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Loonie Up

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Submitted By coltay44
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Loonie Up as Traders Eye Progress on Fiscal Cliff Talks 1. Describe what the “fiscal cliff” is (in your own words…do not paraphrase):
The “fiscal cliff” has become a very popular term and has been one of the first and most important issues that have been placed on the palette of President Obama’s second run in office. Just using the two words given I conjure up a picture of a lot of money being sent, driven or otherwise tossed off the side of a very high mountain but that is not what it actually means, instead the fiscal cliff involves a combination of two things that have put the U.S government into quite a predicament. Those two problematic things are expiring tax cuts and government spending cuts that are to become effective December 31, 2012 that could throw the U.S into another recession.

2. What needs to be done to NOT GO OVER the cliff?:
Fortunately, there are quite a few options the U.S can take to avoid going over the cliff. One alternative is to just extend the tax cuts and postpone the fiscal cliff until 2013 or 2014. This would result in a recession free America but also conversely, a debt-rising America. The U.S could as well make a small deal or go big and sign off on a grand bargain between Democrats and Republicans. The small deal would entail all Democrats, Republicans and Congress working on a deal that extends tax cuts. However, if the Mayans are right, we won’t have to worry about any fiscal cliff.

3. Summarize your article:
This article mainly focuses on the fiscal cliff and the optimism that surrounds getting a deal done before the New Year deadline. Both House Speaker John Boehner and President Barack Obama are talked about in this piece as being hopeful that a deal can be reached and meetings between negotiators will be commencing in the near future.

4. What is the core message being reported/delivered in your

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