EDITOR: There is no fiscal cliff, no drop off, not even a slope. The tax increases and across-the-board spending cuts will happen to save face and to provide an opportunity for the new Congress to immediately look good.
Speaker John Boehner is not negotiating with President Barack Obama because Boehner is following the commands of his owner, Grover Norquist. In January, after steadfastly refusing to raise any tax, Republicans in the new Congress can introduce legislation to re-reduce some or all of the taxes. Democrats can introduce legislation to reinstate some or all of the federal program spending. Everybody looks good, there is cooperation across the aisle, the stock market moves up, people will think they have more money to spend, jobs will be created, and the worldwide economy will recover.
But the first step is to do nothing in December.