The ceiling on Federal debt doesn’t appear to actually serve its intended function of keeping spending under control. I don’t see the point of placing a ceiling on the debt after congress has already spent the money, forcing a choice between raising the ceiling or defaulting. It would be better for the economy if both houses of Congress passed rules that said something to the effect of government can only spend X% of GDP per year – because when the Fed targets either inflation or NGDP, fiscal stimulus is generally counteracted and does little good. Since the Fed is currently targeting inflation, what to do about fiscal cliff should be a no-brainer – stop the spending because constituents want the spending stopped.
In other news, I started a new job a few days ago and I found out that starting a job the day after Christmas has its drawbacks. Nearly everyone, including my new boss is on vacation until after New Year’s Day. I have completed nearly all of the required standard training, like ethics and such, and now I have very little to do. I was hired because I have the basic skill set that was being sought, but there’s a fuzzy gray area of where I will fit in with the group. So until the “gang” all get back from vacation next week, I get to sit and twiddle my thumbs – or whatever else I can come up with as the minutes pass painfully slow. I have one more business day to go like this – and hopefully I can finally get started.
I am hoping that I can just use the last day utter boredom to write an epic, knock your socks off, blog post. I doubt I have it in me, but I perhaps will try… So stay tuned.