At the 11th hour, Senate leaders have reached a bipartisan deal to raise the debt ceiling, setting in train a race against the clock to pass the deal through the Republican-controlled House of Representatives and Democratic-controlled Senate in time for Barrack Obama to sign it before midnight on Thursday.
But it's a short-term fix that reopens government and raises the debt ceiling until early next year when the next round of political brinksmanship is likely to begin all over again, which would further undermine confidence in the US economic recovery and long-term viability of the dollar as the world's reserve currency - a prospect that has prompted business magnate Warren Buffett to call on both sides not to use the debt limit as a "political weapon of mass destruction."
You can follow the passage of the deal (and commentary) live here.
Image: The US Capitol
