America's invitation to the bond vigilantes

It's got a grandiose name, but you'd be forgiven for not having heard of the Congressional Super Deficit Committee.

Made up of six Democrats and six Republicans, it was formed in August when Congress agreed to raise America's $14.3 trillion (£9 trillion) debt ceiling. As part of that deal, Congress signed up to $1trillion of spending cuts over the next decade and established the committee to make another $1.2 trillion dent in US debt over the same period. The committee's dozen members have until next Wednesday to agree on a mix of spending cuts and tax increases to make that reduction happen.

That the deadline falls on the eve of Thanksgiving - America's biggest national holiday – could, you might hope, prove reason enough to reach a deal. What politician would want to be digesting failure along with their turkey? Fortunately the committee's 12 members have bigger motivations than a good lunch. Should they fail, automatic spending cuts of $1.2 trillion will be triggered from the start of 2013.

There's no disputing the committee's industriousness. Bunkered down in Congress's basement, it's heard from grandees who have balanced America's budget in the past and those who claim their plans can balance it again. All this work has, so far, produced two proposals.

Read the rest here.