Neither is ideal but given the two choices in your question I hope "No Deal". The reality is that neither option is serious about cutting spending. According to the number crunchers, the US budget will STILL be in significant deficit for the next few years (continuing to 2021 and beyond if more spending cuts aren't made). So the choice is "significant indefinite deficit" or "significant but less deficit but with a vague possibility of more cuts to maybe eventually get a surplus (perhaps)". The number one problem is debt. It's now over $16 trillion but will easily surpass $20 trillion under either path. Basic maths - they are servicing the current debt due to the ridiculously low interest rates. When interest rates eventually rise even to a modest 5%, then the interest bill alone will be $1 trillion. Hence, they need to not only reverse the current $1+ trillion addition of new debt but they also need to produce a surplus of $1+ trillion just to maintain the $20 trillion debt. Ridiculous. The debt ceiling should also be fixed as part of the "cliff". Maybe they should simply default now and give up the charade The sooner they do it, the sooner the US economy will be able to heal.
the countdown. http://www.marketwatch.com/fiscalcliff .. [youtube]http://www.youtube.com/watch?v=9jK-NcRmVcw[/youtube]
I think they have worked out that either way they are incapable of paying off the debt. So wont really try. No Polly wants to be the bad guy. When Obama was elected I read articles that said he could never do what he wanted as simply there is no money in the draw.ie America is broke. They just keep promising others (china) that they will pay someday. Reality the have mortgaged the country to the hilt. Back to the question I hope whatever happens it does not kill the metals market for two years.
I want them to default, but unless the Tea Party wants to throw a spanner in the works they will continue to kick the can and trashing the economy for future generations to clean up.
I remember Big A.D. posting a story on here a few months ago about him having to phone creditors/suppliers etc that the company he was working for were going into administration. It's a horrible, heartbreaking thing to do but the better business people are those who are "man" enough (sorry ladies) to own up to their failure.
I do (hope they don't reach a deal that is) Why? I don't know, I guess just because if I was a D&D character I'd be chaotic neutral.
About 20 years ago my character destroyed a sentient sword. I mean, I was a barbarian and got XP for it so what was I supposed to do? Anyway, to this day the guys I used to role play with hold it against me :lol:
My tip is that a late deal will be done after a sharp decline in the Dow over night..The Pollies will then be able to say, if you don't come up with a parachute then imagine the crash on the 3rd Jan. Regards Errol 43 PS. I don't expect to be right but I'm never wrong
I hope they don't come to a deal because I think it will wake up many of the sleeping sheeple that don't know whats going on over there.... Also it is time for this ludicrous, reckless spending to stop so they can start repaying some bills and start getting back on track.
Everyone has been suckered in. The Fiscal Cliff is a boogeyman word (created & spread by the mainstream media puppets) to scare Americans (and it seems the the rest of the world) into thinking its a bad thing that has to be avoided. It's the end of unsustainable tax cuts... that could never be justified It's the end of unsustainable govt spending... that could never have been allowed The big stink in Congress is about how to avoid stopping the tax cuts and silly spending. WHY? They need to raise taxes... they need to stop pork barrel spending. There's no need to come to a decision/compromise... just let the process automatically kick in. Blame the previous administrations if they have to. Rather than Fiscal Cliff.. why not call it Fiscal Healing?
If the US is pushed into a position where they have to significantly raise taxes, they can kiss the country's economy goodbye.
Didnt Marvin Gaye write a song about that .... When I get that feeling - I need fisc-ual healing ..... FISC-U-AL HEALLLLING
fiscal cliff = bad theatre for the paesants. No matter what, these [compliment] are going to print hard enough to wake the dead. They'll print like mo'fos, print like mad men, print like fly pimps. Print until their eyes bleed. They will print via the swaps, via bank bailouts and mergers, via fixed Treasury yields, via real honest-to-God negative interest rates, via loans to banks on no collateral, via payroll tax reductions, and in the end via actual fiat paper instruments which they might very well drop in bails from actual mutherfucking helicopters. the rest is entertainment. are you entertained yet? "Government is the Entertainment division of the military-industrial complex." - Frank zappa