What is more, America's endorsement of the Vance-Owen plan would depart from long-standing U.S. policy to oppose the changing of borders by the use of force -- the practical effect of its parcelling out ethnic fiefdoms.

CENTERFORSECURITYPOLICY: Center For Security Policy

If the markets start to believe a country's deficit is out of control they will force its bond yields sharply higher, in effect tightening monetary policy.

ECONOMIST: The dilemmas facing policymakers