Make-Believe Debt Limit Hysteria from the Political Establishment

A needed corrective to some of the “sky is falling” discussion of approaching the debt limit.

International Liberty

It appears that the government shutdown, which technically is a battle over annual appropriations legislation for so-called discretionary spending, is going to drag on for a while.

The Obama Administration has shown zero willingness to negotiate, even though Republicans have made a series of offers to resolve the conflict.

And the longer this fight lasts, the more likely that the shutdown battle will get wrapped up in a bigger fight over the debt limit.

The White House apparently thinks this is a good development because of the assumption that GOPers can be stampeded into a bad deal to keep the government from supposedly defaulting.

Indeed, the Administration already is fanning the flames of economic anxiety. Here’s some of what the Treasury Department recently wrote as part of this world-is-ending hysteria.

A default would be unprecedented and has the potential to be catastrophic: credit markets could freeze, the value of…

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