Honoring the public debt…

It feels like only yesterday that we were last arguing about whether or not the government was going to (or should) raise or suspend the debt ceiling – the legislatively applied limit to the amount the US Government is allowed to borrow in order to keep on conducting business as usual. I’m the first to tell you that Uncle Sam’s hallways and offices are filled to the brim with wasteful spending… but trying to get after that waste by passing a law that says we can only borrow $X unless Congress passes another law to say we can spend $Y more isn’t a recipe to actual limit or reduce government spending. At best, the debt ceiling creates political theater. Now that it’s a thing we have, however, failure to raise the self-imposed limit and drive the federal government into default would result in all manner of catastrophic outcomes. 

I see today that we’re now in the period where the Treasury has begin exercising “extraordinary measures” that should be sufficient to keep us out of default for the time being. The congressional office responsible for making such projections says it’ll probably be October or November before we actually run out of wiggle room. Based on recent history, that will be about the time Congress gets around to doing something. 

Before we go into default and our bond rating collapses, though, we have to get through what’s supposed to be the federal budget season. Given the current state of our politics, I’m not in any way expecting there to be an actual approved operating budget when Fiscal Year 2022 kicks off on the October 1st. Who knows, maybe we’ll end up with a perfect storm of impending default and no functioning bureaucracy simultaneously. That feels like a recipe for good times. 

If anyone needs me, I’ll be over here restocking my supply of beans and spam in case we need to ride out a post-plague economic apocalypse. Given the kind of leadership we have in all quarters it feels like the only reasonable course of action. I mean I’m due for some extra time off… with eventual back pay, of course.

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