Recently the Representatives in the U.S. Congress voted to "suspend" the federal debt limit for at least four months, allowing serious talk about reducing federal spending and deficits to take a backseat, at least temporarily. Still, there is continued talk of government cutbacks that may take place if compromise isn't reached. But the fact that U.S. budget deficits have exceeded $1 trillion dollars for each of the past four years, without serious consequence, seems to underscore the argument by many congressmen, academics and the media that deficits don't matter.
David A. Pace, CFA
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