Looking at the calmness with which the markets have continued to react thus far, the expected outcome is still overwhelmingly that a deal will be done which opens government and reassures investors that the US is good for its debts. I agree with that, the stakes are just too high for any other outcome; it is the possible legacy of any compromise that concerns me.

Should the Republicans be seen to force changes in existing legislation; amending a law that has been enacted by a democratically elected government after full debate, then democracy will be poorer for it, and this President will stand accused of creating a modern day precedent for future problems, should a similar situation occur.

If the Republicans capitulate, perhaps a bigger future problem arises. The combination of sometimes excessive public spending and subsequent debt are worldwide issues that need to be confronted – not least in the US, and a humbling of the Republicans and a demonization of the Tea party might not serve in America`s best medium term interest. Obamacare for example, is well intentioned, few would disagree with that, but just because it may be good and well intended does not make it exempt
from adding significantly to an extensive spending program embarked upon by this administration. Tax and spend did not work in the UK, and any resurrection of that in policy terms is political suicide here.

The latest news from the US political battlefront is encouraging. The President now seems to be looking to find a compromise that saves some face in the Republican party – and that doesn`t mean just kicking the can down the road for six weeks! The end to this shabby process needs to happen this week; but the devil as always, will be in the detail, and this time possibly in the legacy of the compromise.
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