FinanceSTAR
What the Heck is a Fiscal Clif f
“I think the (presidential) candidates know how serious it is. I think they are trying to avoid it in part because it is so consequential and serious and the ideas that would be put forward are unattractive to some people.” The Simpson-Bowles committee has outlined specific recommendations f o r Washington, DC to consider and implement to avoid the fiscal cliff yet nothing has been done with that work. This is a huge IF but IF the politicians actually do something and avert this fiasco (not just kick the can down the road again), the markets could rally strongly behind that news. The International Monetary Fund, (IMF) is a global thinktank. Their opinions and forecasts are followed very closely by economic and political leaders from around the globe. The IMF describes themselves as, “An organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.” Earlier this month the IMF issued a similar warning but went a little further than the Simpson-Bowles committee. They forecast global growth would fall. They lowered US GDP estimates to 2 percent for 2012 and a little lower for 2013. They went on to say that the same problems we were facing in 2008 when markets collapsed around the world are still plaguing us today. That’s a very frightening comment when you consider all the money that central banks and governments have thrown at this problem. Things haven’t gotten a lot better. The IMF warned specifically that the US and the globe would be negatively impacted if the US government does not
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Many of my clients have been asking about this “Fiscal Cliff” that you are hearing so much about in the news these days. “Fiscal Cliff” is the term coined by the Federal Reserve Chairman Ben Bernanke who used it to describe the peril of what will happen should the automatic tax increases and massive spending cuts be allowed to take effect on Jan. 1, 2013. Leaders from around the globe are concerned of the dire consequences if nothing is done to stop this looming disaster. Recently, Erskine Bowles, NC businessman and cochairman of President Obama’s National Commission on Fiscal Responsibility and Reform issued a stern warning: “We have $7.7 trillion worth of economic events that are going to hit America in the gut in December and in Washington, they’re (US politicians are) doing nothing about it.” Bowles’ co-chair on the commission is former Republican Senator Alan Simpson. Simpson went on to say that the culture in Washington, DC is preventing any action to address what is known as the fiscal cliff. “They are both in this,” Simpson said of the warring Democratic and Republican parties. They worship the god of re-election.”
DHS Pets and Supplies Business needs community support to remain open
DESERT HOT SPRINGS, CA - Randy German owns the DHS Pets and Supplies. German opened the store with a dream of providing a service to the community that was not presently available. The store has received a lot of positive feedback, but for the store to remain open he needs more support from the community and hopefully this article will drive people in to see what he has to offer. “Besides all the name brand foods, collars, bowls, toys, vaccines, cages, bedding and treats for all your fur and non-fur kids, we also have live animals and grooming services on sight. We carry reptiles, rodents, feeders, birds and fish. And we adopt kittens and puppies out to the community,” German said. “But I may not be around for too much longer if I cannot get the community to support me. So please come down to your local pet store and check me out. Tell a friend and ‘Like’ me on Face book. Find me on the web at www.DHSpets.com and on Face book under DHS Pets and Supplies. You can email me with any questions at DHSpets@yahoo.com. “I am also seeking alternative measures to stay open. If you or someone you know invests in small businesses please let them know I am here and open to discussion. “I look forward to seeing you at the pet store where it ‘Feels Good To Have a Pet.’” DHS Pets and Supplies is located at 13313 Palm Drive, Suite B and their phone is 760-671-6067. They are opened seven days a week from 10 a.m.to 7 p.m. Monday through Saturday and 10 a.m. to 4 p.m. on Sundays. They are located directly across from O’Reilly’s Auto Parts.
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By Frances Allen
By Kevin Powell address the problem. “We hope that both sides of the political isle (should) signal that they are willing to compromise and that they are willing to get this done.” A consensus of economists has stated that failure to do anything would result in damage as high as $720 billion dollars to our economy. That would result in a 4.6 percent drop in our GDP (Gross Domestic Product). A decline that large would plunge us into another recession. Sadly many of the Bush era tax cuts that will go away at the end of the year are not just for wealthy Americans. Four tax breaks in particular will have a profound impact on middle and lower income families. They are the Child Tax Credit, the Earned Income Credit, Child & Dependent Care and the American Opportunity Credit or the Old Hope College tax credit. There is no reason for our country to be put in this position. This is not a Democratic or Republican issue. This is a pending crisis for every citizen. We should hold our elected officials to a much higher standard. Unfortunately, once the partying and celebrations from the elections are over, there will only be a few short weeks to address this problem and avoid the fiscal cliff. How much do you trust our politicians to finally do the right thing? Kevin Powell is a new columnist for the Desert Star Weekly who will be writing articles that deal with investment and economic related news. Powell has been a financial and business advisor for the past 27 years and works with clients and businesses nationwide. If you have question or would like more information, contact kpplanner1@gmail.com.
SUPPORT YOUR LOCAL
PET STORE! DHS Pets & Supplies
760-671-6067 13313 Palm Drive, Suite B
October 25, 2012
Desert Hot Springs, CA 92240
www.DHSPets.com
DesertSTAR
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