Efficient Op-Ed Hypothesis: "Fiscal Cliff" Soars After Obama Win

Tyler Durden's picture




 

Whocouldanode? Since August 2011, we have know this painful combination of tax-cut cessations and spending cuts (sequestrations) was due to hit as yet another painful decision 'can' was kicked down the road by the 'super committee'. In February 2012, Bernanke coined the term 'fiscal cliff' for this chaos and since then we have been active in discussing the impact (329 ZeroHedge articles). From pointing out the market's total lack of 'pricing-in' to comprehending the contagion and impact of the 'fiscal cliff' or slope or hill, it would appear the world has been numbed into denial by the monetary policy medicine needed to get an incumbent re-elected. The 'efficient' market is now catching on - as are the 'efficient' headlines as we see searches and news stories surge about this critical event horizon. Between Bloomberg's news story count and Google's search volumes, it would appear the American public is waking up to the reality about to beset them now that re-hope is back.

Bloomberg's news story count...

Via Bloomberg

and Google Trends...

 

For ZeroHedge alone, there has been 329 articles mentioning the term "fiscal cliff"...

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Mon, 11/12/2012 - 10:28 | 2972251 JPM Hater001
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I love your avatar

Mon, 11/12/2012 - 09:54 | 2972147 ziggy59
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We hope re- hope is a stronger opiate than hopium

Mon, 11/12/2012 - 10:01 | 2972167 GetZeeGold
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The jug of Koolaid is almost emply......no call for panic just yet.

Mon, 11/12/2012 - 11:04 | 2972345 SeattleBruce
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The Obama retread - 'more hope than ever before!'  (TM)

Mon, 11/12/2012 - 09:57 | 2972152 buzzsaw99
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The only people I hear complaining about the fiscal cliff are military and wall street. Ironic seeing as those two also complain the loudest about the deficit.

Mon, 11/12/2012 - 09:59 | 2972153 dwdollar
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I don't know why we are worrying about any of this... We all know they're going to kick the can yet again. Then, when the rating agencies downgrade, the legacy media will be ordered by Uncle Scam to fling shit at them until something sticks (expect accusations of incompetence all the way up to treason and everything in-between). Meanwhile, the politicians will be dining in celebration with their lobbyists at another problem "solved". Basically... business as usual. And it will be that way until the USD is completely destroyed.

Mon, 11/12/2012 - 10:06 | 2972175 Dr. Engali
Dr. Engali's picture

I don't know anybody here who is worried.....there are a lot of stupid pleebs out there who buy into the meme of the day, but not here,

Mon, 11/12/2012 - 10:18 | 2972211 Spastica Rex
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There are some meme loving stupid plebs here too.

Just different memes.

Mon, 11/12/2012 - 10:10 | 2972184 cossack55
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Could be good news if the "disappear" Zandi.

Mon, 11/12/2012 - 09:57 | 2972156 Dr. Engali
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Wow! It's almost as if it were planned or something.

Mon, 11/12/2012 - 10:29 | 2972255 JPM Hater001
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Nope, just good old fashion bad luck.

Mon, 11/12/2012 - 11:35 | 2972487 TideFighter
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Climb fukkers, there's a free Chevy Volt on top of that cliff! 

Mon, 11/12/2012 - 09:58 | 2972157 Translator
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ZEROHEDGE= RACIST

 

'

Obama will save the day, because he is "exactly like Mitt Romney"

Mon, 11/12/2012 - 10:01 | 2972165 buzzsaw99
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Obama will NOT save the day, because he is "exactly like Mitt Romney"

Mon, 11/12/2012 - 10:30 | 2972259 JPM Hater001
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3 out of 5 Americans thought it was his white brother from another mother.

Mon, 11/12/2012 - 10:31 | 2972262 JPM Hater001
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Never believe statistics...

Mon, 11/12/2012 - 10:09 | 2972170 GetZeeGold
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I must be a racist.....someone told me I was.

 

Criticize the blithering idiots and suddenly you're a racist. Well that kinda sucks.

Mon, 11/12/2012 - 10:20 | 2972225 francis_sawyer
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I labeled Israel as an 'Apartheid State' ~ so I'm 'anti-semitic'... I'll go sit in the corner now...

Mon, 11/12/2012 - 11:14 | 2972390 SeattleBruce
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There was a day a long time ago when '= RACIST' meant something...now it's the boy who cried 'wolf!'

Mon, 11/12/2012 - 10:02 | 2972169 Ljoot
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The only way the American public could have been informed of the fecal cliff is if it was mentioned on Kardasians or Jersey Snore.

 

Mon, 11/12/2012 - 10:16 | 2972200 mee-mee-mee
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i also noticed this in the australian media. I wonder if TPTB have told the media's of the world "it's time" that we warn the proles of impending doom (although it probably a little late for those who dont read ZH).

Mon, 11/12/2012 - 11:35 | 2972201 spooz
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Gee, ya think it could have something to do with the 62,000,000 google NEWS hits for "fiscal cliff".  

Foxnews.com alone has 22,546 stories and videos on "fiscal cliff".  You keep drumming a phrase into the sheeple's heads, they google it. Is it too much to hope that  they click on the Wiki that comes up on top or the search results or will the bright yellow "Fiscal Cliff Ahead" warning sign next to the Fox News story be too much to resist?

Mon, 11/12/2012 - 10:18 | 2972210 MFLTucson
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4 more years of destructicve communism.

Mon, 11/12/2012 - 10:22 | 2972226 jplotinus
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Why shouldn't temporary tax cuts be allowed to expire? Why shouldn't military spending be cut? Why shouldn't Medicare reimbursements be lowered?

In other words, why is the fiscal cliff so scary?

Answer: it is scary because its emotional impact is high. No one has a crystal ball that is reliable. It is quite possible the effects of taking no action to forestall implementation of the fiscal cliff edicts will be beneficial.

After all, one way to reduce debt consists in increasing revenue (as in eliminate tax cuts) while simultaneously reducing spending on a wide variety of things, including military spending and Medicare costs.

Prognostication of doom as a result of those effects is just that--someone's guess.

Mon, 11/12/2012 - 10:24 | 2972234 fonzannoon
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You can bet your ass if those military cuts expire there will be a domestic attack that same week.

Mon, 11/12/2012 - 10:26 | 2972246 Spastica Rex
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They shouldn't expire because that's not how con games work. Look at all the confidence that will be generated when tax cuts, benefits, and the imperial battlestars are all saved.

Grifterment, not government.

Mon, 11/12/2012 - 11:33 | 2972471 SeattleBruce
SeattleBruce's picture

"why is the fiscal cliff so scary?...it is scary because its emotional impact is high."

The fiscal cliff does represent some real amount of demand, even if badly misallocated, and heretofore little accountable to much fiscal discipline.  If it transpires it will have a real effect on the economy, even if it is needed medicine.  Your comment about emotional impact certainly comes into play - the parties/party won't allow it to happen for that reason alone.  Short term, vs. long term thinking.  The question really is though, do we try to take the needed medicine, or do we fall off the cliff as it's crumbling under our feet, or as Ron Paul says, are we already off the cliff?  I think the time for a beneficial dose of medicine is probably long past.

"Prognostication of doom" - I mean, you'll agree we're in a nasty recession/depression depending on your views - Un and underemployment in the low 20s at least and all kinds of malaise and underclass out there.  Are you seeing 'green shoots' out there??  A large blow to demand in this condition means what then?  At the very least things are going to get (way) worse before they get better.  That too may be nature's way (invisible hand?) of applying the needed medicine for the wrongheaded/selfish decisions of the past that have saddled every 18 year old kid and younger in the US with >$200,000 in 'national debt'...

Mon, 11/12/2012 - 10:26 | 2972243 sangell
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Budget Control Act of 2011 is the official name. Signed by President Obama to avert any spending cuts or tax increases before the election it was not described as a 'fiscal cliff' then but a bipartisan solution to our fiscal problems.

Mon, 11/12/2012 - 12:57 | 2972898 odatruf
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Just as the much heralded and applauded Budget Control Act of 1997 wasn't described as the kicking seniors off Medicare law that is mentioned every year before agreeing to the 'doc fix'.

Funny how that works, no?

Mon, 11/12/2012 - 10:50 | 2972310 SKY85hawk
SKY85hawk's picture

Re numerous articles saying the FISCAL CLIFF must be averted.

Why is everyone saying the legislated changes must be stopped?

                        At the same time the media say spending must be reduced and 'revenue' increased!

These fearsome changes have been needed for many years.  Something has to change in the way politicians buy votes and voters acquire 'benefits'.

And, Our ELECTED Representatives actually voted on doing something!

 Finally, I wonder why few/none of the financial pundits try to remind people

     that Keynes said the additional debt must be paid back during the good times.

     Remember "Surpluses as far as the eye can see" in 1999-2000?

 We have only ourselves to blame for the irresponsible abuse of the Public Checkbook!. 

 

Mon, 11/12/2012 - 10:52 | 2972314 TideFighter
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We already crossed the Rubicon, this doesn't end well for Hail SeizeTsar.

Mon, 11/12/2012 - 11:03 | 2972343 Hubbs
Hubbs's picture

Politicians are just building a ramp up at  the end of this fiscal cliff. No sense in just running straight off.  Kind of like the up ramp on the aircraft carriers that allowed the jets to take off in a shorter distance, only they can fly, this economy can't.

 

Higher jump means harder crash.

Mon, 11/12/2012 - 11:29 | 2972460 kralizec
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Just jack the debt ceiling to $1,000 trillion and hold down the Ctrl-P keys and lets get this shit over with already!

Mon, 11/12/2012 - 11:43 | 2972522 Montezuma
Montezuma's picture

Word "fiscal cliff" is a made up thing by FED chairman.

After that media went nuts and then people went nuts and now everybody believes worlds going to end, because of the "FISCAL CLIFF" uuuu.. so scary.

I call bullshit. Even if there is no grand bargain, no zombie apocalypse, sorry.

Mon, 11/12/2012 - 12:01 | 2972585 slackrabbit
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I wanna go over that cliff......then fly away in my silver rocket ship!

Mon, 11/12/2012 - 18:11 | 2974161 toomanyfakecons...
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Silver is on hold while I invest in brass and lead.

Mon, 11/12/2012 - 13:00 | 2972915 monad
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There will be no mercy.

Mon, 11/12/2012 - 14:06 | 2973278 Darkness
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Can't wait to Baumgartner off the FISCAL CLIFF. 

Get the Red Bull sponsership going...

 

MONSTER might actually be a better partner. 

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