Friday, January 4, 2013

Fiscal Cliff, Averted

"Democrats are being unreasonable..."

Is it really unreasonable to raise taxes enough to pay for current expenditures?  Right now, we spend more than we take in, by over a trillion dollars, even with spending overall cut by almost 7%, and revenues increasing by 6%, last year.  We still NEED to raise taxes and begin to pay down the debt.

The markets responded positively when news of a deal was announced.  It is the uncertainty that is stifling growth, not any fundamental marketplace flaw.  Set the tax rates to balance the budget and pay down the debt.  The market will reconfigure and go forward.

That a solid year long rate wasn't affixed, and this debt ceiling was just prolonged for another few months is completely moronic.  We've got to stop this non-sense and offer better, faster, more responsive government.  The days of do-nothing stalemate congresses and senates has to end.

What we know now is that even with known tax increases coming, the market responded positively, simply out of the certainty offered.  From this we can conclude that markets want for stability and certainty, rates are irrelevant.


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