The deadline to raise the federal debt ceiling came and went without anything happening. Some say that this is proof that it was never a real issue to start with. Is it possible that they are right?
Not a chance. We got an extension until August by raiding the pension fund.
You may or may not be willing to take the risk, as some are, but it is unreasonable to think government default has anything other than horrible consequences – starting with a complete government shutdown, likely involving higher costs to service the massive debt we have, and probably threatening the fragile recovery we have in the economy.
Yet there are many who want a long-term budget balancing plan before they agree to increasing the debt limit. It may surprise you to know that just such a plan has already been crafted by a bi-partisan commission, and it is a damned good one.
Barataria - The work of Erik Hare 