Please disable your Ad Blocker to better interact with this website.

Politics

Debt Ceiling Must Be Raised! Or Else?

Written by Joe Scudder

We’re seeing stories again about how it is imperative the Congress raise the debt ceiling.

Whenever raising the debt ceiling is discussed in the media, it is always to make Republicans raise it without getting anything significant in exchange. I have no idea if the dire warnings about failing to raise the debt ceiling are accurate or not. But I do know that, if we raise the debt ceiling, that will at most only delay the inevitable. Our credit rating will eventually sink because we are spending too much.

The Wall Street Journal reports, “Debt Ceiling ‘Brinksmanship’ Could Test U.S. Top-Notch Credit Rating.

Fitch Ratings said Wednesday that a failure to raise the U.S. debt limit in a “timely manner” would prompt a review of the country’s credit rating, which is currently at AAA — the highest possible.

The ability of lawmakers to meet two key fiscal deadlines next month will serve as a litmus test for “coherent fiscal policy making and cooperation,” according to the bond-rating firm.

“Brinkmanship over the debt limit could ultimately have rating consequences, as failure to raise it would jeopardize the Treasury’s ability to meet debt service and other obligations,” wrote Charles Seville, James McCormack and Mark Brown on Fitch’s sovereign rating group.

The Treasury Department has employed extraordinary measures to pay its bills since March, when the previous suspension of the debt limit expired and the new ceiling was set at nearly $20 trillion.

Read the entire Wall Street Journal story.

The views expressed in this opinion article are solely those of their author and are not necessarily either shared or endorsed by EagleRising.com


About the author

Joe Scudder

Joe Scudder is the "nom de plume" (or "nom de guerre") of a fifty-ish-year-old writer and stroke survivor. He lives in St Louis with his wife and still-at-home children. He has been a freelance writer and occasional political activist since the early nineties. He describes his politics as Tolkienesque.

Don't Miss Out!!

Get your daily dose of Eagle Rising by entering your email address below.

STAY IN THE LOOP
Don't miss a thing. Sign up for our email newsletter to become an insider.

Send this to a friend