, Columnist
Do Away With a Debt Ceiling That Serves No Purpose
It might not lead to a default, but it still does harm.
Danger lurks.
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The US is headed for yet another standoff over the federal debt limit. House Republicans say they won’t raise the arbitrary cap on total borrowing unless President Joe Biden agrees to budget cuts. The Biden administration says it won’t negotiate, because Congress has already made the relevant spending decisions and the government must always honor its obligations.
The impending crisis probably won’t prevent the US from paying holders of its Treasury securities. But that’s no reason for complacency: Legislators’ brinksmanship can still do a lot of damage.