In response to:

Congress Avoids the Cliff by Selling Us Down the River

kcaffrey Wrote: Jan 06, 2013 10:28 PM
Everything explained above points out the fact that the American people, all of us are screwed. The only thing that I disagree with is I think the two Trillion in debt in Obama's final year is off considerably. Inflation is a doubled edged sword for the American people and our country. Individuals will pay higher prices without higher wages and entitlement will be cut in the sense that inflation will do the job of cutting the buying power of the same check that they receive and hence, you have a cut in entitlements. Interest rates will go up and America who owns seventy percent of the 16 trillion dollar debt will pay more for that debt in interest costs. The interest on the dept will probably take up more of are budget than Defense.

With the possible exception of the New York Times' editorial board (and the cast of The Jersey Shore), everyone on the planet understood that the United States Government needs to cut spending, increase taxes, or both. Instead, after months of political posturing and hand wringing, the Federal Government has just delivered the exact opposite, a deal that increases spending and decreases taxes. The move lays bare the emptiness of budget legislation, which can be dismantled far easier than it can be constructed.

One question that should be now asked is whether Moody's Research will finally join S&P in downgrading the Treasury...