That debt ceiling feeling…again


Yesterday US Secretary Lew warned the US will run out of borrowing authority by Friday (at $17.3 trillion) and will run out of ‘extraordinary measures’ (accounting tricks) by the end of the month leaving nowhere to go.  Already Republicans are considering ‘conditions’ for a raising of the limit when Obama’s Democrats have been adamant in their stand they will not entertain any.  To add this strain to a system already dealing with the effects of QE tapering and a faltering “recovery” is a dangerous situation.  You may recall it was the debt ceiling debacle of 2011 that saw the gold price shoot up to $1900/oz.  On a lighter note….