Alice Rivlin, former vice chair of the Fed, says the jobs report is reassuring but it does not portend a change in Fed policy.
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In the meantime, the clock is ticking on the fiscal cliff — i.e. when massive spending cuts and tax hikes are scheduled to take effect in the new year. Rivlin also says the debt ceiling, which has become another point of contention in Washington, should be eliminated for good.
“Get rid of the debt ceiling,” she says. “It’s a totally artificial thing. When you vote for spending and you vote for revenues there’s an implicit debt number there, but it shouldn’t be used as a hammer over the head of the president or anybody else…..the debt ceiling has nothing to do with the rising debt.”
Thank You FLU,
Was going to post a separate topic but I think this is relevent to the “Fiscal Cliff” concept.Maybe it’s because I’m a long term thinker,sometimes, but when I hear the term fiscal cliff, I think of Greece, which is where we will be soon if we let things continue as is. Letting taxes rise, unemployment payments returning to normal without extensions, will be painful for many but necessary for the government to have any chance to reverse the downward slide. I’m really surprised that there is not an outcry by the masses for unfettered access to 401K plans without penalty.
I think this is the real analogy: Using a credit card to make the payment on the credit card, and then needing a credit increase to continue using the credit card to make the minimum payment on the credit card.
[quote=paramount]I think this is the real analogy: Using a credit card to make the payment on the credit card, and then needing a credit increase to continue using the credit card to make the minimum payment on the credit card.
Man that makes my head hurt….[/quote]
I think the more complete picture would be…
First using a credit card to make the payment on the credit card.
Then request a credit increase to make the minimum payment on the credit card.
….But, in order to qualify for the credit increase on the second credit card, going into a convenient store, holding the owner at gunpoint and simultaneously taking some money out of the cash register and making him co-sign a loan guarantee document to the credit card company.
… All while telling the onlooking stunned customers that the owner is the enemy…like he’s a terrorist…because, after all, how else could he have earned that money
… and that emptying part of his cash register is OK…. because he won’t miss it anyway and it will fix everything….
….and then giving out free beer in the store to everyone looking on, so that no one in the store cares….
… which will be paid for by the first credit card, of course.
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