Professor Jennifer Welsh comments on the problems behind the recent U.S. debt ceiling deal

Jennifer Welsh has written an article for Canadian news website The Mark on the recent U.S. debt crisis deal, and the wider problems underlying it. She writes:

All of this political theatre would be entertaining, if it werent hiding the real crisis: the alarmingly poor state of the U.S. economy. The behaviour of bond markets over the past week was interesting to watch; they never really seemed to doubt that some kind of deal would be reached. But those same markets are ruthless with respect to real economic facts. And the sad reality is that Washingtons best and brightest arent doing a whole lot to address them. At some point, interest rates are going to go up. When they do, the cost of debt will rise still further, and the pressures on U.S. lawmakers will mount. Their hands will be forced. At that point, one hopes, a more realistic recovery plan will emerge.