Stocks tumble as congressman predicts economic riots in America

 

Louisiana Republican Rep. John Fleming

Source: Press TV

http://www.presstv.ir/usdetail/272079.html

Stocks tumbled again on fears of the rapidly approaching fiscal cliff in the United States and a failure by eurozone finance ministers and the IMF to decide how Greece will resolve its sovereign debt and pay off the banksters at Société Générale, Deutsche Bank, Eurobank, and other loan sharking institutions.

"This morning the reasons du jour started out with Europe and the kerfuffle over Greece and then you have the fiscal cliff," Michael Holland, chairman of New York-based Holland & Co., told Bloomberg News.

"We're not out of the woods yet," said Guillaume Duchesne, an equity strategist at BGL BNP Paribas SA in Luxembourg. He added that a resolution of the financial crisis threatening to extend the recession for the foreseeable future depends on the leadershipof Obama.

According to Rep. John Fleming, we won't be getting out of the woods anytime soon, especially with Obama at the helm. "It looks like we're going to have to go through the same or similar pain [as Greece] to get real reforms," the Louisiana Republican told the Daily Caller on Sunday.

He said that if the current economic trend is not reversed, "what's going to happen is there's going to be a day of reckoning that gets into a serious situation where we have to make tough choices." Prison Planet

HIGHLIGHTS

Fleming told The Daily Caller that, ever since President Barack Obama's re-election last Tuesday, he has been advising Americans to play it safe financially because he believes the economy - and the state of the country - may soon get much worse. The Daily Caller

Fleming said he's telling concerned constituents and business owners to "not extend yourselves in debt, make sure that you pay off things, don't get into debt with credit cards, stay as liquid as possible. Don't take risks, and don't get into debt. You need to stay less vulnerable economically over the next two to four years, in hopes that the economy will sort itself out, and that Washington will get its act together." The Daily Caller

"What I fear is we're going to be too late, and we're going to run into a Greece-like situation, where we have riots and unemployment levels are up around 11 percent. That's what we've been trying to avoid," Fleming said. The Daily Caller

The so-called "cliff" comes on Jan. 1, when several tax cuts expire, and severe cuts to government spending are triggered. It's also been called "taxmageddon," because an average American family will see their tax bill increase $3,700 next year. ABC News

In total, the measures are set to automatically slash the federal budget deficit by $607 billion or approximately 4 percent of GDP between FY 2012 and FY 2013, according to the Congressional Budget Office (CBO). CFR

Any deal, all agree, would have to include revenue increases as well as budget cuts. A key question is whether any new revenue includes changes in tax rates - specifically, an end to the Bush-era tax cuts for those earning more than $250,000, which is what President Obama has been pushing and Rep. Boehner says "no" to. Christian Science Monitor

The IMF says the U.S. economy could fall back into recession if Congress fails to avert the package of tax hikes and spending cuts. Reuters