CBS: The “fiscal cliff”: What to expect if there’s no deal

CBS reported the following about the ‘fiscal cliff’ and some of its ramifications:

27 December 2012

The “fiscal cliff”: What to expect if there’s no deal…

What happens if the country is forced over the “fiscal cliff” on January 1?

Various federal tax cuts and breaks enacted under President George W. Bush expire as well as the payroll tax holiday enacted under President Obama;

About $1.2 trillion in federal spending cuts begin to kick in (approximately $110 billion a year for 10 years), divided equally between the Pentagon and most other federal agencies;

And federal jobless benefits expire for 2 million unemployed Americans.

Hitting the national economy with the double whammy of tax increases and spending cuts is what’s called going over the “fiscal cliff.” If allowed to unfold over 2013, it could lead to recession, a big jump in unemployment and financial market turmoil, economists predict. http://www.cbsnews.com/8301-250_162-57560835/the-fiscal-cliff-what-to-expect-if-theres-no-deal/

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).

One thing that CBS did not mention, that I will, is that the White House and many of the Democrats in Congress will blame the Republicans for their lack of cooperation, while many of the Republicans in Congress will blame the White House and the Democrats. It is possible that a partial deal will be made, but sadly, it will not truly fix the US economy (though it may prolong it more than doing nothing, or worsen it, depending upon the deal that might be agreed to). And another option is that the White House will decide to operate via “Executive” orders, which basically means that President Barack Obama will try to get around whatever he thinks that he should.

Notice also the following:

U.S. will hit debt limit on Dec. 31, Treasury Department says. “The U.S. government will hit the $16.4 trillion federal debt limit Monday and turn to ‘extraordinary measures’ to continue borrowing, the Treasury Department said Wednesday, beginning a countdown until Congress either passes legislation to allow for more borrowing or the government defaults on its debt. In a letter to Congress, Treasury Secretary Timothy F. Geithner said that although the debt ceiling would be reached Dec. 31, the government could buy roughly two months’ more time before it would be unable to meet all its obligations.” Zachary A. Goldfarb in The Washington Post. http://www.washingtonpost.com/blogs/wonkblog/wp/2012/12/27/wonkbook-one-last-attempt-at-a-fiscal-cliff-deal/

Legally, when the US hits its debt limits, it is supposedly to dramatically reduce spending beyond what is expected because of previous agreements–those previous agreements more or less coalesce as the fiscal cliff. From pretending to pay the debt by producing some platinum coins (Fiscal Cliff Risks US Supremacy and Leadership in the World; Platinum Coins Not the Answer) to Barack Obama deciding that he has the executive authority to bypass Congress and somehow increase the debt limit or something else, the reality is that something needs to be done (and it may essentially be some type of sham, like the “quantitative easing” programs also are; see Doubling QE3 is not good) as the US government is NOT in a position to function unless it raises its debt limits. So, it will raise its debts.

Biblically, this is more dangerous than most Republicans or Democrats realize. Notice what the Bible warns about those who increase debt in the end times:

3 For the vision is yet for an appointed time; But at the end it will speak, and it will not lie. Though it tarries, wait for it; Because it will surely come, It will not tarry…5 Indeed, because he transgresses by wine, He is a proud man… 6 “Will not all these take up a proverb against him, And a taunting riddle against him, and say, ‘Woe to him who increases What is not his–how long? And to him who loads himself with many pledges’? 7 Will not your creditors rise up suddenly? Will they not awaken who oppress you? And you will become their booty. 8 Because you have plundered many nations, All the remnant of the people shall plunder you. Because of men’s blood And the violence of the land and the city, And of all who dwell in it. (Habakkuk 2:3,5,6-8).

At some point in time, the USA will likely start to experience massive inflation (which is something that the Fed Chairman should realize). And afterwards, its creditors will rise up (Habakkuk 2:7). The fiscal cliff as well as policies of the Federal Reserve like “quantitative easing,” unless dramatically altered in a different direction relatively soon, are setting the stage for hyperinflation in the U.S.A.–have no doubt about it.

No matter what happens with the fiscal cliff or related negotiations, the real debt in the US will rise.

But what about the spending cuts? The cuts are believed to be dangerous in many ways as well. Furthermore, they are still not enough, nor are the tax increases enough, to stop the increase in US government debt. And the spending cuts that are associated with the fiscal cliff 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–they may help the stage for the military takeover of the USA that the Bible prophesies in Daniel 11:39. 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. Healthcare costs are also expected to be impacted, deal or no deal (‘Taxmaggedon’ and related items).

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 (cf. Isaiah 3:12; 9:16).

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 (and even military) 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 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.)