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Sunday, January 6, 2013

Why the bad fiscal cliff deal will lead to a worse debt ceiling deal.

So the full details of the Fiscal Cliff Curb deal are now known. I broke it down on my YouTube channel a few days ago. It's basically a long list of giveaways to the rich, and enshrining the Bush tax cuts into law for 97% of Americans forever.

Key Provisions include:

That's not really a great deal. This whole fiscal cliff was designed to help solve our deficit. This deal adds $4 Trillion to our deficit over the next 10 years. 

However, the unemployment extension is a great thing, and sorely needed because of the economic activity it provides, but it's merely scraps tossed out to the people who need it most. The clear winners of this deal are the corporations and the rich. 

This deal not only failed to raise any revenue or provide stimulus, it's also chock full of corporate socialism. Yes I said Socialism, you know the kind we don't like. 

These subsidies include some of the following:
  • $43 Million in tax breaks for NASCAR
  • $165 Million for Railroads to maintain their tracks. (Shouldn't the railroad companies be doing that?)
  • $150 Million for Hollywood studios.
  • Tax incentives for mining companies to buy safety equipment and train employees to mine safely. (Once again why are we paying the companies to not kill their workers?)
  • $1.6 Billion to Goldman Sachs in tax free financing from a 9/11 liberty bonds program. 
  • $9 Billion Off-shore financing loophole for banks. Encouraging outsourcing and keeping money in foreign banks
And the list goes on while the cost to taxpayers goes up. Remember this is our money. Taken right out of our pocket and given to Goldman Sachs. While the CEO Lloyd Blankfein, referring to Social Security told CBS,
 "You're going to have to do something, undoubtedly, to lower people's expectations of what they're going to get." 
While he rakes in a whopping $16.1 Million salary from Goldman Sachs and was the recipient of Federal bailout money under TARP. This is absolutely insane. The wealthy and corporations are robbing us blind and they're buying our politicians to do it.

The reason I bring up Lloyd Blankfein and Social Security is because of the coming debt ceiling fight. Remember we've kicked the sequester down the road and raised taxes, now comes the part where we really get robbed. The part where Republicans demand spending cuts, and where Obama will give it to them. The fight has already started with threats of a government shutdown.

Now the president could use the 14th amendment to raise the debt ceiling as many democrats have been calling for, but Obama himself has balked at the idea.

This leads to me think, based on Obama's record of folding on negotiations where he has the leverage, that we are going to end up with deep cuts to Social Security, Medicare, and other social programs for the poor.

I'd love to be wrong about this, I really would, but with the horrible Fiscal Cliff deal, the fact that Obama has already said to have put Medicare on the table for cuts, and the fact that during the fiscal cliff negotiations he offered changes to social security benefits. I am really skeptical that we're going to get anything short of a grand larceny from the poor and middle class.

So if you think the fiscal cliff deal was a win for democrats because we got some tax increases, than you haven't been paying attention to the details.

When it comes to politics, always read the fine print.

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