Monday, April 11, 2011

Debt Limit

I have a credit card.  Thankfully, I've been careful about how I use it and when I use it.  But like most forms of credit, I have a limit to just how much I can charge.  Well, the United States has a similiar debt cap.  And now, because we are running out of credit lines, Congress will vote to raise it some few trillion dollars.  It would be interesting if every time I got close to my limit I could just call in and ask for another thousand or two in lue of being credit-less.

Why can't the federal government make due with what is has? We could do to have some common sense on this issue.  Like everyone with credit, we understand that the higher the debt, the more the interest fights back the principal...and we are left in a debt loop.  Can we ever crawl out?

The United States defaulting on its debt is a truly scary scenario to think about.  Especially if you thought this last recession was bad.

1 comment:

  1. "Why can't the federal government make due with what is has?"

    Heh.

    Easy.

    'Cuz we won't make it.

    People only change their behavior when the pain of staying the same is worse than the pain of change.

    Bet on it. SO, who's going to supply the "pain"?

    My bet is that its self-induced. This plane is going down.

    AP

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