Tuesday, June 28, 2011
Debt Ceilings, Deficit Spending and other Asinine Euphemisms
What is a Debt Ceiling?
There's a debate going on in Congress as to whether we ought to raise the "Debt Ceiling." This sounds responsible - if you're brain dead.
There's no such thing as a debt ceiling. We owe what we owe. Because of interest - the cost of borrowing money - the figure rises indefinitely and perpetually. There is no ceiling, unless you pay it off - or you default.
Debt ceiling is a euphemism for "Let's just not pay our debts - that'll show everyone how responsible we are." The fact that they are debating that seriously in Congress is chilling.
If you borrow a hundred bucks on your credit card, then the credit card company says you owe us 115 because of interest, you could try to say, "Well my debt ceiling is 50 bucks - sorry, but I voted not to raise it. So that's all I can pay you." See how that goes over.
Here another one: "Deficit Spending." Why don't you try that one at home. Broke? So what - just do some "Deficit Spending." How? Well the time honored method is to go to some friends and relatives and hit them up for money. Then spend it.
When the Government does it they're borrowing it from their own children. That's us. We're all borrowing from our kids. To finance our own consumption and retirement. To police Iraq, Afghanistan and Libya.
Each and every child in this country is now responsible for tens of thousands of dollars of national debt. If they want to go to college they'll come out with hundreds of thousands of personal debt.
So what? Screw them. It's their damned problem. That's what "Deficit Spending" means.
Tomorrow let's try to figure out: ""Quantitative Easing, Enhanced Interrogation, Collateral Damage, and Social Security."