Tuesday, October 08, 2013

The ridiculous idea that raising the debt limit does not increase the debt

If your home budget shows you are spending $12,000 a month, and your income is $10,000 a month, and you have a giant credit card your are funding your life with, your are increasing your debt by $2,000 a month.
Sooner or later your need a larger limit on that card.
Even if you have cash flow variance then at some point you can pay down the debt. BUT WE NEVER DO. We can’t.
SO WHY DO WE NEED A HIGHER LIMIT?
Because NEXT MONTH you are going to need that increased limit to fund your DEFICIT.
Disingenuous does not describe the current occupant of the oval office.

1 comment:

Ciccio said...

Some 200 years ago a French King had similar problems. He needed to raise more money and only parliament had the authority to do that. So, for the first time for many many years he called together his parliament.
The rest is history. Happy Bastille day!