Erskine Bowles: 'We Are Going Over the Fiscal Cliff'

Discussion in 'Financial Cents' started by Quigley_Sharps, Jul 12, 2012.


  1. Quigley_Sharps

    Quigley_Sharps The Badministrator Administrator Founding Member

    • [​IMG]
      Fiscal Commission co-chairs Alan …


    Three of the country's most prominent minds on U.S. budgetary problems issued a stark warning to lawmakers today as Congress approaches what many have called a "fiscal cliff" of tax hikes and spending cuts that are set to take effect Jan. 1.
    Erskine Bowles, who served as President Clinton's chief of staff, former Sen. Alan Simpson and billionaire investor Warren Buffet all expressed pessimism as to whether Congress and President Obama could reach a compromise to reduce the debt and avoid another fiscal crisis, during an interview with CNBC Thursday morning.
    While both Republicans and Democrats have said they do not want to let all the tax cuts expire and plan to stave off the bulk of the spending cuts, Bowles said partisan politics would likely thwart any deal to avoid the looming taxmageddon.
    "I think if I had to tell you the probability, I'd say the chances are we are going over the fiscal cliff," Bowles said. "I hate to say it, but I think that's probably right."
    Bowles, whom Obama appointed, along with Simpson, to create a bipartisan debt-reduction plan, said today that because debt reduction was "politically painful" and "really tough," it was not likely Congress and the president would make the tough choices to reform entitlements, cut spending and simplify the tax code, as the Bowles-Simpson plan suggests.
    "I think that if we don't get these politicians to come together we face the most predictable economic crisis in history," Bowles said during this morning's interview in Sun Valley, Idaho. "I think it's absolutely clear that the fiscal path we are on is not sustainable, and for me, the best analogy is these deficits are like a cancer, and over time they will destroy the country from within."
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    The Congressional Budget Office estimated that if the Bush tax cuts were allowed to expire and the automatic spending cuts went into effect, the country would plunge back into a recession.
    Bowles said that "every nickel" the country brings in each year only paid for interest on the debt and mandatory spending on entitlement programs, such as Medicare, Medicaid and Social Security.
    "What that means is every single dollar we spent last year on these two wars, national defense, homeland security education infrastructure, high value-added research, every dollar was borrowed and half of it was borrowed from foreign countries," he said. "That is crazy. Crazy! It's a formula for failure in any organization."
    But while Democrats and Republicans bicker in Washington over which party was to blame for the current fiscal problems, Simpson said it's the average American who pays the price.
    "When the tipping point comes and the guys who gave us money want more money for their money inflation … and all these things in interest, guess who will be hurt the worst? The little guy that everybody talks about day and night," Simpson said. "What fakery. What phoniness.
    "What that means is every single dollar we spent last year on these two wars, national defense, homeland security education infrastructure, high value-added research, every dollar was borrowed and half of it was borrowed from foreign countries. That is crazy. Crazy! It's a formula for failure in any organization."

     
    bgner likes this.
  2. bgner

    bgner Monkey

    Borrowed money.............why do we the American people put up with this? All of us have a certain amount of money to live on and we stretch it and eat beans and cornbread when the car breaks down or other emergencies happen that we arent prepared for. These politicians all need to be thrown out! They were elected by us the people, we pay their paycheck and they line their pockets with lobbyist money and do nothing to curb the coming storm. God help us all.......
     
    ozarkgoatman and Cephus like this.
  3. TwoCrows

    TwoCrows Monkey+

  4. Tikka

    Tikka Monkey+++

    A real my way or the highway attitude..

    It seems to me it would be a lot easier to show them the door.
     
    bgner likes this.
  5. BTPost

    BTPost Old Fart Snow Monkey Moderator

    and apprise them to not let the Door, Hit them in the A**, on their way out of Town......
     
  6. Yard Dart

    Yard Dart Vigilant Monkey..... Moderator Site Supporter++

  7. BTPost

    BTPost Old Fart Snow Monkey Moderator

    She is getting quite "dumpy" looking these days.... But the Puget Sound Liberals keep electing her..... Very glad I left, in 1991....Now I just visit..... on my way thru to some other pace....
     
  8. Yard Dart

    Yard Dart Vigilant Monkey..... Moderator Site Supporter++

    I liked her comment the other day to drive us over the financial cliff. Maybe a few of the sleeping sheep up here will start to listen to this B.S. and wake up enough to make some changes. But considering the Seattle left, I just have some doubt. I am hoping in the fall we can S. can Locke and all his bunch in DC, grab the state Governership and take a host of local positions. If not, I pray that the rest of the country can offset our idiots here, that seem to have the majority.
     
  9. Capt. Tyree

    Capt. Tyree Hawkeye

    It's as if most of the potential voters in this country are viewing all of the dismal economic news and web guru warnings as if they are participating in some kind of computer game, or watching a fantasy disaster movie.

    They have been anesthetized like a population of detached "lotus eaters" into watching the death of the Republic and not believing it is actually happening to them, as well as dragging the rest of our lives down with them.
     
    tulianr and Yard Dart like this.
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