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The president and Congress have heard the public's anger over the fiscal cliff impasse and will...

The president and Congress have heard the public's anger over the fiscal cliff impasse and will likely find a resolution, says Dennis Gartman. We're starting to see some Senators begin to cave on their "no new taxes" pledge; they understand how serious the circumstances are. The markets are already beginning to react positively to what's coming out of Washington, so any further progress could mean a strong rally for U.S. equities. (Video)
Comments (40)
  • Those senators that are beginning to cave on raising taxes will only cave if there are entitlement spending cuts. I doubt that Harry Reid and company will go for any entitlement cuts so the caving by the Republicans is yet to be seen.
    27 Nov 2012, 08:09 PM Reply Like
  • When they offer 1 revenue raise for 10 spending cuts... I wouldn't call it "caving"
    27 Nov 2012, 08:17 PM Reply Like
  • Obama's offered nothing - - - - just more welfare checks and food stamps for his supporters ... the moocher class


    27 Nov 2012, 09:38 PM Reply Like
  • Fiscal Cliff issues may get resolved somehow, but don't expect ANY DEAL without resolving the SAME ISSUE THAT SUNK THE MARKET IN AUGUST 2011.......DEBT CEILING INCREASE.
    27 Nov 2012, 10:05 PM Reply Like
  • I have money and I pay taxes.
    Your "moocher class" comment is ignorant and you should be embarrassed.
    Romney did not measure up to Obama and thats why he lost.


    I just shake my head when people like you don't like your life and blame the guy who is actually on your side while you do the bidding of your enemy.
    28 Nov 2012, 12:28 AM Reply Like
  • Wishful thinking.


    BTW, I thought this was a good one:


    “Compromise is when one person wants to rob a bank and the other person does not, and they compromise to rob a person outside of the bank.”
    27 Nov 2012, 08:14 PM Reply Like
  • So, any compromise is bad?
    27 Nov 2012, 09:51 PM Reply Like
  • Some need to understand this is just ONE problem...Some just don't get it !! India does..


    Tuesday, November 27, 5:04 AM Demand for gold in India, one of the world's largest markets for the metal, is forecast to rise to 800 metric tons in 2012, well above a prior prediction of 650-750 tons, says Amresh Acharya of the World Gold Council. The increase in the outlook follows a pick-up in purchases during the festive season and comes despite government efforts to restrict gold sales amid concerns about India's current account deficit
    27 Nov 2012, 08:16 PM Reply Like
  • IT,
    But gold is presently heading back down again now.
    27 Nov 2012, 10:19 PM Reply Like
  • UI


    Yes slightly as people are taking profits, and of course margin calls. But a few bucks daily isn't really moving down as much as the Dow has..Gold is in a trading range, silver seems to have found a floor at $34 bucks right now..


    I believe you know i really like silver as a strong play , industrial use. and now both can be used in some states as cash. YOU just go to a bank i believe, get the days current value, and walk out with a debit card.


    I also think the public just assumes everything will work out. I have asked 20 people who own any commodities in the physical and i got one YES. I also believe the paper trades are controlling the price and the naked shorts are killing the price right now.


    As the central banks load up on Tier 1 money!!! So i am guessing games are being played involving the price of gold right now.


    God forbid our fiat currency becomes more worthless then the metals will flourish...But be careful of those ETF'S!!
    28 Nov 2012, 12:29 AM Reply Like
  • I have only seen movement from the Republicans, none from the Democrats. The Democrats, of course, don't want to talk spending cuts. I believe in compromise, but if the other side doesn't move, I wouldn't move either, I also would not accept a promise to address spending later.
    27 Nov 2012, 08:16 PM Reply Like
  • Larry:


    The Republicans walked away (or so the story goes) from a 10 for 1 trade of budget cuts versus tax increases. Even the tax increases aren't really tax increases, just expiration of temporary tax cuts.


    In other words the Republicans haven't given in on anything, but are in a far worse position now to hold the line.


    They should have take the deal Obama offered when he was weaker.
    28 Nov 2012, 12:36 AM Reply Like
  • "Alert to all Lemmings, cliff ahead. Oh crap, I did not see that coming."
    27 Nov 2012, 08:17 PM Reply Like
  • I look for Republicans to hold 98% of American families hostage, only for the benefit of the top 2%. Republicans are not the party of wisdom or common sense, two lost national elections and money is on another lose in 2016.
    27 Nov 2012, 08:19 PM Reply Like
  • T3


    It is your socialist POTUS who will sink this country. I assume you don't see any reasons why though, do you?


    Another comment taking up space.
    27 Nov 2012, 08:25 PM Reply Like
  • The GOP got us here. It is in times such as these that Government is
    supposed to help out! Look back in history, the presidents that started social programs or kept them alive did it for a reason> We were in hard times! - I believe we will come out of this with
    many of the Republican sell out policies either turned around or turned off. - I don't want my Children or Grandchildren to have to go through
    this. Let's just get behind OUR OWN COUNTRY and prove that the American spirit is one that cannot be divided!!
    28 Nov 2012, 04:26 AM Reply Like
  • tresa


    With this amount of debt i honestly think we are too late, and it sickens me!!
    28 Nov 2012, 04:30 AM Reply Like
  • I am hopeful the statement "We're starting to see some Senators begin to cave on their no new taxes pledge, they understand how serious the circumstances are." was meant to end with "on both sides."
    27 Nov 2012, 08:20 PM Reply Like
  • So much energies and resources are constantly spent in campaigning for this nation of self-promoters.


    Where is the beef, the nation building?
    27 Nov 2012, 08:29 PM Reply Like
  • An agreement will be reached, if for no other reason than the fat-cat elected officials want to get re-elected, unlike Mr. Obama, who has no such further worries. Anybody who thinks a group of politicians, from either party, is going to drive this bus over a cliff hasn't endured many decades of political life in America.
    27 Nov 2012, 08:30 PM Reply Like
  • No doubt. Four more years of kicking the can. Eventually it will all collapse.
    27 Nov 2012, 08:54 PM Reply Like
  • TACK


    To me they have no choice, although i believe it won't be enough...Maybe i am nieve but to get out of this mess i think we need a tax INCREASE, not a decrease on the middle class.


    How else do we pay off this debt? I fully understand that things would get tight, but just look at housing as that seems to be picking up right now. Also look at the mess over the pond.


    Think our citizens could handle an austerity budget. i DON'T....I can see rioting if a special tax is put on products. One state is increasing the tax on cigarettes, and wanted a nickle tax on every bullet sold.


    Thinking that actually would deter crime..I met a Police Chief from NYC at a aparty, we are friends, and he said i have no idea of all the white collar crime that is flowing over to people stealing food..


    They are just trying to talk the vendor out of filing a report and walking away from it. The unemployment problem is worse then reported, some have exausted their benefits, and are now turning to other matters to just eat.


    Imagine a guy in a suit walked up to a women who came out of the shopping store, showed a knife, and just said please put those packages in my car!!


    He hid his license plate, and now the store has a security guard in the parking lot..Times are starting to get tough, and won't get easier anytime soon.


    This is the real world now..
    28 Nov 2012, 12:41 AM Reply Like
  • all the talk is about tax increases, none on the spending side


    heck I'd be happy if they just cut real spending by 1%, that means no base line 5% increase like normal. Actually this is a real Republican proposal, just the media is all concerned about tax the rich.
    27 Nov 2012, 08:33 PM Reply Like
  • Allowing these tax cuts to expire is best for the country. Bottom line; services must be cut, govt must be reduced, taxes must be raised. Sorry, no other logical choice here folks. Obama is not making this easy for anyone except the ever increasing group of freeloaders wanting to extend the hand-outs for another four more years.
    27 Nov 2012, 08:51 PM Reply Like
  • In the last 4 years as I knocked on doors to start up my client base, I found out that 75 percent of the "freeloaders" you speak of are actually midlife and elderly folks who have just lost about 80 percent of their savings due to the market collapse. Stop living in your bubble and get to know your neighbors. They aren't all losers. They just LOST and now need help.
    28 Nov 2012, 02:51 AM Reply Like
  • I think this is a smoke and mirror trick. Nothing will change, rich gets richer and middle class gets screwed.
    27 Nov 2012, 09:22 PM Reply Like
  • The important things for all Republican members of the House to understand are that:


    (a) they have absolute control of spending. Regardless of what's in the budget, funds cannot be appropriated without their initiative. The House should construct its own budget and make it clear that that's the most that will be appropriated regardless of what the President requests or the Senate approves.


    (b) No Republican who votes to increase taxes will make it out of his next primary, which as a reminder is about 18 months away. Period. Absolutely no exceptions.


    And really at the end of the day, that's all anyone needs to know. The House has the Constitution on its side, and its power is absolute. This is all much ado about nothing, because the people have already spoken by electing their Representatives. If the Democrats don't like it, they're welcome to try again in 2 years. Until then, the House leadership can, should, and must make it clear that they will not under any circumstances appropriate funds in excess of revenue, nor will they approve any tax increases. As a sop to Democrats, they can choose what gets cut. This is actually very simple if the House leadership appreciates and understands the power they have. This is not an imperial dictatorship and the President actually has very little power to spend money. All he can do is veto spending bills. If he's unhappy about this, he needs to be told publicly that if he wanted to spend money, he should have run for a House seat instead.
    27 Nov 2012, 09:55 PM Reply Like
  • bearfund:


    you probably don't know this, based on your blustery tone, but the Democrats actually got more votes for Congress than the Republicans did.


    It was only re-districting that allowed the Repubs to hold the House.


    As for the other part - the Repubs are somewhat powerless to prevent the rates from going back up to where they were - the tax cuts are expiring and Congress needs to write (and pass) legislation to establish different rates.


    In theory the Dems could just say "no" to everything the Repubs proposed (how ironic), let tax rates go back up and see only relativly minor mandatory decreases in spending.
    28 Nov 2012, 01:11 AM Reply Like
  • I'm very familiar with the entire situation, thanks. There's no bluster here; just read the documents and you will understand what I'm saying. It's tremendously frustrating right now that the Republican party is irrelevant, because the Democrats do not represent what most Americans want. The approach I suggest would be a step for them to become relevant again. The only alternative is to drum up more support for the Libertarians, which hasn't really been working over the past few decades. We need a useful alternative and we don't have one today.


    The "more votes for Congress" thing is pointless. First of all, only the House is relevant; the Senate has a different role and does not have the House's power with respect to appropriations. Second, there are 435 roughly equal districts and the people in a majority of those districts chose Republicans. Redistricting is a normal feature of the system and its effects are a deliberate and desirable aspect of it; without redistricting, depopulated regions would hold undue sway. Your statement is equivalent to saying that the Democrats would surely have won the House if only Democratic voters had the right to more votes per person than Republican voters. Hard to disagree with that assertion, but it's not how the system works nor should it be. Since the only sensible reason to vote for a Republican is to cut spending and keep taxes from increasing, and the House's role in appropriations is well understood, we can safely infer that the American people clearly and strongly rejected the President's reckless spending plans.


    If the Democrats want to allow taxes to rise, the House should shut down the government. Not for a few weeks or as a negotiating tactic but for 2 years as a strategic decision. Because you can't spend a dime without the House's approval. After 2 years, we'll have a built-in referendum on that approach. The news cycle can't sustain constant bombardment on a single issue for 2 years, and after a month or two without the media reinforcing the message that they can't live without a massive federal government, the people will realise that they actually don't miss it much at all. And when the no-government bloc wins the referendum election in a landslide, we'll have 2 solid years of data on exactly what was and was not missed to inform a complete reboot of the federal government's role in American life.


    That's the take it or leave it situation, and the fact that all this noise is being made about it indicates that the President's advisors, at least, understand the situation very clearly. It is their hand that is weak, not the House's, and they know it. If the Republican Party wants to be relevant again, they need to push that advantage for all it's worth. On the face of it, it's a high-risk strategy, but the reality is that if the Republicans support tax increases and huge deficits, there's really no reason for their party to exist at all, and certainly no reason for anyone to vote for them. Democrats can jack up taxes and spend like drunken sailors just as well, and they tend to do it without spewing obnoxious nonsense about their religious views, pseudoscientific claptrap about gynaecology, or glowing praise of incompetent officials. Without fiscal policy as a differentiator, the Republicans are without purpose. So their choices are to take a stand on this issue and use the few powers they can exercise to do it, or disband their party and scatter. One of these choices has upside. The right answer is obvious. And it happens to be the one we desperately need someone to step up and insist upon.
    28 Nov 2012, 10:36 AM Reply Like
  • bearfund:


    thanks for elaborating your position. It makes more sense to me now.
    My guess is that the Republicans will try to appeal to Hispanic voters somehow - probably do something weak on immigration reform and then try to trumpet it as proof that they love hard-working... even as I type this it seems far-fetched....


    The problem for a large moderate segment of the population (social progressive, fiscal conservative) is that the Republican positions on social issues are so backward that even if they were to be more fiscally responsible, the social issues are more important.


    Obama won for that reason.


    I don't think the House has the guts to do what you are proposing. They're just scheming to figure out how to let taxes go up without making Grover go crazy.
    28 Nov 2012, 11:34 AM Reply Like
  • Hopefully no deal will be reached and we go into sequestration right away. That is the only way spending cuts will occur. Unfortunately, that means taxes will also have to go up on everyone else since Obama and Reid won't cut spending to satisfy the sunshine kids, but so be it.


    The republicans are idiots. If they only go along to raise taxes with no spending cuts that is far worse, both mid and long term. Tax hikes will not go into debt reduction. They will only be redistributed through the public sector whorehouses and payroll farm animal agencies and then whatever is left over will be trickled out to buy votes after buying the public sector's insatiable greed.


    America is on track for further downgrades and bond implosions. The only way to avoid this is automatic sequestrations, but the republicans are too idiotic to stand their ground.


    This country is screwed.


    Better hide your assets. It is coming and there will be no escape.


    Obama is like a blonde bubblegum chewing dunce who will just continue spending like an out of control addict. Taxes are just his way of further coercive commandering that will do little other than provide more debit food stamp cards to the unproductives. Even if that were not true and the taxes raised were used to pay down the debt, it would only pay for an additional 8 days of current government spending while suppressing growth drastically. It will be a disaster to allow govt. to continue this kind of spending.


    We need serious spending cuts now. It is the only way or we're done.
    27 Nov 2012, 10:54 PM Reply Like
  • It is good that the tribal elders have these very public fights about the govt's "budget" and its constraints on spending more than it receives in taxes. It keeps alive the myth that today's "money" is just like gold coins - and ya caint spend what ya aint got. It is an essential theater to maintain the myth of the modern Dollar, in conjunction with the comic strip "educational" videos put out by the Fed.
    27 Nov 2012, 11:35 PM Reply Like
  • "The president and Congress have heard the pulic's anger over the fiscal cliff".


    I'm not angry and I've told my representatives so. The laws are on the books. Let them take effect. Every imaginable "compromise" will mean bigger government. Tax increases will go through and ALL spending cut promises will be dishonored.


    Let the Bush tax cuts expire and sequester spending. I can simply avoid the taxes by reducing income. Government spending benefits me only marginally.


    The dollar will strengthen and the inflationary threat to what wealth I've been able to accumulate will be reduced. Maybe we will experience a mild or deep recession. So what. If government intrusion into the market and our life and liberties can be reduced, the economy will quickly find a new footing.
    27 Nov 2012, 11:55 PM Reply Like
  • If we suck 3-5% of GDP out of the economy - through tax cuts and spending reductions - the Dollar will weaken - and dramatically. Use the old George Soros rule of thumb: Tight fiscal policy& Easy Monetary Policy= Weak Currency. And vice-versa.
    28 Nov 2012, 12:10 AM Reply Like
  • This is why a massive -- 50% or more -- reduction in federal spending needs to be combined with a radical shift in monetary policy. Eliminating QE by an amendment to the Fed's charter plus an interest rate floor equal to the previous year's change in CPI-U plus 100bp would be a reasonable place to start. Replacing the dollar with gold units would be much better but seems too much to ask right now.


    Over the 100 years from 1820 to 1920, the United States went from trivial afterthought to dominant global power. We need to dance with the one we brought -- and that's solid money, tiny government, and hard work. The dance is almost over, and we've spent plenty of time with flashy girls of no substance who have since flitted off with others, leaving us more than a little angry and disappointed. They promised so much for nothing, and delivered so little. But the band hasn't left yet, and neither has our date.
    28 Nov 2012, 12:25 AM Reply Like
  • Oops I meant "tax INCREASES and spending cuts"
    28 Nov 2012, 12:10 AM Reply Like
  • if they don't reach an agreement lets fire them all
    28 Nov 2012, 02:51 AM Reply Like
  • Let the tax cuts expire and see what republicans do next. Let the next congress wrestle with the issues. This one has proven to incompetent.
    28 Nov 2012, 07:17 AM Reply Like
  • When half of the people get the idea that they do not have to work because the other half is going to take care of them; and when the other half gets the idea that it does no good to work , because somebody else is going to get what they work for, that is the beginning of the end of any nation.
    28 Nov 2012, 01:17 PM Reply Like
  • 7footmoose:


    Lets see, you're describing a 50% unemployment scenario as the "beginning of the end?" Thats pretty bold!


    Which country are you describing?


    Have some confidence in your fellow Americans and please stop whining or move the "heck" out.
    28 Nov 2012, 04:13 PM Reply Like
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