In Terms of the Final Outcome, the Political Polarization Amounts to a Hill of Beans

February 14, 2012

US debt going is parabolic, as is record high political polarization.  The polarization shown on the chart really amounts to squat in terms of the bottom line.   Presidente Zero throws his latest campaign piece of meat (a “budget”) out for the Republican to go into a dizzle fit over.  Great theater for mainstream media talking heads, but if you want to know what this will mean in due course,  look at Greece, and multiple the effect 30 fold.

The bottom line in terms of Presidente Zero’s budget is this: $1.33 trn budget deficit in the 2013 fiscal year – more than the $1.296 trillion 2011 budget deficit.   That takes the debt up to $18 trillion, in late 2013, and I think sooner.   That’s about 118% debt to GDP assuming interest cost don’t spike or the economy sinks (this budget assumes increasing to 3% in 2012, 3.6% in 2013).   I see revenues lagging even this still too optimistic  projection.  The Prez Zero budget assumes higher taxes,  and the end of the Bush taxes.  We will see how that plays out during the next economic crisis.

Meanwhile as a clue to how this plays out with the faux fiscal conservatives, the WSJ reports, “House Republican leaders said Monday they would introduce a bill extending the payroll-tax break for the rest of the year without finding spending cuts to offset the program’s cost. The proposal marks a major shift for Republicans, who previously had insisted that the costs of extending a trio of provisions expiring at the end of the month be offset with spending cuts.”. This latest “temporary extensions” (see chart 2) will add $167 billion to the budget. This means the next $16.4 trillion debt limit will be breached, drum roll please, in September well before the  November election. The two party system will be swept away on this fiasco. Que delicioso!

Republican turnout in primaries is way down. Zero’s State of the Union viewership was also way off, as voters tune out. I have no intention of supporting this two party system.  In a recent Rasmussen poll, 43% believe that politicians picked randomly out of the phone book would do a better job than the current Congress. Thirty-eight percent (38%) disagree with that assessment, while another 19% are not sure.”

For those of you who still give a shit, there is an alternative. American Elect will draft a Presidential candidate, and is now on the ballot in seventeen states so far. They have 450,000 Facebook “friends”, and over 2.4 million signatures. AE is currently taking delegates, which involves going through a security question process. Of course as a grass roots organization they take donations, and volunteers.  I am still supporting Buddy Roemer who will likely seek this nomination, but there are others. Anybody who wants to get involved in Roemer’s AE bid, please contact me. There is also a good size petition to sign here, asking MSM to let Buddy in on a GOP debate.

4 Responses to In Terms of the Final Outcome, the Political Polarization Amounts to a Hill of Beans

  1. tricky rick on February 14, 2012 at 11:09 am

    Saw Roemer on Colbert couple months ago. Interesting guy… sign me up…

  2. tricky rick on February 14, 2012 at 11:13 am

    General observation: If computers go “bye bye” (govnment holiday, nuclear blast, solar flare) best to liquidate all brokerage accounts now. If metals mines are nationalized, best to sell all those stocks now. If metals in possession are deemed a badge of terrorism, best to sell PMs while you can?

    where is John Galt when you need him???

  3. Russ Winter on February 14, 2012 at 9:45 pm

    Daily Beast: America Elect victory not out of the question.

    A recent USA Today analysis of state voter-registration statistics shows that both the Democratic and Republican parties have been losing registered voters since the 2008 election, while the number of independents has grown rapidly during this time. More than 1.7 million voters have left the Democratic Party since the 2008 election, and the number of registered Democrats has declined in 25 of the 28 states that register voters by party. The number of registered Republicans has declined in 21 of the 28 states that register voters by party.

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