Bitcoin Forum

So there is whole bunch of negative issues with the cliff and there are some positive items but from a Bitcoin angle what good do you all think will come of it?

From my point of view, this will cause a flight to safety for individuals and organizations and they may find this offering as a low cost and unique way to grow their revenue or business.  Your thoughts?

Fiscal Cliff?

That's where the U.S. Government increases taxes AND reduces spending causing a reduction in the $1.2 trillion deficit of about $560 billion in 2013, right?

So the 2013 budget deficit ends up adding an additional $641 billion to the $16.3 trillion national debt in 2013 instead of adding another $1.2 trillion.

I'm not sure I understand your point of view. Why would a $641 billion deficit cause more of a "flight to safety" than a $1.2 trillion deficit?

Yes the whole "fiscal cliff" thing is a pure propaganda term without ANY root in reality and the purpose of it is to serve as excuse for Obama to "cave in" again and give lots of money to his bankster buddies (that he has installed in several major government positions).

The election between Romney and Obama was largely a farce.

The fiscal cliff was 1971 and the cliff took over 30 years and still going to hit the ground. IMO it's all going according to plan. If you know what I mean!!


http://www.youtube.com/watch?v=lfY_cXFfh3A (http://www.youtube.com/watch?v=lfY_cXFfh3A)

IMHO you are correct, the U.S. went over the cliff a long time ago.  As some say, it's only a matter of how they land now.

The good that can come from it is that people who can still think critically, make somewhat educated decisions (given monetary and political history) and ride the wave, having positioned themselves correctly in this cycle, will retain much more of their wealth than the majority of poor suckers who're running for the "safe havens" of things like T-bills or the $US if they haven't been thrust into poverty already.  The astronomically leveraged fraud must clear "the market" one way or another and a lot of people are going to get absolutely slaughtered.  The trick is to perhaps come out of whatever we face with a few cuts and a sweaty brow.

What I was asking is that international currency is based on global fiscal maters and what you think about the clif it is still somthing that effects economies arround the world.  The flight to safety is folks who are liquid looking for somthing to convert their funds into somthing like gold, bitcoin or somthing.  So what I was asking is with the clif we are talking about it now how will it effect the value of bitcoins do you see going forward.  That is what I was trying to pull from this discussion.

If anything, the Fiscal Cliff could strengthen the dollar.  With more tax revenue & less spending, the US gov't will have less reason to print money.  Solvency & money printing are the only real factors that affect how much the dollar is worth.  Less debt also looks like a +1 to solvency concerns.  In other words, I don't see the Fiscal Cliff driving people to bitcoin unless they "avoid" it by printing more money and/or increasing the debt.  But people have plenty of other reasons to be driven to bitcoin.

I agree with this.  Many economist think the US shouldn't fear the fiscal cliff but take a running leap off of it.  Image what the EU nations would think of the US.  The Germans would probably think we finally caved to the message of austerity.  I'm guess US bond yields would decrease but the US would again have more customers than they wanted.  A stronger dollar image that.  That said no one gets reelected anywhere in the world for raising taxes and cutting spending, so it probably won't happen.

The upside for bitcoin.  The world has bigger issues than trying to regulating bitcoin.

I agree with others, fiscal cliff == deficit quickly under control. Both parties may not even dread it so much. Republicans don't really believe in government stimulus during recessions anyways and Democrats might like to get the pain over with early in the term and have better times for closer to the next election.

I forgot to mention one thing.  Although higher taxes & less spending may strengthen the dollar, higher taxes could drive more people to bitcoin.  A strengthening dollar will only do so much for you when it is spent on taxes.  Now would people rather pay more in tax than risk it with bitcoin?  Tough to say.  We've gone through an entire year of growth.  But if mtgox was compromised again, I could easily see more than a 10% drop in price.  At least when Silkroad was down, it didn't change the price much.  Also, the legality concerns may discourage someone from making a heavy investment.  As shady as using capital gains & offshore accounts to keep your taxes low may seem, it has previously been tried & true.  Bitcoin is too new for CPA's of the wealthy to recommend/endorse.  But given enough time, anything could happen.