Did you hear the one about Zimbabwe and the United States? Zimbabwe called, it wants its trillion-dollar currency ideas back. The fiscal cliff soap opera may be on break for a couple months, but there are plenty of other drama shows set to play out in Congress over the coming weeks.
The U.S. started the new year by hitting its record debt ceiling of $16.394 trillion. In the final days of 2012, Treasury Secretary Geithner sent a letter to Congress warning of the inevitable event and said the Treasury Department will take “extraordinary measures” to provide approximately $200 billion in headroom. However, the measures will only give the bobble-heads in Washington about two months of wiggle room.
The desire to raise the debt ceiling once again is shaping up to become another political rhetoric battle between Republicans and Democrats. President Obama recently said, “While I will negotiate over many things, I will not have another debate with this Congress over whether or not they should pay the bills they have already racked up. We can not not pay bills that we have already incurred.” However, last year’s debt ceiling sideshow proves that Congress can still do plenty of finger-pointing before deciding to raise the so-called limit. Contrary to previous statements from Geithner, it also proved that America’s credit rating was not immune to downgrades.
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