Comments on: Don’t panic about the fiscal cliff

By: chris9059

chris9059 — Tue, 30 Oct 2012 15:00:50 +0000

“Before the election Republicans could reassure themselves that any economic damage caused by obstruction would be negated by the benefits of unseating President Obama. But after the election, this motivation will disappear. Instead, both parties will face the inevitable prospect of living together for four more years ”

I’m afraid the author seriously underestimates Republican nihilism. He suggests that the motivation for obstruction will “disappear” after the election because the parties will then be faced with the necessity of governing for the next four years. However this necessity existed after the 2008 election but it did nothing to prevent the Republicans from pursuing a policy of obstruction from day one. Why should this time be any different?

By: bcartrite

bcartrite — Mon, 01 Oct 2012 15:17:15 +0000

@ManInTheShadows: I believe the article is referring to the roughly $2T businesses are sitting on, in addition to the $1T banks are holding, as the “savings” that are preventing the economy from expanding. The problem seems to be not a lack of capital but a lack of customers to get businesses to begin hiring and borrowing to expand to meet increasing demand. Getting money into the hands of those who will spend it, rather than sit on it, seems to be the real challenge, I think!

By: oregun

oregun — Mon, 01 Oct 2012 03:04:05 +0000

Our politicians are so confident they can borrow and print money forever, they don’t recognize its resulting hyper-inflation as the true FISCAL CLIFF. Instead they say the FISCAL CLIFF is a few upcoming cuts in their spending. Go figure.

By: scythe

scythe — Sun, 30 Sep 2012 08:27:33 +0000

narrow minded interpretation of what is “good” for americans

bernanke’s bond buying is good for market traders

but not average joe america who does not receive a dime from their fed

article reads like a plea to extend the methadone treatment

By: paintcan

paintcan — Sat, 29 Sep 2012 17:59:44 +0000

No Government can finance itself indefinitely as a kind of fiscal perpetual motion machine.

By: DPROG14

DPROG14 — Sat, 29 Sep 2012 17:26:04 +0000

Not so sure I agree that either party is sane enough to work together.

By: jrpardinas

jrpardinas — Sat, 29 Sep 2012 16:02:36 +0000

Great article!

The Europeans have a demonstrated talent for self-destruction. And no European country has been as destructive of self (and others) as the Germans.

They’ve surpasses in their austerity madness even the new virulent strain of Republican known as the Tea Party.

By: GrahamLovell

GrahamLovell — Sat, 29 Sep 2012 10:17:54 +0000

In 2014, it is our best hope that Europe will have stabilised, and that gradually reviving economies in each of its states will push the EU zone government budgets into a surplus.

Given the constraints of the Euro model, it is unlikely that EU will ever attempt Keynesian stimulus on the grand scheme of the USA.

This will just leave the Anglo countries (and China) persisting with Keynesian stimulus. Only time will tell whether this will prove to be Keynesian folly or Keynesian genius.

At least China had money in the bank before the crisis started, and Australia had a structural surplus for a time.

Yet one would be hard pressed to say that the US had a structural surplus before 2008, and now with 25% of GDP being spent on Federal programs, and only 15% of GDP being raised in taxes, it also hard to say how this fits into the Keynesian model.

By: ManInTheShadows

ManInTheShadows — Sat, 29 Sep 2012 06:05:38 +0000

“Bernanke sees unacceptable levels of unemployment and attributes them to an excess of saving over investment by the private sector.”

An excess of saving? Millions of the lower working class citizens living from paycheck to paycheck and seniors depending in the interest from their meager saving would strongly disagree!

The Fed Chairman is carving out a unique place for himself in history – but not what he expects …

By: matthewslyman

matthewslyman — Fri, 28 Sep 2012 20:50:18 +0000

Very clever analysis — worth reading. Thank you.