Comments on: A big red dog explains the fiscal cliff http://blogs.reuters.com/felix-salmon/2012/12/12/a-big-red-dog-explains-the-fiscal-cliff/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: TFF http://blogs.reuters.com/felix-salmon/2012/12/12/a-big-red-dog-explains-the-fiscal-cliff/comment-page-1/#comment-45210 Fri, 14 Dec 2012 18:53:27 +0000 http://blogs.reuters.com/felix-salmon/?p=19801#comment-45210 So… The federal government isn’t part of the general economy? Those lenders will forever be willing to pump $800B a year into the economy?

Perhaps a better model would be one of a “liquidity overhang”. The town is flooding, so we are pumping water uphill to a massive reservoir sitting above the town. If we stop, our toes will get wet. So we keep the pumps going at $800B a year… We’ve read of dams breaking elsewhere, of towns getting washed away in the flood, but we know that THIS dam is different and will never break. So we don’t even bother checking for cracks and keep pumping away.

How does that story end? One possibility is for Clifford to swoop in and drop a grenade on the pumps. Yes, our feet will get wet. The town will flood a bit. But we’ve survived that before and can survive it again.

Another possibility is to hope that the waters threatening the town will eventually recede, allowing us to begin draining the reservoir without flooding. But it is still raining…

We know the third possibility, we just don’t care to face it. Too scary, far worse than the first option.

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By: DCWright http://blogs.reuters.com/felix-salmon/2012/12/12/a-big-red-dog-explains-the-fiscal-cliff/comment-page-1/#comment-45198 Fri, 14 Dec 2012 07:16:16 +0000 http://blogs.reuters.com/felix-salmon/?p=19801#comment-45198 I’m on Clifford’s side.

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By: Helvidius http://blogs.reuters.com/felix-salmon/2012/12/12/a-big-red-dog-explains-the-fiscal-cliff/comment-page-1/#comment-45170 Thu, 13 Dec 2012 16:09:30 +0000 http://blogs.reuters.com/felix-salmon/?p=19801#comment-45170 And you lost me with Boehner as Batman. How dare you sir!?

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By: Helvidius http://blogs.reuters.com/felix-salmon/2012/12/12/a-big-red-dog-explains-the-fiscal-cliff/comment-page-1/#comment-45169 Thu, 13 Dec 2012 16:05:49 +0000 http://blogs.reuters.com/felix-salmon/?p=19801#comment-45169 You had me at Batman

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By: spiffy76 http://blogs.reuters.com/felix-salmon/2012/12/12/a-big-red-dog-explains-the-fiscal-cliff/comment-page-1/#comment-45159 Thu, 13 Dec 2012 02:53:47 +0000 http://blogs.reuters.com/felix-salmon/?p=19801#comment-45159 Everyone is ignoring the well known and repeatedly demonstrated stimulative effects of tax increases on the wealthy. Whether the “fiscal cliff” raises taxes enough so that the tax increase stimulus counterbalances the spending cut anti-stimulus is hard to say, but the “cliff” effect is going to be much weaker than everyone is yammering about. If nothing else, the anti-stimulus is going to be weaker as well, since a lot of the “cliff” spending cuts are to defense spending which has a very small multiplier. In fact, the “fiscal cliff” may be just the medicine the economy needs.

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By: 3oosion http://blogs.reuters.com/felix-salmon/2012/12/12/a-big-red-dog-explains-the-fiscal-cliff/comment-page-1/#comment-45153 Wed, 12 Dec 2012 21:15:27 +0000 http://blogs.reuters.com/felix-salmon/?p=19801#comment-45153 Old conventional wisdom: deficits will kill us all

new conventional wisdom: cutting the deficit will kill us all

continuing beltway conventional wisdom: we must help the rich with lower taxes and defense spending and hurt the middle class by cutting Medicare, Medicaid and Social Security.

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By: mr.jon.white http://blogs.reuters.com/felix-salmon/2012/12/12/a-big-red-dog-explains-the-fiscal-cliff/comment-page-1/#comment-45152 Wed, 12 Dec 2012 20:55:45 +0000 http://blogs.reuters.com/felix-salmon/?p=19801#comment-45152 This was delightful.

Minor plot addendum: Clifford himself, despite his current imposing urgency, was actually/misguidedly borne out of a biological lab deep inside Batman’s own Batcave. (This, despite the fact that the joint Metropolis / Gotham City constitution forbades such Batcave experiments.) While Earth’s yellow sun does equip Superman — both today, and in that fateful summer of 2011 — to superhumanly declare such experiments baseless & meritless, the drama (?) is apparently ratcheted up when he modestly restrains such power. (Note: Earlier, turn-of-the-century Superman story arcs frequently featured such inspiring displays of executive/Kryptonian might. They were great reads!)

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