So at the eleventh hour a deal has been reached, almost, by politicians in the US working to avert the fiscal cliff. Missing the midnight December 31, 2012, deadline though will prove costly in the short term.
The deal agreed by a majority in the Senate still needs to pass muster in the House of Representatives or should that be House of Republicans. With a hefty majority in the House GOP politicians could still scupper the deal. After such a long and hard road to try and reach agreement that would hardly be productive though. It would simply be back to the drawing board and it is doubtful that Americans, or their politicians, have any stomach for more wrangling.
The longer it is before an agreement is reached the harder it will be for all. Market jitters will increase, the take hikes which were due to kick in will do so until the deal is formally signed off and countries who trade with the US will take a hit.
All in all a no win situation unless good sense prevails. The sticking point for Republicans could still be the level at which higher taxes kick in.
USA today has reported that,
Shortly after the Senate vote, President Obama said, "While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay.
The ball is back squarely in the House of Representatives court. They may yet dig in their heels but if they do so they run the risk of not caring about America nor its people and behaving like spoiled children. Surely there has been enough compromise for now. Whilst many may say that the President has not given in much, he is the country's elected President, with a mandate he should follow. House leader John Boehner critisiced the President recently saying that he should lead them and that is what he is doing, whether they like the end result or not.