US to fall off 'fiscal cliff', warns Joseph Stiglitz
The US economy is likely to fall over a "fiscal cliff" at the start of next year because Washington will be too divided to stop it, Joseph Stiglitz, one of the world’s leading economists, has warned
“There are so many political battles ahead that the likelihood we avoid all of these elements that will then avoid the fiscal cliff is very problematic,” Mr Stiglitz told The Sunday Telegraph. “It’s a real danger.”
The warning comes as concerns grow that the US will embark on a fiscal squeeze that economists estimate will be between 3.5pc and 4pc of the country’s gross domestic product. By contrast, the International Monetary Fund has said that Britain’s fiscal contraction amounted to 1.7pc of GDP last year and a further 1.6pc is due this year.
“It’s unambiguously the case that these measures will slow down growth,” said Mr Stiglitz. “If there is European turmoil, there is a significant probability of going into a recession.”
In his new book, The Price of Inequality, Mr Stiglitz argues that growing gaps in wealth and income in the US pose a rising threat to the country’s economy and democracy.
“I am very worried,” Mr Stiglitz said. “It is something to which we are marching very rapidly.”
http://www.telegraph.co.uk/finance/financialcrisis/9351640/US-to-fall-of...
And so the escalation-cum-provocation-cum false flag is complete. There was a time when shooting down a foreign jet over one's territory was considered self-defense. But not when the one doing the defending is perpetual media bogeyman Syria, which "unnamed sources say" kills hundreds, nay thousands of its own people daily, usually in round, sound bitey numbers. Of course, the other side to the story is irrelevant: the Western-led media is never known to fabricate stories that suit the status quo's power and military industrial complex interests. All that is relevant is for the west, aka NATO, aka Hillary Clinton to get an angle to push for provocation. She just got it. As we suspected on Friday, there was much more than met the eye with the Syrian take down of a Turkey F-4 jet. Remember what we said 
Comments for "The Daily IndigoStar7 / News Ticker"
Eurozone nations are stuck in a 'doom loop’
The euro was a very bad idea yet fiscal union is far worse and will fail, but not before it spreads bitterness across Europe.
9:00PM BST 23 Jun 2012
“Pretty much everyone borrowed and spent beyond their means and that’s now catching up with us,” continued the former Cabinet Minister. “And it’s the inter-twining of the sovereign debt and banking crises that makes any eurozone resolution extremely difficult.”
On this point, Lord Mandelson is correct. Years of extreme lending and reckless trading by Western banks brought serious sector weakness. The disgracefully cosy relationship between our political and financial classes and the even more disgraceful use of banking blackmail, has meant, in Lord Mandelson’s words, that massive banks losses “have, in one way or another, landed on sovereign balance sheets”.
Such is the reality that plagues the eurozone, with toxic bank liabilities raising deep concerns about sovereign insolvency and the resulting sky-high bond yields destroying commercial sentiment and throttling growth, making dodgy banks weaker still. This bank-sovereign-bank “doom loop” has brought Western Europe back to the brink of recession, with related systemic fears casting a very dark shadow over the entire global economy.
If only Angela Merkel would agree a big bail-out, we’re told, everything will be fine. The German Chancellor retorts that the only way Berlin could possibly agree to back-stop debts of more profligate eurozone members would be if Germany has more control over the spending of other governments....
http://www.telegraph.co.uk/finance/comment/liamhalligan/9351267/Eurozone...
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B. Bernanke: "QE is necessary....the benefits outweigh the costs." Jackson Hole ~ 8/31/12
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