of high powered weapons to these roaming non-Muslim terrorists is shooting upwards due to slight, weak talk about gun controls after the Sandy Hook massacre.  AIPAC wanted this bill passed and so it was passed.  The GOP didn’t prevent it from passing, either.  Like all the hypocritical talk by both the Democrats and Republicans about government meddling and spying and dictatorships and how we love freedom, they both hate freedom and want it curbed in various tricky ways.  The ways differ between the two parties, of course, but both want to stop freedom, not expand it.


And the lobbyists who run Congress hate freedoms for the voters but love being free to do as they wish, themselves!  And this is the crime, this is the scandal and this is what is not being fixed and our taxes are going up and have to go up to pay for the endless Muslim wars we are suckered into  and now these wars are expanding (note how Romney said Russia is our great enemy!) to Russia and China who are both huge and in the case of China, dangerously strong.  All of this will be paid for via inflation and imports from Asia only if we go to curb Chinese economic power, we can kiss this sort of scheme goodbye.


We are trapped, in other words.  Taxes have to go up.  Most people and virtually all rich people don’t want to pay enough taxes to keep our empire going.  We no longer run an empire that produces goods and exports these to colonies, we are the exact opposite.  No one in either political party has ANY solution to the trade deficit except wishful thinking.  They hope the Chinese are as dumb as we are and would then go into a trade deficit.  Japan now runs a trade deficit…BUT NOT WITH US.  We still have a trade deficit with Japan.


NATO is in deep trouble due to cutting services to citizens while screaming about the need to conserve money but European voters are told, they must fund a military operation here and there and everywhere Muslims live to keep the US and Israel happy.  This isn’t going down very well.  The UK used to rule the Seven Seas.  The Sun Never Set on their empire until Japan and Germany eclipsed it and the empire fell apart.  Today, the navy is tiny compared to the US which is huge.  Even so, they have to pretend to be a naval power so they have some nifty New aircraft carriers which are considered ‘white elephants with dinky toys on top’ by some imperialist naval experts.


Hint: ALL aircraft carriers are this!  They sail only because no one is bothering to sink them.  The minute the US and NATO decides to find out how valuable these sitting ducks are, all they have to do is have a shooting war with Russia and China simultaneously.  Aircraft carriers work only if they are menacing barely armed Muslim natives in distant lands.  Even with this power, these fighting Muslims barely break stride, they rapidly evolve new tactics since they have little fire power but lots of mental concentration power.  Which Congress definitely lacks.  Big time.sunset borger

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Filed under .diplomacy, .money matters, Politics

8 responses to “Fiscal Cliff Averted In Senate But Not House

  1. NATO used to stand for North Atlantic Treaty Organization.It was a scam too from the beginning ’cause the USSR was never going to invade Western Europe,and had far fewer nukes than the CIA reported.
    At least back then they stuck to Europe but now its just another NWO army.
    Annnnddddd…Israel is now joining them in various colonist endeavours!!!

  2. Aircraft carriers….Keep thinking of those hypersonic Sunburner missiles that Russia builds.Iran has a bunch and who knows who else.Russian missile tech is pretty advanced and you can build a wack of them for cheap .

  3. Being There

    Good points, Elaine and Happy New Year.

    This is the usual disconnect between wanting to be the big unipolar world power and yet at the same time destroying your industrial base and tax base. By doing so you are destroying your military. But the destruction goes on.

    The basic points are that the agenda to privatize all functions of government in the Neoliberal paradigm means that you are destroying the nation state but again few seem to understand economic determinism and how society uses taxes to perform services cheaply to the masses of people.

    What we are witnessing is a wonton destruction of this nation’s ability to function and renew its infrastructure from entropy. We are watching parts of this country fall apart while the people who have lost their jobs to globalism are being called jealous and lazy.

    Everyone with a business I talk to in NYC is struggling because nobody has extra money.

    Healthcare costs continue to skyrocket due to no wage and price control and the profit motivation behind all functions of medicine.

    Other countries have been far more successful adopting a mixed economy but the purists don’t mind if many die so they can achieve a pure vision of an economy. Well dream on and cause misery, because this economy is totally corrupt and will not become less so when you cut people off from social services.

    Remember folks on the first of the year…..Austerity is just around the corner.

  4. @Being There

    Very well stated. I have conversations with co-workers along these lines that go absolutely nowhere.

  5. Christian W

    Interesting. The Saudi Royals are not very interested in sharing ‘their’ oil wealth. About a quarter of the Saudi population live below the poverty line.

  6. The latest nugget of economic gold from Michael Hudson

  7. @Elaine: “This disingenuous double standard means they can act all high and holy when out of power and then run riot like a gang of Caligulas when in power.”

    Damn! ( ( ( x^D ) ) ) This is one of your best lines! 😀 🙂

  8. @Being there: Very well stated. I think these purist types want to see all government functions privatized, everywhere, across the entire planet. Which means the WEALTHIEST INTERESTS get the military! What can possibly go wrong?

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