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Date Posted: 18:32:15 1/26/23 Thu
Author: Jasper
Subject: Some bitching on the debt ceiling.

.
MN Gordon: Debt Ceilings are for Idiots

Congress, through its debt ceiling increases, allows the Treasury to access the credit it needs to meet the spending obligations controlled by Congress. It’s Congress who directs the Treasury to spend this printing press money into the economy via its insane myriad of welfare and warfare programs.

As this new money flows through the economy, and the supply of money increases faster than the supply of goods, prices adjust higher. There’s no mystery to it.

So long as Congress continues to raise the debt ceiling, it’s impossible for the U.S. government to technically default on its obligations. However, to keep perpetuating more and more debt, Congress, with the assistance of the Fed and Treasury, resorts to turning the dollar into toilet paper.

The reasons for this ultra-mega spending problem are countless. However, one primary reason is that the debt ceiling debate comes after the spending has already occurred.

This is precisely the wrong time to try and get a handle on runaway spending. The right time to do this is when setting the budget – before the money is spent. Alas, the allure of the printing press makes balancing the budget impossible.

This is why debt ceilings are for idiots. Not because we believe the Treasury should be given a blank check. But rather because perpetually raising the debt ceiling has become as mindless as checking boxes on a form.

https://www.dollarcollapse.com/mn-gordon-debt-ceilings-are-for-idiots/

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