I was thinking today that structurally the Fiscal Cliff actually started with the Bush Era Tax cuts. If Bush hadn't done that and then started two wars at the same time(which was an economically insane situation and still is) we would not now be facing the fiscal cliff.
If you notice Bush II did not even speak at the Republican Convention. Though both Republicans and Democrats know everything I'm saying here too, both participated in this as well. So, it's not like either party can get off scot Free in this sense.
It would be like someone deciding to stop working (Bush Tax Cuts) and then hiring a bodyguard and deciding to live on their savings which might be just enough to make payments on the money they needed to borrow stay alive for maybe 10 years. Well, the ten years are up. Are we going to get a job or go bankrupt? This is what the Fiscal Cliff really is.
I had a friend in the 1980s who did something like this. He wanted to spend more time with his family and travel so around age 40 or 45 he just quit his job as an engineer and traveled for 5 years and ran up about 50 thousand dollars in debt. Now that might not seem like much money now, but then it was a whole lot. However, when he wanted to work again there was a recession so when he finally got a job his financial situation was worse. Then he bought a house and had problems with that. And then he got upset and had a heart attack and died and left his wife and children in a terrible mess. So, though sometimes one can jump out into space and the universe will catch you, sometimes no one catches you and you die and your wife and kids are left with a financial mess.
So, which is it going to be for the U.S. ? We are going to see probably in 2013 or after.
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