Well, they shook hands, slapped backs and now what? The debt ceiling has been raised from an existing US$14.1TN to what amount I do not know. The debt has been healed with more debt. Or is it?
Well, it is like this. You have a credit card. You have already maxed out on the credit card and the bank is following up on the payments and if you do not pay your credit rating will go for a toss. Here is a solution. Take out another credit card and do ‘balance transfer’ to the new card. Problems solved!
No, I believe it is just the postponement of the problems till such time that it is impossible to postpone your payments. Mr. Obama though an innocent in the whole muddle has been pressing for raising the debt limit. And now that the deal has been finalized he seems to be ecstatic. He won’t be in much trouble till the next Presidential elections. The real troubles are for the next President.
Till then Happy Borrowing!