Barack Obama continues to hesitate over a decision from which there may be no retreat and which could seal the fate of his presidency. Does he stand up to congressional Democrats, regain the esteem of the middle of the country and get re-elected in 2012? Or does he fight for progressive principles, further alienate the independent voters who switched to the Republican party in the midterm elections and make do with a single term?

You might think the compromise he just struck with Republicans to extend current tax rates for all Americans – rather than raising them for high-income households, as he previously advocated – settles the matter. It should have, but it hasn’t.

Certainly, congressional Democrats are having a nervous breakdown over the agreement. Mr Obama is being called a traitor and a liability. House Democrats are in revolt, threatening to block the deal and let everybody’s taxes go up next month – a last futile gesture, before the new Republican majority takes over and nullifies it. There is talk of challenging Obama in the 2012 primaries.