Relax...

Ok... not very local but I haven't posted much lately and I think I have a lucid thought to share. It regards the debt-ceiling debate. My advice: Don't worry!

Rating agencies evaluate debtors' ability to repay their obligations. No less than the president himself is now desperately concerned about how agencies view our federal government's ability to meet it's obligations. The debate seems to center around whether or not the government will allow itself to borrow more money by raising the debt ceiling. Party identification appears to be a pretty solid way to determine if you are for or against this move.

But raising the debt ceiling doesn't really matter!

Here's what the rating agencies are asking: Can the government repay what it borrows? Mechanically, yes, increasing the ceiling will enable it to roll over debt, pay debt service, etc. Realistically, however, continuing to borrow money for current operations will ultimately result in our inability to pay the bills! In fact keeping the ceiling in place might just suggest to the rating agencies that Washington is getting discipline.

It isn't, of course, but it all makes great political theater. So sit back and enjoy the great debt ceiling debate because in the final analysis, whether or how the debt ceiling gets increased isn't going to make a bit of difference compared to the impact of Congress getting a little fiscal discipline.

No need to worry?