Is the Fiscal Cliff really a cliff for us or just an illusion meant to get us in panic mode?
Today, Dem. Senator Tom Harkin went on air to say that Fiscal Cliff is not really a cliff for the American people that the conservatives has projected.
He said, “The Rush Limbaughs and the echo chambers around the country have really manufactured this,” he said, comparing it to the Y2K crisis. “This crisis has been manufactured to scare people so that we will do something here in a hurry.”
Here is the link if you want to read more on this: Huffington Post
Now I personally agree with him. The Fiscal Cliff really means that US cannot borrow more than a limit, decided by the political chambers. If we go beyond that limit, there will be a series of cuts that will affect everyone in US. However US current Debt to GDP ratio is currently around 100%. It cumulatively owes $16.4 trillion in debt in FY 2012. The countries in Euro went as high as 200% before they begun to see a meltdown. To bring some perspective, Italy now is at 120%. So although more debt is not the right way to go, but since we are a debt based economy, US does have the leverage to borrow more money. Ofcourse for long term we need to cut the deficit but this is not panic time just yet. We did increase the limit last year. We have the leverage to do that again this year.
So why is this being created then? To keep us in fear? To convince people in doing things they would not want to do? Isnt this the same old game the elites have been playing all along? May be it is really a fiscal cliff for them and not for the regular American people…