The Federal Debt Limit and the Federal Reserve

By John Dennis, The John Dennis Report

My guess is that Obama, Boehner et al will cut a deal and raise the federal debt ceiling. The amount will likely continue the status quo through the beginning of 2013, after the presidential election. My bigger guess is that the deal will have no substance, with spending cuts at the margins, phony cuts at that, and new revenues/taxes in one form or another.

The Washington gang may fool the markets for a short time, although I wouldn’t even wager that. However, markets don’t suffer fools forever, and eventually, as Ron Paul says, the U.S. will go bankrupt.

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