Best of the Week
Most Popular
1.U.S. Housing Bull Market Over? House Prices Trend Forecast Current State - Nadeem_Walayat
2.The Coming U.S. Economic Collapse Will Trigger a Revolution - Harry_Dent
3. Stock Market Crash a Historical Pattern? - Wim_Grommen
4.Global Panic - U.S. Federal Government Stockpiling Ammo – Here’s What We’re Going to Do - Shah Gilani
5.AI, Robotics, and the Future of Jobs - Aaron Smith
6.This is Your Economic Recovery With and Without Drugs - James_Quinn
7.Gold and Silver Price Getting Set To Explode Higher - Austin_Galt
8.The Something for Nothing Society - Lifecycle of Bureaucracy - Ty_Andros
9.Another Interesting Stock Market Juncture - Tony_Caldaro
10.Inflation vs the Deflationary Straw Man - Gary_Tanashian
Last 5 days
Islamic State or Russia? Ten Key Questions Towards Pragmatism - 1st Sep 14
Mixed Emotions for the Gold Market - 1st Sep 14
These Clowns Are Dragging Us Into War with Russia - 1st Sep 14
Marx And The Capitalist Cancer Of Overproduction - 1st Sep 14
Scottish Banks Salivating at the Prospects for an Independent Scotland of 6 Million Debt Slaves - 1st Sep 14
Small Man Europe Is Now In “Effective State Of War” With Russia - 31st Aug 14
The Unintended Blowback Of False Flags - 31st Aug 14
Tesco Supermarket Death Spiral Latest Profits Warning and Dividend Slashed - 31st Aug 14
Dow, Gold and Silver - A Last Stand, A Fake Out And A Surge - 31st Aug 14
If U.S. Consumers are so Confident Why aren't They Spending? - 31st Aug 14
Scotland Independence House Prices Crash, Deflationary Debt Death Spiral - 31st Aug 14
Obama’s “Catastrophic Defeat” in Ukraine - 30th Aug 14
Stock Market Inflection Point Approaching - 30th Aug 14
Gold And Silver - Elite's NWO Losing Traction. Expect More War - 30th Aug 14
Corporations Join Droves of Americans Renouncing US Citizenship - 30th Aug 14
Peter Schiff U.S. Housing Market, House Prices Bubble Warning - 30th Aug 14
Russia, Ukraine War - It’s Time to Play the “Gazprom Card” - 29th Aug 14
The One Tech Stock Investment You Should Never Sell - 29th Aug 14
Bitcoin Price $500 as Current Downside Barrier - 29th Aug 14
Don't Get Ruined by These 10 Popular Stock Market Investment Myths - 29th Aug 14
Low Cost Transcontinental Gold - 29th Aug 14
Gold Bullish Central Banks Should Give Money Directly To The People - Helicopter Janet? - 29th Aug 14
US House Prices Bull Market Over? Trend Forecast Video - 29th Aug 14
The Fed Meeting at Jackson Hole Exposed Yellen’s Greatest Weakness - 29th Aug 14
AAPL Apple Stock About To Get sMACked - 29th Aug 14
A History of Unlimited Money: Learn From It or Repeat Its Mistakes - 29th Aug 14
How You Can Play to Win When Market Makers Are Calling the Shots - 28th Aug 14
EU Gas Supply Is In Real And Imminent Danger - 28th Aug 14
Central Banks at the Root of Evil - 28th Aug 14
European Bond Market: Bubble of all Bubbles! - 28th Aug 14
Employers Aren’t Just Whining: The “Skills Gap” Is Real - 28th Aug 14
The ISIS Menace - Just What We Need, Another War - 27th Aug 14
The Risky Business of Methane-Rich “Fire Ice” - 27th Aug 14
CFR Recommends Policy Shift that is Very Bullish for Gold - 27th Aug 14
Ukraine Standoff Signals Global Power Shift - 27th Aug 14
Stock Market Panic Decline Begins - 27th Aug 14
The Monopoly of the Government Education Cartel - 27th Aug 14
How to Invest in Silver Today for Double-Digit Gains - 27th Aug 14
The Big Solar Energy Breakthrough We've Been Waiting For - 27th Aug 14
U.S. Empire’s Bumpy Ride - 27th Aug 14
Gold Market and the Interest Rate Trap - 27th Aug 14
Stock Market Staring Into the Great Abyss - 27th Aug 14
A Look at the Coming 30-year Inflation Cycle - 27th Aug 14
Forex Trading - Will USD/CHF Rally Above 0.9200? - 27th Aug 14
Europe’s Depressing Economy Dog Days of Summer - 27th Aug 14
How The Coming Silver Price Bubble Will Develop - 26th Aug 14
A Nation of Shopkeepers - Supply-Side (Voodoo) Economics? - 26th Aug 14
Stock Market Bear Tracks Abound In Wall Street - 26th Aug 14
65,000 U.S. Marines Hold up a Mirror to the Economy - 26th Aug 14
Bitcoin Market Provides Clues for Investors - 26th Aug 14
The Key to Trading Success - 26th Aug 14
Will The US Succeed in Breaking Russia to Maintain Dollar Hegemony?... - 26th Aug 14
Even Mainstream Academia Worried about Massive Bubbles in Markets - 26th Aug 14
Iraq and Syria Follow Lebanon's Precedent - 26th Aug 14
Colonization by Bankruptcy: The High-stakes Chess Match for Argentina - 26th Aug 14
Dow Stock Index On The Cusp - 26th Aug 14
Prohibition Laws and Agency Regulations - 26th Aug 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Biggest lie in Stock Market History Revealed

Congress Finds One Thing It Can Agree On – Spending Your Money

Politics / Government Spending Dec 05, 2011 - 05:37 AM GMT

By: Money_Morning

Politics

Best Financial Markets Analysis ArticleDavid Zeiler writes: Time and time again, a divided Congress has failed to come up with desperately needed solutions to America's debt and budget deficit problems.

But when a major spending bill came along last week, members from all across the political spectrum suddenly found themselves in agreement.


Last week the Senate approved a $662 billion defense spending bill for 2012 by a vote of 93-7. A similar bill passed the House in July by a vote of 336-87.

Still, another piece of financial legislation in the Senate last week that would help the average working American, the extension of the payroll tax cut holiday, failed - a victim of the same partisan posturing that led to the debt ceiling crisis this past summer.

In truth, there was some debate in the Senate on defense spending bill. However, the senators were arguing over a provision that could take away a citizen's right to trial should they be determined to be a member of al-Qaeda or its affiliates, or if they're suspected of involvement in a terrorist plot.

The vast $662 billion price tag drew little opposition, however.

The continued inaction on everything but spending proves once again why America hates Congress. According to the latest poll averages at Real Clear Politics, 81.2% of the American people disapprove of the job Congress is doing, a measure that hasn't gone below 60% since the middle of 2009.

"Having lost almost all faith in the legislative branch, people want Congress to prove us wrong," said Money Morning Chief Investment Strategist Keith Fitz-Gerald. "More gridlock is potentially catastrophic for our country and our way of life."

A Record of Incompetence
Despite a $15 trillion debt and yawning annual budget deficit, legislators in Washington have turned every attempt to address America's fiscal problems into a circus of finger-pointing and name-calling.

Over the summer, the two parties sparred over the need to raise the country's debt ceiling, with Republicans insisting on future budget cuts and Democrats calling for some tax increases along with milder cuts.

In the end, Congress did raise the debt ceiling but did nothing to fix the budget issues causing the debt to grow. As a result, Standard & Poor's downgraded the U.S. credit rating from its gold-plated AAA to AA+.

The deal to raise the debt ceiling included the creation of a "super committee" of twelve legislators assigned the task of cutting $1.2 trillion from the federal budget over the next decade.

After two months of work, the super committee came up with exactly nothing. Their incentive - automatic and arbitrary budget cuts equal to the $1.2 trillion they were supposed to make intelligently - doesn't go into effect until January 2013.

So Congress will spend the next year doing what it does best - procrastinating while the problem gets worse.

Taxpayers Caught in Crossfire
Amazingly, while voting for $662 billion in defense spending raised few objections in the Senate, the $200 billion extension of the Social Security payroll tax cut is mired in partisan bickering.

Payroll taxes were lowered from 6.2% to 4.2% for 2011, adding $934 to the take-home pay of the average American worker. If Congress does nothing before the end of the year, the tax will revert to 6.2%.

Democrats want to lower the tax to 3.1% for 2012, which would add $1,500 to the take home pay of the average worker, but pay for it with a 3.25% surtax on millionaires. Republicans want to keep the tax at 4.2%, but pay for it by freezing federal salaries and reducing the federal work force by 10% but not replacing workers who leave.

In other words, it's another partisan impasse that will end up causing more pain for taxpayers while hurting the economy.

Even some members of Congress admit they've completely dropped the ball.

"Washingtonis broken," Rep. Tim Walz, D-MN, said in a recent statement. "Americans are understandably frustrated with the bickering and gridlock that has become a staple of the way Washington operates."

Now if only they'd do something to change it.

Source :http://moneymorning.com/2011/12/05/congress-finds-one-thing-it-can-agree-on-spending-your-money/

Money Morning/The Money Map Report

©2011 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014