Frozen Federal Debt Could Do Serious Damage to the Recovery

Washington, DC–(ENEWSPF)–June 7, 2011.  A failure to raise the federal debt limit could be a disaster for the fragile economic recovery—and conservative threats to block action could already be causing harm.

There’s been great concern about how financial markets might react to not raising the debt ceiling, but there’s a much more direct effect that could be devastating. Freezing the debt would result in an immediate withdrawal of billions of dollars of economic activity from…