Lines of communication remain open in an effort to avert the automatic tax hikes and spending cuts known as the "fiscal cliff," according to the White House and House Speaker John Boehner.
If no deal is reached between now and the end of the year, would the consequences be that drastic?
To answer that question, let's imagine it's January and the nation has gone off the "fiscal cliff." You don't really feel any different and things don't look different, either. That's because, according to former congressional budget staffer Stan Collender, the cliff isn't really a cliff.
Arkansas Gov. Mike Beebe speaks about expanding Medicaid during a speech to the Arkansas State Chamber of Commerce in Little Rock, Ark., on Nov. 14. The federal government hasn't set a deadline for states to decide on their Medicaid expansion plans.
Detroit Mayor Dave Bing delivers his State of the City address on March 7. If Bing and the City Council can't agree on a plan to reduce the city's budget deficit, state officials are poised to take away their power over Detroit's finances.
Detroit officials face a tough vote Tuesday as they try to keep their city from going over its own "fiscal cliff." If the mayor and City Council cannot agree on a plan to reduce the city's budget deficit, state officials are poised to take away their power and assume total control over Detroit's finances.
It's been a continuing vicious cycle: Detroit's population exodus, lost tax revenue and chronic mismanagement have left the city burning through cash to the point where the state of Michigan has to provide funding to help the city meet payroll for the next few months.
Russian President Vladimir Putin and former Defense Minister Anatoly Serdyukov, who was recently fired, review military officers on Moscow's Red Square in May. Putin's decision to sack Serdyukov has touched off widespread speculation on the motive.