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Warning: Here's How the "Fiscal Cliff" Could Ruin Your Portfolio

Kent147 Wrote: Jul 23, 2012 7:15 AM

This article includes much of the insanity that created the mess. The author states Romney cannot fix the issue just with spending cuts, as there must be to increases as well. This logic ignores the fact that the current mess is entirely due to the ever increasing cost and burden of government. The solution is massive spending cuts to cut the cost of government (not the rate of growth). Tax increases at this time will just reduce private sector investment which is the cure, and do so by continuing to give money to the lunatics in government. We are at the point where the politicians are our enemy. Their goal is to simply remain in power and avoid blame for what they have done. They will try to do this by stealing all that "we" have.

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amackent Wrote: Jul 23, 2012 5:25 PM

I agree, but our spending is now at about 25% of GDP while our taxing is only at 14.5% or so last I checked. Historically, the Federal Government spending has been about 17-18% of GDP. I'd be all for all cuts and no increased revenue, but I'd be happy with tax reform along the lines of bowles-simpson. Get rid of all deductions and credits, lower rates substantially, but increase revenue a bit. The economy would boom and freedom would be bolstered. Of course, this does nothing to address spending, so I'd 1st want to see spending slashed to between 17 and 18% of GDP and not somewhere out there in the 5-10 year range. There's no reason this shouldn't be fixed in 2013-2014.

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Kent147 Wrote: Jul 23, 2012 5:34 PM

Nice thought but government wastes 90% of what they take in. Giving more revenue just increases this proclivity. The Government should get no more than God expects - 10%. All the entitlements are not funded to provide what they promise. They must go to.

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Warning: Here's How the "Fiscal Cliff" Could Ruin Your Portfolio

Imagine a train speeding down a track, just a few miles away from a wall that it will crash into. You can't see the wall yet, but you're told it's there anyway. As the train chugs down the track, the wall gets closer until it comes into view. Before long, that wall appears bigger and bigger until it is right in front of the train. By that time, there's no way to stop the train in time and you can only hope that the damage isn't catastrophic.

That's the game Washington is playing with our economy.

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