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...
As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.
Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.