Hocus pocus, don’t lose focus,
While I hypnotize with my eyes
And misdirect what I collect.
Keep your eyes on the hands of the magician as he waves them over the hat, because that’s not a rabbit that is about to jump out. It’s a snake. Don’t let his words misdirect you.
With the bill now passed by the Senate and House, spending will increase dramatically, spending cuts will be almost invisible, and some taxes will rise including the payroll tax by another 2%. All they’ve done so far is to keep most of the tax reductions put in place during the W. Bush administration, but only temporarily. Not one thing has gotten better and a lot has gotten worse.
Ah but. To hear it from The Anointed One and his horde of obedient, genuflecting assistants, all this hoopla over preventing us from leaping willy-nilly over the Dreaded Fiscal Cliff is aimed at Protecting The Middle Class from tax increases.
It’s all prestidigitation. Like sawing a woman in half. Smoke and mirrors and lots of Ooohs and Ahhhs from paid shills in the audience. Borrowing is going to increase, and most of the National Debt is actually owed to us. We are the ones our government borrows the most money from, and then prints more money to pay us back, driving up inflation which reduces the value of the dollars we’re paid back with, and we actually get back less than we loaned, in terms of value. Snakebite.
Our taxes go up to take more money from us to pay us back with, which does help slow inflation but makes us poorer and unable to spend as much, which hurts businesses which then pay less corporate taxes and have to lay off some workers who then get unemployment and welfare from the government which then has to print more money to pay them but isn’t collecting taxes from them anymore. Smoke and mirrors.
Then there’s the sideshows, the “financial advisors” who will sell you their newsletters of pending disaster because the Chinese are going to throw the supposed $2 trillion the “advisors” say we owe them in bonds onto the market and crash our economy. Cotton candy vendors selling pink fluff full of air.
The Chinese actually hold only $1.28 trillion in our bonds. The Japanese hold $1.12 trillion. Other countries hold smaller sums but the vast majority of our debt is held by us and owed to us. To the Social Security program, to retirement funds, any public fund our government controls, it borrows from until little is left.
China itself is $2 trillion in debt, $8.5 trillion for Japan and $2.5 T for Germany. In fact, most all First World nations are deeply in debt – except Russia, which has almost none. Smart.
Money is power, and to have the power, you have to spend the money, and to keep the power you need more money, more money. This is why nations go belly-up, because their leaders spend them into poverty in order to stay in power. It’s a self-defeating scam run by snake-oil salesmen.
Don’t listen to the abbra cadabra, it doesn’t mean a thing. The savings and the tax reductions are all illusion. The reality is more spending and higher taxes, and that’s no trick at all.