US cliffhanger

By Brian Easton In Economy

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13th December, 2012
The day after Barack Obama was re-elected President, attention turned to America’s “fiscal cliff”, despite there being nary a reference to it in the campaign. On January 1, various tax reductions end and automatic expenditure cuts take effect. In total, this budgetary precipice amounts to 5% of GDP; going over the edge would cause the US economy to contract sharply. Because the US GDP is such a large chunk of the world economy, the international economy would suffer, too. ...

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