The Fiscal Cliff will be reached in about a month's time. The U.S. will have invested the total 2.15 Trillion dollars of the debt ceiling that it raised on 2nd August 2011. So, what next?
It will not be a question of whether the tax breaks that have so far been allowed will be extended. To keep the money flow as is currently, and to keep the economic momentum that is beneficial, to continue, it will be necessary to keep the tax breaks going for another year at least, perhaps longer. As for additional money being authorised, that will also be under consideration; it will prove necessary as well as prudent. My guestimate is perhaps another trillion, but this time hopefully to create about 25 to 30 jobs per million, perhaps for the 'working class' to become employed or self employed. Numerically, such a measure would be most useful, where more people will share in the wealth investment and creation, improving the economic momentum, and creating wealth in the long run so that eventually something can go towards reducing the budget deficit. The 'working class' are an essential backbone of every nation and would help a wide-based economic Recovery, thence leading to Prosperity.
The budget deficit reduction exercise has to be over say ten years, from recession to Recovery. To try and rush it would be inviting an austerity that is unsuited to the spirit of America. (Indeed, austerity measures are unsuited to the spirit of Europe as well, hence the current feeling of miserableness in some parts of Europe.)
By agreement with China and Japan and other nations, the fiscal cliff will be a book squaring exercise with creditors, a necessary and prudent measure until further Recovery takes place worldwide. In the meantime, it will be necessary to continue the economic momentum that has been built, and to continue to foster a spirit of peace everywhere, especially with regards to the Middle East. Only in an environment of peace will the Oil price remain affordable, and thereby allow further progress in the process of economic Recovery.
All nations wish for Recovery to continue, with as much employment for their people as possible, with as much international trade as possible, with as much peace and cheerfulness as is possible. With that in mind, I am optimistic there will be a happy solution to the fiscal cliff, for that I pray.