The breaking news is that the compromise debt ceiling bill has passed the house and may pass the senate, which takes it up tomorrow.
It reminds me too much of the “financial reform” bill that passed some months ago but did not address any of the real problems in the banking industry.
In effect Congress voted itself a new credit card limit. Now it will vote an increase in income (taxes) so it can spend up to the new limit. It will direct the printing of more money to faciltate its plans. I can’t remember a time when future cuts have arrived, but I know taxes are always raised immediately.
We need to make some hard choices and stop the demagoguery. Isn’t a 1.3 pct growth rate evidence enough we are going in the wrong direction?
It is definitely a “We Have Met The Enemy and He Is Us” kind of moment. After all, be honest now, if you were badly in debt and someone offered you a brand spanking new credit card with “low” interest and some bells and whistles wouldn’t you be tempted to try and use it to finesse your way out of trouble? I know some would bite the bullet, many others wouldn’t. Congress is definitely trying to “finesse.”