Sunday, July 31, 2011

A Debt Ceiling Deal Struck

The leaders of Congress and the President and Vice President have agreed on a deal to raise the debt ceiling, cut government spending, with a number of other provisos. This Associated Press article on Yahoo News spells it out with only a modest amount of spin.

What remains is for the two houses of Congress to pass the deal. The article suggests passage should be easy in the Senate, more difficult in the House. That sounds about right. A fair number of freshmen Republicans may vote no, although they shouldn't. While the president has approved the deal, many Democrat Representatives may also vote no.

Barring a last-minute snafu, the federal government should be able to keep borrowing and paying its bills. There will be journalistic post-mortems on this stand-off for weeks to come. Both sides will claim a victory, at least one side will be lying.