|Hey, don't worry about the fiscal cliff. We're going to give you a concussion|
by bouncing us off a trampoline and into the debt ceiling, over and over.
You're Screwed. Happy New Year
Tim Geithner, the head of the Department of the Treasury, announced that the federal government will reach its credit limit on New Years Eve.
That's right, the credit cards will be maxed-out before the new year begins. The federal government will enter its fourth consecutive year without a budget. The federal government's spending far extends beyond its revenue. Now it cannot even borrow another cent to cover all it already owes.
The total credit limit on all of those credit cards is $16,400,000,000,000.00.
Then again, the federal government has, for years, been paying off its loans with credit cards, metaphorically.
Imagine if your household had been doing this over the past ten years. Imagine if you decided to forgo a budget and just buy what you felt like purchasing, regardless of your means of supporting yourself. Now imagine that the bills have started coming in and you spent the past four years paying off the car loan, the mortgage, and your weekly food bills with credit cards. Now imagine that you have ten credit card accounts, they are all maxed out, and you cannot get anymore. Now notice that starting after the first of the year, the commission rate you earn is going up, but the chances of selling anything to make that commission is doomed to be cut in half. Your net income will drop at least 40%, let's say. What would you do? Probably panic and file for bankruptcy and food stamps (or get a second or third job).
A wise family wouldn't have gotten in that situation in the first place. Others would have taken the risk for a couple of months but started cutting luxuries and employing a more responsible budget not long after. What does the government do? They start to cry that they are maxed-out and claim that somebody needs to increase their credit card limits.
In addition, we have baby boomers retiring. They paid into Social Security, many since the age of about 14. It's their money. However, the government has been taking their retirement funds and putting them into the general treasury, using that money to pay for food stamps and fascist corporate subsidies such as the one to the UAW union and GM or the one to Solyndra. Those retirees are owed their money. However, it's been embezzled. So, the federal government is counting upon those not retired to pay the money to those who are for them.
To further complicate matters, more and more Americans are fleeing the workforce and claiming
In fact, a record number of 8,827,795 citizens are now on SSDI. Citizens paid $725.429 billion into Social Security. The government paid out $773.247 billion in SSDI, SSI (retiree), and overhead expenses in Fiscal Year (FY) 2012, which ended on September 30, 2012. FY13 is shaping up to have an even higher deficit. For those who do not understand the word "deficit", that means that the government is paying out more than it is taking in. For November 2012 alone, Social Security operated at a $12.7 billion deficit, for a single month.
Meanwhile, they are also paying out to a record number of EBT card holders, as well. Most people receiving SSI and SSDI paid into the fund at one time or another. There is no federal "food insurance" program that people can (or are extorted into) pay into. Those funds come from the general fund, the same fund that Medicare and Social Security garnishments are dumped into. So, those food stamp recipients are basically stealing from grandma's retirement fund. The government is not only complicit in this, they are soliciting it. They are the masterminds of it. They are even more guilty than the thieves who are holding the stolen goods.
So, the federal government is jumping off of a trampoline at full speed so that it can bounce off of the debt ceiling. They are doing so knowing that they will land on the other side of the fiscal cliff, accelerating at 9.8m/s^2 (32 feet/second-squared) down a steep gorge for what appears will be months.
Tax reforms and other mechanics for increasing (or even maintaining) federal revenue must originate in the House of Representatives for legislation. The House is in recess with no tax reform bill passing. They have not even passed a bill to renew the tax cuts passed by Nancy Pelosi's house during Bush's administration. So tax rates are bound to go up on those now fewer people who are employed (or even in the workforce).
The Senate is too busy flipping off the conservative minority in that camera of congress to come up with a reasonable proposal to cut spending. The last plan to "cut spending" wasn't even a cut. It was a proposal to not increase it as much. When you can barely afford a pound of olive loaf, you do not quibble about borrowing more for prime rib or filet Mignon. Instead, you forgo the Little Debbie cakes so you know you have enough to buy some milk.
No tax reform. No spending cuts. Credit limit is maxed out. The country is bankrupt. The scary thing is that this is what Obama wants. Well, he wants that. He wants to steal, by force, what others worked hard to earn. He wants to use force to have the government buy out every successful business. He wants the citizens enslaved to him and his oligarchy. He wants to punish those who succeeded but didn't kiss his ears in doing so. Don't worry, he'll be a benevolent dictator. Just ask those few idiots who voted for him in order to get a cell phone at the expense of those tax paying citizens who did work to earn.