Elaine McCusker | Hill
While Congress has already checked off electing a Speaker of the House, Elaine McCusker shows two more tasks to complete before the end of 2023. First, to avoid a looming government shutdown, Congress needs to negotiate and pass a final fiscal 2024 appropriations package that adheres to the previously enacted Fiscal Responsibility Act caps and move on to fight other battles, such as the increasing deficit, another day. Second, Congress must pass an emergency supplemental bill that will carry through the next election. Doing so will be understandably difficult. However, Americans already know the distractions that will accompany another crazy election cycle next year and must prepare to let those debates dominate lawmakers’ time without causing self-inflicted national security damage. Read more here. >>
Derek Scissors | AEIdeas
Germany may pass Japan for third-largest annual gross domestic product this year, as Japan has lost economic ground to Germany due primarily to its terrible debt record. Derek Scissors notes that the US heading down Japan’s path would not be immediately disastrous; however, an end to dollar dominance would wreak havoc in America. Americans do not save much, so high federal borrowing relies on foreign participants. If the dollar is no longer prized, America cannot sell bonds as it does now. Dismissing rising US debt would effectively be embracing a future of domestic austerity and international disorder that would make Japan’s fall look quaint.
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