Friday, December 11, 2009
Despite some opposition that will, once gain, surely prove ineffective, the U.S. government's movable debt ceiling looks like it's about to be raised again (does it every get lowered?), this time by as much as $1.8 trillion according to this report at Politico
It makes sense for the party in power to get this dirty little business out of the way far in advance of next year's mid-term elections, lest the voting public ask why their leaders are borrowing and spending so much.
You'd think that our foreign creditors have already figured out that there's no way we'll ever be able to pay this back with money that is worth much. There have been many such indications before, but the weak demand for long-dated U.S. Treasuries seen this week may be another sign that buyers of U.S. debt are growing weary, cautious, or both.