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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: JohnM who wrote (210499)	12/4/2012 9:02:29 PM
From: Steve Lokness	Read Replies (1) \| Respond to of 543549

<<<<Going off the cliff means huge deficit reductions.>>>> I'm not convinced that will be the outcome ........now. Too much hype has been built into this fiscal cliff that I'm beginning to believe it will have a life of its own should we go there. By that I mean the people will go scared because so much worry has been attributed to it that everyone pulls in their horns. An anti-keynsian effect if you will (slow down in the velocity of money). That then setting up the stage for a renewed downturn - followed by less tax receipts followed by a need for dare I say .......more stimulus spending or more QE (printing of money) - or both. And so then more debt! The best way to address the debt issue is through stability. A stable economy can mean a stable source of tax revenue should the morons in DC ever get serious and work out a compromise. I've liked the economy improving at the speed it has been going. Not too fast that sets up a whole new set of problems but slow and steady improvement while we work through the required deleveraging. If Obama can manage to continue to do this he will go down in history a rather capable leader in my mind. Perhaps even great should we get debt down to manageable levels. So no, not now, lets not experiment by going off the cliff. I'm thinking the end result was not good for Thelman and Louise - and I wonder if we might meet a similar awful result?