71.1 F
College Station
Saturday, October 23, 2021

A Fundamental Millstone: Climate Policy and the Energy Crunch

Local News

College Station Bans Traditional Pet Shops

At Thursday's meeting, the College Station city council passed an ordinance that prohibits the sale of non-rescue dogs and cats in pet...

College Station to Vote on ROO in Special Meeting Today

The College Station City Council meets Monday at 4 p.m. at city hall to consider a Restricted Occupancy Overlay (ROO). The ordinance would allow single-family...

College Station Plans on Borrowing Additional $62 Million Without Taxpayer Vote

The College Station City Council voted to begin the process of issuing $62 million in certificates of obligations for capital projects. The...

Brazos Valley Hospitalizations Continue to Decline After Mask Order Rescinded

Texas Governor Greg Abbott issued Executive Order GA-34 on March 2, 2021, and the order went into effect on March 10, 2021....

Power lines near Ulm, Germany, in 2006. (Alexandra Beier/Reuters) The week of October 4: a higher debt ceiling, higher energy prices, spending, American banking with Chinese characteristics and much, much more.

So, where were we? I was just getting ready to write about the debt ceiling (and, I suppose “the coin”), but the day was saved, if only for a few weeks, by the agreement to raise the debt limit by enough to see the country through until early December. Assuming that everything goes through (a House vote lies ahead), investors can relax, at least for a little while.

That said, while both sides are blaming the other for the impasse that brought the U.S. closer to a cliff than it should have been (NR’s editorial on that topic can be found here), no one should be under the illusion that running into that ceiling would be anything other than a disaster, with unknowable longer-term consequences. Once the dominoes begin to fall . . .

Writing in the Wall Street Journal on Thursday, James Mackintosh had a fascinating piece on how the markets had been beginning to get uneasy about what might happen:

Treasury bills this month started to price in the danger that there would be a temporary problem. The yield on the T-bill due to mature on Oct. 26, shortly after the debt ceiling would most likely be breached, jumped from 0.05% at the start of the month to 0.15% by Tuesday. It collapsed back to 0.08% after Senate Minority Leader Mitch McConnell offered a two-month suspension of the debt ceiling. The government was paying more than highly rated companies for some short-term borrowing.

Officials talked up the disaster scenarios in an effort to bring around Senate Republicans, with Treasury Secretary Janet Yellen saying a default would “likely precipitate a historic financial crisis.”

Yellen has not distinguished herself since taking on her current job, but she was not necessarily wrong about that.

Back to the WSJ (my emphasis added):

Investors never thought any problems would last. Yields on bills maturing in December had fallen,

Continue reading on National Review

More articles

- Advertisement -

State News

Citizens Are Exposing Central Texas School Board’s Corruption

ROUND ROCK — This school board can’t hide from parents anymore. As a conflict unfolds across the country between school district officials and concerned...

Texas GOP Calls on Gov. Abbott for Fourth Special Session on Vaccine Mandates

As Texas watches companies defy Gov. Greg Abbott’s executive order prohibiting employer mandated vaccines, the Republican Party of Texas is calling on Gov. Abbott...

Slaton Draws Primary Challenge Just as 2022 Primary Election Season Gets Underway

Just as the third special legislative session concluded, the attention of many lawmakers has turned to the 2022 primary election season. One of the...

Texas State Senator Champions Freedom to Use Off-Label COVID Treatments

State Sen. Bob Hall is doubling down on his support for doctors and patients using off-label treatments to fight COVID. In response to a...

Texas Nationalist Movement Leader Announces Campaign for Lt. Governor

The field of candidates for the Texas lieutenant governor race is growing, and filing for the position hasn’t even officially opened. In recent weeks,...

Continue reading on National Review