Financial analyst Karl Denninger says, “If you keep raising the debt ceiling willy nilly, you’re going to get downgraded.” Denninger thinks the latest talks in Washington will only kick the fiscal can down the road. He says, “The truth of what we have to do is still politically impossible.” Denninger contends, “All you are seeing now is the tap dance around the fact we have to accept a 7, 8 maybe 10 to 15% fiscal contraction in GDP in order to come back into balance.” Denninger says the sooner you take the hit, the better it will be because “the damage you take today is always less than the damage you will take if you kick the can and wait until tomorrow.” Don’t expect politicians to do the right thing–yet. Denninger says, “There is no stomach to put their jobs on the line . . . We need statesmen who will say I will get fired over this. . . . That’s the price the country has to pay.” Join Greg Hunter as he goes One-on-One with Karl Denninger.
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