Categories

Governments

Rating

GD Star Rating
loading...

Share this post

 

Everything You Wanted to Know About the Fiscal Cliff

You may have heard the term ‘fiscal cliff’ without understanding what it’s all about. In this documentary, made by the Wall Street Journal, we are taught everything we need to know about the fiscal cliff but were afraid to ask.

In a nutshell, unless the law is changed, there will be tax increases and spending cuts at the beginning on January 2013 that President Obama and Congress passed in order to hack away at the ever-growing public debt. The problem with this is that these changes are considered too dramatic and abrupt and the US economy will go over ‘fiscal cliff’ unless alternative measures to reduce the deficit are implemented. Going over this cliff, many expert economists agree, will send the US into a renewed recession.

Great video for getting to understand the fiscal cliff as well as for learning some basics on government economic policy.

Also recommended for you:

  1. bill gates
    All You Ever Wanted to Know About Everything
  2. romanpolanski
    Roman Polanski: Wanted and Desired

 
  • JohnZee

    NOOOOOOooo!!!!!! We are fast approaching the fiscal clifffffff!!!!

    Obama won by a near LANDSLIDDDDDE!!! Video made him out like he’s Disney, forcing the lemmings off the cliff. EVEN THOOOOOOUUUUUGH they didn’t want to GOOOOOOOOooo!!!!

    You knoooowww!!! The “experts” in his video are all paid consultanttssssss!!! EVEN your grandpa thinks the Wall Street Journal is only worth wiping his HOOOOOOOOOOOoooooooooo!!!!

  • Omgadnowai

    It’s so funny how this bullshit is presented as having any sort of logic to it. I’ll explain it simply.

    Every single dollar in existence came into being by the following process:

    Citizen: “Oh hello, bank, I need a loan.”

    Bank: “Really?”

    Citizen:”Yes! I’d like $100,000!”

    Bank: “Sure, sure! Let me type that right in your bank account! We don’t actually have the money we’re lending you, since it doesn’t exist yet, but if you just sign this agreement here to reimburse us $100,000 with a 15% interest on it, for a total of $115,000, we’ll create it for you!”

    Citizen: “No problem! I’ll sign!” /sign

    Bank: “Great, great. You be on your way. Have a good day, sir!”

    Citizen: “You too.”

    ____________

    What happened is simple: some guy signed a paper saying he’s willing to repay the bank $115,000, despite having been lent only $100,000. This is interest, it’s simple. However, EVERY SINGLE DOLLAR is created with inherent interest attached to it. If a hundred people were to ask for a $100,000 loan, you’d have a total of…

    100 x $100,000 = $10,000,000 (ten million dollars)

    …in circulation. However, the total debt of all these people, at 15% interest, is of…

    100 x $115,000 = $11,500,000 (eleven million five hundred thousand dollars).

    The total money in circulation is LESS than the money OWED. There is not enough money in the supply for everyone to repay their debts. Bankruptcy isn’t an “accident” or a “mismanagement”, it’s just a natural occurrence. If there is less money available than is owed, there isn’t anything surprising about “fiscal cliffs”.

    This whole shit isn’t “scientific” or “logical”, it’s just a big joke.

    These economists and their monetary sequence of value calculations need to throw themselves off a cliff.

    • http://www.facebook.com/profile.php?id=644961821 Fabien L’Amour

      You are correct, the system works fine as long as there are new loans being issued, It goes to hell when the lending stops. Then the musical chairs game stops and some are ejected from the game.