Guess What They Are Not Cutting In The Fiscal Cliff…
from Zero Hedge:
In his farewell address to Congress yesterday, Ron Paul blasted the dangers of what he called ‘Economic Ignorance’. He’s dead right. Around the world, economic ignorance abounds. And perhaps nowhere is this more obvious today than in the senseless prattling over the US ‘Fiscal Cliff’. US government spending falls into three categories: Discretionary, Mandatory, and Interest on Debt. The only thing Congress has a say over is Discretionary Spending. But here’s the problem – the US fiscal situation is so untenable that the government fails to collect enough tax revenue to cover mandatory spending and debt interest alone. This means that they could cut the ENTIRE discretionary budget and still be in the hole by $251 billion. This is why the Fiscal Cliff is irrelevant. Increasing taxes won’t increase their total tax revenue. Politicians have tried this for decades. It doesn’t work. Bottom line– the Fiscal Cliff doesn’t matter. The US passed the point of no return a long time ago.
2012-11-15 14:40:11
Source: http://sgtreport.com/2012/11/guess-what-they-are-not-cutting-in-the-fiscal-cliff/
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