Cadet985 From United States of America, joined Mar 2002, 1928 posts, RR: 4 Posted (2 years 11 months 19 hours ago) and read 2497 times:
So I'm not too financially savvy. I'm overseas currently, and am concerned about the fiscal cliff. My concern is that if there is no agreement to avoid it, that my US Dollars will be worthless. So should I trade them in for Shekels now, or are my concerns about this unfounded?
QFA380 From Australia, joined Jul 2005, 2108 posts, RR: 1
Reply 1, posted (2 years 11 months 17 hours ago) and read 2469 times:
No, the USD is not going to be worthless overnight. I'd be more worried about the long erosion of value through the quantitative easing processes and the financial wizardry of Operation Twist than a hacksawed effort (effort nonetheless) to bring the budget close to surplus.
Going over the cliff will mean an initial pain for long term strength, or you can have long drawn out pain as the can is kicked further down the road. Either way, I would not recommend trading USD for shekels, there's really no point. Also remember that the purchasing power of a domestic USD will not fall unless inflation skyrockets which is unlikely in the medium term.
seb146 From United States of America, joined Nov 1999, 13312 posts, RR: 14
Reply 3, posted (2 years 11 months 13 hours ago) and read 2419 times:
It is not a fiscal cliff. It was Congress not wanting to offend anyone, so they kicked the can down the road and said "if X does not happen by Y date (they kept chainging the date, too!) then taxes will go up and cuts will happen." That is all the "fiscal cliff" is.
Arrow From Canada, joined Jun 2002, 2676 posts, RR: 2
Reply 5, posted (2 years 11 months 3 hours ago) and read 2355 times:
Please -- will you just go over the GD cliff and stop obsessing about it. Going over the cliff would be a good thing -- higher taxes and revenue -- which the US desperately needs, and much lower spending --which the US also desperately needs. Voila -- no more deficits. Any compromise reached by Congress will be nothing more than another short term band-aid, and another successful "kick the can down the road" move.
Never let the facts get in the way of a good story.
alberchico From United States of America, joined Sep 2004, 3040 posts, RR: 0
Reply 6, posted (2 years 11 months 3 hours ago) and read 2351 times:
Quoting Arrow (Reply 5):
Please -- will you just go over the GD cliff and stop obsessing about it. Going over the cliff would be a good thing -- higher taxes and revenue -- which the US desperately needs, and much lower spending --which the US also desperately needs. Voila -- no more deficits.
What's so bad about continually kicking the can down the road ? Now is not the time to implement a doomsday budget. Let's wait until the economy improves and this partisan crap ends before completely restructuring the economy. Which also brings a good point. Do politicians genuinely care about the good of the country or are they concerned only with their own narrow agenda and loyalty to party ideology ???
short summary of every jewish holiday: they tried to kill us ,we won , lets eat !
FlyDeltaJets From United States of America, joined Feb 2006, 1966 posts, RR: 2
Reply 7, posted (2 years 11 months ago) and read 2315 times:
Last summer the US debt limit was reached, (which is the amount of money that the US can borrow to pay the debts already incurred) congress had decided to leverage the raising of the debt limit to try to get spending cuts in the budget. Needless to say they were not able to get the spending cuts so as a compromise congress decided to em-panel a bipartisan super committee to come up with spending cuts in order to agree to raise the debt limit. The super committee was tasked with coming up with spending cuts or else the Bush/Obama tax cuts will all expire as well as a host of spending cuts across the board evenly split between defense and non-defense. The impact of letting these things occur over a long period will pave the way back into recession. Needless to say the super-committee failed and we are now headed to the sequestration. It seems all other routes to making a deal have also failed as well. As for US dollar being worthless, it wasn't worthless during any of the previous recessions so it's highly unlikely it would be when we go into a future recession.
NorthstarBoy From United States of America, joined Jun 2005, 1968 posts, RR: 1
Reply 8, posted (2 years 10 months 4 weeks 1 day 21 hours ago) and read 2290 times:
Given that the Tea Party gave birth to this pig in the first place, then strangled Obama into signing it by holding the debt ceiling hostage, I wonder if they could do the same thing again in February, but in reverse, forcing Obama to accept tax cuts for everyone while keeping the spending cuts intact?
I'd rather be one of the worst and Dumbest than the best and brightest....life's so much more stress free that way
par13del From Bahamas, joined Dec 2005, 8499 posts, RR: 8
Reply 9, posted (2 years 10 months 4 weeks 1 day 19 hours ago) and read 2267 times:
Quoting alberchico (Reply 6):
What's so bad about continually kicking the can down the road ?
Quoting FlyDeltaJets (Reply 7): Last summer the US debt limit was reached, (which is the amount of money that the US can borrow to pay the debts already incurred) congress had decided to leverage the raising of the debt limit to try to get spending cuts in the budget.
Damage is being done to the USA by running the massive deficits, it is like an illness to the body, without a periodic checkup, when the damage comes to the surface it is often times too late to save your life.
Take jobs for example, when they started going overseas no one really gave it much thought until it became an avalanche, so now everyone and their granny has an acceptible excuse for it, and none of them involve lowering the cost of doing business in the USA, from massive regulations, lack of innovation, high labour / infrastructure cost, etc. etc. etc. everyone likes to get on unions who represent less than 50% of the workforce, another can kicking.
Quoting FlyDeltaJets (Reply 7): Given that the Tea Party gave birth to this pig in the first place,
Lets be fair, the USA has been running deficit spending for a long long time with neither party doing anything about it, cutting the rate of increase in the deficit is the kicking the can down the road, when their was a surplus under Clinton, does anyone know how much of the surplus was used to pay off the national debt?
The Tea Party is putting the problems of the deficit front and center, their biggest problem is that they do not have good enough PR in explaining to the people the damage that deficit spending and its resulting federal debt has for the nation.
State's especially those who have balanced budget amendments know the consequences of running a deficit, those that do not also know since most of them make every effort to stay within their means and when they do go over get hit with high interest short term loans which do hurt.
Where the Tea Party fails is that they have not been able to shake the belief that the Federal government is always there to assist and they unlike states can run deficits and pile up debt to their heart content as there are no consequences.
Ask one question, rather than fighting about going over the cliff, not wanting to cut spending and fighting over raising taxes, why not just print more money and sell off US gold reserves, no one gets hurt right?
Taxes will stay where they are, spending will continue and if you print enough you can increase the rate of spending to cater for everyone going through these difficult times, when the economy comes you can revisit the situation.
There are consequences here too, which may be closer to the surface for all to see.
QFA380 From Australia, joined Jul 2005, 2108 posts, RR: 1
Reply 10, posted (2 years 10 months 4 weeks 1 day 18 hours ago) and read 2255 times:
Quoting alberchico (Reply 6): What's so bad about continually kicking the can down the road ?
You realise that consumers and business need certainty and they're incredibly resilient when they have it. Trust and certainty are the grease that allow the cogs of capitalism to flow smoothly. No one knows which last minute deal will be the one that fixes everything. Companies in the US have incredible balance sheets because they don't know what is going on and want to sit tight until they see. Going over the cliff will be painful, but once everyone knows the game, spending and investment will increase and the budget will be in a better position. Kicking the can is good for absolutely nobody except politicians and bureaucrats.
Pyrex From Portugal, joined Aug 2005, 4461 posts, RR: 30
Reply 12, posted (2 years 10 months 4 weeks 1 day 16 hours ago) and read 2229 times:
"Fiscal cliff" is a made-up word designed to scare naive people into further deficits, as if government spending ever created any actual growth, or a rolling two-year tax break on something ever made someone make a 30+ years investment decision. I say, pedal to the metal, Thelma & Louise style.
Read this very carefully, I shall write this only once!