Quote Originally Posted by merl View Post
so let me get this straight.. the economy has been growing at barely 2% and there is this spending cut coming that will drop GDP by 5%. So the actual economy has been shrinking by 3% but for this wonderful printed money?
So this would mean a economy shrinking by 6% with a balanced budget?
Which would shrink revenue by what half?
Which would mean a economy shrinking by 10% with a balanced budget and 25% of current spending ?
Is 25% of current spending enough to pay the interest on our 16 trillion debt?
16000000000000 x .03 = half a trillion which would leave half a trillion left to spend?
But wait that would mean 12% of current spending which would mean revenues of? economy shrinking by?
I would guess a balanced budget is not in our immediate future?
Perhaps the "fiscal cliff" is not such a misnomer after all?