Salmon: Government will breach debt ceiling even if no deal is reached

A little food for thought from Felix Salmon on why the government will go over the debt ceiling regardless of what happens on The Hill. Samuel Beckett's famous phrase "You must go on, I can't go on, I'll go on" is a pretty good summation of what will face Treasury come August 3 if there's no deal on the debt limit. Reuters has a fantastic story this evening on the impossible quandary facing Treasury officials should the unthinkable come to pass; purely as a practical matter, it's far from clear that it's even possible to stop making the 3 million payments that Treasury makes automatically every day. Doing so involves a massive computer-reprogramming effort which I'm sure could not be implemented overnight - and for political reasons nobody is going to get started on such an effort until after all hope is lost for a deal in Congress. Realistically, then, the government is likely to breach the current debt ceiling no matter what Congress agrees. A failure to lift it would be a bit like...(Read Full Post)