The Debt Ceiling Showdown in an Uncertain Recovery

The federal government borrows about 40 cents of every dollar it spends. But Democrats think that Congress has no choice but to raise the debt ceiling; to not raise the debt ceiling would usher in the End of the World, Armageddon. Which means the feds must continue to spend trillions of borrowed dollars each year -- until the "experts" say to stop. Whether the Democrats are correct that we must raise the debt ceiling by the August 2 deadline is debatable. What's not debatable is that Armageddon will visit America if we don't stop running these monster deficits soon. But Democrats don't want to cut anything out of the budget; not entitlements for rich folks, not ethanol subsidies, not cowboy poetry festivals, not anything -- we need it all. Democrats believe that the way to balance the budget is with more revenue and the way to get more revenue is to get the economy going. But business is spooked. What's spooked American business is uncertainty. The raft of new regulations being...(Read Full Post)