Oct. 10 (Bloomberg) — U.S. Treasury Secretary Jacob J. Lew warned Congress that “uncertainty” over the debt limit is starting to stress financial markets and trying to time an increase to the last minute “could be very dangerous.” Lew was speaking in testimony prepared for a hearing before the Senate Finance Committee today.
But not the growth rate in debt or entitlements? Obamacare and other entitlements will lead to even more explosive debt growth in the US.
The US and much of the world has already been experiencing explosive debt in both the public and private sectors. See this link for a chart showing the growth over time.
1 month repos and reverses are jumping on the possibility of default.
Similarly, 1 month Ted spreads have spiked as well.
All this makes the initial jobless claims spike look trivial. The 2nd worst print during 2013.
Speaker Boehner is seeking a “kick the can down the road” strategy that Democrats should like. That is, ignore that appalling growth in entitlements and debt and keep hoping nobody notices.
