I am wondering about "fiscal cliff"

Started by Elfie, October 10, 2012, 07:32:26 AM

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Elfie

 um where would be a good place to get the real skinny on this.  Heard about it this morning on the news,,, just did a quick google search,,, ok theres tons,,,but which would anyone suggest for a good description of possible affect?
;)
Nature is an infinite sphere of which the center is everywhere and the circumference nowhere.
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Solar

A good definition would be, we've already gone over the cliff, it's just that printing money, lying to the American people, and people oblivious to the situation, is making our fall take all that much longer.

The descent can be slowed through serious cuts in spending, but truth is, unless we cut out all social programs, we will not stop the fall.
I doubt anyone is willing to do the right thing, from politicians, to those sucking off the Govt teat.
We will eventually crash, just like Greece.
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Elfie

thats what I was afraid of,,, my way of thinking is correct... Guess I will just continue to continue in  getting ready for the better then real possibility of it all....
ugh.....
Nature is an infinite sphere of which the center is everywhere and the circumference nowhere.
Blaise Pascal

Solar

Quote from: Elfie on October 10, 2012, 08:18:17 AM
thats what I was afraid of,,, my way of thinking is correct... Guess I will just continue to continue in  getting ready for the better then real possibility of it all....
ugh.....
Same here Elfie, I would love to think differently, considering I'm an eternal optimist, but the realist in me slaps the optimist awake and together work toward an inevitable future of much higher prices.
That's why we are hedging against inflation through storing years of freeze dried food.

I think anyone that  doesn't, is ignoring the reality around them, they ridicule those of us for preparing, yet think nothing of buying insurance?
Kind of a real life disconnect going on there.
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Elfie

Quote from: Solar on October 10, 2012, 08:35:26 AM
Same here Elfie, I would love to think differently, considering I'm an eternal optimist, but the realist in me slaps the optimist awake and together work toward an inevitable future of much higher prices.
That's why we are hedging against inflation through storing years of freeze dried food.

I think anyone that  doesn't, is ignoring the reality around them, they ridicule those of us for preparing, yet think nothing of buying insurance?
Kind of a real life disconnect going on there.
Oh thats very true.... We are doing the same thing,,, bits at a time,,, and then just continuing to continue in the stock... prep, whatever call it... smart people will,,,   those that dont are going to be not on the good side of bad should it fall or when it jumps up and bites them because they didnt at least make an attempt...
Nature is an infinite sphere of which the center is everywhere and the circumference nowhere.
Blaise Pascal

kramarat

#5
Rather than trying to figure out what's going on here, you can look to Europe. The various countries that are in trouble are all microcosms of the US, to one extent or another.

When Obama speaks of his plans, there are examples of those plans already failing. For example, the new french president has decided to go after the rich for more money................the rich are leaving.

http://www.cbn.com/cbnnews/world/2012/July/Frances-Super-Rich-Moving-to-Avoid-Tax-Hike/

The Greeks have very cushey plans for their government workers, and they are off the cliff already. The difference with us is, we have no surrounding countries to bail us out. By looking at Europe, we can watch Obama's policies fail before they are even implemented here in the US.

http://www.bbc.co.uk/news/business-13798000

Also, if you stay away from regular news sites, and focus on the economic and financial sites, you'll get a better read on what's happening.

If you skim these sites, you'll begin to see patterns emerging. Not good ones.

http://search.flashpeak.com/en/search.php?cof=FORID%3A10&ie=UTF-8&sa=Search&cx=!005235937639662612447%3Ad6zlnt0cblq&sbSource=&customtag=sbtgCmpSearch2&q=what+happens+if+the+US+goes+over+the+fiscal+cliff

kramarat

The bottom line is: We're headed off the cliff, and Obama has his foot on the gas pedal.

Our ability to borrow more money is creating an artificial comfort zone. If that goes away, our government will attempt to print their way out of it. The next step is hyperinflation, and from there, who know's? Rioting, massive crime increases, cuts to services like garbage collection in our major cities. Police and firemen are unionized, so if they don't get paid, they will likely strike.

It's a horrible scenario. And the reason we all have to take this stuff seriously.

Solar

Quote from: kramarat on October 10, 2012, 03:23:12 PM
The bottom line is: We're headed off the cliff, and Obama has his foot on the gas pedal.

Our ability to borrow more money is creating an artificial comfort zone. If that goes away, our government will attempt to print their way out of it. The next step is hyperinflation, and from there, who know's? Rioting, massive crime increases, cuts to services like garbage collection in our major cities. Police and firemen are unionized, so if they don't get paid, they will likely strike.

It's a horrible scenario. And the reason we all have to take this stuff seriously.
I've been saying for a long time now, inflation is inevitable, it's that hyper inflation that is going to hurt more than anything.
And that's what has me most concerned, everything will cost more and wages will not keep up with the increase.
Its also why gold has gone up so much and why it will eventually level out around twenty five hundred+ an ounce late next year.

Instead of buying gold, we've been stocking on on years worth of food, I think it's a better hedge against inflation in the long run. IMHO...
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kramarat

#8
Quote from: Solar on October 10, 2012, 05:42:36 PM
I've been saying for a long time now, inflation is inevitable, it's that hyper inflation that is going to hurt more than anything.
And that's what has me most concerned, everything will cost more and wages will not keep up with the increase.
Its also why gold has gone up so much and why it will eventually level out around twenty five hundred+ an ounce late next year.

Instead of buying gold, we've been stocking on on years worth of food, I think it's a better hedge against inflation in the long run. IMHO...

Probably a good idea. One of our problems, is having unionized public employees. These unions are becoming more and more powerful, and many of them have secured much sweeter deals than anything found in the private sector.

We had our warning back in the 80's, when the air traffic controllers threatened to shut down all US air traffic. Reagan should have kept going and dismantled all public sector unions. It was union members that defaced the capital in Wisconsin, and it's public sector workers that are marching in Greece. They will not budge on the irresponsibly, government granted packages that they have received.

Everybody talks about the unconstitutional aspect of Obamacare. What people need to be talking about, is that our government is incapable of running anything efficiently. Take a look at this, and try to imagine the disaster that will ensue, when the government becomes the administrators of health insurance for 350 million people. :scared:

http://money.cnn.com/2012/07/09/news/economy/overpaid-unemployment-benefits/index.htm

Elfie

Quote from: kramarat on October 10, 2012, 03:23:12 PM
The bottom line is: We're headed off the cliff, and Obama has his foot on the gas pedal.

Our ability to borrow more money is creating an artificial comfort zone. If that goes away, our government will attempt to print their way out of it. The next step is hyperinflation, and from there, who know's? Rioting, massive crime increases, cuts to services like garbage collection in our major cities. Police and firemen are unionized, so if they don't get paid, they will likely strike.

It's a horrible scenario. And the reason we all have to take this stuff seriously.
Thanks!!! Although I should not get excited about the coming muck.   As I read, I am sure I understood what I thought was really it, seems I just did not actually hear the term fiscal cliff. Don't know why.... But it is pretty much a nice description of what is going on in the other countries like Greece,, and the rest, after hearing the S&P dropped Spains rating to right level with trash bonds yesterday... Oh Lordy,,, it seems an almost real event IF someone somehow doesn't pass the right legislation or whatever to put a stop to it.  In either case I know it will not be easy for anyone and I kind of want to think to myself that what we here have been going thru is going to be a cake walk for whats coming.
Thank you for the links....
;)
Nature is an infinite sphere of which the center is everywhere and the circumference nowhere.
Blaise Pascal

Solar

I like to think of the fiscal cliff with goo hanging off the face as our economy, we have all this goo at the top of the cliff with more than half of it hanging two thirds of the way down the cliff face.
We can still pull some of the goo back up, but we will lose a large percentage of it.
Our economy is the same, we can recover, but the loss will be great.

We can continue to lose bits of goo till it's all gone and we collapse, or completely back away from the cliff and rebuild our supply of goo.
But sacrificing just a little, has an even bigger effect down the road.
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Elfie

Well the goo is moving off the first step.  Yes I get its going to be a beast to deal with,,, I may not know big terms, but I understand what is possibly in store... I just have to hope we dont end up like some all ready are....that will be not so much fun....
Nature is an infinite sphere of which the center is everywhere and the circumference nowhere.
Blaise Pascal

Solar

If we were to fail, there would be a huge power vacuum and the world would become unstable overnight.
We are the currency the world has put it's trust in, if that trust is lost, were doomed.
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Elfie

wheres the yep I hear that button?! 
So many will be not liking their utopian way of thinking....
Nature is an infinite sphere of which the center is everywhere and the circumference nowhere.
Blaise Pascal