Weekly News Wrap-Up 1.4.13

11By Greg Hunter’s USAWatchdog.com 

The Fiscal Cliff turned into a can kick on tax policy.  Yes, they averted some nasty tax increases for many Americans, but there were zero spending cuts.  In fact, the legislation added $4 trillion in debt!!!   I’d say President Obama won round one, but not by much.  I have to give a little credit to Democrats and Republicans for the compromise, but this is still the “blame game theater.”  Now, Republicans are going to demand cuts and hold the debt ceiling over the President’s head.  This is going to be much nastier than the last round.  The big losers are the American people because, while there is some closure on tax policy, there is now an even bigger impasse looming on spending cuts.  The Democrats and the President do NOT want to make them, but they want the debt ceiling raised by at least a trillion bucks.   If Congress can’t get it together in a meaningful calm, measured way, there exists the distinct possibility of debt downgrades from the ratings agencies, a dollar and Treasury bond sell offs, a spike in interest rates and a government shutdown–all at the same time.  This street fight is far from over.  By the way, don’t you find it odd that neither party will talk about the $85 billion a month the Fed is printing during this big budget negotiation?  This is propping up the banks and the government to infinity. 

The minutes from the Federal Reserve’s latest meeting last month were released this week, and many members were talking about ending QE or money printing in 2013.  To that, I say–no way!  According to Jim Sinclair, the Fed couldn’t end the money printing “. . . without ending the economic world for decades to come.”  Sinclair is very bullish on physical gold.   

Speaking of the budget, New Jersey Governor Chris Christie is mad Congress didn’t rush through the $60 billion aid package for Hurricane Sandy victims.  This is the height of hypocrisy for a “conservative” Republican.  Where are we supposed to get the money?  Raise taxes?  How about print it?  Governor Christie is “conservative” until he wants the rest of the country to go on the hook to bail out his state that’s more than $280 billion in the red. 

Finally, Current TV was sold to Al Jezeera.  Glenn Beck tried to buy it, but they turned him down because they don’t like Beck’s political views.  The Wall Street Journal reported, “Other suitors who didn’t share Current’s ideology were rebuffed.”  What a weasel move by Al Gore and company!!! 

Join Greg Hunter for his analysis of these stories and more on the Weekly News Wrap-Up.

Comments
  1. Rev. William Joslin

    Good report Greg! Here’s a couple more ideas to cut spending… End the endless wars, abolish the TSA… Oh, and I read February is supposed to be fiscal cliff 2. Have a good weekend!

    • Greg

      Thank you Rev.
      Greg

  2. Rebecca

    Great report again, Greg.

    My curiosity is piqued about President Obama’s executive order to increase the pay of Congress, the Vice President, and federal employees. With middle class working families struggling, does the President have a total disconnect with the very group he calls “the backbone of the economy”? Or is his disconnect with believing his own propaganda: “Since taking office, President Obama has repeatedly cut taxes for middle-class families to make it easier for them to make ends meet. A typical family making $50,000 a year has received tax cuts totaling $3,600 over the past four years ≤” (taken from a White House- released consumer report.

    My husband and I are in that $50,000 a year joint income range.
    We have not seen any $3,600 cut in our taxes. But even if some families did receive such cuts, of what value are they as the value of the dollar goes down and the cost of bread and milk goes up. His executive order during a time of fiscal crisis and government overspending makes no sense.

    Now add his January 1 announcement that he would refuse to negotiate any curbs on his use of the nation’s maxed-out “credit card” and that any limits on the government’s ability to borrow funds would be extremely dangerous. (http://dailycaller.com/2013/01/02/obama-schedules-debt-ceiling-fiscal-cliff-ii-for-february/) (Posted in the sidebar on your site.)

    The Federal Reserve has its unlimited QE, and President Obama seems to be calling for an unlimited debt ceiling, while at the same time that he is throwing around raises for Congress and federal workers … at time when the nation needs to start the “hard work” of reining in the country’s debt.

    It almost seems as if the President is intentionally antagonizing the GOP. This so-called first step by Congress in addressing the country’s fiscal crisis, only resulted in tax cuts — no spending cuts. Various reports say that tax cuts will add to the deficit.

    Obama is throwing money around and seeming to demand a ceiling-less debt ceiling, even before Congress begins its coming spending cut debacle.

    There is something NOT RIGHT here, and it makes me very nervous.

    Do you or any of your readers have any wisdom to share on this?

    • Greg

      Rebecca,
      I have no idea what he’s doing but someone might think he’s trying to shore up support from federal workers. That’s my thought.
      Greg

      • Rebecca

        Support for what, Greg?
        Where do the federal workers fit into this whole fiscal crisis debacle?

        • Greg

          Rebecca,
          If the economy crashes then federal workers will be asked to keep order and keep working. This might pit citizen against government worker. I don’t know, this is just a guess. I don’t think they are getting raises because they are under paid.
          Greg

  3. Rebecca

    PS

    I am so glad that the House rescinded the pay raises.

  4. Johann

    Doom and Gloom for America. Here in Austria we are enjoying a 3.5 unemployment rate and low inflation, that is so far, most of what we buy here costs more because it is made locally or within the EU. If America wants to regain their wealth they better start manufacturing at home and being willing to pay more for locally manufactured goods.

    • Greg

      Johann,

      Thank you for the reporting from Europe. I am happy someone in the West is doing well.

      Greg

  5. Mitch Bupp

    The fiscal cliff joke was on all Americans. I see this as the undoing of the Republican and Democratic paradigm. The bi-polar dividing of America is about to end as “we the people” learn the hard way about corrupt governments. Is 2013 the year the masses reject the 2-party dogma? I don’t know but this staged show for the American people will be the last straw for many Americans.

    The fiat ponzi called the dollar has become the classic ponzi ……

    In Bernanke’s speech about Japanese stagflation to the Kansas FED he pointed out that without the rule of law and good accounting procedures that money pumping would ineffective….. Gee I wonder how long to they remember this?

    The economic hole is so deep and the numbers are so fabricated …. the truth is no one knows how deep the hole is…..
    Thank You USAWATCHDOG and Greg

    • Greg

      Thank you Mitch for the comment.
      Greg

  6. Dan Myshrall

    Hey Greg,
    Say what you will about Al Jezeera, but at the very least I can get honest reporting about world events from them. It’s a sorry situation that we’re in when the best ‘journalism’ out there comes from the likes of Russia Today and Al Jezeera. If telling the truth about our murderous government rings of ‘America hatred’, then perhaps both of us should be included in that analysis.
    Best wishes for a better new year,
    Dan

    • Greg

      Dan,
      The problem it’s always as negative as can be on the U.S. and never negative news about their own homeland. I have the same criticism about Russia Today.
      Greg

      • Base

        The same can be said of Fox, NBC, ABC, CNN, the NYT, etc etc.

        Not to mention that we do a lot of bad shit all around the world. That AJ was critical of the US invasion of Iraq does not mean it hates America. Ron Paul was also pretty critical of That war as I recall.

        • Greg

          Base,
          I have known people who have worked there and that’s what they said too. AJ is not a friend to the U.S. They should apply the criticism to their own countries as well as to the U.S. but they don’t. However, I can appreciate your point.
          Greg

  7. art barnes

    Greg, I said it here three times that they would make a last minute deal. I’ll bet lunch at McDonalds they do the same thing in a couple of months on the debt ceiling & spending cuts. The speaker of house is a joke and I suspect the reason he got out played is that he spent too much time primping in the Congressional barber shop and not enough time reading his own pork bills.

    Jim Sinclair’s statement that the FED couldn’t end money printing “without ending the economic world for decades to come” is the reason Congress & MSM never discusses it, as it is the dirty little secret every body knows about but won’t talk about. Simple stated, the FED has no options left except to continue to print or the economy tanks. They now have become irrelevant, sort of like a jetliner which has only a quarter tank left of fuel and no airports to land for at least a half of tank to get there.

    Lastly, what kind of democracy does everything of importance behind closed doors? The new Congress will be no different, just blindly following behind their so-called leaders right over the cliff.

    • Greg

      Spot on Art. Thank you.
      Greg

  8. PatriotRider

    Greg:

    Most often I agree with your statements, this time not so much….. “I have to give a little credit to Democrats and Republicans for the compromise, but this is still the “blame game theater.””. I’m surprised at you Greg. Congress is infested with self-serving politicians on both sides that really don’t give a damn about their constituents. Giving them a little credit??…for what may I ask?

    The upcoming debt ceiling debate and supposed spending cuts negotiations will be nothing more than what has transpired over the last several Congresses. Nothing of substance will occur, more can kicking, but yet whatever the outcome is, it will always be heralded to the ignorant public as a wonderful solution, while the country slides further into economic oblivion.

    The game is over. The politicians all know it. The Fed knows it. The banksters know it. They cannot tell the American people the truth, so they will continue to lie to them right up to the point of complete collapse. I’ve stopped getting too excited about watching this continuing charade in Washington, DC. Anybody who has ever taken Economics 101 knows deep down that we are finished.

    As Ron Paul says…we now live in a “Welfare-Warfare State”…and the only thing that will end it is complete collapse.

    • Greg

      Point taken. Thank you PatriotRider.
      Greg

  9. William Betts

    I would like to point out to you so that you can at least tell your readers what is instore for them in a short period of time. Nowhere do you tell the people that the problem in America is the FED. The Fed is a private bank cartel that began with the passage of Federal Reserve Act of 1913. This law is unconstitutional because the private banks were given authority to create our money. They create the money and charge the gov’t interest to use our own money. They the banks have made billions and billions of dollars and the people are left with nothing but debt. This shit that is going on in Washington does nothing to stop the the total collapse of our monetary system that is 100% going to happen because the ponzi scheme of interest is coming to a close. This does not cover the subject completely, but the problem in America is debt money created by the private bank cartel. Every person that has any money should be in gold or silver off shore!!!!!!!!! Willam Betts

  10. AndyB

    Greg: first of all, Happy New Year. May your commentary be just as insightful as it has been in the past.

    Regarding the farcical fiscal cliff, wherein nothing got accomplished other than more pain for the ones who can least afford it; i.e. less take-home pay for the working poor. A totally disingenuous, non explored issue in all this theater, at least in the MSM, is the effects of Obamacare on small businesses. One of my sons is seeking quotes for his employees’ health care. Not one has come in with less than a 30% increase. As you can well imagine, this has created a big problem because he is in a low margin business and has national competitors which prevents him from automatically raising his prices. He is seriously considering closing down.

    • Greg

      Thank you Andy B for the reporting from the front lines of the real world. Happy New Year to you and yours.
      Greg

  11. JoeJustJoe

    I’m actually with Gov Christy on the matter, Greg. It would be better if they put the money into the hands of workers instead of gamblers. And altho alot of the $$$ for Sandy relief would be wasted simply becuz the govmint was involed at least it would put people to work. Also, in “reality” our leaders did NOT kick the can down the road becuz the results of their actions have now put the SPX n RUT within a breath of long term confirmed tops. Before the news we would simply have had a buying opp if the markets continued to sell down. Now we can simply short n hold for the long term as America’s greatest companies begin the trek to bankruptcy. The last time I advocated buying the VIX products it returned 50%+ in a matter of weeks. Wait’ll ya see the chachingo I bring ya this time. UVXY is gonna double once the 15.41 low gets taken out. And if I can take care of the SPX high of 1474.51 today before say 1PM I just might be able to make it a Fri (and a Mon) you will remember for a looooong time :-)

  12. jim H

    Happy Friday Greg
    Glad your site is growing! A question on my mind for some time now is “are the problems and successes economically around the world accidental because of market fluctuation, consumer spending, available jobs, interest rates and the like, or have these factors always been dictated by the whims of a patient few mostly invisible families”? These people I’m sure have names but the media mostly refer to them as “Investor’s”. Every day it’s the same old nameless money deals, mergers, wars etc. as if all this happens on it’s own with no names behind it. Who really finances these things? If I knew the answer to my own question it would certainly make a difference in how I invest my time and resources. I would like to hear what you and your readers think.
    Enjoy your weekend and be good to yourself.

    • Greg

      Jim H,
      I do not know if they are accidental or contrived. I do know we are headed for a s—storm.
      Greg

  13. Troy

    Raise Taxes, Increase spending, Raise debt ceiling, Take a 7 Million dollar vacation to Hawaii. Problem solved! It’s good to be King.

    Aloha Greg.

    • Greg

      Aloha Troy. Nice succinct comment and analysis!!
      Greg

  14. oligarchy

    Hi Greg: the progress of taking over the people of the USA is continuing right on schedule. With the bailout money that no one will talk about we will continue to fund the controllers of the world.. Next step will be dis-arm the people, and install the new system of the R.F.I.D. chips.
    many people have died for trying to expose the oligarchy/establishment. Ron Paul was lucky he didn’t win the presidency.
    Thanks for your work. formerly jcjamin

    • Greg

      Thank you oligarchy and George for weighing in here!!
      Greg

  15. George

    Greg, you wrote “The Wall Street Journal reported, “Other suitors who didn’t share Current’s ideology were rebuffed.” What a weasel move by Al Gore and company!!! ”
    How can anyone believe Al Gore “the Whore” was sincere about the environment? It is a con just like Madoff’s. He is out to fleece the public. My father says, “Actions speak louder than words.” Just one of Gore’s houses use more electricity than ten normal sized houses and he doesn’t have a single solar panel on any of them.
    Peace out

  16. guest

    Hi Greg,

    Great post, Christie a loudmouth, he should have be more furious that the sandy bill was larded up with nonsense like money for roofing for the DC museums, but its more advantageous for him and other idiots like Schumer to stamp their foot down and pretend they’re doing something, because after all there’s an election coming up…

    ============================
    I did have a ? for you and your readers….

    I am thinking of buying some gold, and I saw that “apmex” sells gold…

    have you heard of this company?? the prices seem resonable, they don’t charge as much commision, my worry about purchasing gold online is the story I heard on Zerohedge where people bought some gold only to find out it was tungsten inside.

    here is the site,

    http://www.apmex.com/Category/502/Gold.aspx

    appreciate any input you and your readers can offer to a beginner gold purchaser!
    Thanks.

  17. patrick

    glen beck is a fool dont reference this guy pls , it lowers the whole show standards,al jez is another corp media no different then fox,just a different corp. that works for their sponsor goverment

    • Base

      Totally agree with Patrick.

  18. pieter

    Hi Greg,

    It is really amazing that ppl still have good faith and trust and look at any govt for a solution. Govt around the world are the cause and source of endless wars and the killing of hundreds of millions of ppl. Of course govt are controlled by high hautte finance just a pity the average guy cannot imagine that politicians are so bad and so bought that they blow with each wind.

    The whole fiscal cliff is a sad joke as this already the 200th time they raise the debt and thus the taxes on the american ppl that is why everybody get,s more poor except those in the inner circle of the banksters.

    • Greg

      Thank you Pieter.
      Greg

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