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Many Americans believe that it is immoral that at the end of 2012 America has a national deficit in excess of $16 trillion dollars.  

Many Americans believe that it is immoral that America is borrowing some 40 cents of every dollar she spends.

Many Americans believe that it is immoral that the Federal Reserve has printed trillions of dollars, devalued your currency, is positioning America dangerously close to possible financial collapse, and bailed out both domestic and foreign banks to the tune of trillions of dollars.

Many Americans believe that it is immoral that our politicians and presidents of both political parties have navigated America into this dire predicament.  Scores of cities have declared bankruptcy or are nearing bankruptcy.  Tens of thousands of businesses have either closed their doors forever or have reduced their labor forces by millions of people.  States are facing insolvency, and some economists are predicting another recession or even another depression.

Many Americans believe that Republicans, Democrats, and Independents are doing nothing more than fiddling while America burns.

Many Americans believe it unthinkable and totally impossible to believe that our politicians of just 15-20 years ago would have condoned such fiscal irresponsibility.

Many Americans believe that America is at a point of crisis.  For the foreseeable future, it appears that her financial irresponsibility, and wildly irresponsible borrowing and spending will continue to climb at an astronomical rate into the far distant future.  No one seems to have either the fortitude or political will to step up to the plate and do what is right for America.

Many Americans believe that she threw God out of our public schools in 1964, and the battle continues today as symbols of the cross, the manger, the Christ, are slowly but assuredly being expunged from private and public displays, businesses, schools, and government building across the USA.  Is God about to show America what life is like without him?  Is America's Fiscal Cliff a harbinger of God's coming judgment? 

What is the Fiscal Cliff everyone is talking about?  In an effort to increase the Federal Debt Ceiling looming in mid-2012, Congress and the President agreed to drastic cuts in government spending and large increases in tax rates effective on January 1, 2013.  These taxes and cuts were both an incentive and a bluff which is now about to be called.  Fiscal policy is the setting of rules and rates concerning government spending and tax collection.  The much maligned Fiscal Cliff refers to a sharp drop in fiscal policy.  After years of excessive deficit spending, experts fear any increase in taxes and decrease of spending will slow the economy.

If Congress is unable to agree on a course of action, taxes will increase and spending will decrease by $615 billion.  The benefit would decrease the deficit gap by $615 billion or about half.  This would likely restore the US credit ratting begin the long range process of balancing the federal budget.  Unfortunately, $615 billion is about 4% of GDP and such an action is assumed to decrease GDP by 4% setting off a recession.  This would be reverse stimulus or restraint on economic growth and jobs.

Expectations that the likelihood of some sort of fiscal restraint will occur is high.  Likewise, the likelihood that the restraint will be sufficient to cast the economy into a recession is a real possibility.  Finally, the likelihood that the proposed tax increased and reduced spending will remain unchanged is small.     

Tax increases are the most likely outcome of the current negotiations,  There could be some spending cuts in the military budget and a tax increase by repealing the Social Security abatement feature that has been in place for the past 2 years.  Almost certain are increases in the tax rates on dividends and capital gains.  This likelihood has many corporations and small businesses scrambling to protect, realocate, shift, or redirect their assets before January 1, 2013.

Experts predict that the US economy is likely to suffer a slow start to 2013 and recover later.

The effects on individual business will likely come indirectly.  The greatest effect on most companies will be a lack of demand from customers and other companies as growth in the economy takes a breather.  In anticipation of a temporary slowing of demand companies will want to watch inventory levels closely and reduce their workforce.  With full implementation of The Affordable Care Act (Obamacare,) a myriad of corporations and small businesses are expected to reduce the hours of millions of full-time employees to part-time status of 30 hours or less per week.  This would have a devastating effect on the personal financial lives of millions of families and upon the economy in general.

Many Americans believe that it is time for all our leaders to stop playing politics of inaction and of kicking the can down the road again and again and make the really tough decisions necessary to do what is right for America.  Pray for America.  Pray for Americans to come to the Lord for salvation, wisdom, and guidance.  

Finally, be judicious with your monies and retirement accounts, your personal spending, saving, and contact your local, state, and federal politicians and ask them to do the morally correct things that are right for America. 

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