Financial Post | Business

OTTAWA — Failure to prevent the U.S. fiscal cliff of automatic tax hikes and spending cuts would affect Canadian growth and create uncertainty, Canadian Finance Minister Jim Flaherty said on Friday, adding that he had just spoken to U.S. Treasury Secretary Tim Geithner about the issue.

[np_storybar title=”‘Time to contemplate plunge off the cliff’: Odds rise for continued fiscal fight in 2013″ link=””]With talks between President Barack Obama and House of Representatives Speaker John Boehner at an apparent standstill, analysts said on Friday that it was increasingly likely that Washington won’t be able to reach a deal before Jan. 1.

“It’s time to contemplate a plunge off the cliff,” Potomac Research Group analyst Greg Valliere wrote in a research note.

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“The reality is there’s more work to be done. We are in the middle of December. I think there’s a desire by the Americans to get to…

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