I am really torn about this debt ceiling debate. On one hand, I see a noisy Republican majority in the House who doesn’t care if the government shuts down, a reckless attitude that ignores the impact that this will have of millions of people’s lives. On the other hand, the Fed’s desire to continue raising the debt ceiling has been somewhat callous and ignorant. The sub-text here is that there are two separate debates: one political, one economic. The political debate has been a theater of incompetence; the Daily Show on Monday, July 25th, characterized it with a YouTube video of a skunk with its head stuck in a peanut butter jar. The economic debate has not been very visible at all — carried on in the pages of the Wall Street Journal and the Financial Times.

Continue reading “The debt ceiling debate that we don’t hear about”