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The Only Thing You Need to Know About the Fiscal Cliff

Phoenix Capital Research's picture




 

 

I’m going to lay out everything you need to know about the fiscal cliff negotiations. After reading this, you can ignore all of the media’s coverage of this topic as well as various politicians’ announcements pertaining to this subject.

 

All you need to know consists of just one sentence.

 

Politicians are in charge of this issue.
 

These are the same folks who haven’t even produced a budget in four years. The same folks who have run $1+ trillion deficits for four years. The same folks who rarely if ever leave office as a result of their fiscal mistakes.

 

In simple terms, none of the people in this group will likely suffer any consequences if we do go over the cliff. Indeed, as far as options go, their best option would be for us to go over the cliff and then implement some targeted tax breaks in late 2013 early 2014 as they go into the 2014 Congressional elections.

 

Let’s take the side of the Democrats.

 

Obama was largely re-elected based a solid turnout for the Democrats and a lack of voter turnout for the GOP. If you want to argue about voter fraud the fact remains that if there was widespread voter fraud the GOP let the Democrats get away with it. So for simplicity’s sake, Obama won based on a strong turnout while the GOP lost based on a weak turnout (Romney took less votes that McCain!).

 

With this in mind, Obama and the Democrats can easily argue that they have the mandate of the people for their policies. If the GOP proves unwilling to go along with their proposals, Obama and the Dems can simply take us over the cliff, increase taxes on the wealthy (which would appease their voting base) and blame the failure to reach a solution as well as the ensuing economic mess on the Republicans (much as the Dems and Obama have blamed the terrible economy on Bush).

 

So, truth be told, Obama and the Dems really have very little to gain politically from solving the fiscal cliff.

 

On the GOP side, there is little incentive to solve the fiscal cliff either. If they kowtow to Obama’s wishes, they’ll infuriate their base. And there’s no chance that they’ll convince Obama and the Dems to meet their demands of cutting spending (they sure haven’t done anything of this nature in the last two years). So the best thing they can do is simply refuse to address the problem, go off the cliff and then maintain a “we fought the best we could against insurmountable odds” stance.

 

So… neither the Dems nor the GOP are incentivized to solve the fiscal cliff.  Both parties are best off from a political standpoint having us go over the cliff and then fighting for some kind of tax breaks/ tax relief for their bases sometime in late 2013/ early 2014.

 

With that in mind, we’re very likely going over the cliff in a month’s time. The whole situation has echoes of the failed debt ceiling talks and subsequent market collapse of 2011.

 

Indeed, the market is even mirroring its Debt Ceiling talk’s action:

 

Here’s the S&P 500’s recent action:

 

 

Here’s what the market looked like going into the Debt Ceiling talks of 2011.

 

 

Here’s what followed:

 

 

I highly suggest preparing in advance.

 

Swing by www.gainspainscapital.com for more market commentary, investment ideas, and special reports outlining specific risks and opportunities in the capital markets.

 

Graham Summers

 

 

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Wed, 12/05/2012 - 16:51 | 3037034 dscott8186
dscott8186's picture

 

Yeap, it's all about politics

Obama 2011: We can get $1.2 trillion in revenues without raising tax rates

http://washingtonexaminer.com/obama-2011-we-can-get-1.2-trillion-in-revenues-without-raising-tax-rates/article/2515136#.UL-ukK6qLRR

This video of Obama in 2011 is making the rounds online. In it he argues that up to $1.2 trillion in revenues could be raised by closing loopholes and limiting deductions in the tax code. More importantly, he signals that it can all be done without raising tax rates.

 

Wed, 12/05/2012 - 16:16 | 3036916 woggie
woggie's picture

the beast is on the gobble
and all that matters is we're all headed for it's belly
http://youtu.be/ntmthFyaYzY

Wed, 12/05/2012 - 16:21 | 3036944 jomama
jomama's picture

i'm getting tired of seeing you post this over and over again.

Wed, 12/05/2012 - 16:11 | 3036894 mt paul
mt paul's picture

if amerika goes off

the fiscal cliff

 

will we land in a pile of twinkies

 

 

Wed, 12/05/2012 - 15:24 | 3036687 steelhead23
steelhead23's picture

So what?  There is no such thing as a looming fiscal cliff.  Instead, what awaits are the budget measures adopted in the Budget Control Act of 2011.  Admittedly, this legislation would attack the deficit with an axe.  Huge cuts in government spending and substantial increases in taxes.  This is NOT a cliff.  Suggesting that the markets would react to enforcement of the BCA similarly to how it reacted to increasing the U.S. debt ceiling is flat out irrational.  Enforcement of the 2011 BCA would strengthen the U.S.' fiscal position, not weaken it.  Don't get me wrong - the markets could go any which way at any time as stocks are currently overpriced, in part because there are very few investment opportunities during a depression and the handouts from the Fed have to go somewhere.  And yes, they could respond irrationally.  But, were a stock market "correction" to occur, blaming it on actions which would in fact make the U.S. more creditworthy, would be nuts.

I for one, would far rather go over this so-called cliff than see the 2011 BCA scuttled by bipartisan agreement to reduce SS, increase taxes on the middle class, etc.  I am not yet retired, but can see it from here.

  

Wed, 12/05/2012 - 14:27 | 3036432 Louie the Dog
Louie the Dog's picture

With this in mind, Obama and the Democrats can easily argue that they have the mandate of the people for their policies.

 

And since the GOP majority in the House remained intact you can argue that they have the mandate of the people for their policies. 

 

 

Wed, 12/05/2012 - 14:00 | 3036328 the grateful un...
the grateful unemployed's picture

but see the (real) economy and the stock market are inversely correlated. SP 500 is really a good thing,  just like a 50% drop in housing prices is a good thing, and $50 bbl crude oil is a good thing. good for the real economy. politicians need inflation to facilitate their spending, so they don't like the real economy. and since the GOP feels it nees to enhance their political standing, they oppose (findamentally) driving off the cliff (cutting spending) while obama and the democrats have the political momentum and they can afford to raise taxes and help the real economy. now both parties just have to fool the media and their audience into thinking its really the other way around.

Wed, 12/05/2012 - 13:45 | 3036273 SmoothCoolSmoke
SmoothCoolSmoke's picture

Graham, last 4 years SP +600.  Sheep fat and happy.  Bears....not so much.

Wed, 12/05/2012 - 13:31 | 3036201 Quinvarius
Quinvarius's picture

Not this crap again.  So suddenly DC is going to stop printing money and let the entire banking system, pensions system, economy and social fabric collapse into a torrid pile of anarchy?  I think not, dude.  Bet on the printing press.  We may not like the fact that we run in the hamster wheel for worthless debt based paper food tickets.  And, we may not like that if we stop making more of them the economy will stop working.  But, that is the construct we built.  This crap plays out one way and one way only.  Talk up deflation and print like a madman.

Wed, 12/05/2012 - 15:06 | 3036604 SmallerGovNow2
SmallerGovNow2's picture

i had nothing to do with building this construct....

Wed, 12/05/2012 - 13:24 | 3036183 Treeplanter
Treeplanter's picture

When you have to borrow to make interest payments on debt you will never pay back... the thing to do is.. uh, Wait!  I know!   Argue with the cab driver, hell, you know he went the long way.  Oh!  Nevermind, he'll take your new credit card if you give him a fat tip.  What the hell, you can save your cash for bud.  Focus, focus, you need to find a store with rolling papers.  National bankruptcy is just a state of mind.  Besides, the only one talking about it is Sarah Palin.  What would she know?  She called Obama a Socialist back in '08.  Choom time in America, boys and girls!

Wed, 12/05/2012 - 13:16 | 3036141 lasvegaspersona
lasvegaspersona's picture

The question seems to be this: if interest can be reduced to zero, for all US debt, by the Fed buying all debt, how long can the Fed keep handing spending ability to the government before someone important notices. Who is that important party (ies) and what will they do?

I suppose they could start selling the debt they hold; parties worldwide could refuse to accept US currency or the Swan could fly.

At any rate we are in a strange place, way beyond the rabbit hole and watching this play out is better than any TV series...if you are ready.

Wed, 12/05/2012 - 13:07 | 3036113 Clesthenes
Clesthenes's picture


So, what’s the solution?

 

According to the Declaration of Independence (approximately), ‘when governments become destructive of these ends (protection of rights), it is the right of the people to alter or abolish such governments and set new guards for their liberties.’

 

Such a solution will not be easy, it will not be quick; but it is the only solution that has ever worked.

 

It has been done three times in the past 2500 years; and, over the past 5000 years, it has been attempted thousands of times and failed.

 

Why?  Because the history, law and procedures of redress were unknown by those that failed.  While American Founders had this knowledge, current generations of Americans (and Englishmen) have none of it.  Instead, “knowledge” possessed by current generations consists of mental sewage (some call it indoctrination) fed to them by governments and media, churches and educational systems all dominated by the plundering class.

 

Here’s a short account of how English rebels (1620-50) brought down judges and tax collectors, bishops and kings who thought they could impose taxes against the consent of those taxed, among other grievances; the same English rebels who, 150 years later, guided American rebels.

 


 

 

Wed, 12/05/2012 - 13:02 | 3036093 the grateful un...
the grateful unemployed's picture

if the economy improved every time the media ran a story about the economic recovery we would be at 200% GDP. the real inflation these days is in false expectations. the media's interest in the fiscal cliff is about on a par with the mayan calendar. interpret: the fiscal cliff is a nonstarter. we drive off, then both parties fashion a new package of tax cuts. if it's possible to drive halfway off the cliff, (leave them hanging) they probably would do it. the entire farce is theatre and what's an actor (politician) without a stage.

Wed, 12/05/2012 - 12:39 | 3035985 dadichris
dadichris's picture

"everyone knows what to do but now how to get re-elected after doing it"

Wed, 12/05/2012 - 13:53 | 3036309 the grateful un...
the grateful unemployed's picture

i presume the encumbent won this year because more people thought he could solve this problem, which means the american people voted to kick the can down the road. that's a first, and sure obama will deliver even if he has to redact his accomplishments from his entire first term. (whatever they might be)

Wed, 12/05/2012 - 11:55 | 3035763 Mike Cowan
Mike Cowan's picture

The end result will be ugly and hurt the middle class. #begging

Wed, 12/05/2012 - 13:52 | 3036294 therearetoomany...
therearetoomanyidiots's picture

Of course, Michy and Bobo can't go without their 20 days in hawaii after the hard fought battle against the evil empire...of course the middle will pay for it because the Rich cannot afford to pay for it.  that's the real BS story here....only the middle has the sheer numbers to come up with the cash to pay for obama's vacations (well, for all the governmental largesse) - and to the middle class (of which I am part) I say, fuck you...suck the egg you laid.  

Wed, 12/05/2012 - 16:20 | 3036939 holdingontomypants
holdingontomypants's picture

Whats a vacation? I haven't seen one of those since 2007 although I did take a three day weekend to San Diego. Took me 4.5 hours to drive there and the stay at the Motel wasn't that bad as I didn't see any roaches. The hookers seemed happy with the motel and the methpipe my 13 year old found on the ground in front of the office was already used up. I am sure Obamy is going to be staying at a similar hotel ain't he? I thought everybody vacations were like mine because under socialisim don't we all get treated the same!

Wed, 12/05/2012 - 11:40 | 3035703 Everybodys All ...
Everybodys All American's picture

The reality is the fiscal cliff is all about the debt ceiling. If you want to see a real cliff dive tell Obama the debt ceiling is not going to be raised unless their are spending cuts. That will shut down everything if that issue doesn't get addressed and so I think the House holds more sway on the outcome of this than they may realize.

The other thing I would point out is Romney actually had a million more votes than McCain and Obama had about 5 million less votes than he had in 2008.

Wed, 12/05/2012 - 14:04 | 3036343 Common_Cents22
Common_Cents22's picture

obama just warned the GOP today, if they use the debt ceiling, he'll go tell mommy and daddy propaganda media and smear them with it.

Elections have consequences.

I'm thinking now the GOP voters should have entirely stayed home and gave the DEMs the House of Representatives too.

Is there anyone he won't blame?

 

What everyone is missing here is our economy is not steady state, zero sum gain, in which the only options are class warfare and deciding how much to forcibly take and redistribute.   That's all DC does.

 

The real chance at recovery is pursuing policy on how to GROW the economy, focusing on small/med businesses.   Not fighting over the deck chairs and life vests on the titanic.

 

If you are a small/med biz you know it is nearly impossible to get a business loan/LOC etc....More and more are having to rely on financing their receivables at 2%-4% per MONTH.   Those are the REAL interest rates.   Or offering your customer cash discounts of 1-3% for 15-30 day payments.    Huge implied interest rate costs.

 

Instead of fighting over smaller and smaller slices of pizza, we should be pursuing policy of making larger and larger pizzas. 

 

Other countries are doing just that.  Lower tax rates, less regulation, encouraging innovation.   Not playing accounting tricks with central banks.

 

Chile has a program called Startup Chile, the govt will give a new startup $40,000 if they come to chile for 6 mos and work on their business.   No debt, no equity, no need to locate your business there or hire locals.   Really no strings.   I'm going there this winter for the program.

Caymans are also doing an entrepreneur economic zone for a variety of businesses.  

Now none of these countries are a threat to the US, but in aggregate will continue to take a big bite of the apple.

 

DC, fail.

Wed, 12/05/2012 - 14:03 | 3036341 goodrich4bk
goodrich4bk's picture

You're right, but for the wrong reason.  The House always has the absolute power to control spending.  This is because our Constitution requires that all spending bills begin in the House.

The debt ceiling control is simply a dishonest way that politicians use to appear fiscally "responsible" while not having their fingerprints on the tough budget decisions.  As it stands, House Republicans continue to vote for all sorts of spending programs and claim credit for it when they go back to their districts.  Then they refuse to raise taxes to pay for these spending bills, again taking credit for low taxes when they go back to their districts.  When the government then needs to borrow to pay for the spending bills they passed, they suddenly get all "responsible" and refuse to raise the debt ceiling unless SOMEBODY ELSE (like the President) cuts the spending.  If he cuts the military, their party can blame his for weakening national security.  If he cuts medicare or social security, they will blame him for hurting seniors.  If he cuts anything significant and a recession ensues, they'll blame him for that.

Our problem is not the deficit, the cliff or the economy.  Our problem is that we are a big nation governed by small men.

 

Wed, 12/05/2012 - 17:17 | 3037146 odatruf
odatruf's picture

I'm sorry, but you don't understand how it works as well as you think you do. But the truth in that last line more than makes up for it.

 

Wed, 12/05/2012 - 11:28 | 3035641 jayman21
jayman21's picture

Graham - You have this wrong.  This is about keeping spender and lender of last resort in tact.  Each year the bread and circus has to be more entertaining for the sheep to keep the Fed loaning and Gov't borrowing going.  Interest is one of the largest budget items.  Where does that money go and why is that off the table in these discussion?

 

The two party meme is really getting tired blue vs red bla bla bla.  If/when we have more than two parties is when this cycle might be broken.  Assuming the third party is not part of the circus and has real people not from the political class representing us.  That also assumes as you correctly point out, these parasites do not get reelected.  Who is to blame?  The sheep will not educate themselves on economic matters, so we will continue to see fools and their money separated by the games in Washington with our gov't and the Private Federal Reserve.

 

Wed, 12/05/2012 - 11:24 | 3035630 Stuck on Zero
Stuck on Zero's picture

Mandate from the people?  Congress gets a 13-18% approval rating.  That is what they call a mandate?

 

Wed, 12/05/2012 - 12:26 | 3035897 Treeplanter
Treeplanter's picture

A majority voted for totalitarian socialism.  Let them have it good and hard.  A kick in the teeth from Obamacare and the Clinton tax rates might wake a few people from LaLa Land.  A balanced budget would be so racist.  Let's not even talk about it.

Wed, 12/05/2012 - 11:06 | 3035542 stormsailor
stormsailor's picture

fiscal cliff.  this is all look-see pidgin.  and another thing,  treasuries will not break out because the federal reserve will buy whatever it takes to prevent that from happening up to 100%.  they buy 70% of the long end now.  see any currency problems?  no.  they all sit about the same with the other 7 currencies in the basket (dx).

 

this insanity could go on for decades, and probably will.

Wed, 12/05/2012 - 16:23 | 3036947 Toolshed
Toolshed's picture

Historically, oppressed groups of humans will tolerate their oppression FOR HUNDREDS OF YEARS!! What usually gets them out in the streets with pitchforks in a hurry is when they can't feed themselves and their families. In our modern society......only time will tell.

Wed, 12/05/2012 - 15:24 | 3036692 odatruf
odatruf's picture

Storm - you nailed it.  I have yet to get a good answer to why if there are no consequences to the Fed buying 50, 60 or  70% of all recently sold longer term treasuries, why it would be different at 80, 90 or 100%.

There isn't any difference, so if they have to do it, they will.  And it won't really matter.

 

Wed, 12/05/2012 - 18:59 | 3037494 chubbar
chubbar's picture

The consequences will show up in the prices of commodities, gold, silver, fuel, etc. Eventually perhaps even Real Estate. Money in the system has to grow exponentially to keep the system together. Relative rating against other currencies could stay stable if the cental banks are doing a coordinated debasement but that is only one measurement. It's only my opinion but I don't think they can keep these prices capped for much longer, certainly not decades.

Wed, 12/05/2012 - 12:57 | 3036068 TruthHunter
TruthHunter's picture

"this insanity could go on for decades, and probably will."

 

People are upset by all those Trillions, but we are paying less interest now than five years ago.

 

Wed, 12/05/2012 - 11:02 | 3035519 geno-econ
geno-econ's picture

Please specify what voter fraud by the Democrats. Gerrymandering ?.  Problem is demographics and income disparity combined with denial is what is hurting Republicans.  Best argument Republicans have is stopping big government and relying on private sector for growth especially.  Instead they are tangled up with Norquist on an innane policy of no new taxes for the sake of insuring candidates with campaign contibutions by big biz and wealihy contributors. This flies in the face of demographics which is destiny.    

Wed, 12/05/2012 - 11:34 | 3035674 DeltaDawn
DeltaDawn's picture

Go to blackboxvoting.org for details of voting fraud.

Wed, 12/05/2012 - 11:13 | 3035578 the not so migh...
the not so mighty maximiza's picture

Republicans have to stop being a pro bailout party.

Wed, 12/05/2012 - 16:00 | 3036849 SmallerGovNow2
SmallerGovNow2's picture

And pro-police the world....

Wed, 12/05/2012 - 11:01 | 3035512 SKY85hawk
SKY85hawk's picture

What are people complaining about?

One side of their mouth says Govt must reduce spending, and the other side says no cuts in my neighborhood! 

The100 billion dollar cut in DISCRETIONARY spending will not affect the social safety Net.   It will affect lots of 'non-essential' govt employees.
I suspect all these sound bites are coming from people that don't want to suffer like the rest of us have.


How many times have you heard of Fraud and Waste  in Medicare?  Same for Soc.Security

 Now, the USA is cutting spending just like Voters demanded of their Elected Representatives, two years ago.

 

The Fiscal Cliff is a good example of the House and Senate actually doing their job. 

There should be more of this, or we'll be in as much trouble as Greece and Spain!

Wed, 12/05/2012 - 11:05 | 3035537 Enslavethechild...
EnslavethechildrenforBen's picture

You are right, it's best to give all that money to the rich.

s/

Wed, 12/05/2012 - 12:31 | 3035922 Treeplanter
Treeplanter's picture

It's their money already.  Let the Marxists take your money.

Wed, 12/05/2012 - 11:13 | 3035577 Dakota Thunder
Dakota Thunder's picture

Ensalvethechild,

The Goverment wouldn't have anything to give if it hadn't taken it way from someone who had it.  

 

Wed, 12/05/2012 - 11:20 | 3035607 stormsailor
stormsailor's picture

dakota, that is an obtuse argument in that the federal reserve just buys all the treasuries, some people call it printing but there is no currency involved, just x's and o's.

 

they could do away with all income taxes, and the government could go on without batting one eye. 

 

this is all just a farce reality tv show, brought to you by.......................

Wed, 12/05/2012 - 11:40 | 3035699 forwardho
forwardho's picture

Storm, agree and am awake.

There are two spheres of human thinking, reality and fantasy. Should outside forces act to push these two together, the convergence zone will be chaos.

Wed, 12/05/2012 - 13:23 | 3036177 old naughty
old naughty's picture

agree and am awake also...

Outside forces will act to push things but they may not be helpful to most of us,

because "...waking up to the true reality around us is too much work, and way too uncomfortable for most of the entranced masses. If you acknowledge things are as seriously wrong as they are and their true devastating effects on human life, you might have to change and do something about it."

http://www.zengardner.com/not-without-our-consent/

Wed, 12/05/2012 - 11:17 | 3035600 Enslavethechild...
EnslavethechildrenforBen's picture

Sorry Dakota i was being sarcastic. All wealth flows from the poor to the rich under a paper monetary system

Wed, 12/05/2012 - 10:49 | 3035449 DavosSherman
DavosSherman's picture

The other thing I'd add to the "Fiscal Cliff" smoke and bullshit mirror CNBS/MSNBS debate is this---the fucking thing can't be "balanced" or pulled back from the edge of the "cliff".

In a nutshell: Government spending breaks out into 3 key areas, we take in enough to cover mandatory spending (every type of social wellfare you can dream of) and interest on the debt.  If the shitheads cut that we'll have a depression within a depression until the old farts die of hunger.

Here's the 4th grade math:

 

 

TOTAL SPENDING $3.603 trillion

2011 Federal Government’s spending: $3,603,000,000,000.00 (3.603 trillion)

There are a million “millions” in a trillion or 1,000 millions in a billion and 1,000 billions in a trillion.  If you spent 1 million a day since 1AD you’d have not spent a trillion.

MANDATORY SPENDING $2.073 Trillion FY2011

Entitlements:

Social Security…………………………………………………………………………$726 billion
Medicare……………………………………………………………………………………$480 billion
Medicaid……………………………………………………………………………………$275 billion
TARP & Other mandatory programs…………………………………….$631 billion
Total………………………………………………………………………………………….$2,073 trillion

2011 Other Mandatory Spending includes: Food Stamps (47 million recipients) Unemployment Benefits (22.8% unemployment rate), Child Nutrition Student Loans, Disability and Tax Credits.

INTEREST ON FEDERAL DEBT $230 billion

Interest:…………………………………………………………………………………..$230 billion

DISCRETIONARY SPENDING $1.3 trillion

Must be approved by Congress each year, breaks out into 2 key areas: Security related Military Foreign Aid, Veteran Services and non-security related (What we think of when we think of the government, Agriculture, Commerce, Education, Justice, State, Energy Treasury, Interior, Transportation, HHS, HUD, etc.)

Security:…………………………………………………………………………………..$700 billion
Nonsecurity……………………………………………………………………………..$462 billion
Total……………………………………………………………………………………….$1,300 trillion

GOVERNMENT INCOME TOTAL RECEIPTS $2.303 Trillion

Income (Government Revenues): $2,303,000,000,000.00 (2.303 trillion)

Mandatory Programs……………………………………………………………….$2.073 trillion
Interest……………………………………………………………………………………….$   230 billion
Discretionary Spending…………………………………………………………..$1,300 trillion
Total……………………………………………………………………………………………$3.603 trillion

Government “Balance” Sheet

Income………………………………………………………………………………………..$2.303 trillion
Total Spending………………………………………………………………………….$3.603 trillion
DEFICIT………………………………………………………………………………………$1.300 trillion

 

Wed, 12/05/2012 - 12:34 | 3035954 Treeplanter
Treeplanter's picture

Math is racism.

Wed, 12/05/2012 - 12:21 | 3035878 SanOvaBeach
SanOvaBeach's picture

Since your so fucking smart, what is the solution?

Wed, 12/05/2012 - 18:32 | 3037432 maximin thrax
maximin thrax's picture

Here's my solution: Keep only the $1.53 Trillion in discressionary spending and interest payments at the federal level along with an equal amount of revenue.

Kick the remaining $2.073 Trillion in "mandatory" spending back down to the states along with the unspent $753 Billion in revenue.

Give the power of entitlement spending to the states and let them figure out how to make it work locally with 36% of the money the fed's spend. That balances the federal budget as well as reduces its size by 58%. And since most states can't run deficits they'll have to streamline services and merge bureaucracies to make ends meet. That might mean distributing food bought at gate value off the farm instead of EBT cards that cost ten times as much nutrition-for-nutrition. That might mean purchasing hammers and sheetrock so people can rehab abandoned buildings instead of having brand-new suburban-like dwellings built by imported labor at union wages.

Wed, 12/05/2012 - 16:51 | 3037039 holdingontomypants
holdingontomypants's picture

SOB-when your liabilities exceed your assets such as is the case of the USA you are bankrupted. The one exception is if you happen to be friends with the owner of the printing press. Like all machines it will come to the end of its life expectancy and then the real mess begins.

Just make sure you have positioned yourself as best as possible when this happens. The currency wars are a good indicator of just how fast we are arriving at this final destination.

 

Wed, 12/05/2012 - 16:11 | 3036888 SmallerGovNow2
SmallerGovNow2's picture

SOB, there is no solution but DEFAULT on our debts and return to constitutionally limited government.  The "easy" days of dialing it back and tinkering around the edges are gone...

Wed, 12/05/2012 - 12:37 | 3035974 Treeplanter
Treeplanter's picture

Default and currency collapse.  

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