Fiscal cliff an ugly display of partisan US politics

Talks surrounding the US fiscal cliff remain at an impasse in Washington, with observers making their best guesses about how the situation will end.

Many believe the White House and Congress will eventually reach an agreement to avoid plunging off the fiscal cliff, which is a mandated series of tax increases and spending cuts, which could deliver a deadly blow to the US economy.　

Analysts believe that the fiscal cliff is not a simple economic issue, but one caused by partisan bickering. Politicians from both parties are fully aware of the precarious "fiscal cliff" on the one hand, but remain reluctant to make concessions. Both are taking advantage of the situation and using it as a bargaining chip.

Even if the two parties reach an agreement, it will be a fierce fight to decide whether the rich or the middle-class should receive priority treatment.

The US' massive fiscal deficit has long been a pressing issue. Washington must find a way to stop running on borrowed money. Last year, Washington barely reached an agreement to raise the debt ceiling of the country.

It seems the US political system cannot work out a proper solution to fix its fiscal problems.

Some US scholars believe that the nation has quickly returned to how it was before the election, and tense partisan confrontations will continue.

However, we live in a deeply integrated world now. Uncertainties brought by the fiscal cliff will undermine the economic recovery in the US. Investors and market players will scrutinize the US fiscal situation more cautiously.

China, the largest holder of US treasury bonds, will be profoundly affected.

The world, unnerved by possible negative impacts from the US economy, is closely watching what choice the US is going to make.

Will Washington politicians finally confront the issue and pursue tough solutions? Probably not. From the just concluded presidential campaign, politicians are still adroit at finger-pointing, but not telling the public the difficulties that the US has to face.

It is not how a superpower, which claims to be a responsible member of the global community, should behave.

The imminent fiscal cliff is one more test of the efficacy of the US political system.