That particular perils-of-Pauline crisis ultimately ended in compromise, but it was scary enough to lead Standard & Poor’s to downgrade its assessment of the previously pristine U.S. Treasury debt. Further downgrades can be expected this summer if there is a severe crisis. Borrowing costs throughout the economy would rise for a while — though markets have an amazing capacity to recover from shocks, and forget them, after remarkably short periods.This time, Congress must not only raise the debt limit before it is reached, it also must renew government spending authority by Sept. 30 or set off a shutdown of all but the most essential parts of the government. Su …
