Fiscal Cliff Getting Closer: Obama, Boehner, and Lagarde Weigh In

The ‘fiscal cliff’ remains in the news in the USA and Europe:

10 December 2012…

Although the president has been criticized by Republicans for “campaign style” rallies on the “fiscal cliff,” the president today will hit the road when he heads to Michigan to tour Daimler’s Detroit Diesel Corporation. The White House said he will talk again about the “fiscal cliff” and, if a deal isn’t struck before the end of the year, how devastating it will be to the economy and the middle class…For the Republicans’ part, House Speaker John Boehner took the microphone on Friday to insist no progress is being made in talks with the White House. But just as progress seemed stymied, Mr. Obama and House Speaker John Boehner, R-Ohio, met at the White House Sunday for their first face-to-face meeting on the “fiscal cliff” since before Thanksgiving. http://www.cbsnews.com/8301-250_162-57558124/as-fiscal-cliff-clock-ticks-obama-hits-the-road-again/

Central Bank gold sale conundrum – why replace selling with buying

When asked why Germany did not take up its option to sell 600 tonnes of gold, under second Central Bank Gold Agreement, Axel Weber, the, then President of the Bundesbank said that “Gold is a useful counter to the swings of the Dollar.” No other statement explained so precisely why gold must be held by central banks. He went on to say. “Gold is an important factor for the confidence in the stability of the €.”… Inside, the state of U.S. debt and the battle over reducing the deficit shows that the dollar’s days both as a measure of value and the sole global reserve currency are numbered. http://www.mineweb.com/mineweb/content/en/mineweb-independent-viewpoint?oid=165732&sn=Detail

Euro Down On Italian Concern, U.S. Fiscal Cliff Worries

12/10/2012

Although upbeat jobs data from the U.S. lifted sentiment, gains were capped on concerns about the looming fiscal cliff as a meeting between the U.S. president Barrack Obama and house speaker John Andrew Boehner on Sunday failed to make any significant decisions on the issue. http://www.rttnews.com/2020391/euro-down-on-italian-concern-u-s-fiscal-cliff-worries.aspx?type=cm&utm_source=google&utm_campaign=sitemap

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Recently, Goldman Sachs’ (NYSE: GS ) CEO Lloyd Blankfein suggested that a failure to resolve the upcoming fiscal cliff could threaten the dollar’s status as the leading global reserve currency. http://www.fool.com/investing/general/2012/11/29/does-the-fiscal-cliff-threaten-the-dollars-dominan.aspx

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IMF’s Lagarde warns against US fudge on fiscal cliff

AFP – Dec 9, 2012

The United States needs to raise taxes and cut spending to address the looming fiscal cliff, IMF chief Christine Lagarde said Sunday, warning that anything less would undermine economic confidence.

With President Barack Obama and Republican lawmakers stuck in an apparently ideological battle on how to address the nation’s ballooning deficit by the end of 2012, Lagarde said the cliff remained the biggest threat to the economy.

Speaking on CNN’s “State of the Union” talk show, she said that although the US economy was creating jobs, American debt was still higher than in much of the eurozone and cautioned against more half-baked, short-term measures….http://www.france24.com/en/20121209-imfs-lagarde-warns-against-us-fudge-fiscal-cliff

This “fiscal cliff” is that taxes in the USA are to raise January 1, 2013 without federal action and automatic spending cuts are also to go into place to attempt to reduce the USA’s deficit growth (USA debt is to increase even if the taxes are increased and the spending is cut).

The spending cuts will affect many areas of US government spending. In terms of military spending, USA Defense Secretary Leon Panetta has warned about the dangers of the cuts as “doomsday” (‘Doomsday’ Defense Cuts) and “unthinkable” (Panetta Weighs Unthinkable Defense Cuts) and yet they may well happen. The tax increase portion has been called “THE LARGEST TAX HIKES IN AMERICAN HISTORY” (Obama Book #1 Again? Fiscal Cliff an Economic & Military Danger). The automatic cuts include reduction to entitlement programs and about an 8.2% reduction in federal education spending, which will impact school districts around the nation.

As of this morning, Wikipedia summarized some of the technical details as follows:

The Congressional Budget Office estimates that allowing certain laws on the books during 2012 to expire or take effect in 2013 (the baseline scenario) would cut the 2013 deficit approximately in half and significantly reduce the trajectory of future deficits and debt increases for the next decade and beyond. However, the 2013 deficit reduction would adversely impact the economy in the short-run. On the other hand, if Congress acts to extend current policies (the alternative scenario), deficits and debt will rise rapidly over the next decade and beyond, slowing the economy over the long run and dramatically increasing interest costs.

CBO estimates that if the baseline scenario is allowed to take effect in 2013, it would reduce federal spending by $103 billion and increase tax revenues by $399 billion (and another $105 billion “mostly in revenue”) through September 2013 (the end of FY2013). This would amount to a net total of $560 billion, roughly half the $1.2 trillion FY2011 deficit.The White House estimates that a family of four with an income of $50,000 to $85,000 would pay an additional $2,200 in federal taxes

While the Republicans and Democrats are using this as a major partisan fight, the reality is that the rest of the world is also watching and is very disturbed by all of this. The Europeans and others are realizing that the USA is losing its position in the world–and when it does, this will be the final “time of the Gentiles” that the Bible warns of (Ezekiel 30:2-3; Luke 21:23-24; Revelation 11:2). Yet, few in the USA seem to realize what is going on. The leaders in the USA are causing the nation to err.

While the USA will survive the upcoming “fiscal cliff,” how it has handled this matter is sending a signal to the rest of the world that the USA cannot possibly remain the dominant economic power in the world. The policies and decisions in Washington, D.C. are helping to create the conditions for the upcoming European Beast power to fill the void in economic leadership that the USA is in the process of making.

Some articles of possibly related interest may include:

Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, British, Scottish, Welsh, Australians, Anglo-Southern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo nations? Why might God allow them to be punished first?
Europa, the Beast, and Revelation Where did Europe get its name? What might Europe have to do with the Book of Revelation? What about “the Beast”? Is an emerging European power “the daughter of Babylon”? What is ahead for Europe?
Who is the King of the North? Is there one? Do biblical and Roman Catholic prophecies for the Great Monarch point to the same leader? Should he be followed? Who will be the King of the North discussed in Daniel 11? Is a nuclear attack prophesied to happen to the English-speaking peoples of the United States, Great Britain, Canada, Australia, and New Zealand? When do the 1335 days, 1290 days, and 1260 days (the time, times, and half a time) of Daniel 12 begin? When does the Bible show that economic collapse will affect the United States?
Barack Obama, Prophecy, and the Destruction of the United States This is a 160 page book for people truly interested in prophecies related to Barack Obama and the United States, including learning about many that have already been fulfilled (which the book documents in detail) and those that will be fulfilled in the future. It also has a chapter about a Republican choice. This book is available to order at www.barackobamaprophecy.com. The physical book can also be purchased at Amazon from the following link: Barack Obama, Prophecy, and the Destruction of the United States: Is Barack Obama Fulfilling Biblical, Islamic, Catholic, Kenyan, and other America-Related Prophecies?
Barack Obama, Prophecy, and the Destruction of the United States–Amazon Kindle edition. This electronic version is available for only US$2.99. And you do not need an actual Kindle device to read it. Why? Amazon will allow you to download it to almost any device: Please click HERE to download one of Amazon’s Free Reader Apps. After you go to for your free Kindle reader and then go to Barack Obama, Prophecy, and the Destruction of the United States–Amazon Kindle edition.)