Fiscal Cliff Negotiations

Ok, fine. I'm giving up on the the "no politics" rule. President Obama finally came out with his offer to solve the fiscal cliff "problem" that Congress created. It's not really a problem, because that's what everyone agreed would happen. Both houses of Congress and the president all agreed on this horrible event. Let's not forget that. In any event, here's Obama's opening bid:

Treasury Secretary Timothy F. Geithner presented the House speaker, John A. Boehner, a detailed proposal on Thursday to avert the year-end fiscal crisis with $1.6 trillion in tax increases over 10 years, $50 billion in immediate stimulus spending, home mortgage refinancing and a permanent end to Congressional control over statutory borrowing limits.

Ok. Taxes go up, we spend more, and Congress can't control how much we borrow anymore. Wait, what? I get that Obama wants to start with taxes, but he wants to now have more stimulus spending, and Congress won't be allowed to control the debt ceiling anymore. Is this plan supposed to reduce the deficit? I don't really get this at all, except that I'm pretty sure the Republicans are going to cave on this eventually. Here is what I expect to happen:

We'll have moderately long negotiations, lots of bluster, and right before the cliff hits, the Republicans agree to tax increases on high earners, more spending, and some theoretical cuts to be named later...maybe. The GOP will say "This was the best deal we could get". The economy will continue to suck, and the GOP will get blamed for not having even higher tax cuts and more stimulus spending.

Here is what I would do if I were in charge of the Republicans. I like to call it the "Joshua" strategy. (You'll see why a the end.) I know the economy is going to suck as long as we keep spending and taxing. I know the media and the Democrats (but I repeat myself) are going to blame me for it. Either way, if I agree to a deal or not, the economy is going to stay in this horrible shape or get worse. The only question is how do I not be held responsible for the cratering value of the dollar, the higher taxes, inflation, and high unemployment.

Let it Burn.

I tell Obama in a public press conference that I am against raising taxes on anyone, and I am against spending more Federal spending. However, I tell him that I am going to give him everything he wants without asking anything in return. He wants taxes? However much he wants on whatever income levels...fine. He wants more Federal spending? Sure. Spend as much as you like. Heck, even have a budget. Or not. Either way, he can simply write down what he wants to do, I'm going to say "Sure, pal. You can do whatever you want, but I'm telling you now that it's not going to work. Don't come crying to me later."

All the GOP members vote "Present", and the bill can pass through the house and senate with universal Democrat support. Obama signs it and everything will be peachy. Or it will burn, and then we get back to basics.

Watch the video below. If you don't know this movie, stop reading my blog, go watch the movie and come back. I'll wait.

Strange game, this "politics". The only winning move is not to play.