Yet Another Fiscal Cliff Infographic

Tyler Durden's picture

By now everyone should know what is at stake in the Fiscal Cliff, which unless resolved in precisely under two weeks, will introduce America to something disastrous, horrifying, unbearable and simply ghastly: living within its means. And in case there is still any residual confusion, here is yet another infographic, this time from Saxo Capital Markets, to simplify it so well even an economist will get it.

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LawsofPhysics's picture

Bread and circuses until the supply lines break.  The fascists need to get their "war on guns" going before the latter happens.  I am sure it will be just as successful as the "war of drugs" and "war on terror".  All the capital controls, price fixing and totalitarian laws will be for "your safety and that of your children."  Hedge accordingly.  Long black markets and anything of physical value that the paper-pushers can not devalue or steal.

john39's picture

this fiscal cliff nonsense is just a distraction...   if the political puppets cut a deal, they shave roughly 10% of the annual deficit.   if they don't, and the 'cliff is triggered', you get more or less the same make believe deficit reduction.... meanwhile the derivative bomb keeps ticking...

LawsofPhysics's picture

Yes, but unfortunately, supply lines are very much tied to the real world.  At the end of the day capital and energy need to be invested in order to actually deliver.  When the captial/energy returned is less than that invested, game over.  At the end of the day no amount of printing can deliver any real goods and services if the energy and resources simply are not there.  None of the bullshit above is attached to any kind of reality. Many exponential relationships at work in the energy and resource world, and not in a good way.  We have been here before, currency wars, trade wars...

MagicHandPuppet's picture

I'm happy to pledge the family average hit if we drop off the fiscal cliff (of "$2,200") if it will help this entire corrupt and criminal system implode.  Bring it on already.

Spastica Rex's picture

From the infographic, it almost seems like growth ~= government debt.

Rainman's picture

.....and therefore we are all fukked no matter what they do...or don't do.

dracos_ghost's picture

From the infographics, looks like SAXO Capital is a bunch of Obama jizz gobblers.

Samsonov's picture

Peculiar how the stock market is behaving with the country approaching the cliff Thelma-and-Louise style. Two possibilities: 1) the cliff is a fraud, and the market knows it, or 2) the sell-off will occur after we fly over the cliff and land on the rocks below.  No idea which it could be.

francis_sawyer's picture

You're over thinking it... Instead ~ Here's how it works:


- Fed keeps printing money to cover the coupon

- Politicians take a holiday

- When the holiday is over, it's time for the SuperBowl & American Idol/DWTS 'new series'

- If 'Fiscal Cliff' ever gets mentioned again ~ some scandal or mass shooting occurs somewhere around the world

- If they can't pull that off, then some Iranian will have been reported to have made threats against Israel

- If all of the above fails, then a 'Super Duper Committeee' will be appointed to handle the mess

- After all of that ~ other central banks print more money

- If anybody complains about it ~ a drone sends a hellfire missle up yur ass


francis_sawyer's picture

Please let there be some ANIMAL KINGDOM documentary where stampedes of Donkeys & Elephants go charging off a cliff... That's about the level of my interest on this subject...

pragmatic hobo's picture

they talk about "raising tax" or "cutting benefits to poor" but they never talk about cutting defence budget. I think that's very weird given that military spends $500M per year running golf courses around the world.

Samsonov's picture

No one said anything about cutting benefits to the poor.

pragmatic hobo's picture

extending medicare and social-security eligibility age is in fact cutting benefits to poor. Rich people don't care about medicare or social security.

LawsofPhysics's picture

Correct.  Moreover, if you think corporate welfare is limited to the military and it's contractors only, you are missing the majority of the corporate welfare.  The "financial sector" makes up over 35% of our GDP.  Remind me, aside from financial products of mass destruction what does this sector actually produce again?

francis_sawyer's picture

 "Remind me, aside from financial products of mass destruction what does this sector actually produce again?"


A ton of orders of matzoh ball soup & gefilte fish during the holiday season(s)...

Peterus's picture

"Rich people don't care about medicare or social security." maybe they should, since they'll end up paying for it. It obviously won't stay afloat without money being pumped in from somebody.

Disenchanted's picture



The Great Social Security Robbery

by James Petras


For decades only a small fraction of Social Security contributions are used to pay recipients, the bulk is transferred into the general treasury to pay for current expenditures – mostly hundreds of billions of dollars in war spending, payments on bonds and T-notes; subsidies to agro-business, bailouts to Wall Street speculative investment banks and other elite economic interests. Over the decades the Treasury robbed several trillions in SS funds, exchanging them for IOUs (never reimbursed) in order to provide a kind of “social insurance” for the military-industrial-Wall Street-police state power elite. If the accumulated payments to SS had remained in a special account instead of being siphoned off to cover the deficits incurred by military spending and overseas wars, SS finance would be in sound condition at least till the end of the 21st century. The Social Security Administration (SSA) would be able to adjust payments upward to real rates of inflation (about double the rate of adjustment now jiggered by the Government). The SSA could begin full payments at age 62 for most and at a lower age for those citizens working in hazardous occupations.


read the rest at the link...

StychoKiller's picture

Hmm, and if unicorns really could fly, it would rain skittles...

Iam Yue2's picture

There will be no deal by Friday.  


The S&P is building up for a nice pop into quadruple witching on Friday.

derek_vineyard's picture

any deal that is reached will be so feeble i cannot understand all the attention this topic is getting

if one isn't reached its like putting an extra bullet into a dead carcass....lets get to the real problem---living within our means

bagehot99's picture

Even the 'draconian' Ryan plan barely addressed the overwhelming level of DEBT we have incurred. The plans currently under discussion are not even rearranging the deck chairs; they are dusting the deck chairs on the Titanic.

StychoKiller's picture

I blame the idiocy of "baseline budgeting!"

pods's picture

This will end up just as many have predicted.  Lots of hype and then a deal which will soak a small percentage of high income earners (not the rich) and we will be allowed to expand our debt further.

Same as it ever was.

Until the FRN is no longer accepted for goods.

The majority will keep soaking it the minority, and eventually everyone will be fleeced to pay for our exponential debt money system.  


slaughterer's picture

<<= I am a prepper and have kids which can operate guns

<<=I am a prepper and keep my kids away from guns.  



Sandy Hook killer had a "prepper" mother. 

Friends and family portrayed Adam Lanza’s mother Nancy as a paranoid ‘survivalist’ who believed the world was on the verge of violent, economic collapse. 

Mrs Lanza, 52, was a ‘prepper’ – so called because they are preparing for a breakdown in civilised society 

Lanza’s aunt Marsha said Nancy was ‘self reliant’ and that they talked a lot about how she was preparing for the economic meltdown. 

derek_vineyard's picture

i wonder what her zero hedge screen name was.   it seems irrelevant to the tragedy (that she was a prepper)......except that her son got her weapons.  wouldn't living with and caring for such a scary child she had given birth to and loved, add to her fears and outlook that maybe society is doomed? 

don't we all know a few mentally ill/ super angry people we wouldn't be completely surprised to see in the headlines as a shooter, but its still rare among that population to snap to this degree

ebworthen's picture

The rape of the middle class will continue.

Already taxed entitlements will be cut (a form of theft), spending will be "cut" in terms of reduction in increases (the military/industrial complex and the banks will be defended at all costs), a symbolic raise of taxes on $250K + per year earners will be passed - those with more money will be able to offshore or otherwise hide the income and revenues will go down; meanwhile, anyone earning money below this level will have their costs for everything go up.

The pattern over the past 40 years is clear and will remain; already taxed services cut, taxes and fees increased either outright or through shadow taxes in the form of co-pays and insurance premiums, fees and sales taxes, ZIRP and NIRP on savings, fuel and electricity cost increases, big pharma increases, estate (death) taxes, etc., etc., etc.

If you aren't wealthy or on the public dole bend over - because here it comes (again).

StychoKiller's picture

Not yer first rodeo, I surmise...

tooriskytoinvest's picture

Chris Martenson: We're Going to Have a World Class Currency Crisis And Global Growth Will Never Return to its Glory Days

Kreditanstalt's picture

Ridiculous infographic.

So all will be well if only borrow-and-spend can be rolled over once more?

And I thought the debt level was unsustainable...!  Silly me.

mayhem_korner's picture



What makes you think that going over the fiscal cliff forces the U.S. to live within its means.  Wouldn't even get close, would it?

Show me a "plan" that gets the budget in balance, on a GAAP basis.  Setting lack of political will aside, it's not within the laws of mathematics.  The cliff debate is just noise.  Pain is coming, it's just a matter of the timing and strength.

docmac324's picture

They can fix it.  The trick is fixing it AND getting reelected since corporations are "people".


Intoxicologist's picture

When I clicked on this story, the infographic part was blank, except for a small clump of tiny, green pixels that looked like a booger.

Now I understand.

Peterus's picture

Scenario 1 - Congress does nothing. Scenario 2 - Congress passes a law. Nice dichotomy. Faced with a question like this, well behaved slave promptly recites - "In hard times we need strong leadership and men of action. I proudly support taking bold action - bunch of politicians kicking the can down the road.".

unemployed's picture

2012 alternative minimum tax for 30 million taxpayer returns,  coming real soon.

To reak maximum havoc,  Congress will first cause maximum pain and maximum whining.   

Foregone conclusion,  we have gone off the cliff.

NoTTD's picture

Can't help but notice that the authority cited to in #2 is the All-Knowing Barack Obama.    Now there's someone who has proved that he understands the math involved.  Very authoritative.

StychoKiller's picture

Good thing I'm cynical, else I would think you were being serious.