Fiscal Cliff

 

What is the fiscal cliff I hear you say? Well it is something that could affect every man, woman and child on this earth.

On many measures the US economy is in a worse state than many of the European countries that we are all worried about and there must be an agreement on the US budget or spending cuts and the automatic raising of taxes will kick-in which will send their economy into recession. Remember if the US sneezes the whole World catches a cold.

What is really worrying is that there does not seem to be great concern and there is an attitude that it will be worked out. There is a Democratic as a President and a Republicans have a majority in House of Representatives therefore there needs to be compromise.

Take a listen to this clip http://bbc.in/QDF1l7 to learn why we should all be worried. The US election is over but this could affect Business in the UK in a big way.