The dramatic failure of the U. S. Senate’s last-ditch Obamacare repeal effort leaves Republicans so far without a major legislative win since Donald Trump took office. No healthcare reform. No tax reform. No monetary reform. No budgetary reform.
The more things change in Washington… the more they stay the same.
Despite an unconventional outsider in the White House, it’s business as usual for entrenched incumbents of both parties. The next major order of business for the bipartisan establishment is to raise the debt ceiling above $20 trillion.
Since March, the Treasury Department has been relying on ‘extraordinary measures’ to pay the government’s bills without breaching the statutory debt limit.
By October, according to Treasury officials, the government could begin defaulting on debt if Congress doesn’t approve additional borrowing authority.
Treasury Secretary Steven Mnuchin wants Congress to pass a ‘clean’ debt limit increase. That would entail just signing off on more debt without putting any restraints whatsoever on government spending.
Fiscal conservatives hope to tie the debt ceiling hike to at least some budgetary reforms. But even relatively minor spending concessions will be difficult to obtain from the bipartisan establishment.
This post was published at GoldSilverWorlds on August 2, 2017.