Establishment Screams: Avoid Fiscal Cliff and Borrow, Borrow, Borrow!Submitted by emalvini on Sun, 11/25/2012 - 16:48
Establishment Screams: Avoid Fiscal Cliff and Borrow, Borrow, Borrow!
Written by Thomas R. Eddlem
Friday, 23 November 2012 12:15
All of official Washington and their media lapdogs are shaking in fear of the so-called “fiscal cliff” that is looming January 1, counseling that the economy needs to continue its wild trillion-dollar deficit spending habits into the indefinite future.
The possibility that the federal deficit might not be as large next year has the establishment frightened, especially Federal Reserve Chairman Ben Bernanke. “The realization of all of the automatic tax increases and spending cuts that make up the fiscal cliff, absent offsetting changes, would pose a substantial threat to the recovery — indeed, by the reckoning of the Congressional Budget Office (CBO) and that of many outside observers, a fiscal shock of that size would send the economy toppling back into recession,” Bernanke told the New York Economic Club November 20. He instead urged Congress to avoid fiscal reality, even as he acknowledged that “the federal budget is on an unsustainable path.”