Wednesday, December 19, 2012

The Economic Deception at the Heart of the Fiscal Cliff

Daniel Amerman
To uncover the truth about America’s fiscal cliff, Amerman explores seven layers of the trillion-dollars-per-year sleight of hand that hides the real US economy, and is the actual source of the deficits.
He examines the hidden ‘math trap’ that the private sector has fallen into when it comes to supporting the public sector, and the extraordinary implications for Americans, particularly long-term stock investors.
Based on the math trap, Amerman exposes the staggering 40% increase in tax rates that would be needed to return the budget to 2007 levels, if this is to be done without reducing government spending.
Even in the unlikely event that the current fiscal cliff tax increases go through in full, they would cover only half of what is needed to pay for the transformed relationship between private and public sectors that was confirmed in the 2012 elections. Once we understand that, then the true nature of the fiscal cliff becomes clear: It is the first step in an ongoing process, and the US government will be coming back, again and again, in what may dominate America’s economy, investment returns and individual standards of living for decades to come.
source: gold-eagle

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