The Fiscal Cliff

[anthony]

Yep... looks like all that has occurred is another delay. Putting this off until Feb has not fixed a thing, and the moment the US raise their debt ceiling will be the exact moment of market turmoil, as the US credit rating will be lowered again, as per Standard and Poors last statement about just that. The US are over their head already, hence the lowering to AA, and if they raise their debt limit, it will get lowered again. Simply... other countries are not lending to the US because the chance of getting their money back seems to be non-existent based on the current decline of US economics.

Many companies will still profit... but a good majority of US businesses will decline as a result, from all views of the current predicament. The US need to not only cut their spending, they need to be reducing their debt by $500 billion per annum for the next decade, to reduce their overall debt to a few trillion. The short of the story is... the US needs to have a tough decade to prosper in the future, or else it fails entirely for longer than a decade.

 

[Rumors]

Oh but dear Anthony, have you not heard? president Obama has said in no uncertain circumstance will he allow the R to hold hostage the debt ceiling in order to make spending cuts! He has stated he will allow the US to default before he makes that deal! The R have stated they will do the same unless Obama concedes to cut spending. We are SCREWED!

Welcome to the world of bull shit rules! I am over it! I can't even make a Business plan for the next year based on this bull shit. In my line of business, it is an all or nothing kind of thing that means I take great risk to proceed forward. I am not going to. I will rest on my laurels until something becomes more stable which means the hundreds of people I would normally employ won't be!!! Makes me sick!

 

[anthony]

If they really got their heads out of their arses, I believe they could do it even less painfully, for example:

1. Cut a trillion of debt in first year
2. Reduce to 800 billion second year
3. Reduce to 500 billion third year
4. Reduce to 250 billion each year after until zero

That gives a few hard years followed by growth, yet still cutting debt. Growth will occur more steady after a few hard years versus stretching it out for decades.... Just my opinion though. Also removes need to borrow if they stop starting wars or involving further in other countries issues. Sort out home then worry about others.

 

[Rumors]

No effing way they can cut a trillion the first year! They owe too many favors!

IF they cut out only the ear marks on these bills that they claim help the citizens, they could cut billions and maybe trillions but then they wouldn't have any money from lobbyist to get re-elected. I PROMISE you the first thing that should be banned is lobbying. PERIOD! It is crooked and always has been.

I wish I hadn't inhaled. Lol. I would run for congress on the platform of cleaning up Washington! I would first vote for term limits, reduction of income for politicians, and cut the bull shit lifetime pension for serving a term! It is crap! It should be illegal but it isn't. I am sickened by the greed the government has participated in. Everyone bitches about what wall street has done but it is small potatoes as compared to what Washington does daily!!!

I promise you that this will get nothing but worse! I have never been greedy and I hope I have helped far more than I have hurt BUT I am hunkering down for the next year and a half. I predict it will get worse before it gets better!

 

[anthony]

Why do I get the distinct impression economists are currently flooding the indices to make them look super good, all before the shit storm begins in February discussing the lack of decision still made on the US economic issues. The market is going to burp and fart massively in Feb... especially nearing the end of Feb.

Load up with your $$$ now and save them away for buy-up time in Feb. It will be party time for buying, for gaming purposes. I expect the market to be 'Yo-Yo Feb.'

 

[AS1975]

Yeah, I'd be getting out of a lot of things in February, they can only put it off for so long before America has the "Recession they had to have" (ala Paul Keating). Fortunately I suspect we are going to be heading for war in the future (not too distant future either), with one or more of the US fronts taking on the Chinese fronts - be it Japan v China, Israel v Iran, India v Pakistan, the Korea's, Georgia v Sth Ossetia, etc. The thing with arms races, they are like sitting in a chair at the barber, sooner or later you are going to get a haircut. War, is the one true savior of capitalism, full-employment, over-the-top industrial spending, etc.

 

[anthony]

I was wondering about the rapid increase in the Dow... now I understand why: [DLMURL]http://nationalpriorities.org/en/blog/2013/01/23/avoiding-next-fiscal-cliff-debt-ceiling/[/DLMURL]

They have now formally delayed a debt ceiling until May, and forced a budget by mid April. Economists now have a further few months to profiteer as much as possible before the arse falls out of the US. Delaying the inevitable isn't really achieving much for mum and dad businesses / family income.

The moment the US raise that debt ceiling, is the same moment the US credit rating then gets downgraded further.

The above cites how good America is good for the money loaned to them, however; they haven't been paying their debts for decades, and instead continually borrowed more to pay past debts, then spend more on further nonsense.

 

[AS1975]

Bibi won in Israel, Iran is now certain to get at least one nuclear weapon in the next couple of months.

 

[anthony]

I bailed out of my stock with my profit... because I know what is coming, and they can't delay it forever... for the simple fact is that Government employee's need to be paid. So a decision has to be made one way or the other, and both are going to bite the US stock market in the arse. Just a matter of when it occurs between now and mid May.