The Federal Reserve plans to keep short-term interest rate near zero until unemployment drops below 6.5 percent and inflation reaches 2.5 percent. This means given the current equations used to calculate those numbers, Fed interest rates will remain at current lows until mid-2015 or beyond.
The Fed will also continue spending $85 billion a month on bond purchases to keep long-term borrowing costs low and to stimulate the U.S. economy. They will also spend $45 billion a month on long-term Treasury purchases and continue buying $40 billion a month in mortgage bonds.
Why are such moves deemed necessary by the Federal Reserve?
Why does the U.S. debt ceiling need to be raised every few years?
Why is America stressed about a “fiscal cliff?”
Because the United States of America spends entirely too much money.
To those who remember history, it is self-evident that politicians, elected or not, who subscribe to the “progressive” (read Marxist) philosophy have little to no interest in compromising with their political opposition. History informs that “progressives” in America are more inclined to attempt eliminating their Conservative political opposition than reaching any compromise. How else can it be 
explained why “progressives” continue to cling to their uncompromising position?
The so-called fiscal cliff negotiations going on in Washington DC is a clear example of their motives and tactics.
The “progressives” are intentionally holding to a position untenable to Conservatives in hopes of creating divides within the GOP and causing them to lose credibility by caving on their principle of not raising taxes.
The best case scenario for “progressives” is for the GOP to stick to their principles and refuse to raise taxes. Then “progressives” and their co-conspirators within the “mainstream media”, aka the “progressive” Party Pravda, can place the blame for the economic results of sequestration on Conservative Republicans while, solely for their own political aims, temporarily championing members of the GOP who appeared willing to “compromise.”
Trying to negotiate a “grand bargain” simply means Republicans are aiding and abetting “progressive” Democrats in their quest to commit the biggest swindle in American history.
Senator Rand Paul (R-KY) has a better idea that is good strategy for countering “progressive” actions:
“I think if we go halfway, or we split the difference with him, then both parties have their hands on it. When we go into recession, it’ll be confusing.
I have yet another thought on how we can fix this. Why don’t we let the Democrats pass whatever they want? If they are the party of higher taxes, all the Republicans vote present and let the Democrats raise taxes as high as they want to raise them, let Democrats in the Senate raise taxes, let the president sign it and then make them own the tax increase. And when the economy stalls, when the economy sputters, when people lose their jobs, they know which party to blame, the party of high taxes. Let’s don’t be the party of just almost as high taxes.
In the House, they have to because the Democrats don’t have the majority. In the Senate, I’m happy not to filibuster it, and I will announce tonight on your show that I will work with Harry Reid to let him pass his big old tax hike with a simple majority if that’s what Harry Reid wants, because then they will become the party of high taxes and they can own it.”
Conservatives can keep bashing Speaker of the House John Boehner and House leadership, perhaps Senate Minority Leader, Mitch McConnell. But that does absolutely nothing to advance the Conservative position. Republicans made their bed a year and a half ago by agreeing to sequestration.
Give “progressive” Democrats what they want and let them own it. When average everyday Americans who happen to be Democrats or Independents start feeling the economic pain, let “progressives” explain a failure that is covered with their fingerprints and nobody else’s.
https://mjfellright.wordpress.com/2012/12/12/let-progressives-own-the-fiscal-cliff/
I generally support Rand Paul but I’m do not agree with voting “present” on a Democrat plan. Isn’t that as intellectually cowardly as voting for a vanity candidate like Gary Johnson for president? Voting present is practically indistinguishable from voting yes. If you opposed tax increases, why didn’t you vote no. It looks to the average voter like John Francois Kerry’s position, that “I voted for it before I voted against it”.
Why don’t the House majority pass an across-the-board tax cut and a 1% reduction in spending (a la the Penny Plan) and go home. Let the Senate and Obama chew on that. If they don’t like it, we go over the fiscal cliff. Then the tax increases are clearly the Democrat’s responsibility.
That’s why we “(c)onservatives … keep bashing Speaker of the House John Boehner and House leadership…” Because they are RINOs, who are unwilling to fight. They represent an echo of Democrat’s disastrous policies, not a choice.
As part of his strategy, Senator Paul suggested that the House first pass their own bill and send it to the Senate where it will surely die. He suggested that Republicans then allow the Democrats to bring their own bill loaded with tax increases to the floor. In that scenario, Republicans must vote present on it so it would be eligible to go to the Senate, then to the White House. If the House Republicans vote no on the Democrats House bill, it is defeated and goes nowhere. Then, the strategy to have nothing but “progressive” fingerprints and zero Conservative fingerprints on tax hike legislation signed into law is impossible.
This is nowhere near as intellectually cowardly as voting for a vanity candidate, because this plan has a chance of being successful.
Thanks, Michael, I had compeletly forgotten the need of votes to move forward. This idea is one that hasn’t received the attention it should. I hope readers will encourage their reps to follow through & then make it loud & clear “Who” is to balme.
I am not a mathmatician, I just recently learned to spell economist & I married my accountant to insure my checkbook balanced…Still, even, I can see a ‘con’ job, particulary when it smells as bad as this.
Bernanke was put in place as a backup singer for “The Progressive Boy’s Choir”…& is following the Conductor’s baton….as is every chair in the ochestra pit. The commerical of the old lady going over a cliff was a ‘scare ya’ tatic, just as this emphais on fical ‘cliff’. It IS DANGEROUS & will do damage, but we will not implode on impact. Just maybe it will give us a huge bounce back up & show a way out of the hole that many don’t seem to grasp. CUT SPENDING..like the ‘real’ stuff…
What annoys, perplexes & makes me angry is that our conservatives stay quite & let Boehner take all the heat (& I’m not a fan of his) The ‘progressive voices’ are heard loud & clear on every wave link how ‘nasty old Republicans’ don’t offer anything, the ?President? is on the campaign trail (still) Paul Ryan was selected as a VP canidate because of his tax plan that was voted on & approved by the House, reference is made to the closing of ‘loopholes’ (no specifics) on the rich..I’m willing to bet that outside a very small circle not much is known about any counter offers that are made. Where are all the elected representatives hiding???? Are they not able to stand & back up Boehner as their leader (they choose him) Can they not access ‘some’ of the media or send letters to constituents , perhaps ‘townhall meetings’ via phones?? Are they deaf DUMB & blind????
What challange have you heard about the audacious, Machevallian demand that gives OBAMA CONTROL of the
(our) Budget ceiling??? NADA (my french is better than my Spanish, but..)kinda a deal breaker to me…is it possible that was the intent along with “I will not sign anything without a raise in tax rate”???
The Democrats intend to make it another Republican & ‘Bush’s’ fault…If you have to, pick up a 2 x 4 & insist that YOUR elected representative & senator needs to start banging drumbs & howling NOW!!! The best defense is a strong Offense…
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Thanks, very great article.