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US: breaking spending cap?

Rafael Herzberg's picture
Consultant energy affairs, Self employed

Rafael Herzberg- is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil* Focus on C level, VPs and upper managers associated to energy related info, analysis...

  • Member since 2003
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  • Jan 31, 2023

US: breaking spending cap?

Democrats and Republicans are at loggerheads (again) over authorizing the desired new ceiling  in the spending cap.

There are two main scenarios. 1°) A new ceiling will be negotiated (as it always has been) that makes it possible to maintain - business as usual - regarding the annual budget and 2°) The current Government will have to "make do" with the current budget and therefore severely reduce expenses.

And what do we have to do with this question?

If the choice falls on the 2nd scenario, there will be worldwide repercussions, forecast economic analysts. The current balance will be severely modified and the consequences will be felt globally. A new order will be established!

Objectively, it is a potentially unprecedented crisis, in which the globally accepted premise of "producing money without ballast" will be vigorously put in check.

There will be a "new" demand. Vigorously cut costs. Choose what matters and what doesn't.

Those who prepare will be in a much better position to stay balanced and ready to face the new challenges.

And the electricity sector will need to seek a much leaner modus operandi with new planning, intensity and dedication!


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