Only one other country in the world has a debt ceiling

[Chris]

I know you have all heard so much about the debt ceiling that you're probably exhausted. But I think it's important to point out a few facts because this matter has been so clouded by rhetoric.

Did you know that there is only one other country in the world that even has a debt ceiling? That's Denmark, a strange anomaly, and its debt ceiling is deliberately kept very high so that it will never need to be raised.

Why does no one else have a debt ceiling?

Because when a legislature votes to authorize spending at a certain level but authorizes tax revenues at a lower level, it is assumed that the government will have to borrow the difference.

The vote to have higher expenditures than tax revenues is - in effect - a vote to borrow money to cover the difference.

And in the United States, Congress - including Republicans - voted for a budget in which expenditures exceeded tax revenues.

The logical consequence of that budget - again, passed by Republicans and Democrats, is that the government has to make up the difference by borrowing.

To come at it now after the budget has been passed is like getting your Visa bill and calling up the company to say, "Actually we don't want to buy all that stuff we bought."

That's not how it works. First you pay the bill, then you can change your spending habits.

Fareed's Take: The damage is already done! – Global Public Square - CNN.com Blogs

 

[saveliberty]

What a laugh!

A diatribe on why we should just keep spending to oblivion.

Hack.

 

[iamwhatiseem]

When counting all obligations - America is nearly $70 trillion in the hole.
...something else that is "worth mentioning"...

 

[CrusaderFrank]

Chris, Social Security is broke.

 

[Zoom-boing]

$50,000 comes into a household; $75,000 goes out of the household.

Instead of cutting spending to below the $50,000 mark, the household opens two credit cards with a debt limit of $15,000 each and keeps on spending.

Does that make fiscal sense to you?

Is that sustainable?

Regardless of anything else, the underlying problems need to be addressed. What part of that don't you get?

 

[NYcarbineer]

It's up to Congress to pay for the obligations it has made in the spending in the laws it has passed.

Or, Congress needs to change the laws. Default is a breach of Congressional duties.

 

[Mad Scientist]

"But Mom, none of the other kids have a Debt Ceiling. It's so unfair!"

 

[Remodeling Maidiac]

And how many other major countries have gone or are heading into bankruptcy because of having a no limits policy? Doh....

 

[saveliberty]

The dollar is a world currency. I guess if your ready to give that up, we can do away with a debt ceiling.

 

[Truthmatters]

U.S. Debt Ceiling: Your Cheat Sheet to the Policy History (NYSEIA, NYSE:IWM, NYSE:SPY, NASDAQ:QQQ, NYSE:MDY, NYSE:TLT, NYSE:TBT, NYSE:XLF, NYSE:UUP, NYSE:UDN) | Wall St. Cheat Sheet



the closest the government ever came to default was a last minute deal in 1979. Though the deal was finalized in time, computer malfunctions led to $122 million in Treasury payments being delayed, technically amounting to temporary default and thus permanently increasing interest rates by 0.6%, resulting in $12 billion in additional annual debt payments, costing the government roughly $384 billion to date. We can only imagine the toll a default, even temporary, could take on today’s economy.

 

[dilloduck]

It's up to Congress to pay for the obligations it has made in the spending in the laws it has passed.

Or, Congress needs to change the laws. Default is a breach of Congressional duties.

Then they can get their ass in gear and change the laws. We don't have to pay for things that we don't need and haven't used. This isn't rocket science. And people say that the America will lose it's credibilty on the world stage ? I didn't know we still had any.
Maybe only buying things we can afford without going into debt will impress someone.
Oh wait---the leanding institutions would be obsolete. So sad..

 

[Two Thumbs]

A touch of Irony

Denmark is one of the few stable countries in the EU.

Greece and Spain are in flames.
Italy, Ireland and a couple others are about to follow suit.

It must suck to have to take care of yourself.

 

[Rat in the Hat]

"But Mom, none of the other kids have a Debt Ceiling. It's so unfair!"

 

[editec]

Here's a headups for those of you who imagine that a national economy is even remotely like a home economy.

A national economy will be like a home eeconomy when the homeowners can print their own money.

Until that time?

Comparing those two very different economies is the stuff of children.

 

[saveliberty]

U.S. Debt Ceiling: Your Cheat Sheet to the Policy History (NYSEIA, NYSE:IWM, NYSE:SPY, NASDAQ:QQQ, NYSE:MDY, NYSE:TLT, NYSE:TBT, NYSE:XLF, NYSE:UUP, NYSE:UDN) | Wall St. Cheat Sheet



the closest the government ever came to default was a last minute deal in 1979. Though the deal was finalized in time, computer malfunctions led to $122 million in Treasury payments being delayed, technically amounting to temporary default and thus permanently increasing interest rates by 0.6%, resulting in $12 billion in additional annual debt payments, costing the government roughly $384 billion to date. We can only imagine the toll a default, even temporary, could take on today’s economy.

Bull, permanently raising rates 0.6%.

 

[Jarhead]

Here's a headups for those of you who imagine that a national economy is even remotely like a home economy.

A national economy will be like a home eeconomy when the homeowners can print their own money.

Until that time?

Comparing those two very different economies is the stuff of children.

No ne is comparing those two economies.

When we use a "home economy" as an analogy, it is referring to proper mindset.

Our government spenders must have the same mindset as it pertains to living within our means as a head of household would have.

 

[Jarhead]

U.S. Debt Ceiling: Your Cheat Sheet to the Policy History (NYSEIA, NYSE:IWM, NYSE:SPY, NASDAQ:QQQ, NYSE:MDY, NYSE:TLT, NYSE:TBT, NYSE:XLF, NYSE:UUP, NYSE:UDN) | Wall St. Cheat Sheet



the closest the government ever came to default was a last minute deal in 1979. Though the deal was finalized in time, computer malfunctions led to $122 million in Treasury payments being delayed, technically amounting to temporary default and thus permanently increasing interest rates by 0.6%, resulting in $12 billion in additional annual debt payments, costing the government roughly $384 billion to date. We can only imagine the toll a default, even temporary, could take on today’s economy.

your lack of knowledge as it pertains to the lending industry and business in general is disturbing.

It would not be so disturbing if you were not so passionate about your ideology....but when I see how you define your ideology with "facts" that are not facts....well....lets just say it is disturbing as I know there are many others that believe as you do for all of the wrong reasons.

TM....I suggest you do a little less blog reading and a little more non fiction reading as it pertains to government, business, economics and ledning practices and laws.

You actually may learn some reality.

 

[saveliberty]

Here's a headups for those of you who imagine that a national economy is even remotely like a home economy.

A national economy will be like a home eeconomy when the homeowners can print their own money.

Until that time?

Comparing those two very different economies is the stuff of children.

You must work as an Obama economic advisor.

 

[Chris]

I think it is obvious at this point why having a debt ceiling is a really, really stupid thing to do.

That's why no one else does it.

 

[saveliberty]

I think it is obvious at this point why having a debt ceiling is a really, really stupid thing to do.

That's why no one else does it.

False, many countries cannot obtain credit. In important first step in accumulating debt.