In response to:

My ‘Fiscal Cliff’ Prediction

kenneth416 Wrote: Jun 04, 2012 12:37 PM
I agree with Mr. DeHaven that nothing will be done until after the election in November. Then, of course, much depends on which candidate wins--Obama or Romney. Even if Romney wins, the problem are severe and the solution will be painful for many of us. My own opinion is that the fiscal problem is virtually intractible and will only be solved by default or hyper-inflation. I predict the latter, so any dollar-denominated assets are headed for disaster. Buy hard assets--gold, silver, land, etc., and, if possible, borrow heavily (long term) at today's near-zero rates.

Policymakers have been kicking the fiscal policy can down the road for years. That can is going to reappear shortly after the November elections when policymakers will be forced to confront scheduled tax increases, mandated spending cuts, and – once again – the debt ceiling. (I’m assuming, quite confidently, that nothing gets resolved before the elections.) The combination of events is being called the “fiscal cliff” as the failure to resolve these issues would cause the economy to go back into recession in 2013 according to conventional economic forecasters.

The Congressional Budget Office recently upped the alarm ante with its