Looks like all the spin about the Tea people's big win is just that.
For the 2012 budget year a total of – wait for it – $21 billion in reductions is proposed, followed by $42 billion and $59 billion in 2013 and 2014. Can anyone guess when the next presidential election will be held?
So, nothing has changed, the situation remains the same and getting worse.
Ambrose Evans Pritchard has the continental view:
From the link:
In a nutshell, unless the ECB is willing to step in – I mean really step in, not piss in the wind – until such a time as the revamped EFSF bail-out is ratified by all parliaments and is ready to take the baton (say November), and unless the EFSF itself is quadrupled in size and given a €2 trillion mandate without all the German-imposed ifs and buts, then the game is up.
If the EU authorities refuse to do this, it is best for everybody that it is recognized immediately and that arrangements are made for the orderly break-up of monetary union… not next year, or next month, but next week.
Well, that sums it up.