Yet Closer to the End

In a mere 12 weeks either Sequestration or the Fiscal Cliff will knock on the door of the US congress. But first we have to have an election then we have to have lame ducks wandering about for a few weeks. Thank God it's only the US economy at stake, otherwise it might be important enough of an issue that we figure out a solution beforehand. But since we haven't had a budget for the last four years, I think that tells us everything that we need to know.

Everyone has downgraded growth for the US economy in 2013. Maybe 1.5% to 2.0% at best. So when Goldman-Sachs games the possible outcomes for the Fiscal Cliff, nothing looks good.

Here's the assumptions. All bad, some worse. Any way you cut it you'll take home less in the future. Both collectively as a nation and individually. Taxes will rise when the Bush tax cuts expire and benefits will decline when you lose your job in the certain coming recession. And none of it will solve the nation's debt problem.

Goldman's best case is no growth in 2013. Their next best case is a slight recession by taxing the rich and fucking the unemployed (yeah, that's right, taxing the rich = fucking the poor....nice). Then there's the ugly case, a full recession ala EU unemployment rates of 25% on top of the 25% already unemployed/underemployed in the previous iDepression. Replete with social collapse, robbery, murder, home invasions as desperate people become really desperate. Maybe you're better off being unemployed so you can sit at home to protect the place from roaming bands of plundering Vikings.