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Bernanke: US Headed Towards Fiscal Cliff

[Washington Post] The main threat to the economy is shifting from what others may do to us to what we are doing to ourselves.

For much of the year, economists worried about the impact of the slowdown in Europe on the U.S. economy. Now, analysts say anxiety about the impact of the fast-approaching fiscal cliff — the series of federal spending cuts and tax hikes set to take effect at the beginning of 2013 if Congress and the Obama administration do not act — is displacing Europe as the primary threat to the nation’s sputtering economy.

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sharkhearted's picture

Ben Bernanke quote

"Do no harm."

That duplicitous statement from the Chairman....offends me to the core...and gives me violent thoughts about the Federal Reserve....make no mistake about it.

~Chris
Norfolk, VA

Time to INVESTIGATE the investigators of 9/11. PROSECUTE the prosecutors. EXPOSE the cover-up.

What comes after massive inflation? (The untold story)

High deflation - Took me (a non economist) time to figure out.

Everyone talks about the Weimar Republic and the trillion of marks wheel barrow. No one talks of what happened post hyperinflation.

As inflation goes up, banks need to compensate for their losses due to inflation by RAISING interest rates which then in turns kills the amount of loans in the country, which then leads to a collapse in prices.

I guess it is good to be very liquid in times of deflation as most asset classes (Including gold) will collapse, creating the best buying op in our lifetime.

Bring the QEs on! :)

wait..... so

Our finances arent in order? When did this happen?

How do we stop these "deep" cuts before its too late?

" Economists say the

" Economists say the automatic actions slated to take place at the end of the year —an increase in payroll taxes and in income tax rates, as well as large cuts in domestic and defense spending —would tip the country back into recession."

Buy more solar panels and kill more poor, brown people or this economy is screwed?

That's our solution?

My post today: http://www.dailypaul.com/244978/i-started-my-food-storage-an...

"Any fool can criticize, condemn and complain and most fools do." -Benjamin Franklin

Little Elm, Tx

Yet the Market goes up today... The Vix is Low but it seems

looking at past history the Sell off Starts in August. Some are saying by Sept of this year the currency will finally start to collapse.

Any body else have insights to what might happen?

The market

went up because they heard bad news from Ben. Bad news from Ben means a greater likelihood of QE3. I think thats why it went up. I am not saying I am correct and can see the future, but the time is now to cash out of the market and buy gold. Yes, stocks will go higher with QE3 only to crash weeks later. Gold will soar.

If anyone had crystal-clear

If anyone had crystal-clear insight into the matter, they'd likely be crazier than a latrine rat.

Headed toward a fiscal cliff

and he has been gunning the gas for years. Nice try Ben, but history will be a very harsh judge.