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Thursday, January 23, 2014

Coming this late Feb.. More 'Can Kicking' Craziness

We read earlier this week that the NFL is considering eliminating extra-point kicks after touchdowns starting next season which to us was a bit ironic since we as a nation Love kicking..

Well.. OK, can kicking..

Our elected representatives certainly do and wouldn't you know it, all those multi-millionaire ladies and gents will get another opportunity pretty soon..
~One of those "quality" Disney films from the early 70's.. 'Gus' the Football Kicking Mule

From 'The Hill':

"Congress will likely need to raise the debt limit by late February to avoid a missed payment, according to Treasury Secretary Jack Lew...  When he first pressed Congress to increase the debt cap in December, he estimated a default could occur as late as early March.

But based on “our best and most recent information,” Lew now pegged the default deadline as sometime in late February, calling on Congress to boost it as soon as possible."

To clarify, 'debt ceiling' means its the most we can borrow or be indebted to others for.  Think of it like a credit card limit except the government's can be manipulated constantly.. yours can not.
Here's what we at A&G predict besides Rep House Majority Boehner leader getting teary eyed  for no explicable reason then capitulating again:

The debt ceiling will ultimately be extended until sometime in mid-late November just before Thanksgiving recess.

This guarantees that neither party has to deal with the crippling debt load before midterm elections and have to worry it could in any way alter the 95% incumbent re-election rate.

The only part we're not sure of is whether this agreement comes just right before the deadline or whether Wall Street does a fake plunge for a couple days after deadline to scare the common folk.
Its really as predictable as well.. as an extra point going through the uprights isn't it?

BTW, want to hear a stat that will just blow your mind?  You know.. something to shake your head at, share with co-workers around the ole' water cooler then um.. well nothing..

The 85 richest people in the world have about as much wealth as the poorest 50% of the entire global population does.

Yep.. In other words, 85 extremely wealthy individuals have about as much wealth as the poorest 3,500,000,000 (3.5 billion) do.
~ The Real 'Wolf of Wall Street' Jordan Belfort (in the current movie played brilliantly by Leonardo DiCaprio)

Here's another 'fun' fact..

The global elite that we are taught to admire and strive to be like, have approximately $32 trillion dollars stashed in offshore banks around the world.

That's $32,000,000,000,000

That would be about enough to pay off the entire U.S. national debt.. Twice.
~ Belfort on right.. taken sometime in 1990s

These are the people who own the politicians around the globe.. who own the airwaves..  who mold and manipulate the news to control how much information is released to the people and establishes discussion parameters of acceptable debate..

If there is such a thing as "the Man", they would be it.

And if it was in their financial interests that we the US default upon that debt and stop paying the creditors and by extension the global economy collapses, you better believe it would occur..

But 'lucky' for you that its far more profitable to maintain the status quo..

And one day our interest alone will top $1 Trillion which equals the totality of all income the government takes in annually...
And then what?

The elite will have devised a plan assuredly to profit off the downfall of default much the way the common stock trader profits off the market.   You can make as much of a killing on the downside as you can on a spike.

Not much you can do.. yes we know..

So back to the debt ceiling as we near conclusion..  What would we at A&G do about the debt ceiling game being played every 3-6 months?

Simple..  Right now the debt ceiling is $17.2 Trillion..   So we would propose the debt increase to $67.2 Trillion but with an annual spending cap of $2 Trillion..

So that the next time we ever have to deal with debt ceilings again, it would be at minimum 25 years in the future meaning a new President and mathematically speaking, a 96% Congressional turnover from now to then..

And maybe a different Congress could handle things more responsibly.  They will have seen first hand the economic suffering originating in 2008 which has been currently papered over and artificially delayed.

And from that experience, hopefully make intelligent choices...

We hate can kicking but definitely this issue needs a good punting.