Then they had a spat and could not agree on anything. There will be no deal.

According to the rules in the House of Representatives, the very last day any bill can be introduced to Congress before adjourning is December 18th. Not the 31st, but the 18th. And, Congress is expected to adjourn for the year on December 21st.

On December 17^th President Obama and his family leave Washington, D.C. for their annual family vacation in Hawaii.

So come January….

$607 billion in automatic annual tax increases and spending cuts kick in. Half of the scheduled annual cuts ($109 billion/year from 2013-2021) will come directly from the national defense budget, half from non-defense.

The “Bush tax cuts,” will expire on December 31, 2012, raising all income tax rates (top will go from 35 to 39.6 percent), as well as rates on estate and capital gains taxes.

The Social Security payroll tax holiday will expire December 31, raising the rate from 4.2 to 6.2 percent.

Next year the U.S. economy could most benefit from a reduction in the federal budget deficit, and that’s what no deal means. The economy will grow next year by an anemic 1.5 %, according to the top forecaster.

How to invest.

Avoid and reduce US equities generally.  Try BA listed on the TSX. $27.20 share Yields 7%, fair prospects of being bought out in 2014 (ie. upside potential).

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