I found the silver lining in the WSJ interview with Stanley Druckenmiller about the dangers of raising the debt limit without restraining entitlements. It’s the last line in this graf:
It’s hard to think of someone with more expertise in the currency and government-debt markets, but Mr. Druckenmiller’s view on the debt limit bumps up against virtually the entire Wall Street-Washington financial establishment. A recent note on behalf of giant banks on the Treasury Borrowing Advisory Committee warned of a “severe and long-lasting impact” if the debt limit is not raised immediately. The letter compared the resulting chaos to the failure of Fannie Mae and Freddie Mac and warned of a run on money-market funds. This week more than 60 trade associations, representing virtually all of American big business, forecast “a massive spike in borrowing costs.”
Sure, that spike will kill off whatever is left of the “recovery.” But it ought to choke off inflation, too.
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