Should the US scrap the debt ceiling?
Australia just did, and it's doing fine. Mature countries know when to walk away from a fight.
Debt ceiling fights, it seems, have become a permanent fixture in American politics.
Twice in the last couple of years, the United States has been days away from potentially irrevocable economic damage because Congress refused to raise the ceiling and let the Treasury issue more debt. The next fight is slated for March 2014.
The federal government will be able to borrow as much money as it wants after Federal Treasurer Joe Hockey cut a deal with the Greens to dispense with the debt ceiling completely. . .
It means the government will not have to ask the Parliament for permission whenever it wants to borrow money above a certain limit. [Sydney Morning Herald]
Right now interest rates are very low by historical standards, even after adjusting for inflation. This means that the government is not producing sufficient debt to satisfy the market demand. The main reason for that is the debt ceiling.
So the sustainability of your debt is dependent on the size of the economy, and the size of your debt is much more meaningful if it is expressed in terms of the amount of activity taking place in the economy (GDP).
“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. government can’t pay its own bills. ... I therefore intend to oppose the effort to increase America’s debt limit.”
— Sen. Barack Obama, March 16, 2006
Did that change AFTER '57 States' raised the debt 7 trillion more? We should just BAN deficit spending.
How do these idiots get their jobs writing these stupid articles?
"So should the current debt ceiling be replaced by a ceiling expressed as a percentage of GDP?"
Why can't we stop spending more than we bring in? What would you do if your kids keep buying new skiis and new iphones with your credit card? Do you keep raising the credit limit or do you tell your kids to cut back?
Aziz.... clearly you were not thinking when you wrote this. One can only shake their head at the lunacy of letting Washington spend all they want. So as all the news reports say that the influence and power of America is falling world wide because of crushing entitlement costs and failure to provide a long term budget, you think the idea brilliant. Amazing.
I guess the really young, those under 18 didn't ask to birthed by the worst generations. They are the ones that are really getting hosed and don't deserve parents, grandparents or a government so sorry.
Now as for the Canada comment, what the stupid MSN article fails to mention is they balance their budgets, deport instantly ALL illegals (most to Papua New Guinea) and the entire Ausie culture despises "the dole" and those that spend their lives on it. And finally, they have exploited their energy reserves for their benefit being the biggest exporter of coal to China, unlike our retarded government.
Yeah, you can get rid of a debt limit when you don't have one. Stupid article, but at least consistent in that it panders to what those with their hands held out want to hear. Gimme my Bama dollars! Right?
What the author of this insipid piece of fiction doesn't realize is that he has no functioning brain.
(I guess that could refer to the incompetent doucheb*g PresiDEBT as well...)
It is called 'Checks and Balances' for a REASON , you douche!!!!
All Bills for raising Revenue shall originate in the ; but the may propose or concur with Amendments as on other Bills.
Every Bill which shall have passed the House of Representatives and the Senate, shall, before it become a Law, be presented to the President of the United States; If he approve he shall sign it, but if not , with his Objections to that House in which it shall have originated, who shall enter the Objections at large on their Journal, and proceed to reconsider it. If after such Reconsideration two thirds of that House shall agree to pass the Bill, it shall be sent, together with the Objections, to the other House, by which it shall likewise be reconsidered, and if approved by two thirds of that House, it shall become a Law. But in all such Cases the Votes of both Houses shall be determined by yeas and Nays, and the Names of the Persons voting for and against the Bill shall be entered on the Journal of each House respectively. If any Bill shall not be returned by the President within ten Days (Sundays excepted) after it shall have been presented to him, the Same shall be a Law, in like Manner as if he had signed it, unless the Congress by their Adjournment prevent its Return, in which Case it shall not be a Law.
Every Order, Resolution, or Vote to which the Concurrence of the Senate and House of Representatives may be necessary (except on a question of Adjournment) shall be presented to the President of the United States; and before the Same shall take Effect, shall be approved by him, or, shall be repassed by two thirds of the Senate and House of Representatives, according to the Rules and Limitations prescribed in the Case of a Bill.
Yea, this article is ridiculous and it’s unfortunate so many people think this way! The idea that you can continue on with our failing fiscal policy without change until it completely falls apart. How can we even elect these “so called” leaders when they have a complete lack of foresight!
The current system does not work, and stopped working decades ago. It’s past time, the amount of money the US spends is taken out of the hands of Congress, the Senate and president. Completely taken out of their hands! This function truly belongs in the hands of a few elected economist and accountants; one term so there is no playing for votes. Once the amount is set, our elected officials can plan out how it will be spent. So they are working on a budget based on percentages well before they are shown the amount.
You take the credit card out of their hands because they are incompetent with money, just like a little kid. You don’t give someone a credit card when they repeatedly prove they lack the financial skills.
MSN money should be embarrassed to post articles like this... no common sense!
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