Saturday, March 19, 2011

Debt Ceiling: Danger ahead

With the passage of yet another temporary spending measure last week, lawmakers are increasing the likelihood of a federal financial meltdown. Just what we needed.

CNN reports:

    The latest funding bill will expire April 8. Between now and then Democrats and Republicans will have to find some compromise on funding levels for the rest of this fiscal year or risk a government shutdown.

    The Treasury Department, meanwhile, now estimates that the debt ceiling could be hit between April 15 and May 31. If it's not raised, Treasury will not be allowed to borrow and therefore will not be able to pay the country's bills in full without taking drastic measures to cut spending or raise taxes.

    Not insignificantly Congress will be out of session next week and the last two weeks in April.

    In the past, Congress has always ended up raising the cap, if sometimes at the last minute. And some policy experts think they will do so again, but there's no guarantee precedent will hold.

    How did we get to this ridiculous crossroads? Simple. Lawmakers failed to do their jobs.

More here

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