It bears repeating. Fiscal cliff hype is nonsense. What matters is how what's planned affects economic activity in 2013 and longer-term.
Harming it domestically will be exacerbated by rapidly declining global manufacturing, trade and exports. Economist David Rosenberg worries about a troublesome "sea of uncertainty."
Major global debt imbalances aren't resolved. The world is awash in excess labor and product markets capacity. Without business investment, growth isn't possible. Decline continues.
Force-fed austerity exacerbates it. It's counterproductive when stimulus is needed. At the same time, money printing madness creates the illusion of prosperity or efforts made to restore it.
Bernanke committed to fund America's growing deficits. He'll buy half of new government debt issuance next year. Interest rates will stay near zero.
Expect this madness to work until it doesn't. The fullness of time will explain when. When day of reckoning time arrives, the mighty will tumble with others.
The entire financial system may crash. Crisis conditions may exceed the worst of 2008. Harder than ever times may follow. They'll likely persist long-term.
It's hard imagine prospects this grave aren't addressed responsibly. It should have been done years earlier. Doing it now is key. Instead, politicians in league with corporate bosses want maximum shorter-term gains at the expense of letting the devil take the hindmost.
In 2013, greater economic drag will deepen. Expect it to continue in 2014. It'll persist longer-term. That threat is real. Fiscal cliff hype is fake.
Deal terms will be announced. Whether this year or early next doesn't matter. Bipartisan agreement assures harder than ever hard times. Political solutions exacerbate real problems.
Instead of addressing them responsibly, they'll persist. Ordinary people will be hardest hit. America's social contract will be shredded. That's what fiscal cliff hype is all about.
Stephen Lendman lives in Chicago and can be reached at Email address removed .
His new book is titled "Banker Occupation: Waging Financial War on Humanity."
Visit his blog site at sjlendman.blogspot.com and listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.