Politics again attempting to link increases in the debt ceiling to “other” points in their party platform. Kissing or kicking the corporate cash (campaign) cow depends on the “R” or the “D” in front of a name.
Ah, but economic news is again pushing the debate farther into the future as the deficit shrinks with (still sluggishly) employment growth. U.S. Debt Ceiling: A Plan to Kick the Can? talks frankly about how “Better-than-expected fiscal numbers, and the prospect of a one-time transfer from the government sponsored enterprises (GSEs), have pushed back the date when the debt limit (to be reset to the level of indebtedness on May 19) is expected to bite starting in July/August until the fall. The deficit now is running at a 4.5 percent of GDP pace, well down from 10.1 percent in fiscal year 2010.”
Top that up with the new CBO depicted here and we see all the hollering is pretty much for naught. In essence big money has been trying to change programs and policies to what they want to see…based on what turns out to be a false alarm.
The questions yet to be answered are how corporate tax reform will play into the quid pro quo sure to occur as part of the committee and floor debate? And how the effects of sequester cuts will impact the growth of the GDP and change the now falling deficit?
Now for the really important stuff: I’ll be on a short break while we sail north from the Caribbean toward Massachusetts/Maine. The trip should take a couple weeks, maybe a stop in Bermuda. Time for some sailing and fun. For faithful readers and re-posters thanks and I’ll be back on the net in a couple weeks!