Now that the election is over, Capitol Hill bureaucrats are busy attempting to avert America’s plunge over a looming fiscal cliff. If they fail to do so, our national economy supposedly will drop into an abyss of devastating tax increases, reduced spending, and even another recession. Politicians have labeled their creation “sequestration.” Yes, the abysmal fiscal cliff is the result of pre-election partisan politics.
Obama democrats have attempted to increase taxes over the past four years. Not only is Obama attempting to do so now, the end of Bush-era tax cuts also will increase taxes while American incomes will be taxed more by the implementation of Obamacare, by increases in gas prices, and all other goods and service because of these.
If the fiscal cliff is not avoided, higher unemployment, bankruptcies, fewer loans, slower economic growth, and another recession is expected.
The fiscal cliff is not the only economic doom facing America. The blind also are being led to the brink of a regulatory cliff as described by Senator Rob Portman and others. This regulatory cliff is the result of new regulatory policies concocted by bureaucrats of the international banking community. Is is called Basel III. If implemented, “it will dramatically increase the costs of mortgage and small business loans while, according to many experts, actually making the banking system less stable, wrote John Berlau in a recent OpenMarket article.
Basel III is a response to the global recession that was caused by rotten government policies, Basel II policies, subsequent bank lending and financial investment practices. Basel III is more complex. Even worse is its one-size-fits-all approach. The big stink among both liberals and conservatives is the likely harm implementation of Basel III on small community banks. These banks are seeking exemption from Basel III as they should be. It was the national and international banks that were the key players making the American economy dangle over cliff during the great recession. Any new regulatory policies should be aimed solely at the big banks.
By the way, America, along with many other nations, are still dangling over the abyss hanging on to a limb of a broken tree caused by those with control over the political economy. Can we expect those who created to actually fix the problem? Financial expert John Mauldin is among many who hope so but have serious doubts. That is why he is hosting a discussion on the “Post-Election Economy” with leading economists, financial experts, and politicians including Ohio Senator Rob Portman. This free online solutions event happens on Tuesday @ 2PM eastern standard time.