A message to future post-apocalyptic historians on the debt ceiling(drezner.foreignpolicy.com)
drezner.foreignpolicy.com
A message to future post-apocalyptic historians on the debt ceiling
http://drezner.foreignpolicy.com/posts/2011/07/17/a_message_to_future_post_apocalyptic_historians_on_the_debt_ceiling
3 comments
For the people living outside of the states whether you raise the debt ceiling or not is only an intellectual spectacle. If you live inside US, you better thoroughly think it through.
From a historical standpoint, countries that default on their debt go through a very tough time for decades.
For the US, the loss of prestige of the US dollar will signal the permanent decline of the US in its ability influence the world in its favour. Large sections of US industry is funded by military expenditure, and many of these sectors face a decline and downturn. While on the other side, the US may find a lot of countries building nuclear capability when the US is in such turmoil.
As noted, I don't live in the States but I live in a country that is friendly towards the US, and I don't want harm to befall on your country.
From a historical standpoint, countries that default on their debt go through a very tough time for decades.
For the US, the loss of prestige of the US dollar will signal the permanent decline of the US in its ability influence the world in its favour. Large sections of US industry is funded by military expenditure, and many of these sectors face a decline and downturn. While on the other side, the US may find a lot of countries building nuclear capability when the US is in such turmoil.
As noted, I don't live in the States but I live in a country that is friendly towards the US, and I don't want harm to befall on your country.
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Not raising the debt ceiling != default. I'm not sure why the talking heads don't get that. Plus, at some point you have to ask, where does it end?
I have yet to meet anyone that was helped in the long term by maxing out yet another credit card. But I've met many people who've been helped by curbing their spending and paying down debt.
I have yet to meet anyone that was helped in the long term by maxing out yet another credit card. But I've met many people who've been helped by curbing their spending and paying down debt.
If you want to cut the deficit, the answer is obvious: modify the budget. It makes no sense to pass a budget saying you will spend X, which directly implies borrowing Y, and then a few months later decide you will not authorize that very borrowing you just authorized, and without any plan to deal with the difference.
Where does it end? The answer to that is easy: it ends when a budget is passed where revenue and spending are more balanced. Trying to take shortcuts by playing games with the debt ceiling is a cheap trick that could be potentially disastrous.
Where does it end? The answer to that is easy: it ends when a budget is passed where revenue and spending are more balanced. Trying to take shortcuts by playing games with the debt ceiling is a cheap trick that could be potentially disastrous.
That article seemed more like an opinion piece. His "facts" consisted of "this person said so" type of arguments. Nowhere did he offer any arguments based on facts of reality. The entire article is based on hearsay. At no point in his rambling, incoherent response was he even close to anything that could be considered a rational thought.
What someone else says, especially when they have a special interest, is not the same as the truth.
The banking industry makes money off of debt, of course they are encouraging more of it. That doesn't mean it is good for the country or its people.
Research the facts for yourself instead of blindly believing what your banking industrial complex overlords tell you.
What someone else says, especially when they have a special interest, is not the same as the truth.
The banking industry makes money off of debt, of course they are encouraging more of it. That doesn't mean it is good for the country or its people.
Research the facts for yourself instead of blindly believing what your banking industrial complex overlords tell you.
What does make not raising the ceiling very convincing is that it's called a 'ceiling' and it's not a ceiling if you raise if every couple of weeks as seems to be the fashion, it's been put in place by wise men of the past to keep repeating previous mistakes and Greece shows what happens if you don't have a ceiling.