Commentary
Well, here we go again: For the next few months we’ll be witnessing what I call “the debt ceiling dance”—the same old back-and-forth rhetorical sallies (GOP: “We need to cut some spending”; Democrats: “Raise the limit unconditionally”).
The ritual of the debt-ceiling dance is well known because we’ve been through it many times before. There may be some modest compromises—such as flimsy, soon-to-be-broken promises to limit spending increases. Ultimately, though, Congress will authorize the federal debt to be increased from its current statutory limit of $31.4 trillion. Uncle Sam has to keep paying his bills or the entire financial system will seize up, inflicting incalculable economic damage….