Whereas We The People Are Really Pissed Off
January 13, 2013
We were just gouged on January 1st for a fresh round of tax hikes and health insurance rate increases. And we are being told by Washington that we must prepare for another round in February of even more tax increases and Austerity cuts. We were also just told by IMF chief economist Olivier Blanchard that every 100 billion in budget cuts in Europe did three times as much damage to the GDP as had been predicted. We were recently told by Wall Street economists at J P Morgan and Goldman Sachs that we could expect the US economy to shrink 1.5% due to the January tax increases and another 1.5% for Obamacare health insurance rate increases.
People all over America are getting their first paycheck of 2013 and are shocked to see how much less money they are taking home due to higher taxes. Others are going to medical clinics and learning that their co-pays and pharmacy charges are higher. Over the next month small businesses and millions of people will pay more for health insurance because the Obamacare bill was written by health insurance corporations.
So the question of the day is this: What if instead of a projected decrease of 3% in the US economy, Blanchard is right and our GDP decreases three times as much or at an additional 9%? Maybe that European figure does not apply to America and the January 1st tax increases only shrink America’s GDP by an additional 6%. The US GDP grew at less than 1% in the last quarter of 2012. Dr John Williams at Shadow Stats says the real inflation rate is 9.6%. If we subtract 9.6% from 1%, we get an economy shrinking at 8.6% in 2012 and starts out shrinking anywhere from 11 to 17% in 2013. Suppose the economy only contracts another 12 or 13%, even the bought and paid for media will no longer be able to deny that we are entering another Great Depression. Must I remind you again that at least 3 million Americans died of starvation in the 1930s.