Bill Black: Compromise on tax hikes on rich and allowing payroll taxes to rise sets the ground for a “grand betrayal” yet to come
Roubini: USA has been let down by its leaders.
FT: The deal reached in Washington on New Year’s day prevented the US economy from falling off the so-called fiscal cliff. However, given the dysfunctional nature of the American political system, it won’t be long before there is another crisis.
Two months, in fact. If no action is taken by March 1, $110bn of spending cuts will commence. At about the same time, the US will hit its statutory debt limit, known colloquially as the debt ceiling.