Keep the debt limit says Martin

It is not that tackling the US fiscal position is urgent. At a time of private sector deleveraging, it is helpful. The US is able to borrow on easy terms, with yields on 10-year bonds close to 3 per cent, as the few non-hysterics predicted. The fiscal challenge is long term, not immediate. Wolf

Great, the long term problem is not pressuring us, so lets just keep the debt limit for a few more weeks, at least. Or, do a short term deal for a month with some debt increase and some cuts and a loophole closing.

I keep repeating myself, the real stimulus here is a surprising ability of Congress to do short term budgeting. If they practice at it,they buy a whole lot of bandwidth making it easy to do long term debt deals. That is, they get the Treasury curve active at the short end. Keep Congress on the frontier.