Cutting it close as usual, on the day before the government would run out of money, Congress agreed to raise the debt ceiling and end the 16-day partial government shutdown. Basically, both sides dropped their demands and kicked the can down the road. The government will be funded until January 15, and the debt limit will rise until February 7. In the meantime, a commission will be appointed to try to resolve the controversies. [Read more…]
It looked like Congress was close to an agreement on funding the government and avoiding default on Thursday, but negotiations fell apart yesterday. And as Republicans abandoned their insistence on defunding Obamacare, Democrats made demands of their own, insisting that Republicans agree to end the sequester, the across-the-board cuts from last time we were about to go over the fiscal cliff that have actually worked to curb government spending. [Read more…]
I remember the government shutdown of 1995 and the huge uproar it caused among the general public. I don’t notice much of that happening today. The shutdown is not much of a shutdown, with over 80% of the government continuing as usual and the non-esssential offices, while closed, are, well, not essential.
The much bigger issue comes in 10 days when the government reaches the debt ceiling and will have to default on what it owes if Congress doesn’t approve the borrowing of more money. How do you think that will turn out? How should it turn out? After the jump, China and Japan are threatening not to bankroll us anymore if we default. [Read more…]