Gary North on the Debt Ceiling

Sacred cows must be fed. Porkers must be fattened. If the government has to borrow, so what? Economists don't care. Few voters care. Politicians have not cared in the past, except in 1995, briefly.

The path of least resistance is to pass an increase in the debt ceiling.

The capital markets do not indicate any significant fear of a default. Things are calm.

The politicians in Washington are milking this for as many votes as they think they can get in a year. They are positioning themselves for the elections. They are assembling sound bytes.