Budget deal doesn’t prevent debt limit-induced shutdown in 2014

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raise-my-debt-ceilingBut Republicans’ fear of the In-the-tank-for-the-Democrat-media’s power to convince a majority of Americans that they and only they are to blame, coupled with Rep. Paul Ryan’s virtual guarantee that there won’t be a government shutdown, probably does.

We don’t favor another government shutdown and, quite frankly, don’t particularly favor renewal of a century-old debt limit ceiling law that has had no effect on preventing the explosion of the national debt during its applicability. The only way the continuing increase in the nation’s debt could be halted is for a majority of the American people to insist that their representatives in Congress balance the budget. But given that nearly half of all U.S. citizens receive some entitlement or other benefit from Uncle Sam and don’t personally feel the slow decline in their standard of living caused by annual increases in government-red-ink, we don’t foresee a clamor for the drastic spending cuts necessary to halt borrowing from our children and grandchildren.

We suspect that the “Boehner Rule”, which its eponymous author and Speaker of the House imposed two years ago that insisted upon new spending cuts equal to every debt ceiling increase, is dead. Yes, House budget chairman Paul Ryan (R-WI) says that the GOP will insist that some concession be made by President Barack Obama and his Democratic Party Senate in exchange for raising the debt ceiling, we doubt Republicans will win the dishonest game of “default” chicken that the latter will surely insist upon.

Treasury Secretary Jack Lew says that the debt limit will be reached sometime in late February or early March, 2014.

Peter Cook discussed this circumstance earlier today on Bloomberg Television:

The fact is that no progress will be made on the debt before 2017 at the earliest, when Republicans could possibly control the executive branch and both houses of the legislative branch; unless the dollar collapses after too much Quantitative Easing (printing money), thus precipitating the almost inevitable financial crisis sooner.

Merry Christmas and Happy New Year…

G. Sand Lapper

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