The NYT Whines: Business Fears the Fiscal Cliff. Raise taxes!
http://ryckki.blogspot.com/2012/08/the-nyt-whines-business-fears-fiscal.html
Abstract: The NYT whines for more wealth from business as it
has no other sources to suck dry. It inaccurately
attempts to show that business now realizes they need the assistance of higher
taxes, more regulation and such to maintain the system, presumably for their
benefit. The prattle grinds on with the predictable outcome that we cannot cut
spending, must maintain our phony social programs and spend more and more until
we go bankrupt. As usual, there is no discussion of business costs derived from
ObamaCare and other fatal programs and business is just left out with no help
from the government. We are following the idiot EU into bankruptcy.
The New York Times, aka the Walter Duranty Papers[1] is a simple and
uncomplicated global stoogery[2] for leftist
causes with the primary focus on grunting and grabbing other people’s monies to
spend on foolish and incoherent social programs that inevitable fail.
How to best read my blogs:
[I offer extensive quotes in this blog so that the reader
can view the exact language and can be confident that nothing was taken out of
context or that nobody was misquoted. The easiest way to take in the salient
points is to read the emphatic points in the quotes and then peruse
my comments. Comments on my comments are always welcome: ryckki@gmail.com.]
They begin to whine:
“As Nelson Schwartz reported in The Times on Monday, a
number of manufacturers say they are canceling plans for investing and hiring,
in part, because they fear that some $100 billion in budget cuts will take effect in 2013. In all, the law currently calls for $1.2 trillion in
automatic spending cuts over 10 years, starting Jan. 1, divided between
nondefense programs and defense projects.”[3]-- Business Fears
the Fiscal Cliff NYT Editorial Published: August 6, 2012
From this article we are amused to read about some rare
facts:
“Unless Congress acts to extend the tax provisions and comes
up with a budget deal that averts the planned reductions in military spending
and other government programs, taxes will rise by $399 billion while federal
government spending will fall by more than $100 billion, according to an
analysis by the Congressional Budget Office. The end-of-year battle comes after
Democrats and Republicans have failed over the last year to reach long-term
agreements on how to tackle the budget deficit.”[4]-- Fearing an
Impasse in Congress, Industry Cuts Spending By NELSON D. SCHWARTZ Published:
August 5, 2012
Comment:
This is all very reasonable as business faces [1] a hostile
leftist hoard of tax mongers and socialists, [2] A roaring deficit and the
lateral effects of a $16 trillion dollar debt that will crush several elements
in our economy including much of the Federal government[5]
and several states. [3] The highest corporate tax rates in the world and [4] a
hoard of leftist ragzines who cry out from their impending graves for money
from those who have some left. What else
would you expect from such a hostile business environment? Business expansion
is clearly on hold.
The NYT View on this mess:
“Republican lawmakers demanded the cuts last year as part of
their brinkmanship over the debt ceiling, and business lobbies have generally
supported slashing the deficit. But now that the cuts are imminent, corporate
executives seem to have realized that the last thing the economy needs is a
large budget cut across the board.”-- Business Fears the Fiscal Cliff
“More than 40 percent of companies surveyed by Morgan
Stanley in July cited the fiscal cliff as a major reason for their spending
restraint, Mr. Reinhart said. He expects that portion to rise when the poll is
repeated this month.”-- Fearing an Impasse in Congress
This SCHWARTZ stooge rounds off his piece with a broad
conclusion that is immediately plastered up front in the 7th paragraph in this
NYT article:
“Even business leaders are starting to complain. Now it is up
to Democrats to force Republicans to rework the coming spending cuts and tax
increases in a way that benefits most Americans and the broader economy. ”-- Business
Fears the Fiscal Cliff
This screed reads like business really wants more taxes and
higher government spending so government revenues will soar and the good
citizens will spend more. They do not; they are on hold and waiting. The actual
fact is that we are running a $1.3 trillion dollar deficit, 40% of our GDP each
year or in time units we are adding 8% every 10 months to our %102 total debt
so we will surpass Greece in less than 5 years in terms of who is bankrupt. This
debt is terminal of the Greek or Irish sort and can offer no business opportunities
in the US until defaults start and that, mostly based on QE and inflation, are
the sort of cleptocratic mechanisms that stifle business so they tend to look elsewhere
as in Asia. The US is ugly, anti-business and just about the last place on the
planet you would want to start a new business. California is an uglier monster
in business terms.
What is omitted here is a coherent discussion from the drooling
left on business costs. Taxes, rules, energy regs, EPA foolishness and high
employee costs force businesses to cut profits until there are none and then
they either ship the manufacturing across the pond to more favorable regions or
go out of that business. They NEVER discuss business costs and seem to believe
that business should not make profits and should hire people from some basis of
good will or concern for minorities or other follies
The brutal facts are that businesses cannot formulate a reasonable
2-5 year business plan. Much of this was caused by the government with phony
socialist items like the CRA and other spending programs. The inflection point
was spring of 2006 when the housing bubble popped and rained down disaster in
all sectors of the US economy and is still polluting the fiscal landscape. That
was from the CRA.[6] [Meet the Real
Villains of the Financial Crisis—the CRA [Community Reinvestment Act],
“Affordable Housing” and the US Government]
Our government forced banks to give out loans to people with
no credit and many were illegal aliens?? Yes they did. That triggered a housing
bubble from phony demand and soaring prices and cause this deflationary bubble
to pop.
I am amazed that this is not both predictable and
clearly understandable in all variants given what should be common
knowledge. Are most of our citizens ignorant?
Facts:
[1] We had a depression starting in 2006 with falling house
prices due to a phony demand schedule that boosted house prices from too much
cheap credit and phony political themes about equality and all that rot.
[2] Falling house prices eats away at equity-based credit
thus lowering demand for goods and services and that costs jobs and that forces
more people to lose their jobs and default on their mortgages. This is a
debt-driven deflationary spiral and happens with all bubbles.
[3] Our idiot governments liked this idea because it hiked
the tax revenues so they could expand their Nanny State social programs and
entitlements to buy more votes. They
could then secure fat paychecks, enormous pensions and other perks for their
fine work.
[4] Numerous entities are bankrupt now such as Fannie Mae
and many big banks in Germany, Spain, Italy, US, etc. and those zombies are
being kept lukewarm solely by printed money, known as QE.
[5] Our idiot governments have borrowed money to fund these
follies up to their sovereign credit limits and now the debt service is
crushing their economies. To wit, all the unfortunate citizens can think about
is howling about austerity and begging for alms. They were promised
things that could never be delivered.
[6] The surging debt of all members of the EU, UK, many in
the EZ and the US will force interest rates upward in the near future and force
even more money printing in a futile attempt to stop the damage. Prices will
soar as inflation rips and government costs will rise faster due to their
propensity to want to manage about 1/3 to 1/2 the GDP. Currencies will be
debased. Prices of tangible assets will surge.
Conclusion:
The current $16 trillion dollar debt can only be spread
among those who pay Federal taxes and that is about ½ of 142,100 workers at
last count. That leaves each new
trillion dollar tranche burdening the taxpayer with yet another $16, 000/ per
trillion with the grand sum, so far, of 16 x 16 or $256,000 dollars.
But, our government would have you ask for higher taxes
which lead to lower business profits and more unemployment and keep the 40%
deficit at its current rate to keep cozy jobs for government employees who
meddle and create potholes for business in the interest of social justice or
other follies.
Notice that our phony government, with many states in
agreement, is copying the most critical errors of the EU and their failed
system with the result that we are all heading toward fiscal oblivion or, in
current parlance, the Cliff.
The next thing to happen will be a bond bubble and money
will fly out of bonds, rates will rise, government and state borrowing will
rise sharply and our debt will increase with the only outlet being printing
money. We follow, thusly, the same
morons in Europe who managed to get in two World Wars with 81 million dead
bodies scattered around the globe and now sinking in unmanageable debt.
We need new words other than dumb and stupid to describe our
phony leaders. They are losers. We need a regime change.
Comments: ryckki@gmail.com
[1] In honor of that celebrated Communist
stooge and liar and winner of the Pulitzer Prize for the NYT . The color RED is used in my essays in honor of Walter Duranty,
a saint, if there could be one, in the Marxist Archives of Honor.
[2] A
place to coddle and encourage political stooges to honk and wheeze clearly
defined political themes.
[3] Business Fears the Fiscal Cliff NYT
Editorial Published: August 6, 2012 http://www.nytimes.com/2012/08/07/opinion/business-fears-the-fiscal-cliff.html?_r=1&ref=opinion
Fearing
an Impasse in Congress, Industry Cuts Spending By NELSON D. SCHWARTZ Published:
August 5, 2012[4]
http://www.nytimes.com/2012/08/06/business/fear-of-fiscal-cliff-has-industry-pulling-back.html?ref=nelsondschwartz
[5] I
use the term government for the Federal government, such as it is, and the
state governments are identified differently usually by name.
[6] Meet the Real Villains of the Financial Crisis—the CRA [Community Reinvestment Act], “Affordable Housing”
and the US Government
No comments:
Post a Comment