The Rand has slumped because of that, after holding out for a deal that would have supported global economic recovery.

The house majority Democrats approved a $3.5 trillion package that was vetoed by the President and a Republican controlled Senate. 

Since then the Republicans have fought for a different deal, valued closer to $1 trillion, but a stalemate has ensued. 

The leader of the house, Nancy Pelosi, has offered to compromise, but the US treasury secretary and chief of staff refused her deal. 

This is all playing out while unemployment sits at 10.2%, unemployment benefits are expiring and an avalanche of evictions is anticipated. The nation is in crisis. 

The president threatened to overrule the stalemate with an executive order, but that is unlikely to help as Congress controls all spending. 

Alternatively he is threatening to defer payroll taxes, student loan interest charges and unemployment benefits until year end, none of which would help the unemployed.  

Suffice to say, the lack of resolution does not bode well for a nation in the throws of a pandemic.   

The two parties are separated in their respective positions by about $1 trillion, and seem willing to endure the political fallout of holding out for an acceptable outcome. 

But it seems that it is the Republicans who are the most reluctant to spend. Maybe they have a point as the US is heavily indebted, but to not help a struggling nation would be a social disaster. 

The US Congress has been down this road many times before and stalemates are just part of the political bluster, so its likely they will return to the table and find a compromise in due course. 

Meanwhile the US languishes over 164,000 Covid-19 deaths, 5 million infections and a grave impact on its health services. 

Leadership in the world's leading economy is lacking but the election season is adding to the political gamesmanship. 

Let's hope reason prevails. 

(c) Peter Missing @ me2u2all.blogspot.com
 

(c) Peter Missing @ me2u2all.blogspot.com