It is being widely reported about the US about to go over the "Fiscal Cliff" and possible fall back into recession and in turn damaging the world economy. This are the immediate effects in the US.
BBC News - Fiscal cliff: What if we go over the deadline?On 1 January, tax cuts from the George W Bush era expire and huge spending cuts kick in. Some $607bn of cuts and tax rises are planned, including:
Reductions in the defence budget
The end of a 2% payroll tax cut
Changes to allowances for Medicare - medical care for the elderly
Reductions to some family income credits for the poor
The so-called "alternative minimum tax" returning for many taxpayers
The end of long-term federal unemployment benefits - at about $300 a week - which immediately cuts off about 2 million people
So the immediate effect is tax rises and spending cuts? If I remember correctly Obama et al were against these tax breaks and has been blaming Bush Jr. for inheriting the economy in it's current state. So what is the problem with Obama if the US does go off the Fiscal Cliff on 31 December?