Standing on the edge of the fiscal cliff
By: Diane Sori
In between talk about Benghazi, ObamaCare, and voter fraud the
words 'fiscal cliff' loom large.
Fiscal cliff...the monetary nightmare we'll face on December 31st when the terms of
the Budget Control Act of 2011 are scheduled to go into effect.
Among those changes are the end of last year’s temporary payroll tax cuts, the end
of certain tax breaks for businesses; the end of the tax cuts from
2001-2003; reductions in both defense and non-defense spending; major
cuts to NASA; the expiration of the Bush Tax Cuts; the end of a
payroll tax holiday and extended unemployment benefits; and the onset
of reimbursement cuts to Medicare doctors. And let's NOT forget the
beginning of the mother of all taxes related to the God-awful
monstrosity known as ObamaCare.
Thanks Obama...you've screwed 'We the People' yet again.
And unless the White House and Congress come to a bipartisan deal
to stop our economy from going over that cliff, on January 1st over we go to the tune of $7+ TRILLION worth
of tax increases and spending cuts over this decade. And to add
insult to injury, the debt ceiling will need to be raised by early
next year leading to what experts are saying could be another
Oh what a happy day this all is...NOT!
And to make this even worse is the fact that the Republicans just might have to agree to a marginal income tax increase to stop
the fall off the cliff along with agreeing to concessions on both the revenue
and entitlement ends even though Obama has said he will veto any fiscal
cliff package that extends the Bush Tax Cuts for top earners,
something the Republicans insist upon.
It's 'read my lips...NO new taxes' all over again.
And while both parties are at least paying lip-service to agreeing
that the most important thing is to kick start the economy, the
reality is that if we do go over the fiscal cliff it will not only
affect our economy but would also likely result in a credit rating
downgrade in 2013, and add to our debt burden as well.
But how did this nightmare all start you wonder..it's really very
simple...the fiscal cliff was created when the command decision was
executed to switch US currency from 'treasure' backed bills to
federal reserve notes with no backing. Essentially, bills show the
possession of 'treasure' (as in gold or silver), meaning something of
value is backing it, notes are money owed, credit turning into debt
over time, with NO tangible backing.
Basically, this is what's known as 'fiat money.' Fiat money
distorts the real time value of money and destroys both the money and
the economies that use it, our economy included. 'Real money' like
gold and silver retains value over time, the greater its value and
the longer it endures, the more likely it will be accepted as money
thus strengthening any economy that uses it.
This is the 'establishment's' (the government's) dirty little
secret that's hidden in plain sight.
This is why 'savers' are penalized in our credit based economy
while spenders are heralded. Spenders put bills (treasure)
back into the economy, savers take those bills (treasure) away. And
here's an interesting fact...in the 95 years since the creation by
the Federal Reserve of credit based money, the US dollar has lost 95% of its purchasing power...that's 95% of 'treasure' lost.
So what will happen as the fiscal cliff looms near...no one can be
certain but it's possible that all players will agree to postpone
the fiscal cliff until March, giving themselves more time to work out
a deal and to keep the economy from sliding into recession in
January...and to pass the buck to the new Congress...agreeing to
NOTHING and doing NOTHING...par for the course and something we know
is the most likely scenario.