What is the point of a “DEBT CEILING” if we just keep raising it?

[ColonelAngus]

A debt ceiling means nothing if you just keep raising it. The point of a debt ceiling is to cut spending if you are approaching the ceiling.

Just continuing to spend like crazy so you have to keep raising the debt ceiling is stupid.

Its just an arbitrary number that keeps raising.

The Congress should get rid of the debt ceiling because it doesnt matter anyways.

 

[candycorn]

Its the football to the GOP's Charlie Brown. Every time the GOP gets the power to try to screw a DEM party President they do the whole Charlie Brown thing and think they're going to kick the football that is the debt ceiling (the same goes for the the federal budget). Its a football you guys never get to kick.

 

[norwegen]

Like I've said before, a debt ceiling is about as useful as a left-wing economist.

 

[Votto]

A debt ceiling means nothing if you just keep raising it. The point of a debt ceiling is to cut spending if you are approaching the ceiling.

Just continuing to spend like crazy so you have to keep raising the debt ceiling is stupid.

Its just an arbitrary number that keeps raising.

The Congress should get rid of the debt ceiling because it doesnt matter anyways.

What is the point of a debt ceiling?
Republicans and Democrats need something to fight over and pretend like they oppose each other and sling poo around for a bit.

Then they all smile and raise it showing that they can still all work together giving us all warm fuzzies.

I know it's retarded but so are voters.

 

[ColonelAngus]

What is the point of a debt ceiling?
Republicans and Democrats need something to fight over and pretend like they oppose each other and sling poo around for a bit.

Then they all smile and raise it showing that they can still all work together giving us all warm fuzzies.

I know it's retarded but so are voters.

I resemble that remark!

Yes, the “debt ceiling” is just bullshit.

It is a useless waste of time if they just keep raising it.

SPENDING MUST BE CUT DRAMATICALLY.

It will never happen because the BEAST MUST BE FED.

 

[luiza]

As we get more healthy , height increases .

You don't want your children hitting their heads all the time

That would be most selfish if children grew up with hunched backs and flat heads

 

[norwegen]

As we get sicker, we increase the dosage.

We don't want to die before our time.

 

[Markle]

President Joe Biden is demanding that the debt ceiling must be raised, WITHOUT CONDITIONS! In other words, just give us the money and TRUST US to spend it wisely. Just sign the blank check and we'll take care of everything!

Kind of glad I'm near the end of my life-span. I don't want to see how this ends.

 

[Dont Taz Me Bro]

The American people have no interest in fiscal responsibility, so yes, the debt ceiling should just be eliminated permanently.

 

[skews13]

I resemble that remark!

Yes, the “debt ceiling” is just bullshit.

It is a useless waste of time if they just keep raising it.

SPENDING MUST BE CUT DRAMATICALLY.

It will never happen because the BEAST MUST BE FED.

The only beast is the military industrial complex. Military spending must be cut and frozen. It is the single biggest scam perpetrated among the American people.

As far as the debt goes, when you cut tax revenue to pay for the debts of the country, by giving tax cuts to the filthy rich, and corporations. You now have to borrow the money that has to be paid back with interest, to pay those debts.

The tax rates that were in lace before 1980 must be reinstated along with cuts in military spending.

You don’t cut spending for the civilian population of America, which includes veterans benefits, for the benefit of the filthy rich, or giant monopoly corporations.

 

[luiza]

See your unmanageable real debt plus financial obligations as a way of scamming others .

They know that you cannot pay your debts -- you are fucking bankrupt -- but the idiots keep lending you more money via bonds .

Now if that is not the definition of Morons, I do not know what is .

Of course the Russians and Chinese gave you the finger a long time ago and hold gold in front of your formal bankruptcy measured by a

projected collapsed dollar .

Cue for a jolly song .

 

[ColonelAngus]

The only beast is the military industrial complex. Military spending must be cut and frozen. It is the single biggest scam perpetrated among the American people.

As far as the debt goes, when you cut tax revenue to pay for the debts of the country, by giving tax cuts to the filthy rich, and corporations. You now have to borrow the money that has to be paid back with interest, to pay those debts.

The tax rates that were in lace before 1980 must be reinstated along with cuts in military spending.

You don’t cut spending for the civilian population of America, which includes veterans benefits, for the benefit of the filthy rich, or giant monopoly corporations.

Thats the ONLY beast….really?

I agree the MIC is a beast, but its not the only government spending out of control.

We piss away hundreds of billions on bullshit.

 

[Independent thinker]

A debt ceiling means nothing if you just keep raising it. The point of a debt ceiling is to cut spending if you are approaching the ceiling.

Just continuing to spend like crazy so you have to keep raising the debt ceiling is stupid.

Its just an arbitrary number that keeps raising.

The Congress should get rid of the debt ceiling because it doesnt matter anyways.

While all true, getting rid of it would mean politicians spending at will. At least this way it makes it a little bit harder. Part of our problem is, we have 100 Senators and 435 Congresspeople all trying to get everything they can for their constituents and basically zero people saying, "hold on, this is insane". Everyone can be bought for pork, as long it goes to their constituents or, better yet, themselves.

 

[MarcATL]

Do you know the history of the debt ceiling OP?

 

[JohnDB]

Cash, like any asset, is a depreciating asset. Meaning it has a smaller value the longer you hold it with time.
(Antiques and digital currency are a different subject)
Most people invest their surplus cash in some fashion as a hedge against inflation and to possibly earn an income (true gains) on top of that.

As various governments and financial institutions often have excess cash they seek to earn interest on these sums in the form of instruments called bonds. (Banks are always needing cash and a way of getting rid of surpluses) This includes such banks as JPMorgan, Schwab, BOA and etc.

So they invest in financial instruments like bonds...even other nations use these bonds. US Treasury notes/bonds are a solid investment for most foreign nations as their own currencies tend to have runaway inflation at the best of times....currently a majority are facing hyperinflation...or close to it. The US dollar is also but not so much.

And all is good with this....up to a point.

Volatility is good for monetary markets. (Money changing hands) it means commerce is going on. But this volatility increases the money supply...making it devalue (inflation).

Now with the issuance of bonds it makes the stock markets less risky to borrow money to speculate on good stocks. (FAANG for tech, Diamondback for energy Disney for entertainment and BedBath/HD for home improvement) lots of people did so. Made lots of money borrowing money at 2% annually and getting 60-80% returns after taxes and expenses.
But American citizens were not the only ones to do so. It was stupidly easy before the market crashed.

Our government didn't need the cash so much as it needed our economy to improve.

However....there is a problem on the world stage and PRC is in the middle of a crisis.
A world economy built entirely on debt is cash poor. No one can actually borrow money because no one has any tangible assets to support the debt and no one is actually working to create GDP. (GDP is what is used to back up a fiat monetary system the whole world is using)

So as ONE nation hoovers up all the real value in the form of debt...nobody else can use it. And like any ponzi scheme it eventually will crash. (And it isn't pretty when it happens)
When the USSR fell it's currency became worthless. It issued 3 different currencies before one became stable and always at a 10-6 reduction....meaning every currency changeover people seen a 40% loss of savings. Devastating to every average person. Only holders of real assets could survive. (The currenies Crashed because of debt defaults)

Now that was an isolated nation....what happens when the whole world defaults?

PRC is currently in several defaults and more are coming...they have nationalized several private banks to stop the bleed (using blatant theft and murder)

There's the whole problem....as the US borrows money it actually tightens money supply anymore because of the lack of available money/value around.

If the US government actually balanced the budget and started paying down its debts...the economy would soar.

 

[Zincwarrior]

There isn't a point. Its a stupid law not found in the Constitution. Thanks Wilson!

 

[ColonelAngus]

While all true, getting rid of it would mean politicians spending at will. At least this way it makes it a little bit harder. Part of our problem is, we have 100 Senators and 435 Congresspeople all trying to get everything they can for their constituents and basically zero people saying, "hold on, this is insane". Everyone can be bought for pork, as long it goes to their constituents or, better yet, themselves.

It makes it a little harder, but it still gets raised every time. It is a dog and pony show. Its bullshit, like TSA.

 

[Harpy Eagle]

SPENDING MUST BE CUT DRAMATICALLY.

It will never happen because the BEAST MUST BE FED.

Have you ever voted for someone that wants to cut spending DRAMATICALLY?

 

[ColonelAngus]

Cash, like any asset, is a depreciating asset. Meaning it has a smaller value the longer you hold it with time.
(Antiques and digital currency are a different subject)
Most people invest their surplus cash in some fashion as a hedge against inflation and to possibly earn an income (true gains) on top of that.

As various governments and financial institutions often have excess cash they seek to earn interest on these sums in the form of instruments called bonds. (Banks are always needing cash and a way of getting rid of surpluses) This includes such banks as JPMorgan, Schwab, BOA and etc.

So they invest in financial instruments like bonds...even other nations use these bonds. US Treasury notes/bonds are a solid investment for most foreign nations as their own currencies tend to have runaway inflation at the best of times....currently a majority are facing hyperinflation...or close to it. The US dollar is also but not so much.

And all is good with this....up to a point.

Volatility is good for monetary markets. (Money changing hands) it means commerce is going on. But this volatility increases the money supply...making it devalue (inflation).

Now with the issuance of bonds it makes the stock markets less risky to borrow money to speculate on good stocks. (FAANG for tech, Diamondback for energy Disney for entertainment and BedBath/HD for home improvement) lots of people did so. Made lots of money borrowing money at 2% annually and getting 60-80% returns after taxes and expenses.
But American citizens were not the only ones to do so. It was stupidly easy before the market crashed.

Our government didn't need the cash so much as it needed our economy to improve.

However....there is a problem on the world stage and PRC is in the middle of a crisis.
A world economy built entirely on debt is cash poor. No one can actually borrow money because no one has any tangible assets to support the debt and no one is actually working to create GDP. (GDP is what is used to back up a fiat monetary system the whole world is using)

So as ONE nation hoovers up all the real value in the form of debt...nobody else can use it. And like any ponzi scheme it eventually will crash. (And it isn't pretty when it happens)
When the USSR fell it's currency became worthless. It issued 3 different currencies before one became stable and always at a 10-6 reduction....meaning every currency changeover people seen a 40% loss of savings. Devastating to every average person. Only holders of real assets could survive. (The currenies Crashed because of debt defaults)

Now that was an isolated nation....what happens when the whole world defaults?

PRC is currently in several defaults and more are coming...they have nationalized several private banks to stop the bleed (using blatant theft and murder)

There's the whole problem....as the US borrows money it actually tightens money supply anymore because of the lack of available money/value around.

If the US government actually balanced the budget and started paying down its debts...the economy would soar.

I have been screaming for a balanced budget for decades.

Newt Gingrich got it done.

Federal Government Spending should be cut 50 cents on the dollar across the board.
The Fed is Waaaaaaaaaaaaaaaaaay too big.

We are balancing a pencil on the tip and expecting it to stay perfectly vertical.

 

[jotathought]

A debt ceiling means nothing if you just keep raising it. The point of a debt ceiling is to cut spending if you are approaching the ceiling.

Just continuing to spend like crazy so you have to keep raising the debt ceiling is stupid.

Its just an arbitrary number that keeps raising.

The Congress should get rid of the debt ceiling because it doesnt matter anyways.

The debt ceiling is essentially the amount of money that can be borrowed through the issuance of bonds.

Unfortunately, we are running out of money faster to prepare for the Biden's continued insistence of using taxpayer money for cancelling out massive amounts of student debt. On top of that .. Democrat leadership decided to punt this problem into 2023, instead of dealing with the ludicrous request. Way to go Democrats. What happened to unity?