How Americans will fall off the cliff

EVERY American who pays income tax - and some who don't - will feel it.

Look out....

So will American doctors who accept Medicare, people who get unemployment aid, defence contractors, air traffic controllers, national park rangers and companies that do research and development.

The final plan is in progress and being rolled out before our very eyes. Mr Obama re elected on que, financial turmoil back on the agenda. More fear and uncertainty moving forward, really with no end in site.

Link to news source

Key words to consider are “unless the US Congress passes a budget deal by then”. From the source.

UMM...

What are the chances of the US Congress passing a budget deal by then? January? Erm no, that will interupt Obama's golf season.

Also, what is the motivation to actually pass a deal? The only reason that a deal would be passed is to ensure social stabilty and the health and well being of the people.

Yeah right. With the average middle income family about to be slugged $2000 more in taxes and the unemployment rate to be promoted at 9.1% ( which would really be somewhere around 15%), people are unquestionably going to be hurt.

Doom threads on ATS at the moment about deferred stock market crashes, total stock market crashes, financial collapses, wealthy people and companies dumping assets, stock and shares all as if there is a well - known theme being played out and key people are already prepping for the inevitable.

The economy would be hit so hard that it would likely sink into recession in the first half of 2013, economists say.

So we have been for warned, there is no excuse as this is in the MSM....

Up to 3.4 million jobs would be lost

What more job losses? That just can't be possible, Are people still actually employed?

It appears that all Americans will be unable to avoid the pain.

But wait there is hope... there is...

"It would be nice if we could ... address these issues before the very last moment," said Donald Marron, the Tax Policy Centre's director.

EVERY American who pays income tax - and some who don't - will feel it.

Donald Marron? Seems like a nice guy with the best interests of the people. Bless his little heart...

Collectively, the tax increases would be the steepest to hit Americans in 60 years when measured as a percentage of the economy.

And the icing on the cake!

It could resemble the 700-point fall in the Dow Jones industrial average in 2008

So there you have it. It is official. Real and true to live financial doom.

Just thought I would share

I sure hope your wrong, i would hate to interrupt Obama's golf session for economic collapse.

reply to post by magma


This will knock down the American tax payers. The new policies on debt collection and how pro active collectors will become will kick the people when they are down. Obamas slogan of "change" needs to happen more then ever right now...

I get the sense that you enjoyed writing that, and want to see America fall.
You realize that if we go down, we're taking the rest of the world down with us, right?

The only thing to fear is fear itself - FDR

The media is installing doomsday beliefs into people.

There will be good days and bad days.

The world will keep spinning.

Change is the only constant.

One has to remember that this wont matter the slightest bit in the long run anyway.

Instead of being in debt by an extra 1.5 Trillion dollars next financial year, it'll be 1.4 Trillion.


According to one random debt clock webpage I looked at, the debt goes up by $3.87 billion per day, so every 100 Billion in savings merely puts of the inevitable financial doomsday by 1 month.

Looks like news.com.au was secretly pulling for Romney and keeping their lips tight. I wonder why.

Originally posted by Ghost375
I get the sense that you enjoyed writing that, and want to see America fall.
You realize that if we go down, we're taking the rest of the world down with us, right?

You can be rest assured I am not hoping for any collapse.I certainly do not wish to see America fail. I am sory that you read it like that.

Originally posted by Malcher
Looks like news.com.au was secretly pulling for Romney and keeping their lips tight. I wonder why.

There must be a reason for it. It will have to hurt Murdoch as well.

Newscorp

Originally posted by MDDoxs
reply to post by magma

 

This will knock down the American tax payers. The new policies on debt collection and how pro active collectors will become will kick the people when they are down. Obamas slogan of "change" needs to happen more then ever right now...

What are the "new policies on debt collection"?

Originally posted by magma

Originally posted by Malcher
Looks like news.com.au was secretly pulling for Romney and keeping their lips tight. I wonder why.

There must be a reason for it. It will have to hurt Murdoch as well.

Newscorp

OK, so they are a multinational corporation. Regarding that piece, does give the impression they want America to fail so i see why the OP asked you that as well. Certainly not words of encouragement.

reply to post by Malcher


Your right the article was doom. They did not even sprinkle it with hope.

But we already knew the outcome, didn't we?

We fell off the cliff before, this time we will land much harder. I remember the Carter years being perrty bad. This economy will most likey mimic the Carter years and then some. What to expect.
Double digit inflation, mass layoffs, (the engineering proffesion was hard hit along with the defense industry.) ( job growth was next to nothing in all sectors. There was many low pay part time jobs) then followed double diget intrest rates. ( that lasted beyond the caeter years. I recall homes were at 10 to 12 percent matching the unemployment rate well into regan administration). There was also the gas lines during Carter, I don't see that happenig yet. I would like to mention that Carter had no national health care plan at the time. So the Obama econmey might be even worse than the Carter administration. The Obama administration has a much higher deficet as well. There might be some relief from the new tax rates on the rich as they say , but this still won't fix the econmey , not even close. Many companies moved over seas when Carter happened , you can expect the same again but on a larger scale this time. Many mom and pop companies went under also, and there was no mass china manufacturing either. We are in for a rough ride folks that will last about 6 to 8 years.
Sorry to be doom and gloom , but I lived through it with eveyone else in the U.S. The tax the rich plan, now that might help some of the onset. That hasn't happened since the 50's and early 60's. But then again there was no national health care plan to fund or trillion dollar deficets either.

while all eyes and ears are focused on the 1 January '13 fiscal cliff... there is a sucker punch coming to the back of our heads


this stealth one-two punch has already been enacted in California by the reanimated Gov. Jerry (moonbeam) Brown


it has to do with private 401Ks & IRAs getting restructured by each state and/or the federal governments



here's the link: tdvmedia.com...

Obama Retirement Care

...Or, perhaps, government(s) will get innovative with pensions like California. Governor Jerry Brown just signed Bill 1234 which creates America's first state-sponsored and state-managed retirement program for private sector workers.
Every private employer with 5 or more workers without an existing employer-sponsored pension plan will automatically deposit 3% of the workers' income into a government-run retirement plan.
Who is eligible? Every employee who does not go through the process and paperwork to opt-out; and they have to opt-out every 2 years. Otherwise, they are opted-in, over and over again.

The scheme is expected to put $6.6 billion under state management in the first year. The presumed manager is California Public Employees’ Retirement System (CalPERS) – the biggest U.S. pension fund with 1.6 million public sector employees. ...

in yesterdays post within the (ever-so-long) 'Market watch thread' i spoke of how i had already rebalanced & trimmed my IRAs... to anticipate the higher tax rate environment of equity holdings in years 2013 & 'Forward' ~does that sound familiar~
i forgot to mention specifically, my accounts are all self-directed IRAs --- a crutial factor !


in CA for the present, the holders of IRAs/401Ks. will need to opt out of the system every other year - which will be difficult to do if you are not at least Quarterly involved with your own self-directed IRA...
the persons that had left the management of their retirement accounts with money or fund managers are totally up the creek at the onset of this, CA retirement hijacking, scheme that will be the model for the federal government ....not too long from now !


be prepared fellow members


related reading

usawatchdog.com...

reply to post by St Udio


Doesn't this just become a way to recover funds by law? Sure the people who have the fund will get a payout when they retire, but in the meantime those funds are used somewhere.

In Australia we have compulsary employer superannuation contributions at 9%. These are held in various acredited "super funds" and invested according with the restrictions that are placed on this type of fund.

There is no guarantee that the money will mature to the expected level. So in the advent of financial collapse the super funds go with it.

I am believing 401k is the same type of thing.

Originally posted by magma

Originally posted by Ghost375
I get the sense that you enjoyed writing that, and want to see America fall.
You realize that if we go down, we're taking the rest of the world down with us, right?

You can be rest assured I am not hoping for any collapse.I certainly do not wish to see America fail. I am sory that you read it like that.

I think a collapse is necessary, regardless of my personal feelings. People in "civilized" (mostly Westernized) societies are completely out of touch with living any semblance of a "natural" life.

They are brainwashed into accepting money is their God. They follow the odious bureaucracy layers of man made rules that only further support their political system. They go to the banks and make savings plan for a future they're not even sure they'll live to see. People make money to buy food because they can't or don't know how to grow their own. They watch TV as entertainment instead of spending time with their family or spending it with nature. They buy pre-made food because they don't know how to cook or don't have the time because of whatever reason.

I'm sure I will get hated on by this response, but I see any potential collapse as a GOOD thing in general. People will have to take responsibility for their actions and inactions, and will inevitably have to "grow up" and face the harsh realities of "life" that most people in "poor" countries / regions live in every day.

Look, the so called fiscal cliff is a complete joke compared to the real cliff we are headed for.

I know nobody wants to hear this but we are going to have to run a zero deficit and there is no choice, the market is going to force it. The fiscal cliff is only about 500 billion, our deficit is 1.2 trillion, it isn't even half of what will be required. It also will not stop the deficit from expanding because our medical system must have costs drastically reduced.

I am sick of people pretending the fiscal cliff, can be avoided, or Obama claiming he saved the economy, he did absolutely nothing of the kind, he just maid matters worse by taking out loans with loansharks to buy a few years. They are coming to collect soon, and at the vey least America is going to get a severe beating.

I think there's a lot of interesting pieces in this article, regarding revenue, spending and taxes. If you know where to look in the right places you'll connect the dots.

www.msnbc.msn.com...

As for the situation we're in? Just remember two words. Fannie and Freddie. You can also thank barney frank and chris dodd. People try to spin all the blame to george bush, yeah he got us into a war we didn't need to be in but this economic climate is definitely not 100% his fault. This has been a long time in the making, and now we're going to pay for it.