Senator Mike Lee: After fiscal cliff comes fiscal avalancheSubmitted by emalvini on Mon, 11/26/2012 - 14:21
Senator Mike Lee: After fiscal cliff comes fiscal avalanche
Not enough nor the right people are listening! And it seems that no matter what the concerned minority does, it won't matter anyway because the impact will be so broadly devastating.
By Sen. Mike Lee
Friday, November 23, 2012
While Washington is preoccupied with the so-called fiscal cliff, little attention has been given to the fiscal avalanche that will occur if we continue down an unsustainable, long-term path, causing markets to turn sour on U.S. debt and leading to a spike in interest rates.
Such a eurolike crisis would make the fiscal cliff look like a dip in the road. Unlike driving off a cliff, which you can see coming and make last-minute adjustments to avert, we cannot predict with any reasonable certainty when the avalanche will break. If it does, there will be little anyone can do to prevent its devastating effects.
No one knows just how long the United States can continue to accrue massive debts before lenders lose confidence. Delaying significant fiscal restraint for yet another year will send the wrong signal to financial markets and may serve as a tipping point that could lead to disastrous consequences for our economy.