So, as Steve predicted, a last-minute deal over the US debt ceiling has been achieved.
The good news is that we will avoid throwing one more straw onto the back of the poor old camel that is the world economy. The not-so-good news is that the camel is already burdened by several bales' worth of other straws, and the poor beast is not looking too good. So, for example, yesterday, to balance against the welcome news that US lawmakers had decided not to shoot themselves in the foot just yet, we also got a series of readings warning us that the world's manufacturing sector could be running out of steam.
Still, at least we can stop worrying about a potential US debt downgrade and the uncertainty that the loss of AAA status might entail, right? Well, maybe. It's pretty hard to interpret recent events as a strong sign that all is well with the management of what is still the world's largest and most important economy.
Photo by Flickr user The.Rohit.
