No More Parties, No More Parties.

Have you heard the one about the Congressional Cafeteria Oversight Committee on Menus? It had to be disbanded because the Senators and Representatives were all loosing too much weight. How come? Because the oversight committee couldn't come to any agreement on a menu. Okay, so it's not a very funny joke, but then neither is congress' inability to come to an agreement on some of the most important issues of our times. Like when is the actual, drop dead, last possible minute for a decision on the debt ceiling. Let's remember that the debt ceiling has to be raised so the government can spend the money that congress has already spent. Congress has to give permission to spend the money that congress has already voted it must spend. So if you sign an agreement to repay a loan you take out to buy a car, can you then refuse to write the check and mail it for the first payment? Well, actually, no. Not if you want to keep the car or ever be able to borrow any money again in the foreseeable future. Well, alright. What would happen if we don't raise to debt ceiling? For starters, we'd have to begin to pay higher interest rates on the money we borrow from places like China. Why? Because we'd be considered a higher risk. And a small increase in the interest rate would mean billions more in interest payments. Well, if that's the case, then why doesn't congress go ahead and vote to raise the ceiling? Go back and read the first four sentences. The Republicans demand no tax increases, not even plugging loop holes. Democrats demand at least plugging some loop holes. So the question is, what's the drop dead last minute for a decision. The thing is, economists don't like to play chicken. And you wonder why I think we should outlaw political parties?