And If They Fall off the Edge, We'll Take a Big Tumble Too; ANALY$I$ OF A NIGHTMARE
THE clock is ticking down fast to what is being called the fiscal cliff.
On January 2 a set of tax rises and spending cuts will take effect in the United States that absolutely nobody wants.
If all of this austerity stuff is implemented it is plausible that US gross domestic product in 2013 will be lowered by 4 per cent, pushing it back into recession after 13 successive quarters of positive growth. It's as dopey as that.
The precedent of course is the disastrous austerity policy that the coalition introduced in the UK which destroyed growth.
The last thing the US needs to do is to copy the coalition's daft policies. The consequences for the weak UK economy would indeed be serious if the US were to head over the precipice because when the US sneezes the UK catches a cold, we are that closely linked.
If cliff jumping were to happen it would be very bad news for George 'Slasher' Osborne as it would likely lower UK growth further and raise both unemployment and borrowing. …