The Next “Crisis”: The Debt Ceiling

After the past several crises, some real and some manufactured, we are now on our way to the next one: the debt ceiling. To pay for the spending Congress has authorized, the Treasury needs to borrow more money. But it can’t borrow more money because Congress has said there is a ceiling to how much it can borrow, and the Treasury has hit that ceiling. So, Congress has essentially forbidden the Treasury to borrow enough money to pay for the things that Congress has said the Treasury has to pay for. If this makes no sense to you, well, I agree. But this is where we are, again. We have seen this movie several times before.

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