Gaza-Israel Fighting, Fiscal Cliff and Debt Ceiling to Infinity

A cease-fire was announced earlier this week in the Gaza-Israeli conflict. Fighting lasted longer than a week and claimed the lives of 140 Palestinians. Israel counted five dead and more than a dozen wounded.  It is not the “durable outcome” Secretary of State Hillary Clinton was seeking, but at least the bloodshed stopped.

The only question is how long will it be before the shooting starts again. This is a cease-fire, not a peace accord. There was significant destruction on both sides as Hamas was firing hundreds rockets as far as 47 miles into Israel. The rockets are supplied by Iran and are getting more and more deadly and powerful.

Likewise, the Israelis inflicted heavy damage through air strikes in Gaza. Hamas agreed to a cease-fire as Israel was getting ready to invade Gaza to stop the rocket attacks. Nothing has been settled. They just stopped shooting for a while. Egypt was instrumental in arranging the cease-fire.

The conflict has wider Middle East implications for war. Hamas is supported by Iran, and, now, Egypt is also backing Hamas. The Muslim Brotherhood took control of Egypt in the last election. Many, including the FBI, think the Muslim Brotherhood supports terrorism, although the U.S. does not list it as a terrorist group.  Could Egypt now be drawn into a conflict with Israel?

We are still careening towards that so-called “fiscal cliff” of automatic tax increases and mandatory spending cuts if a deal is not reached in Congress before the end of the year. Now, Speaker of the House John Boehner says even President Obama’s health care plan should be on the table for consideration. This is the President’s signature legislation of his first term. I find it hard to believe the President, fresh off a re-election victory, is going to do much dealing on this point. Everyone thinks a deal will be reached, but who knows.

The U.S. is short on cash, long on debt, and there is no real fix in sight. We might get another can kick.
Speaking of debt, this week, Treasury Secretary Tim Geithner said we should raise the debt ceiling to infinity. A friend of mine texted me the news along with the phrase, “We are Doomed.” Maybe that’s why billionaire investor George Soros is, once again, buying gold.  

Finally, as of last weekend, 50 banks have gone under so far this year. I find it odd that this sort of bad news is not reported in the mainstream media. Those banks didn’t go under because they were all making too much money in a good economy.

Join Greg Hunter as he gives his analysis on these stories and more in the Weekly News Wrap-Up