Sunday, July 7, 2013

The Return of the Debt Ceiling Dance...

Running slightly below the radar of various Supreme Court decisions, hackers and "scandals," we should all remember the debt ceiling showdown looming for the second half (and probably the last quarter) of 2013.

Traditionally, Congress has always approved raising the debt ceiling so the United States government can pay its bills. Amendment 14, section 4 of the Constitution states that "...the validity of the public debt...shall not be questioned." In other words, we promise to pay our bills.

As most of you know, the President can not raise the debt ceiling on his own, the authority to do so lies squarely upon Congress' shoulders to increase that number. Only when President Obama requested an increase did Congress deny his request and force him into negotiations with the possibility of default. This tactic also caused the credit rating of the United States to drop. Not because we've borrowed too much money, but because we find ourselves in a place of acute government dysfunction. If nothing sensible can be agreed to and politics rules the day, it hurts our credit-worthiness around the world.

National Journal has a terrific preview on this. The GOP is already assembling its list of demands of the White House, and since President Obama has already gone on record, though some think he's bluffing, saying he will not negotiate the debt ceiling. Period.

Read the article here...


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