Political inertia !

It seems to stretch the bounds of reason, but it seems likely that sheer political dogma in the United States may plunge the world into a fresh recession as we welcome in 2013.    The Republicans and the Democrats have dug their heels in and both sides refuse to come to a reasonable compromise to save the nation from falling off what is being called a " Fiscal Cliff ".

It is ironic that this " Fiscal Cliff " is a creature of their own making.  Unable to reach consensus in past years, legislators crafted a scenario too awful to contemplate in the hope that the obvious repercussions would force both sides of politics to sit down and " do a deal ".

The US is facing an ever growing deficit and it needs to gain more income and decrease it's spending.  The sticking point is the ideology between the two sides of politics.   The Republicans utterly reject any form of raised taxation - even on those earning millions of dollars of income.  The Democrats reject any alteration to the welfare state and seek to protect " middle America :" from budget cuts.

Both will suffer if reason does not prevail.   In a matter of hours, taxes will be raised across the board and many forms of welfare assistance will simply cease.   The heaviest blows will fall on the low paid and the unemployed.   Unemployment cheques will cease for many and a range of new taxes will send many employers to the wall - but this will also affect the income of the wealthy.   The public will stop spending and the nation will go into recession - and the sources of wealth for those earning big bucks will be caught in that recession.   Unfortunately, it is inevitable that a recession in the United States will have a flow on effect on world markets.

The answer to this problem is not rocket science.   It is something simply called " compromise ".  Both sides of politics need to give a little - and that means a modest rise in taxation across the board, and a treasonable adjustment of welfare entitlements to achieve the goal of more money in treasury balanced against less of an outflow.

Working for the " common good " was the way politics used to solve problems.   The two sides met in a session of " horse trading " and when the cigar smoke cleared - they would have " a deal ".   It seems that this mood of compromise has dissolved into bitterness and a dedication not to give an inch - and demand that all the concessions come from the other side,

A " last minute " partial move of desperation may temporarily divert the crisis, but it will be a case of once again " kicking the can down the road ".    It will ensure that this same problem divides the nation when the law makers return after the new year break.

Sadly, we seem to be seeing history repeat itself.   By the middle of the last century the United States was the richest and most militarily powerful nation on this planet - but then that was also a status shared by the Egyptian empire at the time of the pyramids, later replaced by the mighty Roman empire - which ruled the known world - and then Spain managed to garner all of South America and colonies in the Bahamas and Pacific ocean areas.

All these empires rose to great heights - and then faded away, and in every case the reason for the decline was inability to govern themselves because of political infighting.   Perhaps the phenomenon we are witnessing is the start of a decline which will see the batons of wealth and power pass into new hands - in what is now being called " the Asian century ".