While The Global Economy Tottering On The Edge of America’s Fiscal Cliff, Wilbur Ross Sees Recession In US, Warns of ‘Greek’ Debt Situation!!!


Wilbur Ross Sees Recession, Warns of ‘Greek’ Situation

Money News: The U.S. economy faces a recession if the nation goes off the fiscal cliff and key tax cuts fully expire at the end of this year, said Wilbur Ross, chairman and CEO of WL Ross and Co.

And, in the wake of news the U.S. will hit its debt limit earlier than expected, the billionaire financier warned that the United States could soon face its own “Greek” style debt situation.

Failure to stop automatic tax increases set for Jan. 1 “would obviously have a big negative effect on disposable income and consequently, I believe would put us back into the recession when coupled with the spending cuts that are also part of it,” Ross told Newsmax TV in an exclusive interview Thursday.

Ross says that even a compromise deal that stops tax increases for many still may not save the U.S. economy.

“I think that if we don’t go over the full fiscal cliff, because we will go over some sort of a cliff even if you only raise the rates on the high-bracket people, and even if you cut back on the sequester, there still will be jolts to the economy,” Ross said.

“So the question isn’t whether or not we go over a cliff, it’s just how steep is the cliff.”

The US ‘cliff’ – one small part of a huge debt crisis

Telegraph: So here we are, at the turn of the year, with the global economy tottering on the edge of America’s fiscal cliff.

hat’s kept springing to my mind over the holiday season is the final scene of The Italian Job – the iconic 1969 original, not the tacky 2003 remake.

“Hang on a minute, lads,” says heistmaster-in-chief, Charlie Croker, as he and his merry band of crooks balance precariously in a bus on the edge of an Alpine cliff. “I’ve got a great idea.”

The Italian Job’s cliff-hanger finale is all make-believe. A brilliant film ends, we marvel at Michael Caine’s acting genius, the credits roll and then we get up and make some tea.

Real-world predicaments aren’t so easy.

Right now, Washington’s deeply divided ruling classes are locked in tortuous negotiations to try to prevent the world’s biggest economy falling over the fiscal cliff – shorthand for $600bn (£370bn) of tax rises and spending cuts set automatically to apply from the start of 2013.

If Congress and the White House can’t agree over the next 48 hours, we apparently face a renewed US recession that would be likely to push a meaningful global recovery even further into the future.

The problem facing America’s political elite is that no single party has genuine control. The Democrats regained the presidency, yes, but the result was far from “decisive”….

 

Barrasso: Obama has ‘addiction’ to spending

CNN: Barrasso’s comments Sunday on CNN’s “State of the Union” comes as legislators rush to beat the end-year deadline to prevent automatic spending cuts and tax increases from taking effect in 2013. 

“He’s fixated on what may fund the government for seven days a year,” Barrasso said of Obama. “The president is doing nothing about the addiction that his administration and he has done to spending —he’s the spender-in-chief.”

 

Dick Durbin “Hard To Get To An Agreement Tonight”

Zerohedge: It’s not even 6 pm yet (futures open time) and all that early optimistic momentum hard procured by splinter GOP Senators, is slowly but surely, being extinguished. Enter Dick Durbin, the second ranking Senate democrat:

  • Even if budget agreement to avoid fiscal cliff is reached today, it would be tough to “put it together this evening,” Sen. Dick Durbin, D-Ill., tells CNN.
  • If deal reached, more likely to be made final tomorrow, he says
  • Original terms of budget deal present “problem”
  • Hopeful “common ground” can be reached

So let’s set the ground rules for tonight’s drinking game…

 

Ron Paul On The Fiscal Cliff: “We Have Passed The Point Of No Return”

Forward to 5:45 for the Ron Paul interview (ignore everything else)

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