So...that's it then?
As the President heads for Christmas in Hawaii and John Boehner tries to make sense of it all...licking wounds inflicted by his own party and learning the toughest lesson of all. Be careful John...they eat their own when there is blood in the water.
And the Nihilists amidst us are saying "Strap in and let's drive this sucker off the cliff. See what happens."
Admittedly, no economist...this is what I see if we boldly go over the edge.
1. An across the board increase in everyone's taxes. Yeah, rich guys...that means you, too. 15% for lower incomes 39% for the highest. Pre-Bush Era taxes.
2. A reduction (and in some instances an elimination) of tax credits. Earned income, child exemption, et al. (No more $1000 deduction for little Caitlin or Cory)
and a bunch of other fiscal stuff.
But the real danger in plummeting over the edge isn't the fall.
It is the landing.
Prepare to see the "now nervous" stock markets go full-tilt Gonzo...creating a domino effect nationally and then globally. IRA's and (especially) 401K's and with the gridlock in Congress when the debt ceiling issue re-emerges next year...I probably don't need to tell you how badly THAT is going to go. The Stock Market comes crashing down. Those who didn't want to pay 1%-2% more in taxes (top earners) will watch the loss of much much more. And they will have plunged us right back into a deep recession (possibly depression). The USD (already weakening abroad) will crumble. Companies will fold...their CEO's bailing early and floating gently to the Earth on Golden Parachutes paid for by their employees who will be unemployed and standing below them to cushion their landing...Unemployment will rival The Great Depression. And so much more...and we will have (collectively) done it to ourselves.
Oh sure...there will be those who blame Obama...and there will be those who blame Pelosi and Reid...and there will be those who blame the GOP or the Tea Party..but in the end...it isn't going to matter much. The finger-pointing and gridlock and constant bickering amongst ourselves will have brought about the downfall of America.
Congratulations. Pogo was a visonary.
Peace on Earth would be nice this holiday season...but I would settle for Cooperation in Congress.
