Nouriel Roubini : ... yet another partisan struggle over
America’s debt ceiling could increase the risk of a government shutdown
if the Republican-controlled House of Representatives and President
Barack Obama and his Democratic allies cannot agree on a budget.
...So
far, investors have been complacent about the risks posed by the
looming budget fight. They believe that – as in the past – the fiscal
showdown will end with a midnight compromise that avoids both default
and a government shutdown. But investors seem to underestimate how
dysfunctional US national politics has become. With a majority of the
Republican Party on a jihad against government spending, fiscal
explosions this autumn cannot be ruled out. - in ProjectSyndicate
