Monthly Archives: October 2013

Government Gets Back to Work. Watch Your Wallet.

“What do you call cheese that doesn’t belong to you?  Nacho cheese.”

         Was the deadline-snug ending to the D.C. debt dance a benefit for our country?  Consider this: embedded in the legislation just passed and imminently to be signed by GovShutDownObama is this sub-section: “Default Prevention Act of 2013.”  This particular provision, buried deep in the “Continuing Appropriations Act of 2014,” enables the President to waive any legislation in February that tries to block the next raising of the debt ceiling limit.  The upshot is what started out as an unsubtle Republican ploy to defund Obamacare has turned into a complete demolition of the power of Congress to restrain Presidential spending.  This will soon prove to be lethal for the U.S. dollar and interest rates. Dave Kranzler has written a piece about it:  http://seekingalpha.com/article/1753592-a-ticking-time-bomb-for-the-u-s-dollar-in-yesterdays-budget-debt-limit-agreement?source=google_news

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