The $900 Billion Stimulus

The left is throwing a fit over the so-called “tax cuts”, which aren’t really tax cuts but tax-rate cuts. Included is a 2% cut in the employee portion of FICA withholding. All other tax-rates remain the same or were slightly adjusted. If semantics is your thing, then you could say that it is indeed a tax-rate cut, even though tax rates remain the same, because to do otherwise would result in a tax-rate increase.

The right seems to be happy. They got what they wanted. They, along with the rest of the country seem to think that these tax-rate cuts are what we need in a time of recession. While that is true of typical recessions, what we’re currently dealing with - record debt, monetization of debt, global monetary collapse – is anything but a typical recession.

Is it good that we have stopped a $4 trillion tax increase? Or is it good that we just agreed to a $900 billion stimulus bill that isn’t likely to work any better than the previous three? I thought the Republicans hated the idea of stimulus. Whatever, I would stop short of regarding it as the panacea the President is portraying it as. This bill contains up to $900 billion in funding that will have to be borrowed from countries that may or may not approve of the way we are debasing our currency, or to put it in China’s vernacular, “dishonoring our debt.”

With this tax-rate cut we might still be able to continue the scam that is our fiat monetary system if it weren’t for Obamacare. If we could repeal Obamacare sometime in the next few months and if by some miracle Europe gets their financial house in order, then we might temporarily weasel our way out of this mess like we did the housing collapse and the dot-com bust and save the inevitable for some time in the future, possibly when our children/grandchildren are beginning their adult lives.

Even better for the left, although I’m sure they don’t realize it, is that in the end they will be able to make the case when the economy crumbles that “trickle-down” doesn’t work and it must be because “the rich” didn’t put their tax savings back into the economy. Nevermind that "the rich" didn't really get any tax "savings." And they’re likely to get away with it. That’s because this tax-rate cut isn’t going to make a dime’s bit of difference when the cascade of monetary collapse begins in Europe.

Since it won’t make a bit of difference, the best thing to do is to leave the tax-rate increases in place for everybody and swallow what needs to happen, take our medicine if you will.

Recommended reading:
http://www.reuters.com/article/idUSN0761602020101207

http://finance.yahoo.com/news/Debthit-Irish-publish-apf-4008797829.html?x=0&.v=10