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|From: alectric (Rep: 153) reply to bucyrus||Date: 12/01/2012 11:48|
|Forum: Wall Street Pit - Msg #2335460||Thread #673480593 (Rec: 11) |
|Re: Again.. Dems won't compromise.. more Dems in new Congress, Tea Party won't co...true. It's going to take another world war to pull us together and only if there's a shared sacrifice like there was after the Great Depression. The Great Depression got us used to hardship and making do without so that when WWII came along, we were already prepared to make the sacrifices that were needed. Will Americans be willing to give up their tax deductions? And don't kid yourself, the government will start with incomes over $200k but that's not nearly enough to balance the budget, so they'll either inflate the debt through money printing so that we are all in the $200k bracket or they'll lower the bracket from $200k to $150k, then $100k. Something has to give. What I believe will happen is this this: the Fed has been buying up 75% of the long term bonds and now mortgage backed securities, because what investor would buy these things? C'mon 3.25% tied up for 30 years? Inflation would eat them alive. When the Fed goes to unload them, they will find that no one will buy them without substantial discounts to face value. So that discount shows up as inflation. That's the most politically palatable option. And that's what is/will happen. So we will all be paying higher taxes fiscal cliff or not because inflation will push us into the bracket.|
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| Reply to bucyrus - Msg #2335455 - 12/01/2012 09:49|
Again.. Dems won't compromise.. more Dems in new Congress, Tea Party won't compromise.. already lost and need to preserve their bonafides for future political runs Boehner doesn't have the votes for a compromise and I don't see it happening.
We go off the cliff, everybody gets a tax increase they'll see in mid Jan checks then both parties will blame the other and both parties WIN... they do agree on a few patches... Medicare physician compensation, estate limits, etc
This is the way they planned it... both parties play the blame game AND start fixing the deficit with tax increases they DON'T vote for
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