...ever, it will be too soon.
The latest installment of idiocy is taking place today and tomorrow. Then the idiots are going home for the holidays.
Let me explain something quite simply. There is no such thing as a "fiscal cliff." For most of us, this is commonly referred to as "paying your bills."
The problem for us hoi polloi is that we have "credit limits" meaning that once we have borrowed all the money that we can borrow...we are done borrowing. At that point, "paying the bill" becomes mandatory. At least that has been the custom. The problem with the idiots or non- hoi polloi, is that they have an unlimited credit line which they have over spent so spectacularly- that it can never be repaid. Never. There is no such thing as a "credit limit" and now it is "paying the bill" time for them. The game simply continues until the truth becomes so evident that not even the BIGGEST idiot on the planet- say Krugman- can deny it.
Now when people with a spending problem over spend, at some future point they are suddenly forced to pay the money back or declare bankruptcy. That is the same boat the idiots find themselves in. The smart thing to do would be to declare bankruptcy or insolvency and just pay back the foreign creditors who were stupid enough to loan us money.
Unfortunately, they will not do that. Instead, we will get the slow death version. They will make these ridiculous attempts to tax people to death- coupled with benefit cuts and instead of adding 1.4 trillion per year in debt, we will only add 1.2 trillion or so.
This will go on ad infinitum until some left wing math major with credibility in some future year, say around 2025, realizes that it is impossible to pay back the national debt and he tells the rest of his fellow welfare recipients this. The possibility that we have written a check we can't possibly cash will suddenly move from fiction to reality with the accompanying shock and awe. Maybe when China opens fire on us for stealing their dough. By that time, only 18 years will have elapsed. This same phenomenon has been occurring in Japan for the past 25 years.
A trillion dollars is not something to fuck around with. It is a thousand billion. Nobody has ever seen a trillion dollars. We don't even know if an actual trillion exists. It is like the yeti- a lot of talk but nobody has ever dragged one into town.
So for those of you who think we have 16.3 trillion laying around, I gotta run now. I am expecting the Mayans to land in my front yard tonight and whisk me off to a planet in a neighboring solar system. For those of you who cannot get enough of this bullshit, here is the latest. For Zerohedge readers, this is a round trip. http://www.zerohedge.com/news/2012-12-20/todays-fiscal-cliff-timeline