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News Link • Federal Reserve

Borrow or Balance: The Feds’ Only Two Choices

• Bill Bonner for The Daily Reckoning
Buenos Aires, Argentina – The feds got over the first hurdle. They cut a deal to keep the government in business a while longer. But that’s not the end of the story. It’s just the beginning. The New York Times has the story: Congressional Republicans are vowing that before they will agree to raise the current $14.25 trillion federal debt ceiling – a step that will become necessary in as little as five weeks – President Obama and Senate Democrats will have to agree to far deeper spending cuts for next year and beyond than those contained in the six-month budget deal agreed to late Friday night that cut $38 billion and averted a government shutdown. Republicans have also signaled that they will again demand fundamental changes in policy on health care, the environment, abortion rights and more, as the price of their support for raising the debt ceiling. In a letter last week, Treasury Secretary Timothy F. Geithner told Congressional leaders the government would hit the lim

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