On The Fiscal Cliff And A Constitution In Crisis

Tyler Durden's picture

Authored by Gordon T. Long of GordonTLong.com,

The Political Foundation of the status quo in America is based on a Grand Bargain of Complicity between the top 25% who pay approximately 90% of the taxes, and the bottom 50% who draw on the benefits that come from government. James Madison in the "Federalist Papers" outlined this complicity in the "Tyranny of the Majority". What is becoming painfully evident is that the political elite in America have falsely over-promised on the entitlements that can be delivered, which is now surfacing in the political turmoil of the Fiscal Cliff negotiations and has the potential to quickly lead towards a constitutional crisis.

Meanwhile the very top 1% of Americans, that pay 25% of the taxes and control most of the productive wealth in the nation, are securing and exercising increasing powers within the government, through what is becoming increasingly identified as 'Crony Capitalism" and "Corporatocracy". Thomas Jefferson also warned us about this potential constitutionally destabilizing influence which could emerge within the structure of the 'separation of powers'.

Out of a population of 315 million, presently only 115 million Americans have full time, non-government funded jobs. This is the same as 12 years ago and before an additional 33 million students, immigrants, single parents of others attempted to enter the workforce. It is now fracturing the social compact and the revealing the delusion of the American dream being available to all who are willing to work for it. There is no work, and certainly insufficient work which pays a wage which will support what is expected as a middle class standard of living.

This Grand Bargain is now rapidly fraying as 75 million baby boomers begin retiring and find the promises made to everyone cannot possibly be met. As the Fiscal Cliff crisis is blatantly bringing to the public's attention, for those who can read between the carefully crafted lines, funding for Social Security, Medicare/Medicaid, National Security and Interest on the debt is consuming more than can be realistically raised through taxation.

To collect enough tax revenue to avoid going deeper into debt would require over $8 trillion in tax collections annually. Expropriating the entire income of the top 25% of households that pay almost 90% of the tax and all corporate taxes would only bring in $6.7 trillion.

"The actual liabilities of the federal government—including Social Security, Medicare, and federal employees' future retirement benefits—already exceed $86.8 trillion, or 550% of GDP. For the year ending Dec. 31, 2011, the annual accrued expense of Medicare and Social Security was $7 trillion"


Chris Cox and Bill Archer, Former Congressmen - WSJ 11-26-12

Claims on welfare and disability programs are skyrocketing at the same time that the demographics of an aging populace are causing 10,000 people a day to enter Social Security and Medicare, the two costliest government programs. Meanwhile, the upper-middle class that pays most of the taxes has been slammed with lower income and a devastating drop in their housing-based net worth. Compounding this is the fact that the disillusioned wealthy have slowed dramatically their invested CAPEX (Capital Expenditures) in productive assets in the US.

This above confluence and much more discussed in the video, indicates that is is leading to a Constitutional Crisis by the end of the decade.


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CH1's picture

Only a minority of Americans care at all about the Constitution.It's just a slogan to toss around in certain circles.

Most want only to be treated like pampered pets. All else is just in the way.

AssFire's picture

and they are not on the Supreme Court...

New England Patriot's picture

Makes me want to get out from under the system when it tips over. 

macholatte's picture



This Grand Bargain is now rapidly fraying as 75 million baby boomers begin retiring and find the promises made to everyone cannot possibly be met.


I'm happy to forgo 100% of my Social Security "benefits" in return for restoring my net worth to what it was on July 4, 2008. Hell, I'll even take it in Benny Bucks.   

macholatte's picture


'Crony Capitalism'


Implies there is no Crony in Communism or Socialism.  Only Capitalism is toxic to the sheeple.

Just more MSM hate America propaganda.

OpenThePodBayDoorHAL's picture

"You yelled Hey

When your car wouldn't start

So you got real nervous

Started to eat your heart out

Now you're so fat

Your shoes don't fit on your feet

You got trouble

And it's tailor-made

So Mama lay your head down in the shade

Cuz your eyes are tired

And your feet are too

And you wish the world was as tired as you

So I'll write a letter

And I'll send it away

And put all the trouble in it you had today..."

Pool Shark's picture



Communisim is "man exploiting man;"

while Capitalism is the other way around...


NoControl's picture

Not sure if you took it the way the prhrase is meant, Dude.

I'd interperet "Crony Capitalism" to be distinct from regular Capitalism; the former being a perversion of the ideal.

From the examples we've seen tested in the world, the phrase "Crony Communism" is redundant.


dbTX's picture

NoControl:  Chrony Capitalism is an oxymoron

F. Bastiat's picture

The very word "capitalism" implies acceptance of false marxist premises.

These marxist superstitions will quite possibly lead to the destruction of mankind.

Tom G's picture

I disagree. The "crony" is redundant when one says "crony communism". With capitalism, a virtuous system of voluntary cooperation, one must add another term to show that it's a perverted and mutated form. I quite enjoy the term "crony capitalism". I even use it with my leftist friends to subtly imply that we are not operating within a free market.

NoControl's picture

You don't disagree at all.

if you read it again, we mean the same thing.  ;-)

Anusocracy's picture

This is a natural evolution of the presence of a democratic government in society.

More and more people desire to live like the government does: at someone else's expense.

rbg81's picture

Ever wonder why the concept of a Zombie Apocalypse (ZA) has gotten so much mileage in popular culture?  My gut is that people instinctively know we're going to be faced with a situation where the bottom 50% rise up to riot and pillage after the $$ runs out.  When the EBT cards are finally turned off, the resulting effect will probably be very similar to a ZA.  Of course, when you shoot the rioters, they will go down.  But that will be the only difference.  Zombie movies are society's way of preparing for the inevitable collapse of the System.  In short, we use fantasy to mentally prepare because the reality is too horrible to soberly comtemplate.

Cathartes Aura's picture


Zombie movies are society's way of preparing for the inevitable collapse of the System.

ever wonder why "society" plays out the media memes?  like, movies & TeeVee and shit?

which comes first, the media or those who watch the media acting out like monkeys?

porn culture has surely made an impact on "society" - as does sporting culture, and "reality" TV culture, etc.

not so much creativity at the bottom end of the "watcher/doer" scale. . .

rbg81's picture

Porn culture has surely made an impact on "society".

Yeah, like when some random woman and I are the only ones in an elevator and we immediately start having sex.  That NEVER used to happen until Internet porn came along.

Cathartes Aura's picture

yeah, and then you tweet the location, and put up a youtube vid you took on yer i-phone, and everyone rates you, and then others work at doing it the same but better, and then. . .

everyone's pre-occupied pushing the pleasure-buttons.


Manthong's picture

Porn culture has surely made an impact on "society".

You can say that again.

You know when you’re working very late at the office all by yourself watching the ES ramp after hours on your computer display and then the hot little twenty-something blond cleaning girl pushes her cart past your office door and then comes in and walks toward your side of the desk, and stares into your eyes as she reaches for your wastebasket and then she stops, seductively looks at you, takes in a slow long breath, throws her hair back and unbuttons her smock and blouse then drops to her knees and addresses your lower regions..

And then your wife suddenly walks in because she knew you were working late and wanted to surprise you with a Pastrami sandwich, and then she stops aghast for a moment.. pauses, her eyebrows rise and then fall to a squint over her coy half smile as she starts to take off her size 26 moo-moo  so she can join in your little party..

I hate when that happens.

GMadScientist's picture

And then the blonde turns out to be a Tranny (damn your big big feets) and it was all a set-up to trigger your half of the prenup.


Tom of the Missouri's picture

That is hysterically funny!  LOL!   I once had a prenup and once needed one.  Now divorced for the 2nd time with assets slowly twisting in the wind I feel the same way that guy did.  Details were different but I can relate to that poor sucker.  What can one do but laugh as I await the zombies to finish me off.   LOL

Errol's picture

rbg81, I came to exactly the same conclusion: the whole Zombie Apocalypse thing is an attempt by people to desensitize themselves to what they know is coming.  You absolutely MUST demonize the Other before you can kill them with a clean conscience.

old naughty's picture

From the sound of it, it's not people who desensitize themselves, but some-thing desensitize people, no?

Conman's picture

Consti-what? Hows the NFL Wild card race looking?

GMadScientist's picture

Full of shitty teams that won't make it past the first round, like every year.

Karlus's picture

They only care about being bailed out because all the talking box spews is everyone is on the take.

Corporate bailouts, things the rich do, etc etc means people have no morals or compuction taking "what is theirs."

They absolutely categorically do not care if its sustainable or not. Thats in he future, they only care about today. "Where is my stuff and who is going to give it to me?"

TheFourthStooge-ing's picture

Although most Americans think they support some vague concept of freedom, they don't like and distrust anyone attempting to exercise freedom.

Tirpitz's picture

"... most Americans think they support some vague concept of freedom"

The MSM makes it happen. As well as the unconditional bailouts of never-producing producers, as well as humanitarian bombings to spread democracy.

akak's picture

Although most Americans think they support some vague concept of freedom, they don't like and distrust anyone attempting to exercise freedom.


Made me laugh.

More 'american' kicking of cans, forcing blame to the posterior, inability to self-ignite, farming the leek and exporting the poor.

Most 'americans' only support freedom for 'americans' to live the 'american' 'americanism' rifestyle.  Indians of 'american' fabled past still require flogging, land theiving of, negro slaveism in new guise, blobbing-uppism of resources to support car-orientaled life path.

No such problems in Chinese Citizenism.  Complete hypocriticality and time-traveling flying rickshaw Easter Island adventurism leading to perfection of society under Communist Sharty rule.  Unwilling subjects such as Uighurs and Tibetan 'foreign devils' can merely be redefined as Han Chinese and exterminated accordingly.

Alas, morass, triple bypass, just have to bear with it.

linrom's picture

This is some excellent writing. Bravo!

JohnnyBriefcase's picture

My rifestyle is non-negotiabru!

akak's picture

Rifestyle non-negotiabilatationalisticalism is indeed the mettle of the mattering thing, the crustiest bit of the very important something.

TheFourthStooge-ing's picture

US citizenism gives very little grip on the can due to can kickation being eternal nature inherently thereof. Mind you, in the US citizenism context provided by immediate time, expectation of tackling an issue ends with delusional fossil embittermentation.

A repeation: the substance of the institution is the matteringest thing. Hopefully, there was that mistake, else one may try to manipulate that basic fact to impose his dominatrix ideal that US citizens have been somehow naive.

It is somehow funny and very US citizenish that facts are facts. The depiction of a repeation of events grows a repeation itself.

Do you have a way to beat that?

Leading by the example...

akak's picture

US citizenism gives very little grip on the can due to can kickation being eternal nature inherently thereof. Mind you, in the US citizenism context provided by immediate time, expectation of tackling an issue ends with delusional fossil embittermentation.


American US Citizenism 'americans' being masterings of can kickationalizings, bold jade gate offuscations of self-denialings to the high curtain contraryness.  Constrasts necessary doing with Chinese Citizenism 'sons of heaven', in the whom kicking of cans muchly impossible oweing to piles of nightsoil on and along roadsides. 

Neverthemore, when beatings are called for, none so highly qualified as 'american' Chinese Citizenism citizen official protest smashers ....

TheFourthStooge-ing's picture

Alas, alas, one less than quadruple alas, blobbing up of smorkin labbitism being now reflectational of American US citizenism 'americans' intheftation of 'american' 'indian' Indians fabled past customizations is. American US citizenism 'americans' stealth of tobacco smokery ceremonialization shown now exhibitionous the same US citizen line of thought that give somehow that natural seeping flows were to match what should be the terminal point.

Because right now, plentifully. Quite well for those on the good side of the process, only one time please is enough.

After US citizen treatment, it will be the same?

What, it is another question.

Freddie's picture

All enabled by idiots who watch TV and Hollwyood's crap that help keep The Matrix in control. Dumb serfs.  They traded liberty for HD and a clicker.

awakening's picture

Now just add your choice of junk food to that (bread and circuses) and you'll have a winner on your hands :D

GMadScientist's picture

But mah tawk ray-dee-o spakes thah troooth!

Clesthenes's picture

Actually, the Constitution has been trumped by Public Employee Retirement Systems; where constitutional principles subtract from pension/bribe payments, it is ignored; where it adds to pension assets, it is followed religiously.


As far as the $86 trillion debt is concerned, this is a total calculated with “present value dollars”; if it was calculated with dollars you and I use… well, people wouldn’t believe it.  Also, see A Tale of Two Bribes, in previous link.


It really doesn’t matter.  One way or the other, the system cannot survive, and does not deserve to survive: it is cannibalizing its young.


So, what’s the solution?


According to the Declaration of Independence (approximately), ‘when governments become destructive of these ends (protection of rights), it is the right of the people to alter or abolish such governments and set new guards for their liberties.’


Such a solution will not be easy, it will not be quick; but it is the only solution that has ever worked.


It has been done three times in the past 2500 years; and, over the past 5000 years, it has been attempted thousands of times and failed.


Why?  Because the history, law and procedures of redress were unknown by those that failed.  While American Founders had this knowledge, current generations of Americans (and Englishmen) have none of it.  Instead, “knowledge” possessed by current generations consists of mental sewage (some call it indoctrination) fed to them by governments and media, churches and educational systems all dominated by the plundering class.


Here’s a short account of how English rebels (1620-50) brought down judges and tax collectors, bishops and kings who thought they could impose taxes against the consent of those taxed, among other grievances; the same English rebels who, 150 years later, guided American rebels.

sun tzu's picture

The reset button will be pressed and there's nothing that the government or any of us can do about it except to be prepared

awakening's picture

Example is a rather light compared to the Scottish before them: https://en.wikipedia.org/wiki/Arbroath_declaration

GMadScientist's picture

Or you could skip the blood and have another convention; that's in the doc too.

Cole Younger's picture

The Constitution is just paper and means nothing. If you have not figured that out, you are part of the brain washed masses. 

The legal doctrin of "Neccessitas non habet legens" that is located in the Necessary and proper clause negates the bill of rights and all other enumerated powers of Congress. What is the doctrin? it is held that "Necessity has no law" and it was clearly demonstrated during the gun confiscation that took place in the aftermath of Katrina. Other istances are subtle.. The supreme court has ruled a number of times the first amendment and other so-called rights have limitations. An example is you can't mention a bomb in a airport or yell fire in a movie theater..

Constitutional rights exists in peoples mind. They are legal theory, not legal facts. Once you wrap your mind around this, your going to be better off.

Winston Churchill's picture

In a decade the US will probably be Balkanized into five seprate country's.

No need for a Constitutional crisis, nobody even gives more than  lip

service to that  anyway.

Ookspay's picture

I'm closing on property in the republic of Texas next month, JIC. Texas is asking for its physical gold back and has a pending law making enforcement of NDAA in Texas a crime. Every state has a right to leave the union that they created, moreso than the US had in declaring independence from the British in 1776.

The University of Texas just took delivery of 33 tons of gold, which according to World Gold Council statistics and the International Monetary Fund list of countries – gold holdings, would put UT at No. 49 in the world, just behind the country of Brazil.

Written by Texas representative Lyle Larson, the Texas Liberty Preservation Act says that “…Texas shall not provide material support or participate in any way with the implementation of Sections 1021 and 1022 of the National Defense Authorization Act of 2012 within the legal boundaries of the state of Texas.”