Debt ceiling drama will be ‘resolved, but not solved,’ says Jim Grant

CNBC/Squak Box/5-25-2023

“There’ll be a resolution as there was in 2011, but in 2011 we promised $2.2 trillion in savings over 10 years and the net result was an increase in cumulative deficits of $11.5 trillion, On form, this imminent resolution will entail a lot of out-year promises, which based upon history will be negated and forgotten.” – James Grant, Interest Rate Observer

USAGOLD note: He goes on to say that these borrowing levels pose a threat to the dollar as global investors worry that the US government could default on future debt payments.