First, the legalized gangsters in the nation’s toilet raised the debt ceiling at the 11th hour so that the US government can borrow more and spend more, in spite of the looming budget carnage. Then they partied down into the wee hours of New Year’s Eve and agreed to further fleece our most productive people in order to keep the spend-a-thon sustained. New Year’s Eve was a convenient time for such fiscal buffoonery considering that the markets are closed until Wednesday. Still, with government spending zooming upward and spiraling out of control, the government is on track to exceed its borrowing limits, again, and within a month or two. Yet another cliff is ahead, and there will be yet another scheme concocted to avoid the cliff and ensuing economic collapse.
According to the Wall Street Journal, said Senate Majority Leader Mitch McConnell: “But I think we can say we’ve done some good for the country. We’ve taken care of the revenue side of this debate.” And what’s wrong with that statement besides the fact that these bastards think they did “good” for the country? I am going to argue that the bona fide definition of “revenue” is a return/yield from property/investment or income earned from the sale of goods, services, assets, etc., and not the modern, revised definition that includes government theft to pay for “expenditures.” If I steal from you, why is that not revenue? Why can I not be considered a self-declared government?
While for-profit businesses seek long-term strategies for bringing in revenue and controlling expenditures, government always acts with high time preferences: raise dough now, even at the expense of long-term “revenue” shortages. Rule changes will tease tax victims by allowing them to roll their 401k assets into a Roth IRA, which allows them to pay taxes now (potentially advantageous for some) while avoiding taxes on disbursements down the road. From a purely fiscal standpoint, this means that government gets your money now, but gives up its “revenues” in the long term. Always, all problems are pushed into the future to be dealt with when it comes time to cross those various bridges. These last minute crises always bring rise to media worship for the congressional criminals who dive in at the last minute and “save” our country from yet another fiscal Rubicon. The media bobbleheads experience rapture whenever our “heroic” leaders step up to save the day for the begging serfs.
Remember that elected and appointed “officials” have no long-term ties or interest in the government policies they create, and thus this gives rise to the behavior of here today, gone tomorrow, so take it while you can.
The cliff has been “avoided” in favor of a newer, bigger cliff. Indeed, build a bigger cliff and the politicians, along with their welfare queens, shall come. Follow me on Twitter @karendecoster.6:20 am on January 1, 2013 Email Karen De Coster