Here It Comes (Fiscal Cliff)
Posted 2012-12-30
by Karl Denninger

"The latest is that Reid says that "Democrats are not in a position to make a counteroffer to Republican proposal."

But what are the details of both, and do either of the positions make a material difference in the deficit?

The answer is who cares because the second question is answered NO.

And the reason the second question is answered "no" is because if either party moves off their position of deficit spending they must admit that the Federal Government's deficits have been responsible for 8-12% of GDP for the last four years, and as much as 4-5% in the previous decade every year -- and that withdrawing that deficit spending would force reality to intrude as to where the economy actually is.

That in turn would force recognition of all the lies over the last 30 years.
. . .
It doesn't matter; we're cooked and done and it's equally the fault of both parties.
. . ."

http://market-ticker.org/akcs-www?post=215470

The red line = the GDP adjusted by the government's cost of a declining standard of living.
The blue line = the GDP adjusted by a set standard of living.
Neither line is adjusted to remove deficit spending.