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Avoiding a Fiscal CliffSalem-News.com
A temporary deal sees stock values surge.
(WASHINGTON DC) - U.S. President Barack Obama reached an agreement with Republicans and Democrats in Congress on the "fiscal cliff" that prevents a tax hike on 98 percent of Americans and 97 percent of small businesses, while fulfilling the President's promise to ask the wealthiest Americans to begin to pay their fair share to reduce the deficit.
However as reported by The New York Times, this was just the first of several congressional fiscal cliff-hangers.
As one congressionally-induced crisis is surmounted, at least 3 more remain.
The next one comes in late February or March, when Congress will have no choice but to raise the $16.4 trillion debt ceiling or default on the nation’s loans.
Treasury Secretary Tim Geithner stated that the country could avoid immediate default through some “extraordinary” accounting measures.
NBC reports that for all of its chaos and controversy, the "fiscal cliff" compromise sent the stock market shooting higher Wednesday, the first trading day of the new year.
In fact, the major U.S. stock indexes all swelled by at least 2 percent. The Dow Jones industrial average is up 263 points - the biggest surge in six months.
Stocks elsewhere in the world also leapt higher. Major indexes in Britain, France and Germany rose more than 2 percent, and Greece and Spain were up by more than 3 percent. Stocks in Asia also surged.
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