# US in its plunge over the fiscal cliff.



## carverman (Nov 8, 2010)

Looks like yet another "mexican standoff" between Obama and the Republican majority leader...no comprimise reached..another 85 Billion in
spending cuts. This is starting to appear like Obama's into a "lame duck" second term. When he mentioned in his speech (on the initiation of the
spending cuts..the sequester fallout).. "it's just stupid"..
it was clear he's having a tough time. What is not clear is how much this is going to affect the Canadian economy. Any thoughts on this?

http://ca.news.yahoo.com/obama-signs-order-begin-85-billion-spending-cuts-013940156.html


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## lonewolf (Jun 12, 2012)

The goverment destroys the money world.

Iam not sure the focus should be on events to predict the economy ?
I think the primary focus should be on the mood of the masses to predict the economy. Emotions lead events not events lead emotions. (the chicken or the egg)

Thinking events lead the economy is not good @ the bottom of a depression when mood is about to shift from negitive to postive bringing the economy out of depression when there are people advising the president to start a war with the angry massess to stimulate the economy.


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## carverman (Nov 8, 2010)

This spending cuts affect border crossing and reduction of airline controllers, so travellers to the US and within the US will be impacted by longer wait times at the border
and with airport scheduling (like landings etc)..and this is just the tip of the iceberg.


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## james4beach (Nov 15, 2012)

Why does the US government have to cut any spending? I thought as a society we already decided we're cool with unlimited money printing and that it fixes all problems.

USA wants a weaker dollar, Canada wants a weaker dollar, Europe wants a weaker euro ... everyone wants a weaker currency.

Why bother with any European-style pain at all? This is what my economists friends are saying any way. The economists say: don't worry, just print, the weaker currency is great, and will lead to a bright future.


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## Daniel A. (Mar 20, 2011)

The numbers sound good for print but if expressed as a percentage is very small given the size of the US economy .

They really like to play with small numbers but they can fix it quick should the market react.

Long term they really are in trouble and it will be the average Joe that pay's.


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## Cal (Jun 17, 2009)

Everything lately makes the Republicans look bad. They agree to disagree. So for now Obama gets major spending cuts, saving much needed tax dollars, then when they finally agree, Obama will look like the good guy in that he got more gov't money to spend in much needed areas.


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## HaroldCrump (Jun 10, 2009)

james4beach said:


> Why does the US government have to cut any spending?


They are not going to cut spending.
There are lunatics like Krugman and Mike Norman that claim a society can print money until it achieves full employment.
All the jobs that the private sector cannot (or will not) create must be created by the govt.


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## none (Jan 15, 2013)

You've got to be kiddig - Krugman is the most correct 'pundit' there is. I hate calling him that because that's in a group of some seriously stupid people.

Krugman knows his stuff.

http://www.policymic.com/articles/8...-on-stimulus-bill-and-anti-austerity-theories

http://gawker.com/5797755/paul-krugman-is-americas-most-correct-pundit
http://nymag.com/daily/intelligencer/2011/05/study_paul_krugman_is_americas.html


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