Thursday, November 12, 2009

White House Aims to Cut Deficit With TARP Cash

As millions flounder in the worst job market in six decades, the White House is planning on using unspent Tarp funds to pay down the deficit.

Rather than use the money to spend on new public works projects or pass along as a tax reduction to try to help restore income to households (households other than the 7-figure Wall Street bonus earning kind), the Administration is paralyzed with fear over a deficit that is only slightly above the Reagan shortfall of 1983.

And to make matters worse, more fiscal austerity is likely coming our way. According to sources, White House Chief of Staff Rahm Emanuel is pressing for substantial spending cuts to go with any tax increases to try to avoid the "tax and spend" label that has bedeviled Democrats, according to administration and congressional officials.

Avoiding labels. That's what is has all come down to as people suffer in the worst economy since the 1930s...avoiding labels.

With a double dose of fiscal austerity--tax increases and spending cuts--coming our way in this president's first (and probably, only) term, we are guaranteed to repeat the mistakes of the past. If these measures are adopted, the a double dip, recession or even depression, is inevitable.

Enjoy the ride in the stock market for a little while longer, however, it's becoming increasingly evident that the Deficit Terrorists have hijacked this Administration and are firmly in control of policy. That's not good news for the outlook going forward.

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