Europe’s debt crisis may be going global and worrying world markets, but what about the woes of number one economy America?
The world may have to wait for any positive movement on debt from Washington until at least 2013 following the failure of the supposedly bipartisan supercommittee to reach a deal on Monday.
“Although Congress has not come to an agreement yet, nothing prevents them from coming up with an agreement in the days ahead. I will veto any effort to get rid of those automatic spending cuts, domestic and defense spending. There will be no easy off ramps on this one,” said President Obama, insisting there would be no opt-outs from across-the-board automatic cuts that are triggered in 2013 if no deal is reached.
The danger is if America will not provide the lead everyone is in thrall to the ebbs and flows of a spooked market, and it is highly unlikely that in the 2012 election year there will be any breakthrough.
The nightmare is that the intervening period could see such American economic disarray that Washington may be unable to provide a lead once the election dust settles.