Shutdown Averted, Debt Ceiling Looming

The Congress worked quickly this week to pass a Continuing Resolution (CR) that averted a government shutdown. The new CR runs until February 18 and pushes the next government shutdown crisis into the first quarter of 2022.

The CR passed the House on a strictly partisan vote with only one Republican Member of the House supporting the bill. In the Senate it was a different story, and more promising outcome with the final tally being 69 Yes and 28 No, this means that 19 Republicans voted to keep the government open and avoid a crisis.

The next DC crisis is the need to increase the debt ceiling. As I have written it is impossible to measure the US Government cash flow but Treasury Secretary Yellen has told Congress she expects the debt ceiling to be hit around December 15. In October Republican Leader McConnell worked with Schumer and the White House to increase the ceiling by $450B but he got clobbered by some conservative Republicans including former President Trump.

McConnell is a smart politician and his goal is for Republicans to take control of the Senate after the 2022 elections, and he is concerned that if the obstruction by Republicans takes the blame for the inevitable crisis that would occur by a US Government debt crisis it could hurt Republican candidates. McConnell also k...
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