Bush Tax Cuts Will Define America's Short Term Future

The House approved Obama tax plan was rejected by the Senate today so it's back to negotiation by the lame duck Congress. Once again, it is uncertain if the Bush tax cuts will be extended or allowed to lapse.

The US economy is sending mixed signals whether it wll crawl forward in improvement or slide back deeper into recession. The stock market and consumer spending look marginally better but unemployment, manufacturing activity and the news in general look worse. And this is a happy, distracted time of the year.

I think the Bush tax cuts are critical to the short term future of the US economy. If the tax cuts expire, the US economy will surely diminish and could push the country deeper into the depression. Health care and insurance costs will reduce take home pay next year, further reducing disposable income. The market will sell off in mid December if the tax cuts expire, resulting in a downward shift in mood of the country.

The American century has ended and the American Empire is in full collapse. But if the bitter democrat lame ducks don't do due diligence and restore the Bush tax cuts the fall will be faster and harder. We'll see.