The Fiscal-Cliff Mirage

[Geee]

National Review:

The politics of the “fiscal cliff” deal is debatable: On the one hand, Boehner got the “Bush tax cuts” made permanent for most Americans; Obama was forced to abandon his goal of increasing rates for those earning $250,000. On the other, on taxes Republicans caved to the same class-warfare premises (the rich need to pay their “fair share”) they’d successfully fought off a mere two years ago; while on spending the Democrats not only refused to make cuts, they refused to make cuts even part of the discussion.

Which of the above is correct? Who cares? As I said, the politics is debatable. But the reality isn’t. I hate to keep plugging my book After America in this space, but if you buy multiple copies they’ll come in very useful for insulating your cabin after the power grid collapses. At any rate, right up there at the front — page six — I write as follows:

“The prevailing political realities of the United States do not allow for any meaningful course correction. And, without meaningful course correction, America is doomed.”

[Valin]

@Geee

 

Moody's says 'fiscal cliff' deal doesn't end credit downgrade risk

Jim Puzzanghera

January 2, 2013

 

WASHINGTON -- Moody's Investors Service warned Wednesday that the "fiscal cliff" tax deal was not enough to remove the risk of a downgrade of the U.S. credit rating.

 

The company, one of three major credit rating firms, said the deal approved Tuesday night to raise about $620 billion in tax revenue over the next 10 years was "a further step in clarifying the medium-term deficit and debt trajectory of the federal government."

 

But the package, which averted income tax increases on most Americans, did not produce "meaningful improvement" in the ratio of the federal government's debt to its economic output.

 

 

(Snip)

 

Note: Standard & Poor’s is not thrilled either.

 

 

Rand Paul: If you’re not going to look at entitlements, you’re not a serious person