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Donnerstag, 3. Januar 2013

The ,,Fiscal Cliff’’ and Hurricane Sandy

Good News!  The Fiscal Cliff Legislaton is a done Thing.  Well, not altogether done but at least the minimum necessary.  For about Two Months or so while still important Things need to be done; the Federal Debt Limit and those onerous Budget Cuts.

Some complain that $ 60 Billion or so of ,,Pork Provisions’’ got attached to the Legislation by various Interest Groups as the Price to pay for getting this Legislation done.  The Complaint is obviously legitimate.

Still others, Governor Chris Christie of New Jersey and, to a lesser extent but just as convincingly, Governor Mario Cuomo of New York point out that the 112th Congress, which has now become History, adjourned and ended its Session without taking up Aid for the Victims and Reconstruction of Hurricane Sandy.  Interestingly, that Appropriation would have come up to about $ 60 Billion as well.

What is being missed in the Equation that the United States Government is in dire Straits and does not really have the Money either for the ,,Pork Appropriations’’ nor the Money needed for the Reconstruction of Hurricane Sandy.

On the other Hand, the News of the Fiscal Cliff Avoidance Legislation was ,,cheered’’ by Wall Street, with Big Gains on 31 December 2012, anticipating that an Agreement would be reached and some Legislation would be passed and, immediately following, on 2 January 2013, celebrating the Event.

Governor Cuomo should be thinking about and Governor Christie as well as President Obama should be suggesting to him that one look elsewhere to raise this direly needed Money from a minuscule Sales Tax levied on Stock Market Transactions of 0,1% or even 0,2%.  This would raise the Money for them very quickly, from a locally owned Institution which is controlling Trillions of Dollars and give the Federal Budget a welcome and much needed Relief.

One should be keeping in Mind that the Stock Market has been an enormous Beneficiary of Federal Largesse; propping up Corporations such as AIG and General Motors (the ,,New’’ General Motors, whatever that means) and, not the Least, the unbelievable and unheard of Policies of ,,Quantitative Easing’’ which have been pursued by the Fed under the Ægis of Mr. Bernanke.

The Federal Government needs to look for Economies wherever it is possible; even with increased Tax Rates, this comes nowhere near close to starting to make a Dent in the Federal Deficit (it actually allows it to continue to worsen), Governor Christie and all others should be looking for Revenues right in their own Back Yard.

The Address of the New York Stock Exchange is, as Mr. Christie surely knows,

No. 11 Wall Street, New York, N. Y. 10005.
Telephone:  1-212-656-3000

 

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