Last week was dominated by news from the US Federal Reserve and their surprise decision to hold fire on a reduction on the stimulus that is currently being injected into the US economy. This unexpected decision on 'tapering' sent most of the economics world scrabbling to reassess their projections of just when the economy will be strong enough for the Fed to change its course.
Another mass shooting, more panic on the streets of America. The images we witnessed are all too familiar. There were heroic first responders, crouching and crawling with their rifles. We saw unfurling police tape and flashing blue lights and terror stricken civilians fleeing the since. And now in the aftermath, the discussions into the gunman's motives are being exhaustively debated.
The sequester was a legislative tool designed to scare the Congress into doing its job. It clearly seems to have failed to produce this result. If it goes into effect, the sequester means across the board cuts in every agency of federal government with no ability to control what is cut and what is not.
US Senators have passed a bill that will raise the debt ceiling and stop the country defaulting on its loans, but cut government spending by $2.1 tril...