The Fiscal Cliff might be a moot point (for now) while January is here, and now US government have agreed to pass a majority of it, but here’s a little something we were emailed recently: the grim face of the Fiscal Cliff legislation. Like you, we’re all tired of this recession and so, who better to help get that economic ball rolling into a boom – the world’s biggest economy, right?
…Well, hold your horses!
It’s a hot talking point in the States right now and for those uninitiated in the up-and-down world of the American economy it can be quite difficult to get to grips with. What we’ll tell you, on a strictly need-to-know basis, is that it’s filled with budget cuts and tax increases.
We’re only explaining it now because of this picture, which thankfully puts the Fiscal Cliff into digestible and realistic terms: ‘the household budget.’ It’s one of the best examples we’ve seen of an attempt to explain the Fiscal Cliff – especially to those of us across the pond. From this picture, it’s looking a bit wobbly for the States. As we can see, the household income is dominated by massive overspending and a debt that can’t be quelled.
But don’t despair; it’s not all bad news!
We here in the UK are seeing plenty of positives to come out of the recession and there are clear examples that the ball is rolling this side of the globe.
Whenever inflation is mentioned in the news, we often brace ourselves for potential rising prices but reports are stating that inflation is holding steady and experts say that they could even fall in the year. We’ll take that!
It’s important to know that unemployment figures are falling which can only mean a growth in jobs, which experts are saying is still to come. Give it a few months though; expanding businesses that haven’t had any losses are creating even more vacancies. More vacancies, more jobs.
Honda, which has been struggling in the past few years, is soaring out of the darkness, reporting that they are back in business. It’s all good for the car industry as UK car sales reach a ‘four year high’ so we’re sure to expect more from Honda.
And the icing on the bun coming this 2013 is the ‘robust’ mortgage market, with a wider availability of mortgages and the CML (Council of Mortgage Lenders) spearheading further developments in this active market.
The Fiscal Cliff might be overshadowing us with debt doom and gloom but we have a lot to look forward to in 2013: higher employment figures and a flourishing housing market. Hurray!