The Democrats - Obama, Reed, Pelosi, and the rest will not cut spending. They simply will not do it.
Raising rates without cutting spending will not bring enough money into the government.
Get ready for increasing recession, higher unemployment and higher taxes.
Fantasy Plan - Obama will gladly cut spending next century for a tax increase today.
Ignore GDP and the Fiscal Cliff, U.S. Is Already in Recession: ECRI’s Achuthan.
Ugly Q3 GDP Confirms Personal Consumption Collapsing; Headline “Growth” Driven By Government, Inventory Accumulation.