"If All Of Your Friends Jumped Off A Fiscal Cliff, Would You Do It Too?"

As politicians in the White House and Congress fuss over the Congressional budget, Federal Reserve Chairman Ben Burnanke has warned about how these unresolved differences could incur wrath on not only individual Americans but the entire economy. Bernanke's main concern is the undeniable fact that if the Congressional Budget is applied as is drawn up now, it would cause huge tax hikes across the board and massive spending cuts, which he reasons would most likely stagnate the economy and create a huge burden on Americans. I happen to agree with Bernanke on this, as I feel that spending cuts would mean even more under-funding in schools (I pity those who have to go to a public school),infrastructure and other services and probably lots of job loss as well. That's not even mentioning the fact that tax hikes across the board would be an absolute disaster when you are trying to kick start our economy. However, I think Bernanke and many others are intentionally avoiding the elephant in the room, in this case China. Sure, the current budget plan would probably not be the best for the short term, but we do have to start thinking about the absurd amount of debt that we owe China and merely going back to the status quo will not solve anything.