US debt and deficits

[Dave Backus @ NYU]

James Hamilton's amusing summary of our budget processes:

"One of the peculiar embarrassments of the American political process
is the fact that Congress votes separately on the deficit and debt, as
if they were two different decisions. This bizarre arrangement allows
Congress the luxury of instructing the Treasury to spend more than it
takes in as revenue while at the same time voting to deny the
authority to borrow the funds that would be necessary to implement the
plan."

http://www.econbrowser.com/archives/2011/01/debt_ceiling_po.html