Ah…..You think it won’t happen?…..
The debt has already been committed by the last Congress budget that just got signed. o the new Congress after bitching and moaning, let’s not forget all the empty promises to cut spending, so the debt ceiling gets raised.
Then next year, this Congress will be able to raise it because the voters will be given something else to worry about.
As I’ve been posting for the last year or so, somehow, someway, or by somebody the banks bad debts have to be paid off. They are not going to take the hit as long as they own the world.
You do realize they own the world, right? They have since mankind has discovered money. Where would our civilization be with bank lending? It wouldn’t be pretty!
This Week,” if it was not raised, the “impact on the economy would be catastrophic . . . “If we get to the point where we damage the full faith and credit of the United States, that would be the first default in history caused purely by insanity.”The debt ceiling currently stands at $14.3 trillion and has been raised nearly every year since the beginning of the new millennium.
I received an email from one of my regular readers concerned and confused over the alarming statements by Goolsbee. The reader who goes by the initials “NM” asked, “So, is he saying that if we can’t go deeper into debt we will default? i.e. the minute America can’t borrow more money, it will default on its debt obligations???? It doesn’t make sense. How many times are they going to keep raising the debt ceiling?” NM seems to have asked all the right questions. Yes, Goolsbee is saying the U.S. will default if we do not go deeper into debt. And, no, it really doesn’t make sense to regular people like you and me. As far as the question, “How many times are they going to keep raising the debt ceiling?” for that answer, I turn to Bill Gross, the founder of PIMCO, one of the world’s largest bond funds. On CNBC last week, he said, “We have a deficit in the $1 trillion plus arena, which means we must borrow at least a trillion dollars additional a year in order to fund the deficit. And, so, the debt ceiling currently at $14.3 trillion, which is 95% of GDP, has to go up by another trillion or so every 12 months.”