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Comment: Debt expansion is really the issue

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Michael Nystrom's picture

Debt expansion is really the issue

Because if there is not expansion, there is contraction, and that just won't do!

O M G there is going to be a panic.

No debt ceiling increase may provide the tipping point. I think this is what scares the politicians, who apparently believe they can delay the inevitable at least until they are gone from office, in which case their successors will be stuck holding the bag.

Yes, I think this is what it comes down to. This particular set of politicians, is the one who got the can kicked to them, right at the end of the road. And the end of this road is a vacuous chasm. Truly, the unknown.

We stand at the precipice of the Unknown, and the amazing thing is - no one really cares. They think this is politics as usual.

I'm not sure it is. I don't see the endgame.

But as you point out - the day will inevitably come when they cannot borrow more money. The game will end.

I don't know. This might be a Breakpoint. A phase change.

It is definitely a crisis point. Can they resolve it without structural damage of some kind? I highly doubt it.