The Debt Ceiling Is a Farce

On Sept. 8, in what has become a Washington ritual, Congress increased the debt limit, essentially authorizing the federal government to pay its bills—for 90 days. The debt limit, also known as the debt ceiling, must be increased again. On Dec. 11, Treasury Secretary Steven Mnuchin informed House Speaker Paul Ryan that Treasury is taking “extraordinary measures” to come up with the cash necessary to make good on the government’s commitments. Among other things, Treasury will suspend investments in Civil Service and Postal Service retirement funds. But these actions will provide enough cash only until Jan 31, 2018. Mnuchin urged Congress to act to protect the full faith and credit of the United States.