Crunch time, gut check; call it what you will, but both sides are gearing up for (another) budget battle when Congress returns next week. If Wisconsin is any indicator it could be a doozey.
Central to the fight is debate about the debt ceiling, and James Altucher's popular piece in The Wall Street Journal in 2009 on the subject is getting new life. Altucher, managing partner of Formula Capital and author on investment strategies, got the blogosphere buzzing back then, and with the looming congressional fight, traffic is picking up once again. Democrats want the debt ceiling raised; Republicans? Not so much. Of course, both sides held the opposite position under Republican control in a similar battle in 2006.
Altucher believes increasing the debt of the United States is the best way to get through rough economic times and flourish while doing so.
Here's why, according to Altucher:
1.) Everyone is worried that borrowing more money will make the dollar weaker. Well, too late. Despite the administration's dollar stance, the reality of a weak dollar is already here after trillions of dollars in stimulus, even if the current Treasury bubble we find ourselves in doesn't suggest that. It's best to borrow now, when interest rates are low, rather than when interest rates have to rise to stave off inflation later. Borrow when money is cheap and scarce.