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Thursday, December 06, 2012

That Pesky Debt Ceiling

The central government is again getting close to its debt ceiling. Fearing another game of chicken between the White House and congressional Republicans, the risk of default, and another downgrading of the U.S. credit rating, some people want President Obama to bypass Congress and raise the ceiling by executive order. Others would dispense with the ceiling altogether. Obama vaguely says he will not go through what he had to go through with Congress last year. I hope they don't raise the debt ceiling. In fact I favor repudiation of the government debt, since it is based on the immoral power to wield aggressive force. A voluntary government creditor takes his chances.

Here's the one thing that I find amusing in this discussion: Pundits and others who favor limitless government insist that raising the debt ceiling won't permit the government to spend more money; it merely let's the government pay its current bills. If that is so, it's not very comforting. It means the government incurred obligations without knowing for sure that it would have the money to pay its bills. Why is it allowed to do that?

Oh, that's right. It's the government.

1 comment:

Erkmon said...

castle made of of cards...oh I hope so!