Debt Solution Requires Courage

Summary


OVER THE coming weeks, Washington will be consumed with the arcane issue of the nation's debt ceiling. Not with the practical matter of whether lawmakers should raise the nation's credit limit, but with the political advantage that can be gained in this game of trillion-dollar chicken.

A deadline focuses the attention, and the deadline for raising the $14.3 trillion debt ceiling either (a) has arrived or (b) will soon. Treasury Secretary Timothy Geithner said that the nation bumped the ceiling Monday but that he'd be able to borrow enough from federal employee retirement funds to keep the government working until Aug. 2. If Congress hasn't acted by then, the United States won't be able to pay all of its bills.

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Extract


Debt Solution Requires Courage

Nobody knows precisely what that might mean, though most expect the results would be a mess, including in the world's financial markets. Neither the bond ...

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