United States Debt Default Averted - For Now

The US Senate passed H.R. 2775 - Continuing Appropriation Act, 2014 Wednesday afternoon 81 votes to 18. The House of Representatives passed the bill around 10PM Wednesday night 285 to 144, and the bill was signed into law by President Obama at 12:30 AM Thursday morning. 100% of Democratic Representatives voted for the bill, but only 37% of Republican Representatives in what is widely regarded as a disastrous outcome for the Republican strategy of shutting down the government in order to "defund ObamaCare." In summary, the bill allows the US Federal Government to keep functioning at budget levels established in last year's appropriations bills, raises the debt ceiling through February 7th, and adds a modest income verification component to the Affordable Care Act.

It is important to understand that raising the debt ceiling does NOT authorize future spending, but rather permits the US Treasury to borrow money for to pay for expenses already incurred; for example, commitments to Social Security and Medicare, and for the $1.2 trillion spent on the wars in Afghanistan, Iraq and the "Global War on Terror."

Read the entire commentary here.