With all of the snow in Washington, the last thing anyone is really thinking about is the debt ceiling storm happening in Washington. It seems that over the past 5 years there has been one political crisis after the next, and now it’s the increase of the debt ceiling that has people talking a lot. In fact, the reason folks are talking is because they borrowed enough to cover an entire years worth of debt.
While the President signed it, he stated that he was doing so in an effort to make sure that all was taken care of until the congressional elections coming up in November. It seems that the plan was “pre-planned” and quite a relief for him to sign off on such a big financial decision.
The one thing I don’t understand is the President’s statement that this was a good decision to pay for what was already spent. Isn’t that a backwards statement? Is the threat of default really removed once and for all, just as the President said in his statement?
Senator Cruz Speaks Out Against the Debt Ceiling
Senator Ted Cruz has been outspoken in the past when he disagrees with the President’s decisions and now with the debt ceiling it’s no different. Cruz wanted to push a 60 vote threshold to keep the ceiling from going higher, but ultimately it just hasn’t worked out that well for him.
Mitch McConnell, while a republican still tried to encourage Democrats to follow suit in preventing more political risk. However, when it comes to borrowing more money this still didn’t work. This concept of borrowing more money is the same principle as using a credit card to pay off a credit card. It’s unhealthy and it just doesn’t work.
Bipartisan is a word that doesn’t really work in the event that you have someone that says they agree with you but change their mind at the last minute. It seems obvious that as a whole, these Senators would be against increasing the debt ceiling rather than continuing to raise it. Make sense? If it’s like a balance transfer, what does that do for us in the long term? We borrow, borrow, and borrow, which means we then have no way to pay it back.
How does this increase in the debt ceiling continue to affect our economy?
How Debt Ceiling Affects Our Economy Long Term
Cruz will continue to preach that we cannot spend money we don’t have. It’s true, we just can’t. When this happens, we have inflation. This is the same idea as continuing to increase interest charges on your credit card account. Each month, you think you have paid off debt and in reality all you have done is created more debt.
This approach to getting our country out of debt isn’t an approach or even a strategy at all. All we are doing is piling up the debt, which means interest rates will go up, cost of food will go up, and we may as well say that the price of everything is going up period. It’s really not a mystery at all. Are you afraid yet? If not, you should be.
Don’t allow the government to underestimate your ability to think for yourself. If you are able it’s time for you to go ahead start exchanging your paper money for gold so that you can prepare for more surprises with this looming “debt ceiling”. With all of the snow in Washington, the last thing anyone is really thinking about is the debt ceiling storm happening in Washington. It seems that over the past 5 years there has been one political crisis after the next, and now it’s the increase of the debt ceiling that has people talking a lot. In fact, the reason folks are talking is because they borrowed enough to cover an entire years worth of debt.