Originally posted on CBS Miami:
WASHINGTON (CBSMiami) – While candidates from both parties continue to campaign, a looming fiscal cliff is set to possibly cripple the economy starting January 1. The fiscal cliff, along with the paralysis in Congress, has led Moody’s Credit Agency to warn of another downgrade to the U.S. credit rating.
Moody’s said it could drop the U.S.’ credit to Aa1 from Aaa if Congress doesn’t act to stave off much of what is looming at the end of the year.
The fiscal cliff as its being called involves the end of the Bush tax cuts, the sequester agreed to by Congressional Republicans and the president, and other fiscal policy issues.
The blame for the fiscal cliff falls on both sides of the political aisle. Republicans have stonewalled any potential deal that involves revenue increases. However, no economist has said that austerity alone can solve the problems with the budget.
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