Monday, October 26, 2015
US Treasury Secretary Is Concerned About Congressional Blackmail
There is a limit on the borrowing authority of the US government. It is called a debt ceiling. The US Treasury cannot borrow funds that are needed to pay for its current operations when it comes up against the debt ceiling. It will hit that ceiling in 8 days. Congress has the authority to raise the debt ceiling but it uses that authority as a form of blackmail. It refuses to raise the debt ceiling unless the Administration agrees to policies which it believes to be harmful. This form of blackmail can have harmful effects. A government that cannot pay its bills may lose its AAA credit rating; a government that must agree to policies which may be harmful is not an effective government.