Best of the Week
Most Popular
1.Stock Market in DANGER of Strangling the Bears to Death - Nadeem_Walayat
2. Germany Pivoting East, Exit US Dollar, Enter Gold Standard - Jim_Willie_CB
3.Flight MH17 – Kiev Flash Mob's Last False Flag? - Andrew_McKillop
4.Stock Market Crash Nightmare! - Nadeem_Walayat
5.Gold - The Million DOLLAR Question... - Rambus_Chartology
6.Gold And Silver – BRICS And Germany Will Pave The Way - Michael_Noonan
7.The Jewish Selfish Gene, People Chosen by God, Everyone Else is Goyim to Kill - Nadeem_Walayat
8.The Israeli Promised Land Dream - The Criminal Roadmap Towards “Greater Israel”? - Felicity Arbuthnot
9.Which Way is Inflation Blowing? Watch Commodities - Gary_Dorsch
10.U.S. Economy Quarterly Review and Implications for 2014-2015 - Lacy Hunt
Last 5 days
Death of the U.S. Dollar? Gold an Inflation Hedge? Really? - 29th July 14
We’re Ready to Profit in the Coming Gold Price Correction—Are You? - 29th July 14
Their Economy Will Collapse, Including Ours - 29th July 14
Silver Prices – Megaphone Patterns - 29th July 14
Real U.S. Interest Rates - Fed Exit a Blue Pill? - 29th July 14
Why Israel Should NOT Exist, Just Like Any Other Rogue State - 29th July 14
Gold Still Looking Good - 29th July 14
Silver Price Set To Star - 29th July 14
Our Population Growth Totalitarian Future - 29th July 14
World War 1 Cause and Consequences - The Planned Destruction of Christendom - 29th July 14
Will Crashing Commodities Crash the Stock Market? - 29th July 14
Ukraine MH17 - Washington Thinks Americans Are Fools - 29th July 14
Stock Market Bubble Warning - 29th July 14
Gold Price and U.S. Dollar’s July Rally - 28th July 14
Second Quarter Corporate Earnings: Marching Toward a Strong Economic Recovery - 28th July 14
Time to Put a New Economic Tool in the Box - 28th July 14
Mossad in Gaza, Ukraine and the Cult Of The All-Powerful Elite - 28th July 14
Elliott Wave Gold Price Projection Since 1970 - 28th July 14
Investors Remain Uncertain As Stock Fluctuate Near Long-Term Highs - Will The Uptrend Extend? - 28th July 14
The Mass Psychology Of Decline - 28th July 14
Will the US Destroy the World? - Don’t Expect to Live Much Longer - 28th July 14
GDM and GDXJ Gold Stocks In-depth Look - 28th July 14
Stock Market One FINAL High? - 28th July 14
What It Means - Paradigm Collapse And Culture Crisis - 27th July 14
Wall Street Shadow Banking: You Can’t Taper a Ponzi Scheme: “Time to Reboot” - 27th July 14
6 Tips for Picking Winning Gold Mining Stocks - 27th July 14
Israel's War on Children, Exterminating the Palestinians Future - 27th July 14
Guilt By Insinuation - How American Propaganda Works - 26th July 14
Surprise Nuclear Attack On Russia To Liberate Ukraine - 26th July 14
Use "Magic" Of Gold/Silver Ratio To Greatly Increase Your Physical Holdings - 26th July 14
Derivatives Market Species Origins - Abuse, Props and Risks - 26th July 14
Stock Market Manipulation and Technical Analysis - 26th July 14
China’s Stock Market Finally Looks Like A Buy - 26th July 14
Ed Milliband Fears Israel Jewish Fundamentalist Gaza War Massacres Backlash - 26th July 14
The Big Energy = Power Battle Is Coming - 25th July 14
USrael - Zionists in Control of America's Goyim Brainwashed Second Coming Slaves - 25th July 14
More Weakness Ahead for Gold Miners - 25th July 14
Gold Price Strong Season Starts - 25th July 14
Geopolitics and Markets Red Flags Raised by the Fed and the BIS on Risk-taking - 25th July 14
Gold Lockdown Until Options Expiry - New Singapore Gold Contract Threatens Price Manipulation - 25th July 14
The Bond Markets, Black Swans, and the Tiny Spirit of Santo - 25th July 14
No Road Map For Avoiding The Future - 25th July 14
Israeli War Machine Concentrating Women and Children into UN Schools Before Killing Them - C4News - 25th July 14
Israeli Government Paying Jewish Fundamentalist Students to Post Facebook Gaza War Propaganda - 25th July 14
Why the Stock Market Is Heading For A Fall - This Time Is Not Different - 25th July 14
An Economic “Nuclear Strike” on Moscow, A “War of Degrees” - 25th July 14
BBC, Western Media Working for Israeli Agenda of Perpetual War to Steal Arab Land - 25th July 14
Ukraine: What To Do When Economic Growth Is Gone - 24th July 14
Stock Market Clear and Present Danger Zone - 24th July 14
The Five Elements to Creating a Something-for-Nothing Society - 24th July 14
Instability is the New Normal? - 24th July 14
Israel's Suicide Bombers Over Gaza - 24th July 14
EUR-AUD Heads Into The Danger Zone - 24th July 14
Tesco Supermarket Death Spiral Accelerates as Customers HATE the Mega Brand - 24th July 14
Ukraine MH17 Crisis - Best Remember Who Your Friends Are - 24th July 14
Three Reasons Why Gold Price and Gold Stocks Will Rise - 24th July 14
HUI Gold Bugs Fighting To Break Downtrend - 23rd July 14
What Putin Knows About Flight MH17 - 23rd July 14
Why Microsoft Will Continue to Rebound, Huge Upside Potential - 23rd July 14
Will Putin Survive? - 23rd July 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Biggest lie in Stock Market History Revealed

U.S. Fiscal Cliff, Politicians Playing Chicken

Politics / Taxes Nov 29, 2012 - 06:04 AM GMT

By: Bloomberg

Politics

Bloomberg Television's Trish Regan sat down with four of the nation's brightest business minds to discuss their solutions for avoiding the fiscal cliff:

  • Former Treasury Secretary LARRY SUMMERS

  • Kynikos Associates President JIM CHANOS

  • Cantor Fitzgerald CEO HOWARD LUTNICK

  • Former Army General WESLEY CLARK


Video--Summers discusses whether U.S. debt could be downgraded again:

The Street Smart "Fiscal Cliff Summit, a one-hour special report, airs tonight at 8pm ET. Watch via livesteam at http://www.bloomberg.com/tv/. Highlights below and full transcript available upon request.

Summers on what the key is to getting a budget deal done:

"Look, nobody who holds a Treasury bill or a Treasury bond should worry about the full faith and credit of the United States... It may do so in a complex and overly expensive way because of all this posturing, but the United States is going to meet its obligations."

Summers on spending cuts and taxing the wealthy to make up for the gap:

"... I think all things need to be phased in. Crash diets aren't the best way to lose weight. And overly rapid austerity programs, as we've seen in England, have huge adverse consequences for economies."

"... I think many people don't realize - in the numbers people are using now, if you just take the baseline, the assumption is the government, the basic functions of government, the national parks, the FBI, whatever they do at HUD, all of it, is going to be smaller relative to the economy than any time in the last 50 years. And so that's already baked in."

"That's why some of us are talking more about revenues right now, not because we disagree that the right thing to do is to start on the spending side, but because huge spending cuts have already been baked in to regular government. Entitlements, yes, that's something that does have to be thought about, particularly with regard to controlling the growth of health care costs."

Lutnick on taxes:

"We are spending over $1 trillion a year that we don't have. And, you know, we all talked about Greece. What did they do? They just spent, spent, spent money that they don't have. And eventually it comes back to haunt you. So we need to be fiscally responsible... Taxes go up. I think they should go up broadly. Certainly they should go up on the wealthy, but they're going to go up broadly, because it's got to make a difference, and spending's got to be cut. I'd use a simple word, balance.

Chanos on taxes:

"I think that taxes should not go up on the middle class. I think they should go up on the wealthiest. I think that the wealthiest have the least propensity to consume. I think spending would not be hurt. And I think that talk about broadening the base and everybody paying their fair share is really somewhat crazy, because lower-income and lower-middle-income people are really paying a big burden. Taxes are regressive down there."

Chanos on compromise:

"Eventually, they're going to find the compromise, but are they going to play chicken at the end of the year? Of course - of course they are. That's the way it's worked. That's how we got here in the first place."

Chanos on whether he would short sell the U.S. if it were a company and in the current state the country is in:

"Of all the global markets, I'm probably the most constructive on the USA. So that, as a bear, meaning that I think that it's the greatest country in the world, and we still have the best long-term prospects."

Clark on whether defense cuts will hurt national security:

"So there's lots of impact of this, if we go down the military road. But will it hurt U.S. national security? Yes. Is it crippling? No. We know how to take cuts in the Pentagon. It can be done mechanically. Sure would be better if we don't do it."

Summers on whether raising taxes on the wealthy will get the U.S. through the fiscal cliff:

"That's right..."

"A great deal of the uncertainty actually has to do with whether we're going to go over the fiscal cliff. And the news that we're not going to go over the fiscal cliff will be hugely reassuring. That's the most important uncertainty that the economy faces. People live in the present. They don't live in the 2020s."

Lutnick on what advice he'd give to President Obama:

"So since I think jobs is what's going to drive this economy, I would say create an incentive package. Say to the CEOs, look, here's an idea. We're going to raise taxes on the rich, except if they go create jobs. You get a tax credit if you create jobs. You got a lot of money? You want to sit on the sidelines? Pay more taxes."

Chanos on advice to President Obama:

"If I was the president, I would say, let's put this all back on the table and let's really attack entitlements. And let's attack health care costs. That's what's doing this, because the other side said, we have to cut spending. The problem, as we know, and we talked about earlier, is that my cut in spending is your reduction in income."

"No deal is better than a bad deal over the short period. And I think that's the rational type of negotiation we have to have. We have to have a good deal. And if it means we keep talking over the contrived date of December 31, we do it. You know, we're grown-ups."

bloomberg.com

Copyright © 2012 Bloomberg - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Bloomberg Archive

© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014