Debt ceiling increases

Congress is likely to shut down government by the end of October.  A lot of waste and confusion.  But in the end, a deal will be cut between Republicans and Democrats.  We shall survive a shutdown.

Much more ominous is raising the debt ceiling limit.  This is  coming due early November.  There is no second chance on this one. I am scared by the complacency.  Failure to raise the debt ceiling will have massive repercussions, as the US will be in sovereign default, not because we can’t pay our bills, but because Congress refuses to pass a clean bill to raise the debt ceiling.

Raising the debt ceiling is not like raising the limit on your credit card, so you can go crazy during the holiday sales at Brandsmart.  It is simply authorizing the executive branch to pay the bills and interest on the debt,  based on spending that was approved by Congress.

Sovereign default is not joke.  It is scary and the blame goes to the neoconservative  Republicans on this issue.

Stay tuned,

David Lord

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s