What is a fiscal cliff?

The Toronto Sun ^ | Nov 10/12 | Lorrie Goldstein

[Vaduz]

What is a fiscal cliff?.Obama in office note last four years.

[BunnySlippers]

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[gotribe]

Banks hold it as reserves.

[Rapscallion]

And there isn’t all that much space between our printing money like it’s worthless paper and the rest of the world deciding it’s worthless paper. And when that happens, expect Weimar-style inflation.

And if you wonder why that is a problem, think about how it will feel if your money is worthless, buys NOTHING....food, gas, medicine, ammo.

Companies out of business. No jobs. Expect violence as Homeland Security tries to restore/keep order.

[HeartlandOfAmerica]

Frack. The more I think of this, the more I think it’s going to make Greece’s pains look like an bright Sunday afternoon picnic. :(

[listenhillary]

Why is it so urgent? We run out of money to pay interest due, government payments to SS, military pay, government employee pay just before the end of this year.

[RC one]

then the money velocity graph shouldn’t look like it does and the excess reserves of depository institutions graph definitely shouldn’t look like it does. The money is just sitting there in limbo according to the graphs. If it’s just going to sit there in reserve, what was the point of creating it in the first place? It was like raising the largest army the world has ever seen and then not using them to fight the biggest war the world has ever seen.

[gotribe]

Fed used it to buy toxic debt from banks which now sits on the Fed’s books.

[RC one]

Yes the banks definitely received it but, after that, for all intents and purposes it disappeared. It should have filtered into circulation to stimulate the housing market and economic expansion but it clearly didn't based on the money velocity graph and the complete lack of economic growth in this country over the past 4 years. Where did it go?

According to the graphs it's sitting in reserve. Why? The money was created to bail out main street as well as wall street but it clearly never made it to main street for some reason. So where is it really? The only people who truly know where the money went are the people who ultimately received it and the people who gave it away and they weren't required to tell us. It smells like theft by fraud to me.