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CBO: "Fiscal cliff" would spark recession
AP ^ | 11-8-2012 | ANDREW TAYLOR

Posted on 11/08/2012 1:00:23 PM PST by ExxonPatrolUs

WASHINGTON (AP) -- A new government report says the so-called fiscal cliff would send the economy back into recession and cause a spike in the jobless rate to 9.1 percent by next fall. The Congressional Budget Office analysis says the combination of automatic tax increases and spending cuts would cut the deficit by $503 billion through next September. But that would cause the economy to shrink by 0.5 percent next year. The report comes as a newly re-elected President Barack Obama and Congress are seeking ways to avert the problems. The study estimates that America's gross domestic product would grow by 2.2 percent if the Bush-era tax rates were extended and expand by almost 3 percent if Obama's payroll tax cut and jobless benefits for the long-term unemployed are extended.

(Excerpt) Read more at hosted.ap.org ...


TOPICS: Chit/Chat
KEYWORDS: cbo; cliff

1 posted on 11/08/2012 1:00:28 PM PST by ExxonPatrolUs
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To: ExxonPatrolUs

I say go over the cliff. Unless we talk about stalling obamacare, we are going over it anyway.


2 posted on 11/08/2012 1:04:05 PM PST by DonaldC (A nation cannot stand in the absence of religious principle.)
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To: ExxonPatrolUs

We ARE in a recession. We never got out of a recession.


3 posted on 11/08/2012 1:04:48 PM PST by fatnotlazy
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To: ExxonPatrolUs
CBO: "Fiscal cliff" would spark recession

Someone should advise the members of the CBO, in their Ivory Tower, that outside the beltway, the recession never ended and has become The 0bama Depression.

4 posted on 11/08/2012 1:05:46 PM PST by The Sons of Liberty (Never Underestimate the Power of Evil or Evil Doers)
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To: fatnotlazy

It will be much worse than a recession, or depression.
the likes of which this country has never seen


5 posted on 11/08/2012 1:06:41 PM PST by tennmountainman
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To: ExxonPatrolUs
I don't think we really left the last one, are you sure that the REcession is not going into a DEpression!

After all we do keep changing how we crunch the numbers to get what we want out of them. /sarcasm

6 posted on 11/08/2012 1:07:08 PM PST by BillT (If you can not stand behind our military, you might as well stand in front of them!)
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To: ExxonPatrolUs

Oh Tell me, O great Obama the Messiah, when exactly did the recession end again? You said it ended in March if 2009, and yet it seems to have gotten worse. Why did you lie to us, O Great One Messiah Obama? Tell us why you lied, O Messiah Obama?

I just had to get that off my chest. I really hate liars


7 posted on 11/08/2012 1:08:05 PM PST by realcleanguy
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To: ExxonPatrolUs

This is the “Blame the obamacare recession on the GOP House” page from the marxist playbook. FUCBO.


8 posted on 11/08/2012 1:11:05 PM PST by lodi90
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To: ExxonPatrolUs

I think we should let it happen. Let’s go over the cliff. Biggest impact it to the “Bush tax cuts for the rich” and military. Liberals should be thrilled.


9 posted on 11/08/2012 1:11:41 PM PST by NittanyLion
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To: DonaldC
they are carefully setting this up so the pubs will naturally take the blame for anything...

despite the fact that the dems have owned the Senate for what 8 yrs now without a budget for three?.....

10 posted on 11/08/2012 1:12:47 PM PST by cherry
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To: DonaldC

As of yesterday, we accelerate.


11 posted on 11/08/2012 1:13:58 PM PST by Paladin2 (.)
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To: ExxonPatrolUs
"Spark" a recession?

WTF are we in?

12 posted on 11/08/2012 1:14:26 PM PST by E. Pluribus Unum (Government is the religion of the psychopath.)
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To: ExxonPatrolUs

SCARE TACTIC!! SCARE TACTIC!! WORKED IN 2008!! LET’S TRY IT AGAIN!! MUST NEVER CUT SPENDING!! MILK PRICES WILL SKYROCKET!! BUT WE DON’T GIVE A DAMN ABOUT GAS PRICES!! SCARE TACTIC!! SCARE TACTIC!! WORKED IN 2008!! LET’S TRY IT AGAIN!!


13 posted on 11/08/2012 1:15:27 PM PST by cotton1706
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To: ExxonPatrolUs
http://williambanzai7.blogspot.com/2010/08/dr-bens-custom-keyboard.html

Bernanke's keyboard

14 posted on 11/08/2012 1:15:34 PM PST by Lorianne (fedgov, taxporkmoney)
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To: ExxonPatrolUs

“..and cause a spike in the jobless rate to 9.1 percent by next fall.”

As if the jobless rate isn’t ALREADY 9.1%.


15 posted on 11/08/2012 1:19:19 PM PST by a fool in paradise (America 2013 - STPostUCK ON STUPID)
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To: ExxonPatrolUs

Another stock-market ass-kicking today (it’s all working out so friggin’ well)....

DOW..........12811.32..-121.41.....-0.94%
NASDAQ...2895.58.....-41.70.....-1.42%
S&P............1377.51....-17.02.....-1.22%


16 posted on 11/08/2012 1:20:51 PM PST by ScottinVA (I've never been more disgusted with American voters.)
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To: ExxonPatrolUs

Embrace the fiscal cliff. Prepare for hyperinflation.

Damned the torpedoes, full speed ahead!


17 posted on 11/08/2012 1:21:15 PM PST by Domandred (Fdisk, format, and reinstall the entire .gov system.)
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To: E. Pluribus Unum

“Spark” a recession?
WTF are we in?


The economys is going to get a lot worse next year because of obamacare regs & taxes and the dims are laying the groundwork to blame the GOP. If the beltway GOP does not go on offense NOW they will be buried in 2014.

The narrative is being set now by the dims and presstitues and we saw how well the GOP played catch up in the election.


18 posted on 11/08/2012 1:21:19 PM PST by lodi90
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To: ExxonPatrolUs

There is NO CLIFF.

All that is going to happen is things are reset to 2000-2001
rates.
BTW- The IRS computers are already programed for all of the Bush ERA tax cuts to expire anyway. If anything is extended
then the IRS will have to re-program the computer mainframes. We are already looking at a delayed filing season. Let it go back to 2000-2001 rates. Democrats control 2/3’s.. White House and Senate. The burden of leadership and compromise is on their shoulders not Repubs.


19 posted on 11/08/2012 1:21:59 PM PST by DOGHEAD
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To: fatnotlazy

We are in a Depression that never ended and now they will vote not to cut the federal spending to avert this never ending crisis so in 12-18 mos we can experience the joy of a total collapse.


20 posted on 11/08/2012 1:22:12 PM PST by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped.)
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To: ExxonPatrolUs

Combination of spending cuts and tax increases? My guess is the tax increases would be causing it way more than any spending cuts.


21 posted on 11/08/2012 1:23:00 PM PST by plain talk
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To: ExxonPatrolUs

This a pretty much an admission that the recession has not really ended, except for the infusion of made-up cash from the Fed. It’s being propped up by a credit card.


22 posted on 11/08/2012 1:23:17 PM PST by Repealthe17thAmendment (Is this field required?)
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To: fatnotlazy
The government has clverly and deliberately rendered the depression invisible. No government funded work crews busy at shovel ready jobs. And just consider the optics if all the foodstamp debit cards were replaced with vouchers for soup kitchens. Oh the lines we would see.
23 posted on 11/08/2012 1:24:36 PM PST by hinckley buzzard
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To: fatnotlazy
The government has cleverly and deliberately rendered the depression invisible. No government funded work crews busy at shovel ready jobs building "infrastructure." And just consider the optics if all the foodstamp debit cards were replaced with vouchers for soup kitchens. Oh the lines we would see.
24 posted on 11/08/2012 1:25:10 PM PST by hinckley buzzard
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To: ExxonPatrolUs

I’ll take the cliff for 100 Alex. How much worse can it get?


25 posted on 11/08/2012 1:25:10 PM PST by linn37 (Newt supporter here.)
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To: ExxonPatrolUs
King Obama will fix it. Just throw more money down the crap hold. Democratic way borrow and piss it away. WE ARE DONE!
26 posted on 11/08/2012 1:26:28 PM PST by Logical me
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To: ExxonPatrolUs
We have been in a depression and even these mobbed up government crooks will not be able to lie about it soon.

LLS

27 posted on 11/08/2012 1:27:02 PM PST by LibLieSlayer (I AM JOHN GALT)
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To: ExxonPatrolUs
I am surprised they left the obligatory “nonpartisan” out the headline in front of CBO.

If Team Boehner starts from the position that the GOP cannot end up being blamed by the MSM for anything, then all they will be negotiating are the terms of surrender, which will end up being unconditional.

On the spending side, the “fiscal cliff” would take military spending back to what we were spending in 2006. That is in real dollars, i.e., adjusted for inflation. This is not the crisis for the military that has been portrayed. Obviously, a massive tax increase would be disastrous but we should not start from the perspective that military spending cuts should be off the table because we certainly can achieve efficiencies there without compromising national security.

28 posted on 11/08/2012 1:33:50 PM PST by Stingray51
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To: Stingray51
The GOP needs to quit trying to win the MSM narrative. It will never happen.

Just let this thing collapse, and it's survival of the fittest. I like our chances over the libs.

29 posted on 11/08/2012 1:38:50 PM PST by Repealthe17thAmendment (Is this field required?)
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To: fatnotlazy

How can we go back to another recession when we never left the last one.

Obama wants us to go over the cliff, It’s amajor part of Cloward-Pliven


30 posted on 11/08/2012 1:41:54 PM PST by Venturer
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To: ExxonPatrolUs

What utter BS. So what is the CBO’s answer? More borrowing? How does that help anything? Are we insane? If someone is using credit cards to live above their means, is the answer to cut back to live within income or is the answer to get a couple more credit cards? We truly have gone insane as a nation to think that its irresponsible to cut spending.


31 posted on 11/08/2012 1:42:28 PM PST by Opinionated Blowhard ("When the people find they can vote themselves money, that will herald the end of the republic.")
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To: Opinionated Blowhard

What utter BS. So what is the CBO’s answer? More borrowing?


More importantly, what is the POTUS’s answer? Unfortunately, Bug Out Barry is headed to Burma next week to avoid this issue. There will be zero leadership from the WH for the next four years and we will pay for it.


32 posted on 11/08/2012 1:52:20 PM PST by lodi90
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To: ExxonPatrolUs

The CBO revenue estimates are based on static analysis.
Tax collections will certainly not increase as much as they say, not after the first couple of months. Incomes will fall, income will be hidden or delayed, people will lose their jobs and lose all their income, etc.

Dynamic analysis of revenues should be based on their estimate of the economic effects. They have plenty of data with which to model a dynamic revenue scenario.


33 posted on 11/08/2012 1:57:07 PM PST by buwaya
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To: ExxonPatrolUs

Good, no deal. America voted for Obama, this is a consequence of that.


34 posted on 11/08/2012 1:58:56 PM PST by Dragonspirit (Always remember President Token won only by defecting on his CFR pledge.)
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To: ExxonPatrolUs

Propaganda and lies in order to blame what is coming on the republicans. There is no way out of bad times here. It is simply impossible. It cannot be solved in a way that is both mathematically and politically possible. And we have gone so far into the entitlement realm that any mathematical solution leads to mobs and riots from those that feel entitled.


35 posted on 11/08/2012 1:59:13 PM PST by Revel
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To: lodi90

YEP!


36 posted on 11/08/2012 2:06:21 PM PST by KansasGirl ("If you have a business, you didn't build that. Somebody else made that happen."--B. Hussein Obama)
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