Jay Soloff

The US government shutdown is in its third day and the country will reach its debt limit in two weeks. In other words, things could be better in Washington. Putting the shutdown aside for now, what will happen if the Congress can't reach a debt ceiling agreement by the deadline? Some suggest Obama could use executive authority to continue borrowing money. Others believe the Treasury could mint a trillion dollar platinum coin to use for government funding. Another solution would be to dramatically divert funds from other parts of government in order to make interest payments. Realistically, the executive solution is the only one with any legs. Even so, Obama would likely have to argue his actions in front of the Supreme Court. If it gets to that point, the markets could be in for a wild ride.


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