Jim Cramer has finally seen the light it seems….after sitting down with his accountant and realizing what is coming down the pike.
Small businesses cutting hours, cutting employees or going out of business altogether. Taxes being raised on close to 80% of all households. Incredible amount of debt which will cause our credit rating to be downgraded which will increase are debt.
Increased unemployment and increased dependence on government will come, rest assured.
But of course this is what Obama wanted:
The rout was complete, the retreat disorderly. President Obama got his tax hikes — naked of spending cuts — passed by the ostensibly Republican House of Representatives. After which, you might expect him to pivot to his self-proclaimed “principle” of fiscal “balance” by taking the lead on reducing spending. “Why,” asked The Post on the eve of the final fiscal-cliff agreement, “is the nation’s leader not embracing and then explaining the balanced reforms the nation needs?”
Because he has no interest in them. He’s a visionary, not an accountant. Sure, he’ll pretend to care about deficits, especially while running for reelection. But now that he’s past the post, he’s free to be himself — a committed big-government social democrat.
As he showed in his two speeches this week. After perfunctory nods to debt and spending reduction, he waxed enthusiastic about continued “investments” — i.e., spending — on education, research, roads and bridges, green energy, etc.
Having promised more government, he then promised more taxes — on “millionaires” and “companies with a lot of lobbyists,” of course. It was a bold affirmation of pre-Clintonian tax-and-spend liberalism.
Why not? He had just won Round 1: raising rates. Round 2 is to raise yet more tax revenue by eliminating deductions. After all, didn’t John Boehner offer him $800 billion of such loophole-closing revenuejust a few weeks ago?
To paraphrase Churchill on the British Empire, Barack Obama did not become president of the United States to preside over the liquidation of the welfare state. On the contrary, he is dedicated to its expansion. He’s already created the largest new entitlement in half a century (Obamacare). And he has increased federal spending to an astronomical 24.4 percent of GDP (the postwar norm is about 20 percent), a level not seen since World War II.
But this level of spending requires a significantly higher level of taxation. Hence his hardball fiscal-cliff strategy of issuing an ultimatum to Republicans to raise tax rates— or be blamed for a massive across-the-board tax increase and a subsequent recession.
So sorry Jim….taxes WILL be raised and our economy WILL continue to crumble.
Why? Because that is what America voted for
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