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Obama WANTS to drive over the cliff

ilene's picture




 

Obama wants to drive over the cliff.

Courtesy of Dr. Paul Price of Beating Buffett 

America is awash with hope that our newly re-crowned King will come towards the center and avoid the dreaded ‘Sequestration.’

That term is spoken of as if it is toxic. People seem to forget that it was deemed the solution to the debt ceiling negotiations during the summer of 2011. Those opposing its imposition now are the same ones who passed it in the first place.

 

clip image002 Obama wants to drive over the cliff

 

But I digress. Here is why our leader has no desire to settle this affair before it gets put into effect.

  • It will impose tax hikes on everyone who pays federal income taxes (not just the 2%)
  • It will cut entitlements without his having to support the actions
  • It will reduce defense spending without him ‘looking soft’ as Commander-in-Chief
  • It will end the ‘Bush Tax Cuts’ automatically 
  • It will probably slow economic growth (GDP)

Why would our President want these things to take place?

  • He would get the extra tax revenues to use without being blamed
  • He could not be held accountable for breaking his ubiquitous pledge to never raise taxes on the bottom 98%
  • He would not be the one cutting entitlements, it would be ‘out of his hands’
  • He prefers to cut defense spending rather than social programs
  • He can later ‘give back’ tax cuts to the Middle Class
  • He can then call them the ‘Obama Tax Cuts’
  • He can blame those damn ‘Obstructionist Republicans’ for the next recession

For B-Rock the Sequestration is a ‘Dream Act’ to accomplish many of his goals and dreams without any accountability. Every negative can be blamed on the Republicans even as he allows his stated preferences to be overridden by the forced actions imposed on him.

We haven’t seen political agility this devious since Bill Clinton asked everyone what the meaning of ‘is’ is.

****

Dr. Paul Price Nov. 8, 2012

Paul is a new contributor to our newsletter Market Shadows.  

Dr. Paul Price – Biography. Dr. Price is a featured columnist on business days on TheStreet’s Real Money Pro web site. His work can be found at his blog, Beating Buffett, Seeking Alpha and Phil's Stock World

 

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Sat, 11/10/2012 - 13:23 | 2967777 sink critically
sink critically's picture

Consider the following hypothetical failing economy professions:

1. Your government "intelligence" job requires you to go to work identifying potential domestic threats.

2. Your government "security" job requires you to disarm the people identified in scenario 1.

3. Your government "relocation" job requires you to help move the people from #2 to safer locations.

This is it folks, no need to worry about healthcare, gay marriage, war, debt, etc...

As always, hedge accordingly.

Sat, 11/10/2012 - 13:07 | 2967749 the grateful un...
the grateful unemployed's picture

maybe driving over the Fiscal cliff is really a good thing. Obama gets something (but not the tax revenues you mention, because once we hit the Cliff the stock market tanks, 401k money disappears, consumers retrench and tax revenues dry up to trickle because the GOP will push military spending - they get something too, they can force a cutback in social spending, and push through DOD programs - hell its almost like Romney won - there was a lot better chance of solving this thing if Mitt had won) no the GOP is already thinking 2016, their official reason given for not winning the WH is we had the wrong man.

the fiscal cliff is the preferred outcome of those GOP congressional types (the ones who opposed TARP in the first place), whether they can pull it off, has a lot to do with their position on immigration. yes IMMIGRATION, which is the last issue Congressional Repubs were able to block as a minority (during Ws second term). now they're talking immigration again (what does THAT mean?) it means one of two things.

gee I guess we were wrong about immigration the first time around (see how badly we lost the Hispanic vote) and the real problem was not our candidate - too nice - OR it means, remember the IMMIGRATION BILL you and BUSH agreed too, we stopped that and we'll drive you off the FISCAL CLIFF the same way (paraphrase, - "we'll get you and your little dog too.."

these guys are admittedly a bit schizo, so it some of both, right now they're using IMMIGRATION to feel the other side out. if it goes well the gloves are off.

Sat, 11/10/2012 - 13:32 | 2967797 daxtonbrown
daxtonbrown's picture

Face it, Obama is running a neo-Marxian civil war bent on turning us into a Eurosocialist backwater. http://www.futurnamics.com/civilwar.php

Sat, 11/10/2012 - 13:01 | 2967739 barroter
barroter's picture

Yeah...the GOP will be completely innocent in this. BULLSHIT!

Sat, 11/10/2012 - 12:29 | 2967678 ken4aub
ken4aub's picture

Both Parties want to go over the P Cliff!!! They will BOTH come together to SAVE us after the Market falls to its natural level. Congress & Barry want & need to get their hands on all the pension/401k/IRA $$ that are accumulating, and they will after the Market tanks for the 2nd time in5yrs. We will moan & groan until Congress makes us the "DEAL OF A LIFETIME". They will take ALL of our money and replace it with USDA GRADE A No. 1 Investment Bonds backed bt the full.....well, need I say more?

This will also give them the ability to SHARE EQUALL payouts to all Americans during their golden years. Who knows....they may even attempt(for a short while)to pay down the debt.

Sat, 11/10/2012 - 12:03 | 2967631 BlackholeDivestment
BlackholeDivestment's picture

It was reported that the driver of this car accepted a ''bailout'', lol, ...and that caused the ''rollover'' in the ''turn''. LMAO.  http://www.youtube.com/watch?v=jojuPQXMm44

Sat, 11/10/2012 - 11:43 | 2967607 cognus
cognus's picture

Right Title - the rest is fluff conjecture a schoolkid could paste.

Obama is set on "making things right" and he told the truth when he said there's more work to do before he's done changing.  He is a catalyst to hasten America's assumption of a peer role in the West; not the imperial leader USA thinks it is. Targeted tax hikes on job makers is something he will fight for, and win, devastating what's left of the middle class and shutting off small business growth - which is down to a trickle since Tuesday anyway.  Retirees will go bust and become state wards due to dramatic hikes on all "nonearned" funds. The Democrat side of the One Party will move to outright marxist while the Rep side will take the position recently occupied by Dems.  Nobody in power thinks for a nanosecond that the national debt should be pared down - all that babble is for theatrics to justify the breaking of the middle class [what the Dems call "rich"].

Sat, 11/10/2012 - 11:11 | 2967586 mendolover
mendolover's picture

1.  We're screwed.

2.  BTFD!!!

Sat, 11/10/2012 - 11:09 | 2967585 masterinchancery
masterinchancery's picture

Obama is a lame duck who will get all the blame for economic collapse--no reason at all for any "compromise." Especially since spending austerity is absolutely essential.

Sat, 11/10/2012 - 10:45 | 2967572 Oldwood
Oldwood's picture

Compromise is just an excuse for nothing working. Even if the two sides come to an agreement, when the shit still hits the fan, they will be pointing fingers at each other claiming it was the compromise that made it fail. Republicans should vote present on ever democratic bill, making it clear that while they fundamentally disagree they will not “obstruct” the will of the voters. Make the dems (and their supporters) own this. This bullshit unending debate is just rearranging the deck chairs on the Titanic.

Sat, 11/10/2012 - 10:32 | 2967562 northerngirl
northerngirl's picture

As a country we went over the cliff decades ago.  The smoke and mirrors, song and dance that we will watching over the few weeks is nothing more than entertainment equivalent to a Cock fight.  In the end all involved will say they did what was best for the country and as stupid Americans we will bend over and take it again.  We get the government we deserve. 

Sat, 11/10/2012 - 10:28 | 2967557 Vendetta
Vendetta's picture

We went off the fiscal cliff in the fall of 2008, everything since then has been a so-called 'pretend and extend' game.

Sat, 11/10/2012 - 10:33 | 2967564 d edwards
d edwards's picture

Sequestration sounds like castration (cringe)!

What about the fucked up health insurance penalty (tax) in 0webamacare?

Sat, 11/10/2012 - 10:22 | 2967553 roadhazard
roadhazard's picture

Fuck the MIC. They contribute nothing but WAR.

Sat, 11/10/2012 - 09:14 | 2967495 Cloud9.5
Cloud9.5's picture

This is the course. Sit back and watch the numbers.   http://www.usdebtclock.org/

 

 

None of this matters, until it does. In 2007 Zimbabwe was printing one dollar bills. In 2008 they were printing fifty trillion dollar bills. When the phase shift happens, it happens very rapidly.

Sat, 11/10/2012 - 08:40 | 2967465 Translator
Translator's picture

Ilene you stupid kunt.........

 

 

That was for yesterday's article.....

 

 

 

But props for the headline of today's  ;)

 

 

 

 

 

 

Sat, 11/10/2012 - 08:29 | 2967455 myptofvu
myptofvu's picture

I can see why the author draws his conclusion but I think Obama is looking at this as his opportunity to tax the rich, fair share, all that crap and he is probably willing to bend on a whole lot of issues with the GOP just to be able to do this. He is very good at looking at issues and determining which way makes him look better or least worse.

Sat, 11/10/2012 - 09:47 | 2967519 Winston of Oceania
Winston of Oceania's picture

I see that you have yet to accept our fate; don't worry the State will BEAT it into you over the next few years. If however you fail to see the light then of coure we have the gulags...

Sat, 11/10/2012 - 08:24 | 2967448 Disenchanted
Disenchanted's picture

 

 

 

WB7 needs to put Bama/Boehner heads on T&L in this video:

 

http://www.youtube.com/watch?v=4z88U915uq8

Sat, 11/10/2012 - 07:43 | 2967425 deerhunter
deerhunter's picture

Cook County Chicago IL.  Passed new law increasing cigarette tax by 1.00 per pack.  Tax on purchase of firearms 25.00 per gun.  Tax and spend.  I think the cigarette tax per pack now in City of Chicago is like 6$ per pack.  Defeated was a 5 cent per round tax on ammunition but I am sure that will be coming next time around.  Out of control government once again biting the hands that have the callouses and feed it.

Sat, 11/10/2012 - 14:31 | 2967977 Ness.
Ness.'s picture

Don't forget the additional taxes on playing a round of golf.  Not a lot of brothers play golf - so I guess it's ok. When are they going to start raising taxes on grape pop and flamming hot cheetos?

Sat, 11/10/2012 - 08:08 | 2967435 malikai
malikai's picture

There's a reason we call it Crook County.

Sat, 11/10/2012 - 07:35 | 2967419 drchris
drchris's picture

Sequestration will never happen.  Obama said so in the debate.  The media told me that Romney is the liar.

Sat, 11/10/2012 - 08:19 | 2967406 falak pema
falak pema's picture

So sequetration is the new recipe to USA's fiscal cliff; wow, what an easy drive-off the road that looks.

Go for it Potus and let Boner take the credit for being a anti-MIC shill, as this means defense cut-backs big time.

Petraeus sauce is getting thicker n thicker; Boner or no Boner. 

Putin will be laughing to the Kremlin; he has just reigned in his MIC, and ramped up its coordinated capability.

What does Netty do now? If Potus says Iran is a "no deal" option, just a flash in the pan of muscles flex to get elected, and now its to be big freeze in ME and softy-softy status quo. < Bill Clinton's foreign policy minus Serbian venture (he hopes). Let Syria sweat it out with Saudi dough for rebels and no San Pebbles.

God those MIC brass hats are going to hate that! 

Sat, 11/10/2012 - 05:35 | 2967400 sink critically
sink critically's picture

While we are all taking in the political theater production, "Fiscal Cliff", let us remember that the actors and actresses are paid and protected no matter how the play ends as long as they tow their respective plot lines.

They should be careful when they take their bows at the end, they could get stuck holding hands in a bent line.

Sat, 11/10/2012 - 03:14 | 2967341 ItsDanger
ItsDanger's picture

Obama has to do nothing to get what he wants, higher taxes, slash military as a result of the deal already made.  So its really a foregone conclusion at this point.  Doing nothing is Obama's forte.

Sat, 11/10/2012 - 03:10 | 2967338 Shhh dont wake ...
Shhh dont wake the VIX's picture

The way this fucking garbage is being spun in the MSM is that going over the Cliff constitutes failure... and for that very reason it's not going to happen.

They will come to some bullshit agreement... wait and see.... 

Sat, 11/10/2012 - 02:27 | 2967308 news printer
news printer's picture

Occupy Wall Street buy-up debt to abolish it

A group of campaigners linked to the Occupy Wall Street movement is buying-up distressed loans for pennies in the pound and cancelling them to "liberate debtors at random".

Sat, 11/10/2012 - 09:10 | 2967494 tango
tango's picture

Yep, that's creating wealth.  LOL   We all know that those geniuses who bought property with zero percent down and a 1% loan are the ones who will guide us to economic sanity.  This entire action is so phony and yet so typical.  Retroactive financing that destroys millions through foreclosure is not "productive work".  Besides, unlike much of Europe, US owners are not responsible for the loan once foreclosure occurs.  They are free of the debt at that point. 

Sat, 11/10/2012 - 02:10 | 2967285 caustixoid
caustixoid's picture

How seriously would you take an article titled  "Dummy wants to dump his ventriloquist and do solo tour"?   This is another piece of crap trying to convince us that the Dems and Repubs are mortal enemies.  Obama wants whatever the teleprompter tells him to want.

 

Sat, 11/10/2012 - 02:05 | 2967277 “Rebellion to t...
“Rebellion to tyranny is obedience to God.”-ThomasJefferson's picture

This country needs a reset...the sooner, the better.  When the morons who want something for nothing realize there is nothing left, they will have no one to blame but themselves. If they're too damn stupid to finally figure it out, fuck them.

Obama is just the person to run this ship aground.  I'd say within two years, we are all witness to a shit show of epic proportion; courtesy of a corrupt political system, a complicit media, crony/bankster scumbags, and last but not least.....A full blown retarded voting base so god damned dumb they deserve whatever the fuck happens to them.

Sat, 11/10/2012 - 13:12 | 2967757 James-Morrison
James-Morrison's picture

When the morons who want something for nothing realize there is nothing left, they will have no one to blame but themselves.

They will blame the Republicans...

...and eat them.

True one party system.

Sat, 11/10/2012 - 09:02 | 2967486 tango
tango's picture

I agree with your thrust if not your tone.  There is a moral law at work - actions do have consequences. Those most devastated over the last four years by loss of employment and wealth supported BO the most fervently.  That's the scariest aspect of the whole thing.

Whether this was racial, ignorant or ideological, the truth is that these tens of millions are absolutely clueless about the survival of modern society.  Worse, I am convinced we will not go the John Galt way. No, we'll go down fighting, working harder and harder with rising taxes and regulations, desperately trying to hold on despite the sabotage of DC idiots and academic clowns.  And all the while, we'll foolishly wait for the nation to come to its senses.

Sat, 11/10/2012 - 01:54 | 2967264 pfairley
pfairley's picture

ha ha. excellent article.

I don't think Obama is as smart or self aware as this author says, but his foggy brain may get him to the same place.

Democratic Professor James Galbraith actually said on Bloomberg that going over the fiscal cliff would be ok.(interview earlier in 2012)

He is the only democrat honest or crazy enough to have said this publically, that I have heard.

Greenspan this week on Bloomberg said any solution to the fiscal cliff will involve pain, economic, political & spiritual pain (the spiritual is evidently the feeling of throwing grandma and other helpless people under the train) Pain that is not  fully recognized by most people (or priced into the market).

Sat, 11/10/2012 - 01:15 | 2967223 Oldwood
Oldwood's picture

Make Obama own this shit storm. Republicans voting "present" will force the dems to put up and own the results. For the last four years conservatives have been trying to stop this and the media has successfully painted them as the obstructors while Obama has largely gotten his way. Many dems seem to think he has been a successful president despite the mess he was given and republican opposition. So lets see. I mean afterall how much worse can it get. Regardless, from the leftist media's perspective, if republicans resist on any level they will be held responsible for whatever happens. Conservatives have to do something or they will be forever lost, as will America as we knew it. And it will always be Bush's fault.

Sat, 11/10/2012 - 04:45 | 2967388 JuicedGamma
JuicedGamma's picture

Sure. Let's all devolve into NYC of the 70s we can have Koch followed by Dinkens. Oops we're already there. Next up are the total decay of infrastructure, white flight, imminent bankruptcy, mob justice, crack babies, gang bangers running wild on a national scale.

Eventually everyone will be fed up and come back to sanity, after a long and painful awakening.

Sat, 11/10/2012 - 02:12 | 2967292 pfairley
pfairley's picture

Great idea. Republicans should vote abstain.

The 70% Hispanic vote, & 90% Black vote for Obama...the growing populations, vs the limping white population has been inspiring many ideas on how Republicans must change. This comment by Oldwood is one of best ideas I have heard.

My facebook friends and I only agreed on this for Republicans:

1) Have more sex.

2) Become daily stars in police chases on TV.

 

Sat, 11/10/2012 - 10:36 | 2967566 Oldwood
Oldwood's picture

Eliminate "plausible deniability". Forced transparency. If the lib ideas are that great, lets see them in action. Open borders, tax the hell out of anyone with a better than minimum wage job, free healthcare, foodstamps, section 8, SSI and the wrap. We will strap on those paper wings and just see how we fare when we take the big leap. I'm tired of arguing about it. Its not like anyone will change their minds. It is amazing how many suffering people are surprised that after Sandy, they still are in the dark. Security provided by anyone other than one's self is an illusion. Yet they will vote for more of it the first chance they get.

Sat, 11/10/2012 - 09:47 | 2967520 Lloyd_Xmas
Lloyd_Xmas's picture

Do the props in the back reduce the unemployment rate?

Sat, 11/10/2012 - 17:18 | 2968437 monad
monad's picture

Only if they report it.

http://www.in.gov/dwd/2707.htm

Sat, 11/10/2012 - 01:06 | 2967210 Joebloinvestor
Joebloinvestor's picture

Obama doesn't care and he doesn't have to.

 

Sat, 11/10/2012 - 00:56 | 2967195 ebworthen
ebworthen's picture

Good points.

And if the Republicrats really cared about the deficit and tax cuts they would not have voted for the bailouts.

The car is loaded up with Democrips and Rebloodlicans drunk and partying.

Sat, 11/10/2012 - 00:10 | 2967117 OldE_Ant
OldE_Ant's picture

(sarc)

If I remember right it was the Republicans that passed those changes AS WELL AS the expiration date - so place blame in the right place. (but it's late at the end of a very long work week and my brain cells may not be firing right).  I think it's time to tax churches and let them have the donation tax credit so we all can see the real money that passes through churches and the amount of actual money going to their charitable works.   Since as far as I can tell the believe in God is unfounded in fact, and only leads to extremist actions (good and bad).  The church probably holds a heck of a lot of valuable real estate as well.  No reason to let any organization exist tax free.

While I'm at it, legalize the vices and tax the f' out of them.  More money for govt to eat and lets build better smaller cheaper missles, drones and fire all those fallible humans.  That will save another $1T at least.

As to the cliff, as long as we don't hit the ground 'everything will be fine'.    Kicking the can seems to be such a wonderful past time by the western governments supported by central banks I can't see why they won't do it again.  Only $1T debt to get 1 year of can kicking seems like a cheap price.

This way the New World Order will have time to print up the new World constitution and $1Quadrillion Globo bucks!

(sarc)

Fri, 11/09/2012 - 23:50 | 2967093 AGuy
AGuy's picture

"It will cut entitlements without his having to support the actions"

I would bet this will not happen. There are simply too many voters receiving entitlements. While the O'Man doesn't have to worry about elections, Congress and Senators do. I fully expect the O'Man, the Senate and Congress to shaft the working class to continue making sure entitlement payments are met. If they can't do  higher taxes, they can always do it with a printing press.

As far as military cuts, I suspect the bulk of the pain will be directed at current and retireed military personel. Of all the people that shouldn't get shafted is those that put their lives on the line. Every week or two I read an article how the gov't plans to cut health benefits, retirement benefits for its soldiers, or finds some other way to kick them in the teeth.

Sat, 11/10/2012 - 13:33 | 2967798 GreatUncle
GreatUncle's picture

A simpler way to say it.

If too many people have nothing you can't extract taxes so you end up going back time and again to those with more moderate means and taxing them. This repetitive action destroys and puts even more into the dependency group that then drives the need for even greater taxes.

Rinse ... repeat ... the economic system is feeding on itself and in that process nothing new or better ever actually happens to end it.

Sat, 11/10/2012 - 02:03 | 2967274 joe6px
joe6px's picture

I believe that Vet benfits will not be touched.  Why alienate a combat effective population when an economic collapse is so near?  Tactical thinking dictates that the cuts to any military spending will come to obsolete future benefit requests...army artillary, air force/NASA joint projects, Navy ship building.  There is so much waste in these budgets alone that the impact of the 'cliff' is exposed as a political fraud.  Great headlines...same outcome.  Fema just graduated the first part of this fiscal year's 1600 strong force of 'responders' to help us all out.  Many more to come.  Sheep turned into the red army under our own noses.

Part of O'care law:  https://www.dhs.gov/blog/2012/09/14/welcome-fema-corps-inaugural-class

Medicaid and Medicare are full of pharma corruption.  I'm not saying the corruption is systemic, just saying that O'care may change the way of doing business...and in the interim we see a slight benefit in pricing.  BTFD...get your lipo now.  Seeing the Med market in that regard rite now should influence a boom in the short term...three to six months.  Buy now then short fast. I wouldn't know were to start, but there are some heady folks here that will understand my argument.  Good luck, and good hunting!

Sat, 11/10/2012 - 09:16 | 2967496 tango
tango's picture

The dirty little secret that nobody wants to admit - especially those nearing retirement age - is that the Unholy Trinity (SS, Medicare, Medicaid) spend tens of thousands more per person than they receive.  That is the core of the problem - not rich pharma or evil conspirators.   The figures range from $35K for SS to $150K for Medicare.  That includes  Uncle Joe's three nieces getting his SS for years, the millions rushing from the gym to sign up for disability and the long lines of food stamp recipients comparing iphones.

Fri, 11/09/2012 - 23:26 | 2967057 dunce
dunce's picture

Obama can do nothing (vote present), blame the republicans, take another giant step forward to socialism, and  go golfing.

Fri, 11/09/2012 - 23:11 | 2967028 tbd108
tbd108's picture

"The Smiler Grogan case is solved!"

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