Analyst Karl Denninger says, “The best thing we could do as an economy is go straight off the fiscal cliff and not come back because that would take about half of the deficit off the table immediately.” The reason why the U.S. deficit is so large, according to Denninger, “Both sides want to spend more than they take in in taxes.” Denninger says the Federal Reserve enables the U.S. to live well beyond its means. Denninger contends, “The $85 billion a month the Fed is putting into the system enables deficits and spending. . . . When you debase the currency in this fashion, there is no free lunch.” One thing that needs to be fixed is the Alternative Minimum Tax (AMT). Denninger says, “It is going to hammer tens of millions of middle class families that have never had to pay it before.” Instead of a tax refund, some middle class families might owe a few thousand dollars in 2013. The AMT might get a patch, but Denninger thinks, “There will be no deal on the Fiscal Cliff by January 1st.” Join Greg Hunter as he goes One-on-One with Karl Denninger of Market-Ticker.org.
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Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.