"Fiscal cliff" is the popular short term used to decsribe the situation the U.S. will face at the end of 2012, when the terms of the Budget Control Act of 2011 are scheduled to go into effect.

Five years after the Great Financial Crisis of 2007-2009 began, there is still no sign of  a full recovery of the world economy. Consequently, concern has increasingly shifted from financial crisis and recession to slow growth or stagnation, causing some to dub the current era the GREAT STAGNATION. Indeed, the global economy has entered a dangerous and uncertain phase. According to the IMF, global growth in advanced economies is too weak to bring down unemployment and what little momentum exists is coming primarily from central banks.

Everything the EU does to foster unity seems to only further infighting, divisive rethoric and finger-pointing. There is squabbling over bailouts, multicultural woes, bloody protests and even serious discussions about member states exiting the eurozone etc. Europe appears to be fracturing under the weight of each bailout.

Austerity measures that are implemented to reduce deficits does not revive struggling economies. How is a shrinking or stagnant economy supposed to grow when the people actually trying to survive in that economy are being punished with further economic hardship? What drives economic growth is demand but the austerity measures suppress demand and structural reform focuses too much on supply. Austerity measures are self-defeating, because if output continues to contract, deficit and debt ratios will continue to rise to unsustainable levels.