Congress Fails on Cliff And Sandy Legislation

Congress had the opportunity to fix the financial mess we are in with a couple bills lately. The Fiscal Cliff and the funding bill for the devastation of Hurricane Sandy were opportunities that Congress missed on taking real measures to fix the financial problems facing this country. However, they punted away the chance and instead loaded each bill with pork. These guys just don't get it and we, for one, are tired of it.  

It is time to unload the entire batch from Speaker, Majority Leader down to the janitor. Throw the entire bunch out and make them go and make a living and stop leaching off us.

Conservative Tom

Congress Sticks It To Us Again

January 4, 2013 by Chip Wood 

PHOTOS.COM

The Federal government will collect more payroll taxes this year.

Happy New Year, everyone! Weren’t you inspired to see how our elected representatives worked late into the night, even on New Year’s Eve, to keep this country from plunging over the fiscal cliff?

And what a great deal they got for us! Taxes are guaranteed to go up for the vast majority of Americans. Spending cuts will be postponed. Government is going to get bigger. So will the deficit. Barack Obama can gloat that he forced Republicans to accept higher taxes. In fact, an anonymous “official close to the talks” told FOX News’ Ed Henry that getting the GOP to break their tax pledge is “one of the most consequential policy achievements of the last couple of decades.”

My, doesn’t that make you feel better?

Conservatives in the House made a last-ditch effort to include some mandatory spending cuts in the legislation. But that effort failed when Democratic leaders in the Senate said they would refuse to consider any changes in the legislation they had approved the night before. When the final tally was taken, the measure passed the House 257-167, with about a third of the Republicans voting in favor of it.

The margin of approval was even bigger in the Senate, where it passed by a vote of 89-8. Among the tiny minority that voted nay were such Tea Party favorites as Marco Rubio (R-Fla.), Rand Paul (R-Ky.) and Mike Lee (R-Utah).

And even though everyone is sick of all the politicking and posturing, we’re going to go through all of it again over the next couple of months. That’s when we run smack into the debt ceiling, have to deal with mandatory budget cuts and are supposed to come up with some sort of budget for the next fiscal year.

Treasury Secretary Timothy Geithner added fuel to the fire when he said last week that the United States would reach its debt limit on Dec. 31 and, thus, presumably run out of money. But then he piously proclaimed that he could use some “extraordinary measures” to find the funds to keep government going for another couple of months. So the rhetoric to raise the debt ceiling from $16.394 trillion, where it is now, will get a lot hotter between now and March 1.

There is no rest for the wicked — or for the big spenders in Washington.

In a classic example of premature congratulations, the stock market celebrated the new accord. The Washington Post reported: “The Dow soared 308 points, or 2.4%, on Wednesday, the biggest point to start a year in history, after posting the biggest ever year-end point gain of 166 points on Monday.”

But don’t expect the euphoria to last for long, as the realities of what this new agreement does and doesn’t do begin to strike home.

Just how bad is this Frankenstein’s monster? The bill is packed with pork for many of the Administration’s pet projects, including subsidies for plug-in electric vehicles, special deductions for film and television productions, a $12.1 billion tax credit for wind energy and even first-time home buyers in the District of Columbia. Numerous subsidies, tax credits and other goodies are buried in the legislation. You can be sure that the more we learn about what’s in the bill, the less we will like it.

Although Barack Obama campaigned on promises to raise taxes for anyone making more than $200,000 a year and couples earning $250,000, the final legislation raised the base a bit higher. The new limit is families and small-business owners earning $450,000 a year. They will see their personal income tax rate go from 35 percent to 41 percent.

But that’s a fraction of the hit that income from investments will take. Thrifty seniors who lived within their means all of their lives will see the taxes on their investments go up dramatically, while the incentive for anyone to invest in productive businesses will go down. That’s because taxes on dividends and capital gains will go from 15 percent to 23.8 percent. (The final number includes an Obamacare investment income surtax of 3.8 percent.)

In addition to those higher tax rates, couples earning $300,000 or more a year will see their deductions and exemptions phased out. The more they earn, they less they will be able to deduct.

One of the few pieces of good news in the measure is that the estate tax won’t be quite as bad as was feared. If we had gone over the fiscal cliff, the death tax would have been 55 percent on all estates worth $1 million or more. The new number is 40 percent for estates valued at $5 million.

But there is another tax increase that will hit every wage earner in America. That is the payroll tax collected for Social Security, which will rise from 4.2 percent to 6.2 percent. This is because a temporary reduction in payroll taxes that Congress approved two years ago, ostensibly to help stimulate the economy, expired on Jan. 1.

So every person earning $50,000 a year or more will pay an additional $1,000 in payroll taxes. So much for the myth that only “millionaires and billionaires” will have to ante up to help pay for Obama’s additional spending.

Taken all together, the Congressional Budget Office says this compromise legislation will add $4 trillion to the national debt over the next 10 years. And even that estimate assumes that the budget cuts required by sequestration actually do take effect this year. I wouldn’t bet on it. Although the sequestration cuts were supposed to begin on Jan. 1, the fiscal cliff compromise kicked that can down the road for another two months.

The bottom line is that this legislation raises income taxes, capital gains taxes, dividend taxes, death taxes and payroll taxes. It is a huge victory for Obama and his big-spending buddies in Congress and a big setback for everyone who believes that Washington has a spending problem, not a revenue problem.

In effect, we’ve given some chronic alcoholics the keys to the liquor cabinets. And now we hope they will somehow sober up? Don’t count on it.

Until next time, keep some powder dry.

Message To Congress and the President--No Workee, No Monee

We had to laugh when we read the second line of this AP posting this morning. It says :

"The Nevada Democrat says it's up to congressional Republicans to come up with a plan that both houses would pass and President Barack Obama would sign."

We did not realize that the "Congressional Republicans" had so much power that they could decide what the House and Senate can pass and the President can sign. If Reed is not the most stupid man in the US,  he surely is in the top ten!  Where is his responsibility as the Leader of the Senate? Where is the President on this?  All of the blame is being placed on the Republicans and everyone else is throwing up their hands.

We blame both sides of the political spectrum. It is extreme dereliction of duty for them to have not passed and sent a budget to the President. They should be brought up on charges for not fulfilling their Constitutionally mandated responsibilities. Some times the only way to get a mule's attention is to hit them over the head with a 2x4! Ours is the following.

Over the past months we have posted several ideas about how to save the country money. We would like to add another. Cancel all Congressional and Senate salaries, benefits, perks. They and their staff receive NOTHING until they pass a balanced budget that reduces the deficit to 10% of GDP in ten years. The budget must have decreases starting in the first year and every year through the tenth. No accounting gimmicks will be allowed.

This means that now they personally will have to pay for their health club, their franking privileges, their parking at Reagan National, their phones, their staff and their office space. Most of these men and women are very wealthy so they can take a hit to their pocketbooks. It might get their attention.

The same goes for the President. The only benefit he will receive is Secret Service Protection and the use of Air Force One. However the use of the plane is for official Presidential duties only. No pleasure trips, no vacations will be allowed. He is rich, he can pay for the plane himself for those activities.

Until and unless we hit these guys in their greedy pocketbooks will we ever see any real action. This goes for both parties and the independents. Our new motto is: No workee, no monee!

Conservative Tom

Sen. Reid: nation appears headed over fiscal cliff

Senate Majority Leader Reid says government appears headed over "fiscal cliff"

By Associated Press | Associated Press – 30 minutes ago

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WASHINGTON (AP) -- Senate Majority Leader Harry Reid says the government appears headed over the so-called fiscal cliff because of a lack of progress in bipartisan negotiations.

The Nevada Democrat says it's up to congressional Republicans to come up with a plan that both houses would pass and President Barack Obama would sign.

Reid says of missing the Dec. 31 deadline to avoid the fiscal cliff, quote: "it looks like that's where we're headed."

Major tax hikes and spending cuts will hit most Americans if Congress and the White House don't reach a compromise by the year's end.

Should Media Lose its First Amendment Rights?

Once again the media missed the opportunity to provide news to the people. Instead they align themselves with the Democrats and keep the facts of the housing crisis deeply buried.  Should we consider doing away with the freedom of press?

Another example was on Channel 4 (WDIV)   in Detroit last night. The eleven p.m. news was covering the "fiscal cliff", the news reader (and the accompanying information that was flashed on the screen) described the Democratic desire to increase taxes on the "rich" and that Republicans did not want to do that.  They completely left out the fact that the Republicans wanted spending cuts to go along with any increase in taxes which is not at all included int he Democratic position.

Some would say that is a small omission to which we say bull hockey! WDIV purposely misled the positions of both parties, painted a misleading image of both and presented a totally biased view of the actual conflict between the two parties. Additionally, based on the time allotted, the Democratic position on the story was 90%  and the Republican part was the balance. Since when is that balanced news?  It does not even come near!

Who else is coming to the belief that the news media must be held accountable? Should we have monitors that pull a story or news cast that is not balanced? Should we not do business with companies that advertise on/in this biased media? We would like to hear from you.

Conservative Tom

New study confirms economy was destroyed by relentless policies of Democratic Party

http://israel-commentary.org/?p=5513

ECONOMY
DECEMBER 21, 2012
BY: ROBERT MOONS

A new study from the widely respected National Bureau of Economic Research released this week has confirmed beyond question that the left’s race-baiting attacks on the housing market (the Community Reinvestment Act–enacted under Carter, made shockingly more aggressive under Clinton) is directly responsible for imploding the housing market and destroying the economy.

The study painstakingly sorted through failed home loans that caused the housing market collapse and identified an overwhelming connection between them and CRA mortgages.

(And is the main reason Barney Frank and Chris Dodd conveniently disappeared from the political scene. How about a genuine in-depth, independent prosecutor review to put these crooks in jail – hardly adequate punishment for the immense trouble they have caused us and in which Obama relishes and his father’s dreams are fulfilled) jsk

Let’s review:

-President Bush went to Congress repeatedly for years warning them that Fannie Mae and Freddie Mac were going to destroy the economy (17 times in 2008 alone). Democrats continuously ignored him, shut down his proposals along party lines and continued raiding the institutions for campaign contributions on their way down.

-John McCain also co-sponsored urgently critical reforms that would have prevented the housing market collapse, but Democrats shut that down as well, along party lines, and even openly ridiculed anyone who suggested reforms were necessary…to protect their taxpayer-funded campaign contributions as the economy raced uncontrollably toward the cliff.

-No one was making bad loans to unqualified people until Democrats came along and threatened to drag banks into court and have them fined and branded as racists if they didn’t go along with the left’s Affirmative Action lending policies…all while federally insuring their losses. Even the New York Times warned in the late 1990s that Democrats continuing to force banks into lowering their standards would lead to this exact catastrophe.

-Obama himself is even on the record personally helping sue one lender (Citibank) into lowering its lending standards to include people from extremely poor and unstable areas, which even one of the left’s favorite blatantly partisan “fact-checkers,” Snopes, admits (while pretending to ‘set the record straight’).

-Even The New York Times admitted that there is “little evidence” of any connection between the “Republican” deregulation measures Obama blames, like the Gramm-Bleach-Liley Act (signed into law by a Democrat), and the collapse of the housing market.

But now the media have spent years deliberately and relentlessly inoculating people against the facts, training them to mindlessly blame Bush for being in charge when Democrat policies destroyed the economy. So here we sit, to this day, still watching Obama excuse and shrug off endless economic failures, illegal government takeovers and utter national bankruptcy with zero accountability.

Gun Deaths Not On The List of Top 15 Causes

According to the Center For Disease Control (CDC), the leading cause of deaths in the US lists homicide as  number 15, and only a portion are caused by guns!.  We have much larger problems than gun deaths! (The site address is listed at the bottom of the posting.)

The use of the "red herring" of gun deaths is a false argument which is intended to take our eyes off the real issues that face this country. We have a government that has not passed a budget in over three years, we are borrowing money at a rate that will soon bankrupt the nation and our legislators go home for Christmas vacation without taking the necessary actions to avoid a "fiscal cliff."

We have severe problems and all the press could focus on is the dreadful death of 26 people at the hands of a mad man in Connecticut.  We need to train our eyes on the real problems and not be distracted by Legislators who are incompetent, irresponsible and interested ONLY in their re-election.

This is NOT the time to take away a citizen's right to defend himself not only from the bad guys but from the government itself! We will need to protect ourselves soon!

Conservative Tom

Mortality experience in 2009
•  In 2009, a total of 2,437,163 resident deaths were registered in
the United States.
•  The age-adjusted death rate, which takes the aging of the popu­
lation into account, was 741.1 deaths per 100,000 U.S. standard
population.
•  Life expectancy at birth was 78.5 years.
•  The 15 leading causes of death in 2009 were:
1. Diseases of heart (heart disease)
2. Malignant neoplasms (cancer)
3. Chronic lower respiratory diseases
4. Cerebrovascular diseases (stroke)
5. Accidents (unintentional injuries)
6. Alzheimer’s disease
7. Diabetes mellitus (diabetes)
8. Influenza and pneumonia
9. Nephritis, nephrotic syndrome and nephrosis (kidney
disease)
10. Intentional self-harm (suicide)
11. Septicemia
12. Chronic liver disease and cirrhosis
13. Essential hypertension and hypertensive renal dis­
ease (hypertension)
14. Parkinson’s disease
15. Assault (homicide)

http://www.cdc.gov/nchs/data/nvsr/nvsr60/nvsr60_03.pdf

Help Wanted: Leaders In Washington

As an indication of where the country is, the following blog reports on a poll that Americans do not want cuts in benefits but do favor an increase in taxation. We would like to know more about the survey, however, we think it is fairly safe to assume that the respondents who said they wanted an increase in taxes, wanted the increase on someone else. 

Americans are acting like spoiled children who want everything but do not want to do anything to get it.  "I want my benefits but don't tax me more--tax those wealthy guys!" seems to be the mantra of the day.

Whether we go over the cliff or not, makes little difference if we do not change the way we think about the benefits the government provides us. We simply cannot afford them anymore. Without bottom line cuts, in many cases very deep cuts, this country will sooner or later have to bankrupt itself or have others do it for us.

The time has come for our leadership to explain the mess we are in and stop politicizing the crisis. We need real solutions, not sound bites.  Are you listening Washington?

Conservative Tom

Poll: Americans Want A Fiscal Cliff Deal Without Spending Cuts

December 19, 2012 by Sam Rolley 

PHOTOS.COM

A new poll indicates that a majority of Americans want to have their cake and eat it, too.

An ABC News-Washington Post poll released yesterday indicates that a majority of Americans want to avoid the coming fiscal cliff, but are largely opposed to necessary spending cuts that would emerge from an agreement between President Barack Obama and Congress.

Respondents to the poll indicated that they favor a mixture of tax hikes and spending cuts in averting the financial calamity. They, however, remained opposed to any cuts to military or Medicaid spending. Sixty-five percent of those polled said that the Federal government should work out a deal that both raises taxes and cuts spending. But 55 percent of the same respondents said that lawmakers should avoid cuts to military spending and 68 percent opposed Medicaid cuts.

The poll also indicated that broader entitlement reforms are unpopular with the majority of Americans. Sixty percent of those polled said they are against raising the Medicare eligibility age; the same number did not support restructuring Social Security to slow rate increases.

Thirty-one percent of the respondents described themselves as Democrats, 24 percent Republicans and 38 percent claimed to be independents

Is Your 401(k) Going To Be Confiscated?

Earlier today we posted an article about 401(k), IRA confiscation. We had some time this afternoon and found a number of articles which speak to this issue.  You can "google" others also. We would suggest "nationalize 401k", or "confiscate 401k" , however things look like they are coming fast. 

We suspect that there will be changes either before or after the "fiscal cliff" which means that something will occur in the next couple weeks at the earliest or into early 2013 at the latest.  If you are not aware of what appears to be occurring, it is time.

For your convenience, below are a number of links of articles and videos as a starting point. Should you find others, please comment with the link! We all have to work together to get the news out!

Conservative Tom



http://www.24hgold.com/english/contributor.aspx?

article=4016437284G10020&contributor=Ranting+Andy

http://blog.milesfranklin.com/confiscation-of-401k-accounts

http://www.silverdoctors.com/obama-begins-push-to-confiscate-iras-401ks/

http://www.dailypaul.com/162209/next-ira-401k-confiscation-meeting-obama-needs-our-401ks

http://www.youtube.com/watch?v=CCSdx3N1Op0

http://www.thegatewaypundit.com/2012/11/mark-levin-sounds-the-alarm-on-governments-plan-to-nationalize-401k-plans-video/

Want To Save Social Security--Look To Your IRA

We have written here previously about the government's need to save "entitlements" and other sacred cow programs especially now with the fiscal cliff approaching.  So how does one save these programs without devastating  the economy?

Our belief is that the leadership in Congress and the White House have been looking at various choices, none of which will be good. However, one that has to be enticing is the "rolling over" of assets in your 401(k), IRA, 403(b) or 457 plan into Social Security.

As the following article indicates, these assets are in excess of $5 Trillion dollars. What a juicy target!  There are  a couple issues that Congress would have to resolve before this plan could go forward.  These assets are for the most part  pre-tax and therefore taxes have not been paid on them, so handling the taxation issue would be thorny. Could someone really be forced to pay taxes on dollars they would not receive until they went onto Social Security? Or would the taxes only be due upon receiving the benefit? 

Secondly, how would the increase in a participant's Social Security be calculated? Would it be based upon mortality tables? Would any interest be imputed into the length of time that the government held your money before you could collect?

Lastly, would Americans rebel at having their retirement assets "seized/confiscated" by the government even though it was saving Social Security? Would this cause the average Joe/Jane to get off their backsides?

The one issue that is also not discussed by those promoting this plan (we are not in that group) is that today, if you die, your retirement assets will pass to whomever you want. If they are moved to the Social Security system, would your beneficiaries be able to get them back if you die before receiving them or would they be moved to the beneficiaries Social Security account(s)?

There are lots of questions and few answers but with the amount of money on the table one can expect that it is getting intense attention. By the way in the past few years, there have been Congressional hearings on this idea. At that time nothing occurred, however, once an idea is broached, it rarely is forgotten.

We will continue to monitor the situation as we approach the cliff and beyond and should anything be reported, we will get the information to you.

Conservative Tom

Cerulli: IRA assets total $5.3 trillion in Q1 2012

BY WARREN S. HERSCH

DECEMBER 12, 2012 • REPRINTS

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Photo credit: KROMKRATHOG

Individual retirement account assets reached an estimated $5.3 trillion in the first quarter of 2012, a nearly 9 percent rise over the $4.8 trillion in estimated assets for 2011, according to a new report.

Cerulli Associates, Boston, released this finding in the November edition of “Evolution of the Retirement Investor 2012: Understanding 401(k) Participant Dynamics and Trends in Rollover and Retirement Income,” a Cerulli Special Quantitative Update. The report includes an analysis of defined contribution plan participants, individual retirement account (IRA) assets and the rollover decision, and the retirement income landscape.

Rollover contributions totaled $307 billion in 2011. Nearly two-thirds of the assets (65.4 percent or $207 billion) were rolled over through an advisor, the average balance of a rollover totaling $115,000. Of the $201 billion, 83 percent ($167 billion) was handled by an existing advisor. The balance ($34 billion or 17 percent) went through a new advisor, the research shows.

The remaining retirement assets were, the report adds, rolled over to a self-directed IRA ($105 billion) or a new employer’s plan ($2 billion.)

More than half of the survey participants (52.2 percent) indicated they rolled over their 401(k) balance“immediately after leaving” an employer-sponsored plan. Smaller percentages of plan participants took action within a year of leaving (24.7 percent), still hold an account with their employer (12.8 percent), waited more than years after leaving before taking action (5.8 percent) or acted within two years of their departure (4.6 percent).

More than 7 in 10 of the plan participants said either they were not sure whether their plan charges aninvestment fee (37.4 percent) or said there were no fees (35.3 percent). Fewer respondents noted their plan charges investment fees that also pay for administration fees (10.9 percent), investment fees and an additional administration fee (10.5 percent) or an investment fee only (6 percent).

When asked about factors to consider when determining how much to contribute to their 401(k) plan, almost half of those polled (48.6 percent) indicated a matching contribution by their company. More than 4 in 10 (42.3 percent) flagged their personal budget.

Great Depression Times Two

Fed Chairman Bernacke announced today  that he would add another purchase of US Treasuries bringing the total to nearly $4 trillion. That is nearly double the same amount held by  China and Japan and nearly as much as held by ALL foreign countries.  The September 2012 report from the Treasury (source below) confirms that both of the two largest holders had $2.285 trillion invested in our "junk".

For years, we have heard that China is buying us lock, stock and barrel and before we know it, we will all have to be speaking Chinese. What a piece of malarkey!  We have been sold a bill of goods and for one, Tom is tired of it. The reality is that China has been reducing its purchases over the past year, not greatly but the numbers have continued to fall.

Our government is on a spending binge that can only end the same way a drunken sailor's ends, bankrupt, penniless and in shambles.  We cannot tax our way out and spending cuts necessary to achieve our goals would be met with universal protest.  Folks, there is no way to solve the problem.

In the current crisis, the "leadership" in Washington will come up with some "fix" either before or after we go over the fiscal cliff. The problem is that  it only will put a band-aid on a broken foot. We will continue to face financial problems until there  is no longer a way out. Just like the drunk who promises that his ways have changed everything will be fine until he goes into the next bar which means the next budget plan by the government.

We, as a country, are spoiled. Our legislators have lavished generous plans on top of more benefits for years and now it has come time to pay for them and the cupboard is bare. ObamaCare, Medicare, Social Security, welfare, to name just a couple are drowning us. We need a major surgery and are willing only to take an aspirin.

It is time to prepare for the worst that your mind can conceive and then multiply it by ten! Think of the German economy in the 30's, that is where we are heading! It is not if, but when!

Conservative Tom


Here are the sources:
http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt

http://finance.yahoo.com/news/fed-seen-pumping-assets-4-050000764.html

Say Goodbye To America's Superpower Status

When (not if) we go over the cliff, our superpower status will be decimated!  This has been the aim of the Obama Administration ever since he promised he would "change" America.  Goal number one will be accomplished!

Report: U.S. Will Lose Superpower Status By 2030

December 11, 2012 by Sam Rolley 

PHOTOS.COM

By the year 2030, the United States will no longer be considered a world superpower, but it isn’t expected to be replaced by another nation gaining superpower status, according to a National Intelligence Council report.

Power will shift, rather, to “networks and coalitions in a multipolar world,” according to the “Global Trends 2030” report.

The world of 2030 will be radically different from the world today in terms of power structure. By 2030, no country will be a hegemonic power.

The new divisions of power, according to the report, will lead to a reversal in the historic rise in Western power since 1750. This will be integral in “restoring Asia’s weight in the global economy and ushering in a new era of ‘democratization’ at the international and domestic level.”

The report says:

The diffusion of power among countries will have a dramatic impact by 2030. Asia will have surpassed North America and Europe combined in terms of global power, based upon GDP, population size, military spending, and technological investment. China alone will probably have the largest economy, surpassing that of the United States a few years before 2030. In a tectonic shift, the health of the global economy increasingly will be linked to how well the developing world does—more so than the traditional West. In addition to China, India, and Brazil, regional players such as Colombia, Indonesia, Nigeria, South Africa, and Turkey will become especially important to the global economy.

The report says that a best case scenario as global power shifts would be the United States and China becoming strong economic allies who collaborate on a range of issues. Less desirable outcomes, according to the report, would be that global shifts in power lead to conflict as nations seek to gather more resources.

Political Stalemate Continues Unabated

We listened to the "talking heads" today on the Sunday morning programs and to say we were disappointed, would be an understatement.  All of them expressed "their talking points" regardless of  party.  No one was willing to break with their point of view. It made us sick.

Even the non-politicians could not get down to speaking about anything but the broad well-known staked out positions.  No one  demanded anything out of the ordinary. Last week in this blog, we  suggested that the Congress and President take a cut in pay and a cut in staff until this crisis passes (as well as a budget is passed), however, there is nothing like that on the horizon. Too bad it might make sense.

Unless we get some serious discussions between serious individuals addressing BOTH revenues and expenditures, we should expect nothing more than kicking the can down the road. If we don't go over the cliff, we believe that there will be only an agreement to keep everything the same for a period of time, such as extending the time for an agreement until March 1st.

That would be an error, however, when you don't have leadership what do you expect.

Conservative Tom


Talks down to Obama and Speaker Boehner

Reuters – 41 minutes ago

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  U.S. President Barack Obama speaks while visiting middle class family members in their home to discuss his Administration's push to cut taxes for 98% of Americans in Falls Church in Fairfax County, Virginia, December 6, 2012. REUTERS/Larry Downing

By Thomas Ferraro

WASHINGTON (Reuters) - With about three weeks left before the "fiscal cliff" deadline, the task of avoiding the steep tax hikes and spending cuts was down to talks between Republican House Speaker John Boehner and President Barack Obama, according to Capitol Hill aides.

Senate Majority Leader Harry Reid and House Minority Leader Nancy Pelosi are "being kept in the loop," said an aide close to both Democratic leaders, ready to work out any details.

"The White House and Boehner have the most to work out, so they do the most talking," the aide said on Friday.

Boehner scheduled a news conference for 11 a.m. EST/1500 GMT to discuss the "fiscal cliff" talks. "There's been no progress," a senior House Republican aide said.

After the Department of Labor reported the unemployment rate dropped to 7.7 percent in November as employment grew faster than expected, Boehner blamed Obama and Democrats for the prolonged uncertainty of the talks and said it was hurting the economy.

"The Democrats' plan to slow-walk our economy to the edge of the 'fiscal cliff' instead of engaging in serious talks is a threat to our economy," Boehner said in a statement.

Fundamental differences remain between the two sides. The president is demanding that tax cuts set to expire on December 31 be extended for middle-class taxpayers, but not for the more affluent.

If and when agreement is reached on that question, the two sides will try figure out a way to deal with the spending cuts, perhaps postponing or trimming them. They will also work toward a longer-term deficit-reduction package to be taken up after the newly elected Congress is sworn in next month.

"It's going to require both leaders," Obama senior adviser David Axelrod told MSNBC. "Each is going to have to make sacrifices in order to get this done. I think everybody recognizes the consequences of not getting it done."

"In order to solve the problem and achieve the $4 trillion in savings, you're going to have to do a balanced package, including all of these things," he said, in answer to a question about the balance between tax hikes and entitlement reforms.

It's no surprise that Boehner and Obama are the central players in the final weeks. That has been the pattern in previous showdowns over fiscal issues between the two parties.

Boehner will have a challenge selling whatever agreement he might reach to conservative Tea Party sympathizers in the House, some of whom are openly critical of the concessions the speaker has already made, particularly his openness to revenue increases of any kind.

But with polling showing that Americans will blame Republicans if the country goes off the "cliff," more House Republicans have been urging Boehner to get an agreement quickly even if it means tax hikes for the wealthy.

(Additional reporting by Susan Heavey. Editing by Christopher Wilson)

The Unserious Idiots Who Run Congress

Bill Whittle take those unscrupulous, thieving idiots who run Congress (both parties) to task in the accompanying video.  It is well worth the time listening to it.

He calls upon all serious people from whatever party to join together to fix this country before it is too late. We agree, however, question whether there will ever be enough patriots to force this country to  get off its spending habits which has become a drug!. We simply cannot keep spending, however, where are the cuts going to come from? Our ideas would simply rankle many. Who has the moral courage to say "we won't stand for this anymore!"  Are you going to be part of the army of patriots who will finally get the attention of the spending whores?

Let us know what we can do to organize this army.  And listen to Bill, he is speaking the truth.

Conservative Tom

Here is the link: http://www.pjtv.com/?cmd=mpg&mpid=56&load=7782

Forget The Cliff, Real Problems Ahead

 Bob Livingston, in the following post, warns about the upcoming  real financial threats which are upcoming.  Judge for yourself, however, we  think he makes some very valid remarks.

Conservative Tom

The Fiscal Cliff Is A Mirage, But A Real Cliff Is Ahead

December 3, 2012 by Bob Livingston 

PHOTOS.COM

Don’t worry over the so-called fiscal cliff. It is just the latest in a long line of crises created by the elected sociopath class as another ploy to extract more wealth from the middle class and further advance its agenda.

The cliff you need to worry about is the one we are barreling toward regardless of how the fiscal cliff negotiations turn out. It’s the hyperinflation cliff. It’s dead ahead. It has become unavoidable. The Nation is in default.

The fiscal cliff is the term adopted to refer to the end of the misnamed George Bush tax cuts (which expire on Dec. 31) and sequestration ($1.2 trillion in cuts to social programs and defense spending that kick in on Jan. 1 barring a budget deal). It’s an unpalatable option to the political class because the political class hates cutting government — which reduces the power of the state — and uses a progressive tax rate to help reinforce the Hegelian dialectic.

President Barack Obama and his redistributionist minions have drawn a line in the sand over the misnamed George W. Bush tax cuts (because Obama extended them in 2010, we will rightly call them Obama tax cuts). Obama wants to end his own tax cuts on those making more than $200,000 ($250,000 for joint filers). This, despite his statement in 2010: “You don’t raise taxes in a recession.”

The United States remains in the old or has entered into a new recession. As John Williams of Shadowstats.com writes here (subscription required): “[T]here has been no recovery in economic activity, since the economy plunged from 2006/2007 into mid-2009, just ongoing low-level stagnation. Reporting of retail sales, production and durable goods orders shows the economy turning down, once again, into what will become recognized as the second-dip of a double-dip recession, likely timed from third-quarter 2012. The reality remains that current economic woes are an ongoing part of protracted economic collapse, not the beginning of a new cycle.”

While the “official” phony-baloney government statistics show U.S. gross domestic product rising steadily since late 2009, real GDP growth remains stagnant, as it has since late 2009, and mirrors real unemployment, retail sales and housing starts.

Federal Reserve Chairman Ben Bernanke has instituted QE3 to infinity. This will serve to prop up banks and the establishment, but it will hasten the demise of the dollar. (Watch the prices of gold and silver for confirmation.) It’s out-and-out theft from the American worker, saver and retiree.

QE3 and the unwillingness of the political class to make substantial and substantive cuts to government have prompted Williams to shorten his outer hyperinflation timeline from 2018 to 2014.

America is a warfare/welfare state. A full 20 percent ($718 billion) of the Federal budget in 2011 was spent on perpetual war, defense and security-related international activities. “This portion of the budget is untouchable,” according the neocon/warfare wing of both parties.

Another 21 percent ($769 billion) went to Medicare, Medicaid and the Children’s Health Insurance Program (CHIP). An additional 13 percent ($466 billion) went to safety-net programs like SSI, food stamps, school meals, housing and childcare assistance, etc. “These are untouchable,” according to redistributionist class of both parties.

And 20 percent ($731 billion) paid for Social Security, which provided retirement benefits to 35.6 million workers and other benefits to another 19.8 million spouses and children of retired workers, spouses and children of deceased workers, disabled workers and their eligible dependents. Social Security is considered an entitlement program, but it should not be since it is supposedly funded by money confiscated from workers — who had no say in the matter — to fund their retirement. The program was long ago looted by the elites and is the biggest Ponzi scheme in history. “Social Security is sacrosanct and untouchable,” leadership of both parties lie to you as they confiscate the funds faster than they pour in.

Obama and his redistributionist minions play the class-warfare game to perfection, pitting the poor against the so-called rich in order to steal more from the middle class. Their big lie is that the “rich” pay a lower percentage of income in taxes than the poor or middle class. The politics of envy — nasty, vile and green wealth envy that causes some to wish ill will or disaster on others who have enjoyed more success and has turned to hatred in the hearts of many — is advancing us toward total totalitarianism and one world governance.

And now Republicans — supposedly the party of low taxes and smaller government — are joining the growing ranks of redistributionists and feeding the dialectic. (Of course, anyone who has paid attention knows better than to fall for the big Republican lie.)

According to Internal Revenue Service data, the highest average tax rates in America are paid by those making between $1.5 million and $2 million. Their tax rate is 25.1 percent. Tax rates then begin to fall on incomes greater than $2 million, as a greater percentage of income comes from capital gains and dividends. Still, those making more than $200 million pay an 18 percent tax rate on their adjusted gross income.

Those making $1 million to less than $1.5 million pay a 24.9 percent tax rate. Those making $500,000 to less than $1 million pay 24.1 percent, and those in the $200,000 to less than $500,000 range pay 19.6 percent. Tax rates below $200,000 break down as follows:

• $100,000 to less than $200,000 incomes pay 12 percent.
• $50,000 to less than $100,000 incomes pay 7.5 percent.
• $30,000 to less than $50,000 incomes pay 4.8 percent.
• Those making less than $30,000 paid no Federal taxes after deductions and credits.

Representative Tom Price (R-Ga.) says Obama’s plan to increase taxes on the rich will generate only enough revenue to fund the Federal government for eight days. What he doesn’t tell you is that income taxes don’t fund the government. They are simply a wealth redistribution/information gathering tool used by the government.

Price is one of the employees of the state who daily work to propagandize the masses on the idea that there is government debt and that money (sometimes called “revenue” to fool the people with doublespeak) to pay that debt must be confiscated from the masses. But there is no debt. Ask yourself this question: If you had a machine that would crank out an unlimited number of bills, would you have debt? Of course not. And that’s what government does.

Government debt is a world-class delusion. It is a tool used to justify theft and redistribution. And it has worked to perfection, pitting the have-nots against the haves, while the 1 percent (government workers and elected class) make out like the bandits they are. Meanwhile, many become ever more embittered over the idea that someone may have a greater pile of worthless green paper strips than they do.

It won’t be too much longer before people will be papering their walls with the green paper strips they’re so jealous of others for having. Study your history, and look to Weimar Germany as the example.

Workers were transporting wheelbarrows of cash to the store for bread, hoping to arrive before the prices changed. The price of coffee would triple between the time it was poured and the time it was consumed and the check arrived. Mothers prostituted themselves so their kids could be fed.

The next U.S. Great Depression is the cliff to be concerned with. Time is short. Store food (buying it now is also a hedge against inflation) and water, guns and ammunition, and personal hygiene items. Accumulate silver and gold. This Christmas, give silver as a gift that keeps giving — especially pre-1965 U.S. silver coins:

• Dec. 1, 2000: silver $4.69/oz.; today: silver $34.28/oz.
• Dec. 1, 2000: Dow Jones industrial average 14,053; today: DJIA 13,023.

Times will be especially difficult for the unprepared and those who depend upon the system for sustenance.