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The fiscal cliff: isn't it a good thing? What is the fuss about?

alexd

Administrator
Staff member
So if I understand it correctly, if the Democrats and the Republicans in the US can't come to some sort of agreement on postponing or stopping this automatic legislation, huge cuts to government spending and broad tax increases across the board will automatically come into effect.

Isn't it about time? Instead of borrowing money from their grand-kids and great grand-kids to give tax cuts to today's millionaires, and keeping the military-industrial complex happy with their $5000 screwdrivers and billion dollar aircraft, shouldn't they start living within their means?

Isn't the fiscal cliff a great way to make sure that happens?
 

danielablau

TRIBE Promoter
Except that when it happens people no longer can pay their bills, mortgages etc. and a quick crashing of the economy......if I understand things right.
 
Yeah, this would trigger another recession, and likely take us with them.

Personally I think the Republicans are being absolute retards about this, as many of them were stupid enough to sign Grover Norquist's pledge to never raise taxes so long as they're in office. It might have been politically convenient for showboating purposes during the years Clinton was in office and made for great theater when Newt Gingrich was speaker of the house, but they should have realized how politically suicidal this was in the long run.
 

alexd

Administrator
Staff member
So there is no way to make the necessary changes to the economy without crashing the economy?
 

rswbrixton

TRIBE Member
the markets reaction to this is gonna suck donkey balls . if no deal at midnite dec31/12 - then a number of tax cuts introduced years ago roll back up , payroll taxes back up , budget spending reduced/halted . the debt ceiling is reached again on monday .

this is goin to be a classic one step forward two steps back . i hope they get their shit together - but really , it only defers the inevitable - the shit soon has to hit the fan .

markets are already in a pause or standstill the last few sessions . anxious to see what happens- or does not happen next week .
 

Bass-Invader

TRIBE Member
because certainty is a fundamental underpinning of a functioning economy and the existence of this completely manufactured ceiling removes it. long term economic policy goes out the window to make way for short term 'compromises' which get even less done, and probably do more harm.

Economies do not function like credit cards.
 

rswbrixton

TRIBE Member
yeah its all good if growth remains a 2.5-4% annually - but the great decline is on - more takers than givers - and the numbers wash will soon hit the rinse cycle .
 

JamesM

TRIBE Member
as obama put it, enough with teh brinkmanship.. it fucks with the market. and it's just plain nasty way of doing business.

now the debt ceiling is next! Last time they blinked that shit their credit rating took a hit.

way to go. looks like how they do business in the NHL.
 
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