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-- Posted Monday, 27 February 2012 | | Source: GoldSeek.com
Senator Jeff Sessions, ranking member of the Senate Budget Committee has pointed out that our per capita government debt is already larger than Greece's. Per person, our government owes over $49,000 compared to $38,937 per Greek citizen. Our debt has just reached 101% of our Gross Domestic Product. Our creditors see this and have quietly slowed down or stopped their lending to us. As a result, the Federal Reserve has been outright monetizing debt as a way to patch things together and keep the economy on life support a little longer. There is rapidly shrinking demand for our debt, and confidence in the dollar is falling. This phenomenon is hidden only by the fact that confidence in all other fiat currencies is falling faster.
None of this seems to really alarm the administration, obviously, as they have just released a budget that accelerates spending and borrowing. The reason the debt and deficits plague the economy, according to this administration, is that the American economy is not taxed enough. Therefore, hidden in the fine print of the budget is a provision that ramps up the corporate dividends tax rate from its current 15% to 39.6%. In addition, certain deductions and exemptions will be phased out; an additional 3.8% Obamacare investment tax surcharge will be tacked on, bringing the effective dividend tax rate to 44.8% in 2013. Keep in mind, this is not just a tax on big business, this is a tax on anyone who depends on dividend income to live - retirees will be hit hard by these changes and dividend yielding stock prices will adjust downward rapidly to reflect their decreased value.
Not only this, but the Obama administration is worsening the uniquely American policy of taxing income of US based companies earned overseas. No other country presumes to tax globally in this manner, so it amounts to a huge penalty for basing a company in the US. Companies have been able to manage this penalty by deferring taxation until it is repatriated or by paying dividends. What will happen to US based businesses with strong international ties if these allowances are abolished as the Obama administration proposes? A massive wave of permanent capital flight will undoubtedly cause the already high levels of unemployment to rise.
Businesses are struggling and failing in this economy. The government ultimately depends on a healthy business climate to provide jobs and a tax base. It is penny wise and pound foolish to add to business tax burden in a misguided attempt to close the colossal gap between our government's revenue and spending. Rather than crippling and absorbing more of our shrinking economy, government needs to be drastically cut - not in 10 years, but immediately.
Those who understand the underpinnings of the dollar and how the Federal Reserve works have known for some time that we are on an unsustainable course, that major chaos is in store if nothing is done quickly to reform things. Politicians pay lip-service to reforms that never materialize or turn out to be at best small and meaningless, or at worst actively harmful. It seems more and more inevitable that because the necessary changes would be too inconvenient for the elites to enact now, we will get them later Greek-style, through collapse and chaos.
RP fails to go far enough in that "Boy Toys" advisers know damn good and well that their policies have been and are continuing to destroy our economy and MUST be doing so intentionally! We are being sacrificed and the blood drenched ghoulish Zionists and their minions are doing it!
ReplyDeleteThe US deserves to die this way. I'm happy.
ReplyDeleteIts the old mafia way of dealing with their Hood, if suplys fall, they rise the prises or cutts down the suply.
ReplyDeleteAnyway we loose and the sosialising of corp. looses is ther for all to see.
They are not willing to admitt that spending is the obstacle, tax is just a divertion from the real issue, spendings.
I have seen charts that shows a steady flow of "tax" money to sosial sec. and healt(remeber a healty people is a productive people and cant be messured in the capitalistical way, kenianism). The exes is war and subsidising of wast enteprises based on political consensuser about what a goverment can provide with regarding markets, like water.
And the acelreating costs of water, why its not calet Tax,its because its "privat" and they can do what ever they want, right.
Anyway we loose.
USA is probably in surplus with in some years, the day USA cuts down the FeD and erazes the Debt, its your anyway.
So why not eraze it.
Stopp foundings and contiouing spending on a Army, bigger than the rest of the world, combined.
With bases in, what, 170 counrtys.
Full spectrum dominans.
All empires eventualy suforcates them selfs in Depth, always, and the comon people gets the Bill.
Sound Far Out, dont it, but thats the frightening truth, depending on what side of the table, your ass is.
Its infact that simple, USA dont have to rise anything, end the monpoly and mains street wil wake up again.
If not.
I am glad that I dont live in the USA, as it becomes a New Palestina, behinde bars.
peace
“Man will never be free until the last king is strangled with the entrails of the last priest.”
― Denis Diderot
The 'Anonymous' movement expects us to accept the invisible while we are in the confrontation with the corrupt elements of government. Their program and efforts do not consider tht which already is in the works and behaves as disenfranchised. If Anonymous were acceptable to the people, they would not be anonymous. The people, unarmed and honest and fierce, are where the truth and focus of good government lies. 'Anonymous' may be operating out of Hillary Clinton's office. A disciplined, rational approach is called for by the huge crowds Dr. Paul gets and 'Anonymous' shuns.
ReplyDelete