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Girish altekar's avatar

It goes without saying that Trust is an important lubricant. I disagree that without structural changes in the appropriations process, market participants will continue to trust the US government to continue to make payments well into the future. In a decade, the decade the debt will be $51T. When you have to issue debt to pay interest on the previous debt, some will question the sustainability of their investment. Do we have the trust in our political parties that such changes will be made? If so, what is the difference if the trust shatters now or later?

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The Rational Walk's avatar

“ I disagree that without structural changes in the appropriations process, market participants will continue to trust the US government to continue to make payments well into the future. ”

My point is precisely that we need structural changes in the appropriations process. Specifically to authorize debt implied by an unbalanced budget as part of the budget process rather than in a separate vote.

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