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Tripping the fiscal fantastic

Business Times - 26 Jul 2011


Tripping the fiscal fantastic

Liberal Democratic pro-spenders and conservative Republican crusaders are both living in parallel fantasy lands

By LEON HADAR
WASHINGTON CORRESPONDENT

ACCORDING to the latest reports circulating in Washington, after the collapse of their talks last Friday, US President Barack Obama and the Republican Speaker of the House of Representatives have returned to negotiating a deal aimed at reducing the federal government deficit, which would allow for the raising of the debt ceiling before Aug 2.

The good news for the American taxpayers (Main Street) and the financial markets (Wall Street) is not only that the US Treasury is not going to run out of cash to pay its debt and run the government, but the leaders of the two major political parties may be moving in the direction of getting - or at least, trying to get - the US fiscal house in order.

If the reports are correct - a big 'if' - it is not inconceivable that the White House a…