OFFLINE

austan (the ghoul) goolsbee, obama's chief economic adviser, said it would be a "catastrophe" if the congress didn't again raise the federal debt ceiling, saying it would basically mean the government has defaulted on what it owes. but i don't understand how not raising the debt limit can be any worse than continually raising it, as the government has done without fail, and simply spending more money we don't have.

how can a family who is in debt, improve their situation purely by deciding that they can go even deeper into debt? and if it does decide to go deeper into debt, how does that mean they're more serious about paying it off?

oh i forgot, there's no room for common sense in the government.

OFFLINE

Originally Posted by Dødherre Mørktre:
austan (the ghoul) goolsbee, obama's chief economic adviser, said it would be a "catastrophe" if the congress didn't again raise the federal debt ceiling, saying it would basically mean the government has defaulted on what it owes. but i don't understand how not raising the debt limit can be any worse than continually raising it, as the government has done without fail, and simply spending more money we don't have.

how can a family who is in debt, improve their situation purely by deciding that they can go even deeper into debt? and if it does decide to go deeper into debt, how does that mean they're more serious about paying it off?

oh i forgot, there's no room for common sense in the government.

There is a logic if you're in a business scenario.  Rescheduling goes on all over the place.  However, rescheduling is usually premised on either an expectation of future earnings increases or a decrease in future costs.  Unfortunately, various statist parties across the West have little expectation of increased fiscal revenue or intend to decrease expenditure in the round.  Essentially, they use the additional debt like a crazed ship's captain deliberately driving his boat towards the rocks

OFFLINE

sure, it can make sense over a short duration, but the question to be asked is, when does it stop? do we raise the limit to 15 trillion? 16 trillion? the answer is obvious. it doesn't stop until the ship has been destroyed. the government has proven its incapable of overcoming its addiction to spending, and it wont stop until we've hit rock bottom. meaning, until we no longer have the choice. i don't think i have to spell out for you just what that will mean either.