POTENTIAL MELTDOWN (9)

Congress agreed a deal to raise the debt ceiling last night in the nick of time, which allowed the American government to reopen today after shutting down on 1 October.

The problem with the deal is that it is not really a deal at all. The federal government can continue until 15 January, while the Treasury's borrowing authority is extended until 7 February. In the meantime, Congress is supposed to negotiate a more lasting solution.

This is ridiculous. The political system of the world's biggest and most powerful economy cannot even agree a budget (i.e. plan) for the financial year which has already started. The issues that divided the parties yesterday are the same as those which divide them today. To use an American expression, everyone is merely kicking the can down the road.

American has serious long-term fiscal issues. Just as in Europe, the fundamental problem is unaffordable public commitments on healthcare and pensions. What is needed is serious political leadership. There ain't any, and that is worrying.

Walter Blotscher