Government shutdowns are damaging, inconvenient and stupid but they are also manageable. We’ve had over a dozen in the last century. As a country we know how to handle them. On the other hand a default by failing to raise the debt limit is unknown territory. The implications could be very bad. Even getting close to the deadline last time cause a credit downgrading, an increase in borrowing cost, and a noticeable hit to the market.
|By: Jon Walker Wednesday September 25, 2013 9:03 am|
We now have an official debt limit deadline. Today, Treasury Secretary Jack Lew sent Congress a letter informing them there will not be enough cash on hand to pay all our bills starting October 17. That is the date by which Congress needs to raise the debt limit or risk causing significant financial damage. From [...]
|By: Jon Walker Tuesday September 24, 2013 8:18 am|
It is growing increasingly clear that Republicans are unlikely to actually cause a government shutdown in a misguided attempt to get President Obama to destroy the Affordable Care Act, so they have started to turn to the debt limit as the real fight. House Republicans plan to load a debt ceiling increase with every conservative wish they can imagine as part of their opening bid.
|By: Jon Walker Monday September 23, 2013 7:40 am|
If the Republicans aren’t willing to risk being blamed for a government shutdown there is no way they are going to risk being blamed for significant financial destruction.
|By: Jon Walker Thursday September 19, 2013 9:53 am|
The new Washington Post/ABC poll depressingly demonstrates that many Americans don’t understand the debt limit. It finds almost half the country doesn’t want to raise it. From the Washington Post: Overall, the public is split almost evenly over whether the debt ceiling should be raised, with 46 percent saying yes and 43 percent saying no. But [...]
|By: Jon Walker Monday September 16, 2013 9:11 am|
One of the most positive developments over the weekend is that President Obama strongly reaffirmed that he will not negotiate over the debt limit while on This Week. From Obama’s interview: And I’ve told him, and I’ve told the country, what I think we need to do. I’m happy to have a conversation with him [...]
|By: Jon Walker Tuesday August 27, 2013 8:41 am|
The Obama administration will not negotiate over the debt limit again according to Treasury Secretary Jacob Lew. From CNBC: The president is “not going to be negotiating over the debt limit,” Lew told CNBC. “Congress has already authorized funding, committed us to make expenditures. We’re now in a place where the only question is, will [...]
|By: Jon Walker Tuesday August 27, 2013 7:45 am|
The next debt limit fight could be coming sooner than expected. Treasury Secretary Jacob Lew wrote to Congressional leadership informing them the Federal government will likely reach its statutory debt limit by the middle of October, but it is difficult t to precisely calculate when that will happen. From Lew’s letter: Based on our latest [...]
|By: Jon Walker Tuesday July 23, 2013 12:11 pm|
John Boehner is at it again. During his press conference this morning, Boehner threatened to take the debt ceiling hostage to try to force President Obama to embrace spending cuts. From Huffington Post: “We’re not going to raise the debt ceiling without real cuts in spending. It’s as simple as that,” he said at a [...]
|By: Jon Walker Monday July 8, 2013 7:14 am|
Apparently, House Republicans are convinced they can hold the debt ceiling hostage again even though they proved they aren’t willing to shoot the hostage. From National Journal: With an anxious eye toward the coming debt-ceiling negotiations, House Republicans are drafting what members call a “menu” of mandatory spending cuts to offer the White House in [...]