The FT has reported this morning that:
The Congressional Budget Office on Wednesday predicted that the US Treasury will run out of cash in the first half of March if action is not taken on the debt ceiling.
This, of course, is not true. As a matter of fact the US Treasury can never run out of cash because it literally creates the stuff.
What US politicians can do is to decide to deny the US Treasury the right to create the cash to keep the US government going. But that is something very different.
As a matter of fact the US government can never run out of money.
And nor has there ever been a shortage of buyers for its bonds.
What there is instead is a process that incorrectly presumes neither of those things are true. And that’s bad politics, and is bad for any economy.