ICangles Investments Post…

As 2012 comes to an end, rather than the oft mentioned fiscal cliff, I have tulips on my mind. Despite my documented concerns about government debt levels, the fiscal cliff is not a top concern. In fact as I write this a deal appears to be coming together between the Democratic and Republican parties, where they agree to the specifics of how the U.S. government will manage the borrowing of even more money. The inability of politicians to agree about going deeper into debt is not something I worry much about, even if the media is full of dire predictions of the impact on the economy if more debt is not incurred. However, I do think it is worth pausing and pondering exactly how bad things have gotten, when it is considered an economic crisis if the U.S. government is forced to not spend more money than it taxes. That the world’s largest economy has become so dependent on deficit spending that the inability of its government to spend more than it takes in would be considered a threat to the economy is the real danger.

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