At the stroke of midnight, March 16, 2015, the debt ceiling was again breached. The Treasury Department has begun "extraordinary measures" to forestall the certain default. Jack Lew must rob Peter to pay Paul.
Unlike our counterparts in Southern Europe, the United States is blessed to have a fairly steady economy these days. So why are we flirting with a historic default on U.S. government bonds that will harm the U.S. credit and credibility for decades to come?
The Republican tea party caucus say they wish to negotiate. They propose to defund the Affordable Care Act as their price. But the democratic process has spoken. The Affordable Care Act is the law of the land.
With the debt ceiling approaching and the possibility of a global financial collapse, I think it's time that we talk about the bright side of things. For instance, what will we gay folk do with our useless cash? There are endless possibilities.
The extremist faction is the Republican party (not whatever John Boehner or John McCain are supposed to stand for); the extremist faction is the ruling class's preferred direction for American politics in the near future, as unimaginable as it might seem today.
Rather than declare victory, Washington should waste no time in redoubling efforts to remove the multiple policy uncertainties and structural impediments that stand in the way of restoring America on the path of high growth and plentiful job creation.
The existence of a debt ceiling questions the validity of our Republic's debts; it presupposes that Congress will continue to overdraft. A debt ceiling is unconstitutional and its effect a legal nullity.