Fiscal Cliff - US agreement reached

Markets opening after the holiday will be pleased to know that American politicians, who have been unable to agree on the way forward, to deal with the budget deficit and the massive US debt mountain, have managed to rubber stamp a bill that avoids the punitive measures that have become known as the Fiscal Cliff.

This combination of automatically levied higher taxes and across the board reductions in public spending were considered by analysts to push the US into recession, which would have a global impact, hence the world wide concern that it was dealt with before the deadline of January 1st.

Politicians in both political parties have had to put their political differences behind them, to find a solution that works for the country and the Financial Bill that is about to be passed into law, has been voted through by 257 votes to 167 in the House or Representatives.