US To Officially Go Over The Fiscal Cliff

US To Officially Go Over The Fiscal Cliff (ZeroHedge, Dec 31, 2012):

As we forecast back in November, it is now official that the House will not vote on any deal out of the Senate, assuming there is one which there won’t be of course, later today, which means America will officially slide off the Fiscal Cliff. And now cue everyone being very hopeful and optimistic a deal will get done momentarily, if not sooner, in 2013. Of course, we all know just how far optimism takes America’s dysfunctional Congress. The biggest irony in all of this is that the only winners today were the much hated “1%”-ers, whose taxes may or may not go up, who just got to book major year end profits on this last minute ramp. The remainder of America’s population can quietly look forward to 2013 with “hope” and “optimism” that in 2013 Congress will finally stop being dysfunctional. Good luck. Oh, and before we forget, America just breached its debt ceiling: now the pillaging of various government retirement funds begins.

Finally, since the US is now officially over the cliff, does this mean that Ben Bernanke can finally get to work? Recall his words:

“if the economy actually went off the fiscal cliff, our assessment, the CBO’s assessment, outside forecasters, all think that that would have very significant adverse effects on the economy and on the unemployment rate. And so, on the margin, we would try to do what we could. We would perhaps increase a bit.”

Is it time to increase QE just “a bit” then?

1 thought on “US To Officially Go Over The Fiscal Cliff”

  1. This congress does indeed include the Vandals from Within to which Lincoln referred. He once said America would be destroyed, not by an invader from without, but by the Vandals Within. He, too, despised corporations, and saw them as the most destructive and evil of human invention.
    Agree with you completely. But, if Americans think they have two more years to wait for yet another mockery of an election, they are optomistic indeed. I don’t think we have another two years, the world economy is imploding.
    40% of world GDP contributors no longer use the US dollar. In 2010, 100% of world GDP contributors used the US dollar in international trading. By this time next year, it will be at least 50%, the entire concept of a world reserve currency has been made obsolete by electronic currencies that translate value automatically without need of conversion to the dollar, or anything else.
    WE are quickly losing first world status, and the fools in power are accellerating the fall.


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