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U.S. budget crisis looms

February 28th, 2013

Feb. 28 – It’s now down to the final day before the next potential American economic crisis strikes, where the U.S. government will be forced to cut $85 billion from its federal budget.

President Barack Obama is warning about the impact of the massive automatic budget cut, which is due to take place on Friday unless Democrats and Republicans can reach a new deal.

The two sides narrowly avoided going over the so-called fiscal cliff as the calendar moved into 2013 but financial analysts are less optimistic that the two sides will again find a compromise.