They can’t or won’t repeal, replace, tune-up, or modify ObamaCare. They won’t cut taxes. They won’t maintain even the semblance of a coherent legislature.
But rest assured they will raise the debt ceiling. No idea what the guy in the story from Goldman (the one still working there and not in the administration) is fretting about. It’s a done deal.
In a letter to lawmakers Friday, U.S. Treasury Secretary Steven Mnuchin said the federal borrowing limit, or debt ceiling, needed to be raised by Sept. 29 or the government risked running out of money to pay its bills.
The Treasury Department has been employing cash-conservation measures since March, when borrowing hit the formal ceiling of nearly $20 trillion. Those measures are expected to run out in early to mid-October. When they do, the government won’t have money to pay interest on debt, write Social Security checks or make millions of other routine payments, unless it can tap credit markets for borrowing to raise additional cash. Missing payments could send financial markets in a tailspin.
It’s canon now; raise it and then raise it again. There’s no pretense anymore about fiscal responsibility. No more “this is the last time,” or “this one and then never again,” or “doing it now and then we’ll pare down the spending…” Blah, blah, blah. Up, up, up it goes.
The question is “how high?” And I have no idea. If they only through in another $Trillion or two, then they’ll be back again with this next year. Why not double it? Triple? Why not just leave it open-ended or infinite?
Four Winds / Newsday.