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The Reality Cliff


               
2012 Dec 4, 10:33pm   731 views  0 comments

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http://www.resilience.org/stories/2012-12-05/understanding-our-oil-related-fiscal-cliff?source=Patrick.net

High oil prices cause people to cut back on discretionary spending, leading to layoffs in discretionary industries and debt defaults. Governments get less revenue in taxes at the same time they need to increase spending for unemployment benefits, bailing out banks, and stimulus funds. Result: financial problems for governments of oil importing countries, including many Eurozone countries and the United States.

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