Friday, June 3, 2011

More on the Debt Ceiling

Ever notice how nobody tells us what would really happen if we don't raise the debt ceiling?

We hear constantly how the US is going to "default on its obligations", but no one explains how not raising the debt ceiling means automatic default.  I have to believe that the US government can continue to pay the interest on its debt (yes, that's all we're obligated to pay - if you can believe it!) out of the measly $250 billion we take in in tax revenue per month.

What's more, if we are constitutionally prohibited from borrowing any more money, we will be forced to get our financial house in order.  Our government would have a mandate to live within its means (well, its means plus $14.3 trillion of debt) and would have to make tough decisions about which programs are essential and which are not.  It would seem that any small government conservative politician would recognize this and steadfastly refuse to vote to raise the debt ceiling - no matter how deep the spending cuts proposed!  It seems, however, that---while any small government conservative knows this---the "small government conservative" politicians are having trouble with the concept.

We really need to watch this debate in the upcoming months and voice our opinions to our elected representatives about the foolishness---the fiscal suicide---of taking on any more debt as a nation.

4 comments:

Alan Fox said...

Spending money you don't have is never a good policy long term.

Daniel Smith said...

Hey Alan. It's been awhile.

Alan Fox said...

Hi Dan

I still lurk at TT and noticed you'd got your name in blue!

Daniel Smith said...

Well my name has always been "in blue" there - but it was linked to the old Chucky Darwin site until just recently.