Debt deal brings relief, now downgrade awaited (Reuters)

A Greek default appears likely soon as Greece Dispatches Officials to US Over Default Fears. Greece sent senior officials to Washington on Monday for meetings with the International Monetary Fund as it raced against the clock to break a deadlock in debt swap talks that has raised fears of an unruly default.

WASHINGTON — Congress’ hectic resolution of the “fiscal cliff” crisis is the latest in a long series of decisions by lawmakers and the White House to do less than promised — and to ask Americans for little sacrifice — in confronting the nation’s burgeoning debt. The deal will generate US$600-billion in new revenue over 10 years, less than half the amount President Barack Obama first called for. It will raise income tax rates only on the very rich, despite Obama’s campaign for broader increases.

We can probably solve this in about a week. It’s not that tough WASHINGTON – President Barack Obama told business leaders on Wednesday that a “fiscal cliff” deal was possible within about a week if Republicans compromise on taxes, and he warned lawmakers he would not engage in another debt ceiling standoff. Obama, speaking to the Business Roundtable group of chief executives, said Republican leaders in Congress had to accept the reality that tax rates must rise on the wealthiest Americans to achieve a fiscal deal.

WASHINGTON — President Barack Obama and congressional Republicans face even bigger budget battles in the next two months after a hard-fought “fiscal cliff” deal narrowly averted devastating tax increases and spending cuts. The agreement, approved late on Tuesday by the Republican-led House of Representatives and signed by Obama on Wednesday, was a victory for the president, who had won re-election in November on a promise to address budget woes, partly by raising taxes on the wealthiest Americans.

JUST 12 days until the deadline, and there is little sign of progress on the debt-ceiling front. Ezra Klein writes: