By Les Dunaway

Well, it happened. Just as the warnings foretold. When will there be some sign of adult behavior in Washington? During the debt cap discussions, the rating companies wrote to the President, the Senate and the House and pointed out that just raising the debt cap would not prevent a rating downgrade. Think about it! Would you see it as positive if your dead-beat neighbor bragged to you that he’d gotten his limit raised on his credit cards? The “deal” that was cut does NOTHING to address the issue of spending and so  would ADD around $10T to the debt.

For some good background, see The Morning Bell from 8/1. Once you understand the numbers, please try to help your liberal friends to understand. The concept is not complex – our nation cannot keep spending money we don’t have.

Sorry for the short post. I’ve been at my company convention all week. Those of you who get my monthly / quarterly Economic Update know about that. If anyone who’s not getting it would like to, please email me at les@lesdunaway.net