As the country careens headlong into its second great debt ceiling talking point throwdown in as many years, it's worth a moment's pause to look back and reflect upon the stunning success which was last summer's debt ceiling fight…
The last-minute drama of August's debt-limit fight cost the federal government at least $1.3 billion in increased borrowing costs, according to a new study from the Government Accountability Office (GAO).
The government watchdog reported Monday that as markets watched the debt-limit fight, the spread between government debt and private securities narrowed, indicating Treasury debt was being viewed as a riskier investment as the ceiling approached.
And the ultimate cost of the fight could be higher, as the GAO's analysis did not account for the multiyear costs associated with Treasury bonds that will remain in the market beyond fiscal 2011.
What, you think this is a problem? This isn't a problem. There is a very easy, fiscally conservative solution to this monetary discrepancy that I'm certain the members of the congressional Tea Party caucus can get behind: Promise not to pay this either. Just go on television and make a bunch of loud sounds in front of flapping flags. And then refuse to cast a vote for anything that could be construed as repayment of that $1.3 billion.
It worked last time, didn't it?
Photo by Mark Wilson/Getty Images News/Getty Images
Tags: Debt, Economy, House of Representatives, Money, Tea Party