Peter Schiff: Much Larger Fiscal Cliff Looms Over US Economy

Money News
October 10, 2012

The year-end fiscal adjustment shouldn’t raise as many red flags as it is, as the country’s chronic health issues are much more dangerous, said broker, author and financial commentator Peter Schiff.

At the end of this year, tax breaks are scheduled to expire at the same time automatic cuts to government spending kick in, a combination known as a fiscal cliff that could send the country into a recession next year if left unchecked by Congress.

The nonpartisan Congressional Budget Office estimates that the economy could contract by 0.5 percent next year if the economy rolls over the cliff, while the International Monetary Fund has said such an event threatens the global economy.

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