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Saturday, December 8, 2012

Which "Fiscal Cliff"?

There is a lot of chatter nowadays about the 'fiscal cliff'.  The first question to ask is: where are you getting your financial information?  The mainstream information, naturally, is propagandized faux panic.  Mainstream pundits on channels like MSNBC and CNBC are hyperventilating about two things: the new higher tax rates that go into effect on January 1st, combined with the government 'cuts' that go into effect the same time.  The higher tax rates will cause economic problems, as will the implementation of 'Obamacare'.  The more things are taxed, the less you get with regard to economic activity.  Taxation is not only theft, it causes economic slowdowns.  The government 'cuts' are farcical.  They are cuts in spending increases - meaning that if a 9% increase in spending was planned, the new 5% increase in spending is accounted as a 4% "cut".  Congress can pull this off because many Americans get their financial information via the mainstream media, or they aren't paying attention at all.

There is a much bigger cliff about which to worry.  Peter Schiff was one of the early sources that changed my economic thinking.  He follows the free market 'Austrian' perspective and knows his history.  These two factors allow for an economic analysis that is superior to any mainstream source.  This video is typical of the SchiffReport - in depth analysis that is not geared toward an agenda.  When the Great Default happens, the real 'fiscal cliff', there'll undoubtedly be more of the "Peter Schiff was Right" videos posted on youtube.




For a daily site to check for national and international financial news, zerohedge.com is a good choice.  For Austrian free market analysis combined with historical background, I can't think of a more readable and media friendly site than mises.org.

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