Key Takeaways

  • Congress passed debt ceiling increase, new “drop dead” date on default hard to estimate.
  • Biden agenda continues to be stymied by disagreements between Democrats: progressives vs moderates. Pelosi needs to work out a deal with Senate as she doesn’t want swing district members to vote on programs that die in the Senate.
  • Can Speaker deliver on new October 31 target date for $1T bipartisan infrastructure bill?
  • New government shutdown date of December 3 looms as Congress seeks to pass spending bills.

Debt Ceiling Updates

Last week the House returned for a one day session to pass the $480B increase in the debt ceiling.  The Treasury Department has  estimated that the new ceiling should carry the government until early December. However, those who follow government cash flows aren’t sure what the exact day may be before the US faces another default crisis.  Calculating the cash flows of the US Government has always been difficult but the pandemic has added new levels of uncertainty, everything from the delayed supply chain to changing consumer trends have been impacted.  There are Washington firms that make predictions on government cash flows and I have seen dates on when the government may run out of money that range from De...
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