The Federal Debt Limit increase is still in a state of uncertainty and maybe even chaos. The House Republicans have not yet rallied around the proposal of their Speaker. Votes on have been postponed. In the Senate, well, they are doing nothing but uttering banalities. The President has been publicly silent, watching from back the back row, probably best for the country he do so. He did not lead before, why think it is different now?
There are some unexplainable conditions regarding the current fiscal crisis. However, first of all, it is important to understand what the current impasse is all about. Unless raised the Federal Government will no longer be able to take on debt that exceeds the current $14.29 trillion limit or ceiling as it is also called. Raising the limit has nothing to do with spending or which programs get what money. Expenditures by the Government are controlled by an annual appropriation process or controlled by pre-authorized and automatic funding (“entitlements”).