I hear that the US economy is heading over a cliff at the end of 2012. All due to the end of the Bush Tax Cuts and other fiscal stimuli, like extended unemployment benefits. All in all, about a 5% hit on US GDP. US Economic Outlook 2013 Heading Off ‘Fiscal Cliff’ – International Business Times US Economic Outlook 2013 Heading Off 'Fiscal Cliff? Is this true or simply bullshit? I seem to recall in 1993 when Clinton first imposed the new tax rates (35% to 39%, or so) that the GOP went nuts and said the economy would collapse, and all sorts of bad things would happen. What happened was prosperity and a balanced Budget. The US Debt was downgraded from AAA to AA+, and if we don't get our fiscal house in order, we are headed for disaster. The private sector needs to kick-start the US economy, but all they have been doing is moving 14,000 factories to China and outsourcing jobs. We don't have the same reserve economic capacity we used to have. News Headlines So who is right? Do you want to "kick-the-can" down the road and keep borrowing more and more taking a downgrade? If that happens the dollar may not be the "reserve currency" and our borrowing costs explode. OR, do you vote for "austerity" and getting the Budget and Debt under control, "temporary pain, permanent gain"?