U.S. approves J&J drug-resistant tuberculosis treatment






(Reuters) – U.S. health regulators have approved a new Johnson & Johnson drug for patients with tuberculosis who do not respond to other treatments, the company said.


The drug is the first in 40 years to tackle the disease using a new mechanism of action, according to J&J. The drug blocks an energy-producing enzyme that tuberculosis bacteria need to survive.






The U.S. Food and Drug Administration approved the drug, chemically known as bedaquiline and to be marketed as Sirturo, on Monday following a positive review by an advisory panel last month.


Tuberculosis is an air-spread infection that usually attacks the lungs but it can also affect the brain, the spine and the kidneys.


In 2011, nearly 9 million people around the world became sick with TB, according to the Centers for Disease Control and Prevention, and there were 1.4 million TB-related deaths. The disease requires six to nine months of drug treatment.


TB is more prevalent now than at any time in history, FDA Commissioner Margaret Hamburg wrote in a blog on the FDA website. This drug will help treat and cure patients who are putting themselves and others at serious health risk, she said.


The drug itself has significant potential risks, she wrote, and will carry a warning about an increased rate of death observed in patients who received it.


Her comments followed those of the FDA advisers who found the drug to be effective, though they noted that more deaths were seen in the group of patients who took bedaquiline in combination with standard treatments than in the group that took standard drugs alone.


Doctors Without Borders said that the drug was a “potential game changer” against drug-resistant forms of the disease and an important milestone in fighting TB.


Multidrug-resistant tuberculosis is caused by strains of the bacterium that have become resistant to at least isoniazid and rifampin, the two most potent drugs for TB.


Support has not been unanimous. Consumer advocacy group Public Citizen earlier this month said it had written to the FDA because of the risks of death asking it not to approve of the drug, which received a fast approval.


DETAILS FROM TRIAL


Chrispin Kambili, medical affairs leader for bedaquiline at J&J’s Janssen Therapeutics unit, said in a recent interview that the company is studying the difference in death rates but has so far seen no common pattern.


Almost every death was due to a different cause, including a motor vehicle accident. What was unusual, he said, was the low rate of death in the placebo group.


Advisers to the FDA expressed concern that a greater number of patients had elevated liver enzymes, a potential sign of liver toxicity, and elongated QT levels, an electrical irregularity in the heart that can cause sudden death.


But Kambili said none of the patients died due to serious QT prolongation and there was no unifying findings in the data.


Kambili said J&J’s drug is designed for a relatively small portion of patients – some 650,000 – who do not respond to existing therapies.


And while investment analysts at Cowen and Co have forecast peak annual sales of the product at a relatively modest $ 300 million, the drug is important from a public health standpoint, Kambili said.


J&J shares were 0.1 percent higher to $ 69.56 in late morning trading on the New York Stock Exchange.


(Additional reporting by Ransdell Pierson and Caroline Humer; Editing by John Wallace, Jeffrey Benkoe and Tim Dobbyn)


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Death! Sex! How Comic Books Bump Their Sales






In comic book publishing, the decision to kill off a long-running and beloved character may seem, at first glance, like a terribly unwise business move. But when Marvel Comics released its latest issue of Amazing Spider-Man—#700, which ends with Peter Parker, the webbed crusader’s alter ego, getting murdered—the issue began flying off the shelves.


“The sales are phenomenal,” says Axel Alonso, the editor in chief at Marvel Comics, “Amazing Spider-Man #700 has sold nearly 250,000 copies in print alone; final digital orders aren’t in yet. This is the best-selling comic book at this price-point of the last decade, at least.”1af37  1228 comicbooks inline405 Death! Sex! How Comic Books Bump Their SalesPhotograph Courtesy Marvel






Marvel isn’t the first comics company to lift sales by employing a shocking new creative direction. In fact, it’s actually a common practice, which gained attention in the 1970s but reached new heights in the early 1990s, when DC Comics destroyed its most famous character, Superman, in a publishing event that fueled sales across the world.


Here are four of the most surefire, lucrative, and reliably controversial methods that comic book creators use to gain readership and boost the bottom line.


I. Embrace alternative lifestyles


Gay characters are nothing new—an X-Men superhero called Northstar came out of the closet in 1992—but the subject is still controversial enough to cause a public outcry. The comic Life With Archie No. 16, which featured the first same-sex wedding in the series’ otherwise conservative history, hit newsstands in early 2012 and quickly became a target for One Million Moms, a conservative group that called for Toys R Us to stop selling the comic or be boycotted. The threat didn’t work. “[The Million Moms] really propelled the book,” says Archie Comics Chief Executive Jon Goldwater. “It was selling well anyway, but they made it a collector’s item. Last I heard it was selling on eBay for $ 50.” Dan Parent, a writer and illustrator who has worked for Archie for 20 years and penned the gay wedding issue, says he’d “love to send the Million Moms a big box of chocolates and flowers, to thank them for helping the Life With Archie book to sell out. It was a marketing dream.”


II. Court ethnicity


Marvel Comics unleashed an entirely new Spider-Man in August 2011. The costume was the same, but under it was a half-African American, half-Latino teenage boy named Miles Morales. Glenn Beck discussed the new biracial Spider-Man on his radio show. “The new Spider-Man looks just like president Obama,” he said. “I think a lot of this stuff is being done intentionally.” Stan Lee, the legendary comic book writer who co-created Spider-Man, dismisses the conspiracy theories. In fact, he says bringing a little ethnicity to comics is nothing new for his company. “Years ago at Marvel, in the 60s, we had a war book called Sgt. Fury and his Howling Commandos,” he says. “We introduced a black soldier, an Italian soldier, a Jewish soldier. We had every ethnic group represented in this platoon. And I was told, ‘Oh this book will never sell in the South.’ Or ‘it will never sell in the West.’ Or the North, or the East, or wherever the marketing department was worried somebody would be offended. But it was one of our best-selling books ever!”


III. Sex it up


Superheroes have always been synonymous with sex—their costumes aren’t skintight by accident—but in recent years, the characters have gotten far more steamy and intense. Several new titles released as part of DC Comics “New 52″ relaunch in 2011 included intimate scenes with over-the-top NSFW drawings. Catwoman #1, published in September 2011, gained attention for the eponymous character’s violent sex scene with Batman.


But sex in comics can come bearing consequences—as an issue of Dark Horse’s Buffy the Vampire Slayer series proved in February. Buffy, after discovering she’s pregnant, decides to get an abortion. “We wanted to court controversy,” admits Scott Allie, the editor in chief at Dark Horse Comics. “We were fed up with America’s glamorization of teenage pregnancy and wanted to do a story that explored the reasonable choice of terminating a pregnancy.” He says they anticipated the media headlines and even worked with their marketing department to encourage them, but “I don’t know that they really impact sales. Since it is a genuinely controversial issue, it probably costs us as many sales as it gets us.” In the end, Allie says, the issue sold well, but not in record numbers. “I think in order to do controversy in a way that would really boost sales, we’d have to try a little harder,” he says. “And that’s not a great reason to do it.”


IV. Kill your icons


Comic books have been killing off popular characters since the early 1970s, when Peter Parker’s girlfriend Gwen Stacy was murdered by the Green Goblin, which, at the time, was akin to superhero heresy. Since then, seemingly immortal characters like Superman, Robin the Boy Wonder, and Captain America have all been killed off at one time or another, usually followed by a tsunami-size media response and a comic-buying frenzy. “As far as what kind of controversy equates to biggest sales, it’s always been and always will be the death of a major character,” says Brandon Zuern, the store manager of Austin Books & Comics in Austin, Tex. “I think death in comics is way overused, but people keep buying them.” The best part of killing an iconic character is that the fans do most of the work for you. “The story kind of markets itself,” says Marvel Comics Editor in Chief Alonso. “You just get the word out, and people want to know more. ‘Peter Parker Death’ has been the No. 1 trending topic on Yahoo for the last two days, which speaks volumes about their love for Peter Parker.”


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Microsoft Surface trampled at the bottom of the tablet pile this Christmas






While it does have drawbacks just like anything else, Microsoft’s (MSFT) Surface is a great slate for those looking for a fresh new take on the modern tablet. Unfortunately, it doesn’t look like very many people were looking for a fresh new take on the modern tablet this holiday season. In a recent note to investors, R.W. Baird analyst William Power recounted recent conversations had at retailers including Best Buy (BBY) and Staples (SPLS). While speaking with sales reps at the stores, Apple’s (AAPL) iPad was the most highly recommended tablet while Amazon’s (AMZN) Kindle Fire line and Samsung’s (005930) Galaxy Tab line were both recommended as alternatives. Microsoft’s Surface tablet, on the other hand, was not pushed by reps at either chain.


[More from BGR: Purported photo of new BlackBerry phone with QWERTY keyboard leaks]






From Power’s note, as picked up by Barron’s:


[More from BGR: Sprint salesman refuses to sell iPhone to customer, says his ‘fingers are too fat’ to use it]



Microsoft’s Surface, which Best Buy just recently started carrying, was not recommended to us by reps without us asking about it specifically. When asked about sales to date, reps noted that the device was new and indicated that early demand has been modest relative to the iPad and Kindle Fire. We would also note that the device was in stock at every store we contacted […] We contacted Staples stores in an effort to further gauge Microsoft Surface sales, though our impression from speaking with reps was tablets are not a major seller at Staples. Tellingly, Staples doesn’t currently carry the iPad. When pressed for details, Staples reps indicated that Surface volumes have been modest to date. Most reps told us that the primary appeal to Surface buyers is the ability to run Microsoft Office. Consistent with our Best Buy checks, the Surface was also in stock at all Staples stores we contacted. Outside of the Surface, the Google Nexus 10 was cited as another strong tablet option.



Further supporting the idea that Microsoft’s debut tablet wasn’t a big seller this holiday season, Twitter user A.X. Ian did a quick analysis of tweets discussing new tablets during a 24-hour period around Christmas Eve.


Based on his data, 1,795 people tweeted about getting a new iPad during that time span while 250 tweeted about their new Kindle Fires, 100 mentioned their new Nexus 10 tablets and just 36 tweets were posted by users who had received a new Surface.


This article was originally published by BGR


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Hot spots draw believers, but not doomsday






As the sun rose from time zone to time zone across the world on Friday, there was still no sign of the world’s end — but that didn’t stop those convinced that a 5,125-year Mayan calendar predicts the apocalypse from gathering at some of the world’s purported survival hot spots.


Many of the esoterically inclined expected a new age of consciousness — others wanted a party. But, in some places said to offer salvation from the end, fewer people showed up than officials had predicted — much to the disappointment of vendors hoping to sell souvenirs.






Here are some key places being marked by the fascination over doomsday rumors:


MEXICO


In an area of Mexico that was once the ancient Mayan heartland, spiritualists gathered in the darkness before dawn on Friday to prepare white clothes, drums, conch shells and incense. They believed the sunrise would herald the birth of a new and better age as a vast cycle in the Mayan calendar comes to an end.


Many people who came to Yucatan for the occasion were already calling it “a new sun” and “a new era.”


FRANCE


According to one rumor, a rocky mountain in the French Pyrenees will be the sole place on Earth to escape destruction. A giant UFO and aliens are said to be waiting under the mountain, ready to burst through and spirit those nearby to safety. But there is bad news for those seeking salvation: French gendarmes, some on horseback, blocked outsiders from reaching the Bugarach peak and its village of some 200 people.


Eric Freysselinard, head of local government, said the security forces had “partially stopped the new age enthusiasts as well as curious people from coming to the area.”


Meanwhile, some Bugarach residents dressed up like aliens, with tinfoil costumes and funnels and fake antenna on their heads, strolling around their village Friday to make light of the rumored UFO prophecy.


RUSSIA


Doomsday rumors have prompted some people across Russia to stock up on candles, water, canned foods and other non-perishable foods. The apocalypse has proven a good business, with some shops selling survival aid packages that include soap and vodka.


In Moscow, salvation has also been promised in the underground bunker for the former Soviet dictator Josef Stalin — with a 50 percent refund if nothing happens. An underground stay was originally priced at 50,000 rubles ($ 1,625) but dropped to 15,000 ($ 490) a week ahead of the feared end.


The bunker, located 65 meters (210 feet) below ground, was designed to withstand a nuclear attack. Now home to a small museum, it has an independent electricity supply, water and food — but no more room, because the museum has already sold out all 1,000 tickets.


BRITAIN


Hundreds of people have converged on Stonehenge for an “End of the World” party that coincides with the Winter Solstice.


Arthur Uther Pendragon, Britain’s best-known druid, said he was anticipating a much larger crowd than usual at Stonehenge this year. But he doesn’t agree that the world is ending, noting that he and fellow druids believe that things happen in cycles.


“We’re looking at it more as a new beginning than an end,” he said. “We’re looking at new hope.”


Meanwhile, end-of-days parties will be held across London on Friday. One event billed as a “last supper club” is offering a three-course meal served inside an “ark.”


SERBIA


Some Serbs are saying to forget that sacred mountain in the French Pyrenees. The place to be Friday is Mount Rtanj, a pyramid-shaped peak in Serbia already drawing cultists.


According to legend, the mountain once swallowed an evil sorcerer who will be released on doomsday in a ball of fire that will hit the mountain top. The inside of the mountain will then open up, becoming a safe place to hide as the sorcerer goes on to destroy the rest of the world. In the meantime, some old coal mine shafts have been opened up as safe rooms.


On Friday a New Age group called “The Spirit of Rtanj” was holding a conference there. Participants, however, said they expect not the end of time but the start of a new time cycle. Locals turned out to sell brandy and herbs.


“There will be no tragedy, no doomsday,” said resident Dalibor Jovic. “It was supposed to happen at 12:12 and I think that time has passed. So, we can now go on with our lives and be happy to be alive.”


TURKEY


A small Turkish village known for its wines, Sirince, has also been touted as the only place after Bugarach that would escape the world’s end. But on Friday journalists and security officials outnumbered cultists. This outcome disappointed local business people who had prepared a range of doomsday products to sell, including a specially labeled Doomsday wine and Turkish delight candy whose “best before” date was Dec. 21, 2012. One restaurant prepared a special “last meal” menu that included a “heaven kebab” and “forbidden fruit dessert.”


ITALY


Another spot said to be spared: Cisternino, a beautiful small town in southern Italy in an area of trulli, traditional dry stone huts with conical roofs. The notion that Cisternino could be a safe haven at world’s end derives from an Indian guru, Babaji, who said “Cisternino will become an island” at world’s end. His followers built a community in Cisternino centered on an ashram built in 1979. Hotel bookings are up this weekend.


Mayor Donato Baccaro told the AP that the beauty of the place has inspired many foreigners to live there. “This confirms that this place has a special energy,” he said.


CHINA


A fringe Christian group has been spreading rumors about the world’s impending end, prompting Chinese authorities to detain more than 500 people this week and seize leaflets, video discs, books and other material.


Those detained are reported to be members of the group Almighty God, also called Eastern Lightning, which preaches that Jesus has reappeared as a woman in central China. Authorities in the province of Qinghai say they are waging a “severe crackdown” on the group, accusing it of attacking the Communist Party and the government.


U.S.


Dozens of Michigan schools canceled classes for thousands of students to cool off rumored threats of violence and problems related to doomsday. The fears were exacerbated by the recent shooting at a Connecticut elementary school, which “changed all of us,” the school system in Genesee County said. “Canceling school is the right thing to do.”


___


Associated Press writers Florent Bajrami in Bugarach, France; Mansur Mirovalev in Moscow; Peppino Ciraci in Cisternino, Italy; Suzan Fraser in Ankara, Turkey; Paisley Dodds in London; and Dejan Mladenovic in Mount Rtanj, Serbia, contributed to this report.


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Year in Review: Meningitis Outbreak Still a Challenge






As part of the Year in Review series, MedPage Today reporters are revisiting major news stories and following up with an analysis of the impact of the original report, as well as subsequent news on the topic. Here’s what’s happened with the fungal meningitis outbreak since we published our first report.


The fungal meningitis outbreak that made headlines in the fall was “unprecedented,” in the words of the of the clinicians at the eye of the storm.






What’s more, “we’re not out of the woods yet,” said Tom Chiller, MD, deputy director of the CDC’s mycotic diseases branch.


The outbreak was unprecedented for its size, for the spectrum of disease, for the clinical challenges that faced doctors, and for the way the pattern of illness has changed since the outbreak began, Chiller told MedPage Today.


It also has enormous implications for patients, their families, hospitals, and insurers, said Carol Kauffman, MD, a fungal infections expert at the University of Michigan in Ann Arbor, Mich.


“The extent and repercussions of this outbreak, in comparison to other smaller outbreaks, are really amazing,” Kauffman told MedPage Today. “The huge morbidity and, for some, mortality, is enormous.”




Meningitis Outbreak: Death Toll Rises to 14 Watch Video





Dangerous Virus on Cruise Liners Leaves Hundreds Ill Watch Video



The outbreak, which has been linked to an injectable drug widely used to control chronic pain, has also seen the FDA under attack for not doing more to monitor so-called “compounding pharmacies.”


And the FDA has responded by saying it did not have clear authority to intervene, even though worries about the pharmacy in question, the New England Compounding Center (NECC) of Framingham, Mass., date back to at least 2002.


The agency is now asking for its authority to be clarified, although an organization representing compounding pharmacies has told lawmakers the FDA had all the power it needed, but just dropped the ball.


The bottom line from a public health standpoint is that as of Dec. 17, the CDC had recorded 620 cases of disease and 39 deaths. And more are likely, according to Chiller: “We’re still in the middle of this thing.”


Compounding Out of Bounds


The outbreak can be said to have started in the summer, when NECC made 17,675 vials of preservative-free methylprednisolone acetate, an injectable steroid, and shipped them to 76 healthcare facilities in 23 states.


That was problematic in itself: The company was licensed as a compounding pharmacy, meaning in principle it was allowed only to make up small quantities of specialized drugs, after getting a prescription from a doctor for an individual patient.


Instead, it was acting more like a large-scale drug manufacturer, and had been for some years, according to Massachusetts officials, which should have placed it under the FDA’s authority.


The manufacturing scale played a key role in what ensued: more than 13,000 people were exposed to the drug when they got injections – mainly into the spine – to control chronic pain.


They were also exposed to a fungal contaminant in the steroid vials, later found to be a black mold called Exserohilum rostratum, which only rarely causes human disease.


Oddly, the index case for the outbreak, reported to health authorities on Sept. 18, was a 56-year-old man in Nashville who had a case of meningitis apparently associated with the fungus Aspergillus fumigatus.


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Pending home sales hit two-and-half year high in November






WASHINGTON (Reuters) – Contracts to buy previously owned U.S. homes rose in November to their highest level in 2-1/2 years, an industry group said on Friday, further evidence of a strengthening housing market recovery.


The National Association of Realtors said its Pending Home Sales Index, based on contracts signed last month, increased 1.7 percent to 106.4 – the highest level since April 2010 when the home-buyer tax credit expired.






Economists polled by Reuters had expected signed contracts, which become sales after a month or two, to rise 1.0 percent after a revised 5.0 percent increase in October. It was the third straight month of gains.


“Home sales are recovering now based solely on fundamental demand and favorable affordability conditions,” said NAR chief economist Lawrence Yun.


Pending home sales were up 9.8 percent in the 12 months through November.


The housing market has turned the corner after a dramatic collapse, which dragged the economy through its worst recession since the Great Depression of the 1930s.


Home sales and prices are rising, encouraging builders to undertake new construction projects.


Home resale contracts were up in three of the country’s four regions. They were unchanged in the South.


(Reporting By Lucia Mutikani; Editing by Neil Stempleman)


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Apple still said to account for 87% of North American tablet traffic as Kindle Fire, Nexus 7 gain






Apple’s (AAPL) share of the global tablet market is in decline now that low-cost Android slates are proliferating, but the iPad still appears to be the most used tablet by a huge margin. Ad firm Chitika regularly monitors tablet traffic in the United States and Canada and in its latest report, Apple’s iPad was responsible for almost 90% of all tablet traffic across the company’s massive network.


[More from BGR: Samsung looks to address its biggest weakness in 2013]






Using a sample of tens of millions of impressions served to tablets between December 8th and December 14th this year, Chitika determined that various iPad models collectively accounted for 87% of tablet traffic in North America. That figure is down a point from the prior month but still represents a commanding lead in the space.


[More from BGR: New purported BlackBerry Z10 specs emerge: 1.5GHz processor, 2GB RAM, 8MP camera]


The next closest device line, Amazon’s (AMZN) Kindle Fire tablet family, had a 4.25% share of tablet traffic during that period, up from 3.57% in November. Samsung’s (005930) Galaxy tablets made up 2.65% of traffic, up from 2.36%, and Google’s (GOOG) Nexus 7 and Nexus 10 tablets combined to account for 1.06% of tablet traffic in early December.


“Despite these gains by some of the bigger players in the tablet marketplace, there has been a negligible impact to Apple’s dominant usage share,” Chitika wrote in a post on its blog.


This article was originally published by BGR


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Singer Travis pleads not guilty to assault






SAN ANTONIO (Reuters) – Country singer Randy Travis pleaded not guilty to misdemeanor assault in a municipal courtroom in the Dallas suburb of Plano on Friday, his lawyer said.


Lawyer Peter A. Schulte told Reuters his client is “absolutely not guilty of this crime.”






Police say Travis assaulted a man in a church parking lot in Plano in August while attempting to intervene in a disagreement between a woman he was with and the woman’s estranged husband.


“He was actually being a good Samaritan at the time, stepping in to save two women from being assaulted,” Schulte said. He said the woman Travis was with and his daughter were being harassed by two men.


The charge against Travis carries a maximum $ 500 fine and no jail time. The case is set for trial March 11.


The altercation occurred during a bad stretch for the 53-year-old Grammy winner. Earlier in August, Travis was arrested on suspicion of drunken driving after he was found lying naked near his wrecked car along a north Texas highway. He also was accused of threatening to shoot and kill the troopers investigating the case, according to a police report.


The North Carolina-born country singer, known for hits such as “Forever and Ever, Amen,” also was arrested in February for drunken driving while sitting in his car in the parking lot of another north Texas church.


Schulte said Travis has been doing well since the two August incidents. He said his client was upbeat as he left the courtroom Friday.


“He turned and wished everybody who was there a merry Christmas and a happy and healthy New Year,” he said.


(Editing by Corrie MacLaggan and Bill Trott)


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MSF warns Kenya not to send more refugees to stricken camp






LONDON (Reuters) – Conditions in a camp for Somali refugees in Kenya are deplorable and a government plan to send in thousands more would pose a major risk to health, medical charity Medecins Sans Frontieres (MSF) said on Friday.


Kenya has more than half a million refugees from Somalia, which has lacked an effective central government since the outbreak of civil war in 1991.






A series of bombings, shootings and hand-grenade attacks blamed on Somali militants prompted the government on December 18 to stop registering asylum seekers and refugees in urban areas.


A Kenyan official said more than 100,000 refugees must now head to the remote Dadaab camp in the country’s remote north. Amnesty International said the order breached international law.


Dadaab camp was set up 20 years ago and already houses four times the population it was built for. Hunger and disease outbreaks are common.


MSF says its inhabitants suffer from overcrowding and poor sanitation that recent floods had worsened.


“The assistance provided here in Dadaab is already completely overstretched and is not meeting the current needs,” said Elena Velilla, MSF’s head of mission in Kenya.


In the last month, the number of children admitted to Dadaab’s hospital for severe acute malnutrition has doubled to around 300, MSF said. Sixty-three of those were taken to intensive care this week after developing serious complications.


Most of the sick are also suffering from acute watery diarrhea or severe respiratory tract infections, MSF said.


(Reporting by Kate Kelland; Editing by Tom Pfeiffer)


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US ‘heading over fiscal cliff’









“It looks like that’s where we’re headed,” Harry Reid said of the fiscal cliff



The US appears to be heading over the “fiscal cliff”, with prospects dim for a deal to avoid tax rises and spending cuts, the US Senate leader says.


Speaking on the Senate floor, Democrat Harry Reid said there did not seem to be enough time to craft a deal before Monday night’s end-of-year deadline.


Senators and President Barack Obama have returned to Washington, while the House of Representatives is in recess.


Analysts say heading over the “cliff” could tip the US into recession.


Bickering over the cliff has divided Washington in recent weeks, with President Obama and House Speaker John Boehner unable to reach a deal before Christmas.


The president wants to ensure that taxes do not rise for Americans earning under $ 400,000 (£250,000), and insists on raising new tax revenue in any deal.


‘Dictatorship of the speaker’


But many Republicans oppose new taxes, and an alternative plan proposed by Mr Boehner – which would have seen taxes rise only on those earning over $ 1m – failed in the House late last week.


Continue reading the main story
  • On 1 January 2013, tax increases and huge spending cuts are due to come into force – the so-called fiscal cliff

  • Deadline was put in place in 2011 to force president and Congress to agree ways to save money over the next 10 years

  • Fear is that raising taxes while massively cutting spending will have huge impact on households and businesses

  • Experts believe it could push the US into recession, and have a global impact on growth


Republicans left Washington for Christmas and said responsibility for avoiding the cliff rested with the Democratic-led Senate.


But in the Senate chamber on Thursday Mr Reid said the requirement to get at least 60 of 100 votes to move to a vote on any legislation almost certainly doomed any new plan unless Republicans gave it strong backing.


“It looks like that’s where we’re headed,” Mr Reid said of the fiscal cliff.


The Senate leader said the House of Representatives was “being operated with a dictatorship of the speaker”, accusing Mr Boehner of holding up a vote on a Senate-passed bill to avoid the fiscal cliff.


“John Boehner seems to care more about keeping his speakership than about keeping the nation on sound financial footing,” Mr Reid said. Mr Boehner faces an internal re-election contest among House Republicans on 3 January.


The term fiscal cliff refers to the combination of almost $ 600bn (£370bn) of tax rises and spending cuts due to come into force on 1 January if Congress does not pass new legislation.


Sweeping tax cuts passed during the presidency of George W Bush will expire, affecting people of all income levels.


‘Extraordinary accounting’


In addition, spending cuts mandated by a law passed to break a previous fiscal impasse in Congress will come into force.


The cuts are expected to affect federal government departments and the defence sector, as well as hitting unemployment insurance and veterans’ support.


On Wednesday, Treasury Secretary Timothy Geithner warned Congress the Treasury would have to enact a series of extraordinary accounting measures to free up about $ 200bn from the government’s official borrowing figure.


Those measures would stop the government from hitting its $ 16.4tn “debt ceiling” – the legal limit set by Congress on how much the US government can borrow – for about another two months beyond 31 December.


But Mr Geithner warned that without them, the government would run out of cash on Monday and “the United States would otherwise default on its legal obligations”.


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