WASHINGTON, November 23, 2011 – It was essentially a fait accompli on Monday. It becomes official reality this evening. As any sentient, politically aware being already knew from the outset, the dirty dozen members of the guaranteed-to-fail Congressional Stupor Committee (not its real name) have indeed failed to agree on terms to cut $1.2 trillion from the bloated Federal government over the next 10 years.
Congress’ continuing theater-of-the-absurd inability to reign in out-of-control spending kicked the stock market in the teeth this week, causing a hideous plunge in the averages instead of the generally reliable pre-Thanksgiving Day rally. The Euro buffoons jam-piled on, fiddling while Rome—and nearly every other Eurozone capital—continued to burn. Why do American and European taxpayers continue to issue fat paychecks to these self-important drones?
The committee chairs issued a bland, self-aggrandizing statement on their failure via press release and the lame committee web site. Clearly penned by staffers, the seemingly innocuous but incredibly cynical boilerplate announcement cheerily concluded: “Despite our inability to bridge the committee’s significant differences, we end this process united in our belief that the nation’s fiscal crisis must be addressed and that we cannot leave it for the next generation to solve.”
Gosh, didn’t the American people already figure that out in November 2010? Never has the disconnect between entrenched politicos, crony big business capitalists, and the average American been more obvious. Watching these blundering oligarchs in action is a little like taking a surrealistic journey to Cloud Cuckoo Land. (Play the video below while you look up the link.)
Cue the current White House occupant. Back from his latest junket—having never actually gotten involved in the Stupor Committee’s faux negotiations, America’s Reprimander-in-Chief blamed the usual suspects.
“There are still too many Republicans in Congress who have refused to listen to the voices of reason and compromise that are coming from outside of Washington,” he scolded. What he failed to mention is that his definition of “reason and compromise” is always an immediate, massive tax increase “on the wealthy” (i.e., any couple making over $250K a year). On the other hand, never-gonna-happen-anyway phantom spending cuts are always deferred for one or two generations.
While Republicans and Tea Partiers are reviled by the media’s entrenched leftists as the sole cause of this ongoing fiscal impasse, the truth is quite the opposite. Committee member Senator Pat Toomey (R-PA) attempted to explain the critical hurdle the panel could never surmount, namely, that redistributionist Democrats would never agree in any way, shape, or form on any kind of deficit reduction without getting “$1 trillion in job-crushing tax increases.”
Toomey is on to something, but you’ll never hear about it in the press or from TV’s wealthy Marxist blow-dries. Anyone with half a brain remaining soon learns that any and all tax increases will immediately be corralled and spent by Congress either by expanding existing programs or establishing new ones. Not a single dollar is ever spent paying anything down. Ever.
Hence the implacable Republican opposition to tax hikes. Increasing taxes on anyone, let alone “the wealthy,” won’t solve the budget problem because those dollars will never be spent paying down the principal. They’ll merely balloon Federal spending, continuing the dangerous erosion of our private sector economy.
The ultimate outcome is actually a big win for the Socialists. They now get to demagogue this failure all the way into the 2012 elections, reviving their campaign mantra of Class Struggle while failing, once again, for the third year running, to do anything about getting the U.S. back on an actual budget. Best of all, they’ll blame the “partisan” Republicans. Again. And the media will let them get away with it. Again.
All of which allows Congress and government agencies to get back to what they all do best: process. Increasingly, the primary difference between the Federal government and private industry is clear. The government involves itself in “process,” the point of which is to show a considerable amount of activity without ever doing anything concrete. To run on the same track in the private sector would assure bankruptcy within just a few quarters.
As for the stock market? “There isn’t anything positive to say about market action Monday,” stated ETF Digest, decrying the stock market’s reactive swan dive on the first trading day of the week. “The expected failure of the so-called congressional ‘Super Committee’ has occurred. Rather than doing their job making even miniscule cuts in spending, both sides will look to make political hay from given the impending election cycle.”
Predictably, the market continued to waterfall this afternoon, pancaking the portfolios of those foolish enough to remain invested in stocks. (Like this writer, unfortunately.) Aided and abetted by the collapsing Euro and equally inept European oligarchs and politicians, the market continued its horrific swan dive this afternoon, breaking key levels of technical support on the Dow Jones Industrials, the NASDAQ, and the S&P 500.
Congress and the White House have made a fetish out of “saving the middle class.” But the middle class, and any retirement hopes this key population may have had, are both fast disappearing into the ether. Their 401(k)s continue to be eviscerated with ruthless efficiency, destroying the net worth of a generation. There’s real redistribution for you.
Meanwhile, our Social Security and Medicare Ponzi schemes continue to unravel, aided and abetted by the Obama Adminstration’s ridiculous “payroll tax cut” which robs these bankrupt programs by actually eliminating their source of funding. How is this supposed to help matters, aside from providing positive campaign rhetoric for redistributionist politicians? The logic here is entirely absent.
Or, stated in another way by Sarah Palin, “How’s that hopey-changey stuff workin’ out for ya?
Read more of Terry’s news and reviews at Curtain Up! in the Entertain Us neighborhood of theWashington Times Communities. For Terry’s investing insights, visit his WT Communitiescolumn,The Prudent Man in Politics.
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