Debt Ceiling Conundrum

Here's a thing to consider. When you have charge up your credit cards to the limit, is it a good thing for the bank to raise your limit or to force you to stay under a certain amount of debt? And how should you respond to being at your credit limit? Should you pay down your debt and avoid adding to it, or should you just keep on charging and hoping the bank will keep raising your debt limit? This is basically what the government is doing by considering raising the country's debt ceiling. Here are some quotes from The Blaze, first from the news story and second a comment by a reader:

WASHINGTON (The Blaze/AP) — Some Republican lawmakers said Sunday they opposed raising the ceiling on the nation’s debt without tackling government spending, and President Barack Obama’s top economic adviser warned against “playing chicken” on the issue and said preventing further debt would be “insanity.”


“The impact on the economy would be catastrophic,“ Goolsbee told ”This Week” on ABC. “That would be a worse financial economic crisis than anything we saw in 2008.”

Mister President

Posted on January 2, 2011 at 11:18pm Not raising the debt ceiling will be an economic/financial catastrophe the world has never before witnessed.

Raising the debt ceiling will lock the world into an economic/financial catastrophe it has never before witnessed.

There are no easy answers anymore. There are two options: a somewhat controlled collapse or one that just happens and cannot be stopped or controlled. Make your choice. I don’t trust Obama and company to oversee a controlled collapse (I’d trust someone like Christie though), but I really, really, really don’t trust them to be at the helm during an uncontrolled collapse and the panic that will allow them to do, literally, anything. Damned if we do; damned if we don’t.

If we don’t raise it, we basically admit what most already realize. If we do raise it, we get to live in denial for a little bit longer until a Treasury auction goes bad an interest rates skyrocket.


 Will the government go for a controlled crash of the economy or will they let us smack into the end at full speed? At some point the economic steam runs out - it's like driving your car towards a dead end. There is absolutely NO WAY to avoid a crash. For a hundred years the government has spent more than it has taken in and has promised many, many people that it would pay them for all sorts of things. Now the piper must be paid. There is no money, there is not going to be money. There is only going to be debt and soon no one will want to loan any more to the US because there will be no expectation of being repaid. We will be in default. When we go, the world goes. Total collapse ensues.

Are you ready? Being prepared is the best way to combat fear. Know where your true security lies: in your God first, then your friends and your family. Can you stand feeling a little crazy now buying extra groceries, keeping extra cash on hand and investing in silver or gold or other precious metals? I hope so.