Page 82 - Heavenly Signs III by Mel Gable

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Fiscal Cliff
The term “fiscal cliff” been used in the past to refer to various governmental fiscal issues. It started being used in
the context of the expiration of the Bush tax cuts in 2010. In late February 2012, Ben Bernanke, chairman of the
U.S. Federal Reserve, popularized the term “fiscal cliff” for the upcoming reduction in the deficit. It was before
the House Financial Services Committee that Bernanke described “a massive fiscal cliff of large spending cuts and tax
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increases” would take place the beginning of 2013.
The U.S. fiscal cliff is the sharp decline in the budget deficit that would have begun in 2013 due to increased
taxes and reduced spending as required by previously enacted laws. The deficit which is the amount by which
government spending exceeds its revenue was projected to be reduced by roughly half in 2013. The
Congressional Budget Office (CBO) had estimated that the fiscal cliff would have likely led to a mild recession. It
was thought to result in higher unemployment in 2013 followed by strengthening in the labor market with
increased economic growth. The American Taxpayer Relief Act of 2012 largely eliminated the fiscal cliff by
increasing taxes less than they would have under a fiscal cliff scenario. Adjustments to spending were expected to
be hashed out in early 2013. Intense debate and media coverage about the fiscal cliff drew widespread public
attention during the end of 2012 because of its projected short-term fiscal and economic impact. The American
Taxpayer Relief Act of 2012 was signed into law by the President on January 2, 2013 and eliminated much of the
tax side of the fiscal cliff. The Congressional Budget Office (CBO) was projecting 8.13% increase in revenue and
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1.15% increase in spending for fiscal year 2013. However, this didn’t address the sequestering in March 2013.
National Debt

The United States public debt is the money borrowed by the federal government of the United States through
the issue of securities by the Treasury and other federal government agencies. The red dotted line below is a
prediction line based upon the prior 2001and 2008 crisis trend and the upcoming judgment in 2017.

2017 Prediction
“Reject God”

Historic and Project U.S. National Debt 2000-2017 (White House Office of Management and Budget, 2013)

132 Kurtz, Annalyn (December 12, 2012). "Bernanke warns of fiscal cliff as Fed lowers forecasts"
133 Geoghegan, Tom (November 14, 2012 Last updated at 22:39 ET). "Who, What, Why: Who first called it a 'fiscal cliff'?"