Dog And Pog Show Continues

It took less than two months for campaign promises of no new taxes and deficit reduction to vanish without a whimper.  Herbert Hoover's political career was cut short because he tried to balance the budget to save the economy in the early years of the Great Depression.  In other words, politicians that offer Americans their cake and allow them to eat it too win elections.

The dog and pony show of raising taxes ever so slightly without paying down anything is met with thunderous applause from a roaring stock market.  Be warned, the show of infinite liquidity and debt creation has no exits.  Only those that refrained from buying tickets to the show will have options when applause turns to panic in the coming years.

Headline: CBO: Fiscal cliff deal adds $4 trillion to deficits

The fiscal cliff deal approved by Congress will increase deficits over the next decade by close to $4 trillion, according to the Congressional Budget Office.

That estimate is relative to a benchmark where all the Bush tax cuts expire and the the fiscal cliff stays in place. Technically, that's what would happen if Congress had done nothing to avert the cliff.

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