Saturday, December 8, 2012

THE FISCAL CLIFF IS NOT ONLY AMERICAN, IT IS GLOBAL .

Christine Lagrande, IMF chief
A few, shortsighted, controlling, power-hungry Teapartiers are holding the world's economic system hostage, not just that of the US.  The financial stability of the world rests on the US economy since the US has about 20% of the global economy.   Christine Lagrande, head of the IMF (International Monetary Fund) is concerned that if the US goes off the fiscal cliff the repercussions will not be felt by the US alone but by the entire world economy.   She believes if the US has a 2% growth, it will make many other countries have less growth than that.  The interview of Lagrande by  BBC's Katty Kay can be viewed on video by clicking here.

One has to wonder whether the Republicans holding up their vote (in favor of playing brinksmanship) about the tax cut given the rich by G W Bush being allowed to drop as was assumed to be when the cut was made by Bush.  It is scheduled to run out the end of this year.  Republicans would rather destroy the world's economy than have the richest 2% pay their fair share. 

There has to be something stronger for these self;identified Christians allowing the poverty and pain many in our country have suffered under their refusal to act as representatives of their people.  They call it 'having to follow their conscience and ideology'.  From where does that ideology spring?  We have never had an adequate answer other than from Grover Norquist who accuses those who wish to violate their pledge to him as having 'impure thought',  That sounds like some code.  Does it mean we will see you out of office if you do that.  At least that is what seems to be the not so hidden message.

How sad that it must keep a whole world so tense and concerned at the holiest of times for most of the world's religions.  Whoever says our government is broken has been correct.  There should not be this possibility of so few to have such power simply by being passive aggressive.

1 comment:

Frank J. Lhota said...

Let us assume that the House of Representatives acquiesces to raising taxes on the top 2% to their pre-Bush levels. According to the Office of Budget and Management, restoring the old rates will, over the next 10 years, raise an additional $1 trillion dollars. That sounds like a lot of money, until you consider that for the past few years, the country has been running a deficit in excess of $1 trillion per year! Given that neither President Obama's nor Speaker Boehner's budget plans would reduce spending in the next 10 years, this tax increase would cover less than 10% of projected new debt, and would do nothing to pay off the existing $16 trillion deficit, adequately fund federal pension plans, or fully fund the entitlement programs.

The debt crisis cannot be eliminated by taxes alone. To really solve the problem will require serious spending cuts. Unfortunately, neither party is will to propose anything more than minor cuts in the rate of growth. Our nation may end up learning the value of frugality the hard way.