Fiscal Cliff

The fiscal cliff involves US$600 billion in automatic tax hikes and spending cuts effective in early 2013 if US lawmakers fail to agree on reducing the budget deficit.


Contingency plan on agenda for Hong Kong's 'fiscal cliff'

John Tsang Chun-wah. Photo: Edward Wong

Senior officials from each of the government departments will gather on Thursday to come up with contingency plans for a "fiscal cliff" - a scenario described by Chief Executive Leung Chun-ying after filibustering blocked the passage of the budget bill.

Tuesday, 14 May, 2013, 5:37am 1 comment

Congress okays budget stopgap, broader battle begins

US President Barack Obama has to sign a funding stopgap measure into law by next Wednesday to avoid a partial shutdown of the US government. Photo: EPA

US lawmakers approved a funding stopgap to keep the US government operating through September and took a step towards adopting a blueprint for a decade of budget austerity.

The two votes came in rapid-fire succession in the House of Representatives ahead of a two-week congressional recess.

22 Mar 2013 - 11:42am

Threat of spending cuts a sign of Washington's political impasse

US President Barack Obama has thrown down the gauntlet to Republicans again not to let budget cuts derail the US economy. Photo: AP

The White House and independent analysts fear the so-called sequester could cost hundreds of thousands of jobs and crimp already slow economic growth. There is little hope in Washington that it can be averted.

22 Feb 2013 - 2:48am

When China's collective vision meets America's individual voice

Xi Jinping, the new Communist Party chief, called for full adherence to the constitution, which guarantees free expression and rule of law. Photo: Reuters

The governing systems of the world's two largest economies are in crisis. As the United States has been grappling with a fiscal cliff, China faces a social cliff. Without major reform, both will falter.

4 Feb 2013 - 3:02am

Briefs, January 12, 2013

Soldiers have been sent to the border with Myanmar amid concern that escalating violence between the neighbouring nation's government and ethnic separatists is spilling over, the Global Times reported yesterday.

12 Jan 2013 - 4:39am

How they see it, January 6, 2013

US President Barack Obama and House Speaker John Boehner (above) failed to work out a deal for the fiscal cliff after repeated attempts spanning 18 months. Photo: AP

The battle for agreement on the fiscal cliff deal

6 Jan 2013 - 2:51am

US job market shrugs off fears of 'fiscal cliff'

People seeking jobs  at an employment fair in New York. Photo: AFP

The US job market proved resilient in December despite fears that a budget impasse in Washington would send the economy over the fiscal cliff and trigger growth-killing tax hikes and spending cuts.

Employers added 155,000 jobs last month, roughly matching the solid but unspectacular monthly pace of the past two years.

5 Jan 2013 - 11:31am 1 comment

Top Republican keeps job as new US Congress opens

Re-elected US House Speaker John Boehner. Photo: Xinhua

The top Republican in Washington was narrowly re-elected to his powerful job as the new Congress opened for business, despite a mini-revolt in his own party over the “fiscal cliff” deal and a bruising fight over Superstorm Sandy recovery legislation.

4 Jan 2013 - 9:51am

Small steps are enough

Vice-President Joe Biden negotiated a compromise deal when President Barack Obama's own talks with Republicans failed. Photo: Bloomberg

The just-in-time budget deal the US Congress passed on New Year's Day calls to mind Samuel Johnson's observation about dogs that walk on their hind legs: "It is not done well; but you are surprised to find it done at all."

4 Jan 2013 - 2:48am

Talking points

Japanese, Chinese markets react to US deal

Japanese, Chinese markets react to US deal

4 Jan 2013 - 3:26am

We're all at the mercy of this US circus

The 113th Congress convenes Thursday fresh from the year-end fiscal cliff fiasco. Photo: AFP

Some choice words have been used to describe the brinkmanship across a US Congress that led us to the edge of the American "fiscal cliff" - "shenanigans", "circus", "omnishambles". Certainly few are pretending that it represents the festival of democracy envisaged by America's higher motives.

4 Jan 2013 - 3:26am 1 comment

Goldman gives stock awards early before tax rises

Lloyd Blankfein, chairman and chief executive officer of Goldman Sachs

Goldman Sachs has accelerated delivery of US$65 million in stock awards to 10 executives, including chief executive Lloyd Blankfein, helping them avoid higher tax rates that take effect this year.

4 Jan 2013 - 2:48am

US economy faces bumpy ride despite budget deal

Traders work on the floor of the New York Stock Exchange yesterday as stocks soared on news of the last-minute budget deal. Photo: Reuters

The United States may have averted a financial calamity with a last-minute budget deal but continued political bickering threatens to shake the fragile economy well into the coming year.

3 Jan 2013 - 8:59am

Global economy needs Washington to rediscover compromise

US President Barack Obama said he had fulfilled a campaign promise to make the US tax system fairer with a deal to avert the fiscal cliff crisis that passed after a fierce duel in Congress. Photo: AFP

For the second time in 18 months the US has pulled back from the brink of economic crisis. A last-minute bipartisan deal between the White House and Congress late on Tuesday (US time) headed off across-the-board tax rises and public spending cuts worth more than US$600 billion.

3 Jan 2013 - 4:21am

US fiscal cliff deal sets off bull charge in Hong Kong, US stock markets

A monitor in a securities agency in Central shows the Hang Seng Index's closing level and gains yesterday. Photo: K.Y. Cheng

Hong Kong stocks kicked off the new year with a 19-month high in heavy trading and could open even higher today if they track the overnight US market that rallied after the Congress approved a deal to avoid a "fiscal cliff".

3 Jan 2013 - 4:36am