Will America go into default?
The debt ceiling, the debt ceiling, everybody says the debt ceiling. Apparently Obama has to raise it if Uncle Sam is to pay his bills. The big issue is the question of how to get more money so America doesn’t have to keep borrowing cash from foreigners: cut spending and cut taxes? Or keep spending and raise taxes? The answer depends on which baseball team you support. I mean, political party.
Well anyway for a long time I dismissed all this debt ceiling talk as the usual shenanigans from the plutocrats in Congress. But then I read that if an agreement could not be reached between the Blue Team and the Red Team then America would default on its loans. Pensions would go unpaid! Babies would be forced to shovel coal! And so on! Apparently Moody’s – an organization possibly related to the burger joint of the same name at the end of my street – is threatening to downgrade America’s “Triple A rating” (which I believe describes the quality of its hotels). [Read more →]