- Fiscal Cliff Deal, Jim Sinclair, NJ Gov Chris Christie $60 Billion Relief Package and More!
by 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.