‘Real News From The Blaze’: The Other Fiscal Cliff
- Posted on July 11, 2012 at 8:16pm by
Christopher Santarelli
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Taxmageddon and “the fiscal cliff” has been discussed extensively on “Real News,” as America braces for January 2013 with the simultaneous implementation of $2 trillion in automatic spending cuts over 10 years agreed to in last year’s debt ceiling vote, and the expiration of the Bush era tax cuts. But there is one economist who suggests that the “real” cliff is something that no one is paying attention to.
Peter Schiff of Euro Pacific Capital writes that the economy will encounter the most difficulty in finding a way to deal with the debt burden that the U.S. will face when interest rates rise to normal levels:
The current national debt is about $16 trillion (this is just the funded portion…the unfunded liabilities of the Treasury are much, much larger). The only reason the United States is able to service this staggering level of debt is that the currently low interest rate on government debt (now below 2 per cent) keeps debt service payments to a relatively manageable $300 billion per year.
On the current trajectory the national debt will likely hit $20 trillion in a few years. If by that time interest rates were to return to some semblance of historic normalcy, say 5 per cent, interest payments on the debt would then run $1 trillion per year. This sum could represent almost 40 per cent of total federal revenues in 2012!
Andrew Schiff of Euro Pacific Capital joined “Real News” Wednesday to discuss the looming disaster and whether or not it can even be handled:
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Detroit paperboy
Posted on July 11, 2012 at 10:09pmI would vote for Snow White with testicles before I would vote for any democrat………
Report Post »Mutiny
Posted on July 11, 2012 at 9:18pmWe have to cut spending. The only way to cut spending is to elect a guy with balls. Romney and Obama are the same when it comes to spending. They both lead us to bankruptcy.
How many more articles does the Blaze need to run for you morons to understand this.
Report Post »lukerw
Posted on July 11, 2012 at 8:27pmBad Credit; No Credit… call Santa at the North Pole!
Report Post »MAMMY_NUNN
Posted on July 11, 2012 at 8:39pmHe always comes through every year but I heard foodstamps are not accepted there so he had to sacrifice Rudolph.
Report Post »Salamander
Posted on July 11, 2012 at 8:58pmI wonder who will foreclose The White House? Congress? The Stupreme Court?
Report Post »KC1
Posted on July 11, 2012 at 9:13pmWhat do we have to worry about we have the best possible candidate running against Obama. Romney has never expressed support for TARP. Just about every chance he gets he explains how the FED is at the root of the economic woes of today, he refuses to let artificial arguments get in the way of his message of free markets. Have you seen his proposed budget? It slashes spending by a trillion in the first year and balances the budget by the end of his first term. Romney is on record in 2001 telling the congress of the housing bubble. I dare anyone to show me footage of Romney agreeing with the likes of Krugman or Bernakie. I will vote for Romney because he is the obvious choice for anyone who believes in free markets and individual freedoms. I dare anyone to name a better more consistent candidate than Romney, who has never deviated from a belief because it is unpopular.
Report Post »lukerw
Posted on July 12, 2012 at 5:52am“Not to Worry” (panic now) Guys… the Savings from ObamaCare will allow the people to have More Money, so Taxes can be Increased, and the Debt Paid Off :)
Report Post »Snowleopard {gallery of cat folks}
Posted on July 11, 2012 at 8:24pmWhy do people not understand that this has been the long term plan for the Progressives, and for Obama/Soros in the destruction of the nation. He has run up massive budget after budget, seeking to cripple and crush the nation first hand, and yet if that failed, by the massive, ever growing debt that will take us down as well.
Report Post »MAMMY_NUNN
Posted on July 11, 2012 at 8:36pmSome people do understand this but others fail to see the truth that it is just a matter of time game over.
Report Post »RANGER1965
Posted on July 11, 2012 at 8:46pmNot saying your wrong, but if this is…“the plan” then certain things have to be in place in order for the progressives/communists/liberals to have their statist utopia.
If the big disaster happened this year, or even in the next couple of years, they don’t have the power to force or influence anything.
Except for the large cities most of America is fairly conservative. They certainly don’t have an army, and the current military is mostly made up of conservatives, libertarians, and independents…and that by a wiiiiiide margin.
My point is if the crap really hit the fan, the big disaster that everyone says the liberals are waiting for, how could they possibly manage it? It seems to me that a big disaster would do just the opposite.
Report Post »TRILO
Posted on July 11, 2012 at 8:53pmThe plan has not only been embraced by the progressive democrats, the progressives hiding under the cloak of the republican party have had their grimy hands in this mess as well.
Report Post »Mutiny
Posted on July 11, 2012 at 9:25pm@trilo
Exactly. I mean look at our last two presidential nominees? They are two of the most progressive guys the GOP has ever had.
We have to address spending. Romney’s plan doesnt even cut current spending levels. Even if he adopted the Paul Ryan plan and interest rates stay at where they are we have 25 trillion in debt after 10 years. Who honestly thinks we havent collapsed before that?
If you believe what I just said, there is no way you can support Obama or Romney.
Report Post »Snowleopard {gallery of cat folks}
Posted on July 11, 2012 at 11:44pm@Ranger:
I don’t think we disagree as much as you may think. This appears to be the progressives plan indeed; yet in their arrogance, they honestly would believe that such a disaster could be managed. Recall that Soros once stated “…America has to be brought down in a controlled collapse by her debt…’
So the perception of a controlled crash is what they expect to happen; instead there is more than a fair chance, that upon seeing what happened, and who was responsible (progressives), the people of America will settle the matter either peaceably, or if forced to, the old fashioned way.
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