As it appears the can will be kicked once again, we thought it worth reflecting briefly on the possibility that this farce eventually ends in court (whether in 3 months or some time after that). While the Obama administration has ruled out the use of the 14th Amendment (and the mint-the-coin idiocy has been dismissed for its lifting-the-veil reality), Tangent Capital partners' Bob Rice explains in this brief Bloomberg TV interview his perspective on the legal, political, and market responses to going down this route.
Crucially, Rice explains that while uncertainty is what is weighing on markets (T-Bills and repo specifically as stocks don't give a toss) any end solution is worrisome if it "undermines the fundamental confidence in the monetary system."
Rice goes on to discuss the 14th Amendment's implications (not great), and ends by pointing out the futility of what many are calling for..."The monetary system is a confidence game and if we get rid of the debt ceiling altogether, there is a realistic question (asked by the rest of the world) as to how much discipline we are going to have."
Must watch interview to comprehend just what a joke this is becoming and how no solution is a good solution... The sad reality is that this was made in January and the two discuss the fact that we will be discussing the same issue in 6 or 9 months...