Wednesday, May 18, 2011

Debt Ceiling and Disaster

Dr. E. Eugene Webb

You are hearing a lot of noise about the US Debt ceiling. Most of the politicians and financial people are predicting disaster if Congress doesn't vote to raise the debt limit. Those crying the loudest are social reformers who think we can spend our way out of the current mess, and the financial/investment people who live off the interest paid on the US debt while contributing nothing in return. But recently some new voices are starting to be heard. They are pointing out that the US will not default on the debt but start moving funds around to make its debt payments. The real problem is all of those political sacred cows that won't be funded while we pay off our obligations. The liberal left, who never saw a dollar that they didn't want to spend two of, are concerned that their source of funding, borrowed money, for social boondoggles will dry up. Actually, not raising the debt limit might be good for the government. It would cause a refocusing of priorities and start to bring some reason to government spending. We've tried everything else. Its time to cut up the Federal Government credit card. Let's take a shot at fiscal responsibility. The global economy will not fail regardless of what all those mournful faces on the money talk shows say.



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