Eric and I had a great time talking with financial mastermind Karl Denninger about the "fiscal cliff" on yesterday's episode of ECOMINOES Radio. (Archive here: segment is about 1hr and 30mins in.) In our discussion, Karl made the excellent point that the optimal outcome of the negotiations would be for no compromise to be reached and the automatic spending cuts to be enacted. His reasoning: the national debt poses such a threat to the economy and Social Security and Medicare are so close to insolvency that there's no more time to "kick the can down the road". Indeed, despite being characterized as draconian, the automatic cuts would still be woefully insufficient given the colossal size of the federal deficit and national debt. (Infographic at the end of this post.) But, at least the cuts would be a step in the right direction. I hadn't heard this argument before...that's why I consider Karl a mastermind.
Why thank you, despite your later comment that you don't like the layout of my blog
Or just listen in the embedded player (Note: Segment is about 1:30 into the show; roughly 3/4 of the way in.)
Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.
Market Ticker content may be reproduced or excerpted online provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media.
Submissions may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.
Leads on stories of current economic and political interest are always
welcome. Our fax tip line is 850-897-9364; please include contact information
with your transmission.
The Market Ticker is a Registered Trademark of Cuda Systems LLC.
Market Ticker content Copyright 2007-2012 Cuda Systems LLC and Karl Denninger. All Rights Reserved.
AKCS V39.0 Copyright 1993-2012 Karl Denninger. All Rights Reserved (Elapsed: 0.50 seconds)