Debt ceiling

Apparently, the term “brinkmanship” came widely into use during the Cold War, when both sides sought to push their opponent to the brink of outright war in order to convince them to back down.

The White House and congressional leaders reached a two-year budget deal overnight that would lift mandatory sequestration cuts on both defense and domestic spending and raise the federal debt ceil

The U.S. government will hit a legal debt limit and be unable to borrow more money no later than Nov. 3, Treasury Secretary Jack Lew said on Thursday.
Senators will vote on the debt limit measure at about 1:45 p.m. Washington time, said Majority Leader Harry Reid, a Nevada Democrat.
Debt ceiling extension runs out this week. GOP is noncommittal on whether they will demand concessions.

Dan Collins explains how looming budget and debt ceiling deadlines allow traders to react to good news without fear of imminent taper.

If Congress decides to play chicken with the debt ceiling again it could cause lasting damage on the U.S. economy
A U.S. budget accord on track to win passage in Congress doesn’t change the view of Moody’s Investors Service on America’s top Aaa rating because it leaves medium-term deficits largely unaltered, according to Senior Vice President Steven Hess.
The recent rise in interest rates foreshadows the unavoidable demise for the dollar. Not only did the rise in rates have an immediate effect on the housing recovery, it also indirectly exposed the system to another vulnerability, that is, the Fed is not only the lender of last resort but will be the lender to the spender of last resort.
With less than three weeks until their deadline, U.S. budget negotiators have yet to break an impasse over revenue, prompting lawmakers to draft plans to blunt $19 billion in defense cuts set to start in January.