It is a concensus worldwide, and not only in Washingdon D.C., that the Debt Ceiling which needs to be raised to avoid a default, which the U.S. certainly does not wish to entertain, will be raised, be it (preferably) by bi-partisan co-operation and agreement in Congress, or by Presidential Prerogative.
Secretary for the Treasury Jack Lew has suggested 17th October as the date when the current debt ceiling arrangements hit top. It will be both prudent and necessary to raise it further, and in the current shutdown scenario in Washington the options are plain : Either the partial shutdown of the departments is swiftly lifted and government can function once again as normal, giving enough time for a bi-partisan consultation and agreement on a Debt Ceiling raise; alternatively, give the President the opportunity to exercise the Presidential Prerogative under the 14th Amendment and sign into law a figure he believes justified to safeguard the normal functioning of the government and the U.S. economy.
The new jobs created figure today of 155,000 for September seems pretty healthy, although to see a fully fledged Recovery would need about 400,000 to 500,000 new jobs per month for about 6 months. Until then, the environment demands continuation of a Stimulus, which may be tapered later when conditions improve further. In the meantime, the record low interest rate gives hope that the housing market can continue to improve and strengthen, together with auto sales and hand-in-hand creation of many jobs and heatmaps of happiness. Strength of the U.S. economy for now seems a barometer of the world economy, as confidence in the world's largest economy always impacts everywhere else.
In Japan, Premier Abe's government continues with their Stimulus, which was running at $85 billion a month (equal to the U.S. stimulus at its current height). This has enabled the Japanese economy to pull out of the stagnation that has marred it for over 20 years; the investment and build-up after the Fukushima disaster has enabled Japan lay the foundation for continued improvement and growth, the fruits of which Japan shares with investment overseas in neighbouring countries and abroad. Their GNP
figures will be nothing less than impressive, with substantial investments in the U.S. also.
It will be a great blessing for the U.S. to raise the debt ceiling in a timely fashion, and renew the confidence worldwide that things can continue as normal everywhere, which can add impetus to further growth worldwide from a strengthening Recovery to Prosperity. For that I pray.