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Depending on whose figures you credit, increasing marginal taxes on “the rich” — otherwise known as every schmuck “fortunate” enough to make more than $250,000… including you suckers who live in the Northeast U.S. and metropolitan California, where this amount will get you a second car and maybe a third bedroom — will raise anywhere from $75 to $90 billion dollars next year.
On the other hand, next year’s budget deficit, depending on how you cost Obamacare, could amount to anywhere from $1.3 to $1.6 TRILLION and higher. Despite their proposed tax increase delivering far less than 10% of that proposed deficit, the Administration now seems to have little interest in bartering said tax increase for an agreement to cut spending to a degree that might provide actual deficit relief. Of course many kind words have been uttered about a “future plan” to implement cuts, but Lord knows, we’ve seen such promises go up in smoke many times since the Reagan era, when that bait and switch was first used by the venerable Tip O’Neil.
So the question arises: Could the Republicans be dumb enough to trample their long held principles about raising taxes in a recessionary economy, and accept a blind tax increase without defined, commensurate, and indeed exponential, cuts in spending in exchange? Would they sell out their birthright and last bargaining chip merely to escape the glare of Ming the Merciless?
Well, I find it hard to believe, but I’ve seen some crazy stuff in the last month. So who knows? Maybe they will make it easy for all of us.
Perhaps in the end, the cynics are correct, and the only way out is to follow the wormhole to it’s very core, and burst out the other side at the dawn, once again. One thing is for certain, however… “Things fall apart… the center cannot hold.”
Pax.
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PS — you who come here for an occasional discussion of PM stocks…. I really think the sell off in AUY is as much an opportunity as the sell off in RGLD last week. One of my favorites. Also, I continue to like AG here.
Bless us all, every one.
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[youtube:http://www.youtube.com/watch?v=1U9CL8OXCQc 450 300]
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i hope we do a “fiscal cliff”
Yep, it would be sobering.
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FORWARD. More stupid right wing talking points, probably watching too much Faux news. Listen to the NYU and Harvard crowd. They are just so much smarter. Ming does look a little like Lenin, my main man.
BTW- Do you think Charlie Strong will go to Auburn?
PS Don’t blow my cover, Jake. I am having too much fun with this.
ha ha ha
I think Strong is strong now that we are going to the ACC, which should help recruiting.
I think we’d have had a problem had we stayed in the Big East, though.
I will not blow your cover if you do a “Comrade Professor Ottnott” too.
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i do believe next year’s budget deficit is in the trillions……..no?
Yes, it will be.
Your point?
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just proofreading and pointing out the original error…point is – WE ARE SCREWED!
Nobody wants to propose actual spending cuts. The Repubs want cuts in spending, but won’t say exactly what should be cut. Obama promises a “balanced approach” with with spending cuts of more magnitude than tax increases– but he won’t say what they should be. When actual cuts in specific programs are announed there will be a lot of howling. People who see themselves being affected will scream like hell. Nobody wants to be the one proposing the specifics. The specifics will be called ‘Republican” or “Obama cuts.” Obama doesn’t really want any cuts. So the Repubs are gonna have to spill out the specifics and then take the blame for them. It’s a no win game.
Yep. But it’s got to be done or we’re Greece.
Let’s see how stupid and cognitively dissonant the American People can be.
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I’ve been wondering if the Repubs will allow large tax increases for the ‘promise’ of some unspecified spending cuts later. If so, time to buy some PM’s.
If they are that stupid, we really DO need a 3rd party.
I can’t see Paul Ryan or Ted Cruz (or Rand Paul) going along with something that dumb, however.
This Lucy and the football sheeit has to end.
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I would gladly pay you Tuesday, for a hamburger today
“$1.3 to $1.6 billion and higher” I think you were trying to say TRILLION but hey Billion Trillion what the diff right?
What in the hezzy are you tawkin’ aboud?
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Here’s some rueful irony….
When two Dem Senators go head to head over an in-state dispute, it’s the one who’s more beholden to the Feds than her state that wins…
California sticks another knife in it’s eye. You get what you vote for…
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Including everything; O won, fiscal cliff, tax hike,,,etc, do you still think RGLD will hit new highs in the future ? Thanks Jake.
Skyfall,
Let me answer your question, with a question..
Do you believe our current federal government will stop spending more than it brings in via tax revenue?
Cheesefries,
I believe they will not stop spending, which means Market will go up and PM will go down,,, no??
Please educate me.
If the market goes up on strong, natural growth, PM will go down.
If the market goes up on inflating the global sovereign currency… expect PM To continue as it has.
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Slyfall,
Our national debt is financed by US treasury notes. The more debt we have the more risk, the more risk the higher the interest rate, the higher the interest rate assessed to this debt, the higher the interest the higher the carrying costs. The federal reserve will not allow this to happen and will continue QE, or buying treasury notes with created money.
What do you suppose that will for PM prices?
Thanks Jake and Cheesefries.
By the way, what happened RGLD today? Was it another buying opportunity ?
Hi Jake,
Some time ago your recommended a book to someone about wealth transfer/business trasnfer. I misplaced the title, can you please repeat it?
thanks
What’s your prognosis for PMs/miners in the event that we go over the fiscal cliff?
Evan,
Let me answer your question, with a question.
Will higher taxes cause the unemployment rate to go up?
If you answered yes, the federal reserve will most likely announce the need for monatery easing to stimulate (artificially) the economy.
This will weaken the dollar.
RGLD is a hold here or sell ? Getting close to my entry point. Thanks Jake.
Never sell RGLD until at least 2015.
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Appreciate. Happy Holiday season !
Jake, have you noticed AAU slowly going up , inspite of gold price and most gold stocks underperforming?
still holding from way higher. do you like it here or not?
was just going to mention this forgotten anchor around my neck. While i’m still gagging on briny seaweed, it is a much lighter anchor.
Mine is thick styrofoam.
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I’m looking for insight and directions for PM here. Please anybody, Hawaii50? flyaway? Mr.P? share your analyzes. Thanks.
Hold your peter, Peter. It’s all good.
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