US faces new financial shock

Many saw the  recent move by Congressional Republicans  to extend US borrowing authority as a sign of greater co-operation with the White House. But conservative lawmakers have recently made it clear that they were simply gearing up for another fight, and are prepared to take a hard line, even amid objections from military hawks, says The Financial Times  “I think the sequester is going to happen,” Paul Ryan, told NBC’s Meet the Press adding that, while he and other Republicans regret that defense will take the brunt, spending cuts are paramount. Read it all.