Weekly News Wrap-Up 3.1.13
By Greg Hunter’s USAWatchdog.com
To say the drama and panic being put out by the mainstream media (MSM) is unfounded hype is a gross understatement. The budget cuts known as “sequestration” will force mandatory cuts to military and social programs. These cuts are really pretty minor when you look at the more than $3.6 trillion in spending for the U.S. Yes, there will be some pain. Budget cuts are supposed to be painful, but to position this as an end of the world scenario is simply spin, poor reporting and fact checking by the MSM. The budget cuts we are getting are a fraction of what the original bi-partisan Simpson-Bowles commission came up with for debt reduction. It was spending cuts and tax increases that totaled $4 trillion over 10 years, and that just slowed the growth of government. The current tax increases and spending cuts are less than half of the bi-partisan $4 trillion deficit reduction proposal.
This sequestration fight has gotten very ugly. There have been hundreds of criminal detainees released by ICE. The White House says it was not involved. The White House was involved in asking for more tax increases so cuts didn’t have to be made. Famed Watergate reporter, Bob Woodward, has been super critical of the President on the sequestration issue. He said the President was guilty of “moving the goal posts” on new taxes. Woodward is now apparently involved in an open feud with the White House. There are reports that the White House told Woodward he would “regret” being critical. That is outrageous, and the MSM should be doing fact checking, not spin control for this or any administration.
Nobody wants their stuff cut, but how can we fix a spending problem with more spending? We have been told for years we are going to grow out of this, and all that is growing is the massive federal debt. And why in the heck is nobody even mentioning the $40 billion a month the Fed is spending to prop up the banks buying all their underwater toxic mortgage debt? That’s nearly $500 billion a year, and that is just the “official” Fed number. Folks are now saying it could be more than double that. This is not a topic of discussion during a budget battle???
As a sign of how the economy is really going, it looks like Detroit is going to be taken over by the state of Michigan. It is bankrupt. You think that they’re not going to experience some real cuts to turn things around? This is what’s coming for the rest of the country if we are not really careful. I remember being up there years ago. The sewage system was in need of major overhaul, and the top priority was getting the Detroit Tigers a new baseball stadium.
Finally, it looks like gold and silver are taking it on the chin. Experts, such as Jim Sinclair, say gold is going much higher because the money printing cannot be stopped. He’s calling on gold to go to $3,500 and much, much higher. He’s made monster calls in the past. For example, in 2002, when gold was trading for around $360 per ounce, Sinclair said gold would be trading at $1,650 by January 2011. It hit $1,650 in June 2011. I would not bet against him. Rich people are buying physical gold and silver hand over fist! After all, it’s on sale.
Join Greg Hunter as he gives his analysis of these stories and more in the Weekly News Wrap-Up.