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Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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The Best of Jim Cook Archive

 

Condensed Articles

January 7, 2013

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NOT THE ONLY CLIFF
By Charles Hugh-Smith

The fiscal cliff dominates the mainstream news, but it is more like a bump on the pathway to the real cliff.  In essence, the path has turned down and we’re picking up momentum, gaining speed as we head for the cliff.

The real cliff is the gap between what has been promised and what can plausibly be collected in tax revenues: $86 trillion byone recent estimate, over $120 trillion by other guestimates.  The difference is caused by the relative rosiness of the projections to control Medicare and Medicaid spending.  Lower estimates assume we can stop the growth of these programs in the long-term, something that has not yet happened for the reason that the system lacks any controls to do so.

This gap widens by $7 trillion a year.  That is, the promises to present and future retirees and beneficiaries goes up if we count the promises made not just for 2013 but for the future.

This $7 trillion is twice the entire Federal budget and roughly 50% of the nation’s GDP.

Understood in this way, we can see that raising taxes by $200 billion or cutting expenditures by $200 billion is not going to keep us from hurtling off the real fiscal cliff in a few years.