White House issues new warning on 'fiscal cliff'

[JackRiddler]

11. Sure, do something about the "fiscal cliff" - in January!

The world doesn't end after this hyped-up "fiscal cliff."

All the tax cuts expire. The automatic cuts are made. But the effects are day to day until they are corrected. (All the cited figures are projections of what might happen if there is no deal for the entire year of 2013. It won't happen on the first day after this "fiscal cliff" chimera.)

Let the media and markets howl about for a couple of weeks - so what? Inevitably the smart money will see it as a buying opportunity, and up she goes again. (For a while, until real crises assert themselves, like the overburden of private debt.)

After the "fiscal cliff," it becomes possible to float a middle-class-only tax cut. Let the Republicans vote against that - they won't. Or enough of them will break to pass it.

Once that inevitably passes, let the Republicans float a further tax cut for the rich only. It will be hilarious.

After the "fiscal cliff" it becomes possible to individually restore spending in given areas.

The "Grand Bargain" during the lame duck session will be a disaster - Republicans will gain the best possible deal on cuts to earned benefits (a.k.a. "entitlements.&quot

Many smaller bargains that likely accomplish a much better result on the whole become possible in the new Congress, with the tax cuts already expired.