Our Changing Globe

Posts Tagged ‘administration’

When President Obama welcomes Israeli Prime Minister Benjamin Netanyahu to the White House today, Obama will most likely propose that Israel be a test of Iran’s readiness to halt its pursuit of nuclear weapons.

He won’t put it in such blunt terms of course, but will talk of the supposed linkage that exists between Israel making peace with the Palestinians, and Iran’s nuclear ambitions.

Obama will unsuccessfully try to prove, that there is a connection between an Israeli-Palestinian peace agreement, and Iran’s mullahs giving up their quest for nuclear weapons.

If Obama takes this tack, which is he expected to, he will fail miserably because there is no connection whatsoever between the two issues, and Netanyahu will correctly remain unconvinced.

Obama may then try gentle pressure, which is the most that he can use, but the facts are clear and Obama surely knows them and will respect Netanyahu’s rejection.

Did Iran set out to get nuclear weapons in order to help the Palestinians get a State? Of course not.

Has Iran even faintly suggested that it will halt its pursuit of nuclear weapons if the Palestinians get a State. Never.

Abbas controls nothing, and can hardly order a pizza.

He would lose the West Bank to Hamas in a matter of weeks if Israel were to hand it over to him, and Hamas stated as recently as yesterday that it will never recognize Israel.

Where would this new State be, and who would control it?

What is more, even under Abbas’s moderate guidance, Palestinian children are still raised on a diet of hatred in their schools, and specially made cartoons and videos that glorify dying a martyr’s death and others that show Jews drinking babies blood are common place.

There are presently fifty seven Islamic states, but Abbas is recently on record as saying that he will “never accept Israel as a Jewish state”.

Some in the U.S. would like to coerce Israel into some sort of two state deal, simply to see how Iran would respond, since there is not much appetite for either an Iran with nuclear bombs or launching an attack against it at the present time.

Netanyahu is a seasoned politician however, and knowing that Obama cannot force him, he will refuse to allow Israel to be used as a guinea pig.

Supply-Side Economics | The CERF Blog

www.clucerf.org1/10/12

As early as the 1950s, Mundell proposed an economic policy program of tight monetary policy to stabilize the value of the currency and low tax rates to stimulate economic activity. During the late … The Reagan Scenario included a sharp drop in inflation, a recession in 1982 due to tight monetary policy, passage of the Kemp Roth tax cuts and an economic boom starting in 1983. … Inflation and interest rates are much lower and tax rates are lower as well. While a high …

The hidden dangers of low interest rates | David Cay Johnston

blogs.reuters.com1/10/12

Low rates also come at a cost, cutting income to older Americans and to pension funds. This forces retirees to eat into principal, may put more pressure on welfare programs for the elderly, and … If rates return to, say, 6.64 percent, the level they were in 2000, one year's interest costs would equal the individual income taxes for all of 2011 plus the first few weeks of 2012. Last week , rates took a step in that direction. The yield on the 10-year bond, a benchmark for other …

President Obama’s recent claim to homeowners, that refinancing their mortgage loans at a lower rate, equates to a tax cut, doesn’t ring true for many tax experts.

Obama said at a recent press conference that the housing plan his administration had launched, had “already contributed to a spike in the number of homeowners who are refinancing their mortgages, which is the equivalent of another tax cut. The main message we want to send today is that there are 7 to 9 million people across the country who right now could be taking advantage of lower mortgage rates and that is money in their pocket”.

What Obama failed to mention however is that unlike the housing boom that led to the current financial crisis, this time, only borrowers with strong credit ratings and stable jobs will be able to save money if they refinance.

Obama’s announcement caused many tax analysts, including Gil Charney, who is an analyst for The Tax Institute at H&R Block to shout “foul”;

“While there could be overall savings by refinancing and lower monthly payments, there also could be reduced tax benefits as less interest is paid. Also refinancing could extend the period before the mortgage is fully paid off, so this might not be desirable for someone who wants to be mortgage-free. Therefore, someone about to make a financial decision should take their complete financial picture into account, not just their tax situation”.

In fairness to Obama, some analysts like Mark Steber, who is vice president of tax resources at Jackson Hewitt Tax Service did express a more supportive viewpoint, “While generally there is no tax advantage to refinancing at a lower rate, an individual can save on the total out of pocket costs each year over the life of the loan. Though a tax bill will actually increase after refinancing, the increase in taxes may be less than half of the total difference in interest paid, so the taxpayer may save more money than their taxes increase, therefore resulting in net savings”.