The U.S. will reach its borrowing limit this Monday. Phew!
Of course, many members of Congress, the White House and tax evading Treasury Secretary Tim Geithner are playing the mutual assured destruction card if Congress doesn't raise the debt limit. "If the U.S. defaults on its obligations, all hell will break loose!" they say.
They are correct, that would happen if the U.S. defaulted on its obligations. Of course, the only way to get that to happen is to borrow so much that the interest on the debt exceeds their tax receipts. And the only way for that to occur is if they raise the debt ceiling!
Borrowing money is not how you get out of debt. Borrowing is the definition of debt. Default is the inability to pay down debt. More debt impedes your income until the ability to service interest and principal exceeds that income. When that occurs, you default. End of story.
Want a balanced budget Congress? Don't raise the debt ceiling. Period.
Congress thinks you're stupid. Do you?
No comments:
Post a Comment
Say anything you want. Please don't cuss. If you post anonymously, please post your county of residence. Make sure you have Javascript enabled on your browser's preferences.