I was watching the business channels and news is flashing about “the fiscal cliff”. From the President to the Senate to the House.
Are they or aren't they going to do something about it?
Some perspective, please. The western world (US and Europe) is strangled by debt. This debt has increased because politicians bought votes by making people believe you can buy happiness by just printing money.
We forgot to create the wealth to repay the debt. We were too busy creating “safety nets” we could not afford. Now the time has come to pay the piper.
It does not matter what is going to happen in Washington in the next few days. We have to pay the piper and we forgot to build the resources (education, productivity, investment) to create the required wealth to do it.
We will have to pay the piper. We all have to give up something and tighten our belts because the markets are going to force us to do so. There is no alternative. They want to be paid.
We will have to lose something. Directly or indirectly. The most immediate outcome is that the economy will keep growing very slowly. Translation: our combined wealth will be under pressure. Independently from what is happening in the next few days.