Budget Battles Ahead

    My most recent Merk commentary, published July 25, was motivated by the possibility of an impasse on the federal debt ceiling. Now that President Obama has signed a bill raising the ceiling, I am motivated to write once again. Standard and Poor’s has registered its concern by lowering its long-term sovereign credit rating on the United States from AAA to AA+. Now that the early August debt-ceiling issue is out of the way, everyone should understand that the country is only temporarily saved from continuing bitter controversy over budget issues. We will likely see impasse after impasse in the future. Moreover, the controversy and economic uncertainty may well be affecting the economy, leading to market . . . → Read More: Budget Battles Ahead