Three New 'Cliffs' Threaten The Economy
Maybe you were hoping you'd never hear the phrase "fiscal cliff" again after Congress passed legislation Jan. 1 to address that tax-break-expiration deadline.
Sorry.
Three more cliff-type deadlines are fast approaching. They involve: 1) raising the federal debt ceiling 2) modifying automatic, across-the-board spending cuts and 3) funding the government to avert a shutdown.
The deadlines all hit between Valentine's Day and Easter, which means new rounds of chaotic congressional negotiations may start up just after the Jan. 21st presidential inauguration parade ends.
Indeed, President Obama's choice for his second-term Treasury secretary is a budget-battle warrior, Jack Lew. During his first term, Obama had chosen a banking expert, Tim Geithner, to head the Treasury Department. Now Obama needs a budget expert like Lew, the former head of the Office of Management and Budget, to lead the White House negotiations with Congress.
To understand why this winter may be so bitter in Washington, let's take a look at each of the "cliffs" — those dates when Congress could tip the U.S. economy over into recession — or worse.
January 9, 2013