The American debt clock does not stop even when the maximum debt ceiling is reached in early August. The tick tock of interest, obligations, and promises does continue in lieu of no agreement in the raising of the debt ceiling. The prolonged negotiations by Congress or any short term default does pose a potential disaster for the American economy as the inability of the political leadership to proactively manage the fiscal house of the United States is a domino if it falls would trigger a series of events to amputate the entire economic, financial, and dominance of America overnight. Why would any leadership take action to risk perception of possible default with the potential costs of default being so high? The political leadership had 18 months to avoid this crisis and chose ideology over reality to handle crisis until now, the precedent, disconnect, and current behavior are indicators that default is easier than walking the walk of change, and last minute resolution of debt ceiling … [Read more...]
