Potential default on US sovereign debt grows nearer

Today's Commentary
Summary: According to press accounts, the Senate could vote on a plan to end the government shutdown and avert a default on U.S. government debt as soon as tonight. Nonetheless, we are clearly in the 11th hour and must consider default a real possibility.
When I wrote last about the debt ceiling crisis in the U.S., I wrote of my concern that a US sovereign default would lead to a catastrophe of unknown proportions and that the U.S. was headed in this direction. Frankly, little has changed since then in terms of the basic tactical strategies to avert default and we have to believe a serious policy error is possible, one that ends in economic Armageddon. My understanding is that though the debt ceiling will be breached around Thursday, we are in a period in which for a few...


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