Tag Archives: fiscal cliff

X Date: The new fiscal cliff

ZeroHedge.com reports X Date is approaching, that is “the day past which the US government will no longer be able to rely on ‘extraordinary measures’ to delay the day of reckoning, and will be unable to pay all its bills without recourse to additional debt. It is not the day when the US defaults, at least not defaults on its debt. It will begin ‘defaulting’ on various financial obligations, such as not paying due bills on time and in full, but since this is something Europe’s periphery has been doing for years, it is hardly catastrophic.”

This may come as a surprise to those who still believe the Republican wing of the Republicratic Duopoly supports fiscal responsibility; in mid-January former Vice Presidential nominee Paul Ryan told reporters that the GOP would agree to a short-term increase in the debt-ceiling.

ZeroHedge also reports, “the US hit its debt ceiling on December 31, and has since been utilizing some $200 billion in Extraordinary Measure to stave off X Date” which is expected to come sometime between Feb. 15 and March 1.

What does this actually mean? The Treasury has approximately $201 billion in “Extraordinary Measures” available to spend.

Once the $201 billion, consisting primarily of plundering the government retirement G-fund, runs out, the Bipartisan Policy Center says, “There is no precedent; all other debt limit impasses have been resolved without reaching the X Date.” Which means, the Treasury has never failed during a debt limit impasse to meet a payment obligation, so no one really knows what will happen if the X Date is reached.

The Bipartisan Policy Center also reports, “Treasury will not attempt to ‘firesale’ assets during a crisis.” A firesale would be great! Imagine how much better run the various national parks would be if they were operated by private organizations. Just imagine visiting Yellowstone or Yosemite Park if they were being operated by the Audubon Society with voluntary funding. In total, the federal government owns approximately 635 million acres of land. If the land were to sale for as little as $10,000 per acre, the federal government would bring in $6.35 TRILLION for the land! Of course, there are many more ways the federal government could raise revenue or cut spending that do not involve threats of violence, unfortunately they’re not interested in peaceful solutions.

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Tea Party 2.0: Fiscal cliff fiasco fuels fresh opposition

There’s growing rumors that the Tea Party isn’t quite dead, or at least the fiscal conservative anger is coming back with a vengeance. From the Daily Beast:

Until last night, the conventional wisdom in Washington was that the Tea Party was on the wane. Congressional leaders of the nascent movement, like Allen West and Joe Walsh had lost reelection, or, like Jim DeMint, had decided to leave politics altogether. House Speaker John Boehner had stripped some of the more outspoken members of the Tea Party caucus of their congressional leadership posts, a sign that the GOP establishment was no longer going to be led by its ultra-conservative tail. The big money groups backing the Tea Party were falling apart in a spate of post-election season squabbling.

President Obama thanked Speaker Boehner after the House passed the Senate’s fiscal cliff legislation.

But after 85 House Republicans joined Boehner in raising taxes without spending reductions during the end game of Monday night’s fiscal-cliff negotiations, Tea Party leaders and conservative activists from around the country are dusting off their tri-corner hats and “Don’t Tread On Me” signs, and now say that their members are as energized as they have ever been since the first Tax Day protests in 2009. And the Republican Party, they add, had better beware.

“We now have 85 members of the House who have shunned their noses at us,” said Dustin Stockton, a Texas- and Nevada-based operative and the chief strategist of The Tea Party.net. “Our job now is to recruit and inspire and motivate people to run against those Republicans who did it.”

Anti-tax crusader Grover Norquist — during a Meet the Press panel with financial commentator Jim Cramer in early December — was among the first to sternly warn the Republican establishment that fiscal cliff and tax hike negotiations would breed dissent among conservatives:

“Tea party two is going to dwarf tea party one if Obama pushes us off the cliff,” Norquist said. “Let’s not pretend who’s pushing us over the cliff.”

Thanks to his anti-tax pledge, Norquist has been a prime target since fiscal cliff discussions picked up steam in November. Democrats have gone so far as to create an online petition against Norquist.

Whither Ron Paul? He’s taking a new tack in his rhetoric, hinting at the end of fiscal reform and the begin of a much more turbulent stage of America history:

“We have passed the point of no return where we can actually get our house back in order,” Paul begins, adding that “they pretend they are fighting up there, but they really aren’t. They are arguing over power, spin, who looks good, who looks bad; all trying to preserve the system where they can spend what they want, take care of their friends and print money when they need it.” With social safety nets available to rich and poor, there is no impetus for change and “the country loses,” but Paul concludes, the markets are starting to say “there is a limit to this.”

When the shoe drops on the next credit rating cut (and it will), I believe it will be the spark that ignites the whole powderkeg.

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The republican (establishment) has failed the nation

Erick Erickson writes at Red State:

Over the next couple of years, Barack Obama wants to raise the national debt to $18.9 trillion or so.

John Boehner, Mitch McConnell, and the congressional Republicans want to raise the national debt to $18.4 trillion or so.

The present leadership of the Republican Party has gone from making the case that government is the problem and the American people are the solution to making the case that Democratic controlled government is the problem and Republican controlled government is the solution.

By giving up on making the case that government is the problem and pivoting to “Democrats are the problem,” the Republican Party has failed the American people. Historically, when parties lost, their leadership went and hid for an appropriate amount of time under a rock after an acceptance of blame and a resignation.

The present Republican leaders in Washington, instead of hiding under a rock, have taken to standing on the rock and demanding conservatives self flagellate. Neither John Boehner nor Mitch McConnell are visionaries. They are survivors. They survive by recognizing the biggest threat to them and trying to befriend it or neutralize it.

Right now, both see conservatives as their biggest threat, not Barack Obama. Why? Because while Barack Obama maintains the White House, John Boehner and Mitch McConnell maintain their positions of power. They exist for power, not for vision. The visions they articulate are routinely backpedaled. Remember the pledge to nowhere the House Republicans concocted in 2010 as a second coming of the Contract With America? Within two months of returning to the majority they’d already ditched their pledge faster than a frat boy fleeing a one night stand. Only conservatives wish to hold them accountable for their breach of trust, thus conservatives are the threat.

The very same Republican leadership who paved the way for the rise of the Democrats in 2006 through moral opaqueness on the role of government in the lives of Americans now seek to shut up and shut out the conservatives who continue to loudly point out that the size and scope of the federal leviathan has grown too unwieldy.

I joined the Republican Party in 1964 and voted for Barry Goldwater, a man ahead of his times. The Republican Party was not what it should have been for years after the Goldwater nomination for President and his loss.

Finally it appeared the Republican Party got its act together with Ronald Reagan. We had eight very good years. The economy was so strong even Clinton could not undo it during his eight years. Then it was downhill again.

In 2005 I quit the Republican Party and became unaffiliated and dabbled with the Libertarian Party. After Obama was elected I was convinced to rejoin in 2008, shortly after his inauguration, and really got involved, close to a full time unpaid volunteer for the tea party grassroots movement and the Republican Party internal politics.

We appeared to have momentum in our favor with our wins in 2010. We, a bunch of amateurs, did not have the Republican institutional establishment professional politicians and operatives as allies. They were our enemies and we had an uneasy alliance with them and yet I did not realize how much they rejected us as part of the process until now.

Now, here we are, could not get a grassroots candidate nominated for President, lost ground at the state and local levels, lost the Colorado House, failed to get some grassroots Congressmen re-elected, and had to live with a presidential candidate many of us did not support in the primaries but choked it down anyway and worked hard on his behalf.

In two years the odds of keeping the Colorado State Attorney General’s office, the Colorado Secretary of State and the Colorado State Treasurer may be dismal. If the Democrats succeed in taking those three offices the transition of Colorado to a socialist state (think California) will be complete and nearly perfect.

Look what we have. The big dogs in the Republican Party are having a discussion on moving to the left of center, far left, not just a tad. NO, NO, UNACCEPTABLE. If they do, that will for sure end any alliances we grassroots common, hardworking citizens have with them.

I do not blame myself or any grassroots Constitutional conservative libertarian Republicans. I blame the institutional establishment old line Republicans for being ready, willing and able to destroy the Republican Party so they could destroy us and teach us a lesson. It was a political suicide bombing of the Republican Party by Republicans with them destroying themselves to destroy us.

Now what? Quit? Never, ever quit, just figure out another strategy even if it does not include the Republican Party or mainstream politics. I predict many of us who placed everything political in working within the Republican Party are going to transition and morph into something different, what that is I do not know but it will not be the same old politics. It may be peaceful, it may not. We will see. I know I will not again make the same mistakes twice.

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