Wikinvest Wire

Twelve trillion dollars is not enough

Saturday, August 08, 2009

In a letter to Congress yesterday, Treasury Secretary Timothy Geithner urged elected officials to raise the $12.1 trillion debt ceiling since, according to current projections, that limit may be reached as soon as mid-October.

If there is a more inane concept than a U.S. debt "ceiling" - one that is moved upward, regularly, whenever necessary - someone please tell me what that inane concept is.

And, no, Geithner's justification for the higher level of U.S. government debt does not qualify since it is directly related to the ceiling itself.
It is critically important that Congress act before the limit is reached so that citizens and investors here and around the world can remain confident that the United States will always meet its obligations.
You see, in the twisted logic that passes for policymaking in Washington, it's critically important that the limit be increased before it is reached. Otherwise investors may lose confidence in the entire system - not so much because of the spiraling debt and the lack of any sort of realistic plan that would see the money be repaid, but because lawmakers hadn't paid close enough attention to the relationship between the debt and the debt ceiling, failing to move the ceiling upward when conditions required such action.

The debt ceiling was last raised just six months ago when the stimulus bill was passed.


DHM said...

What puzzles me is that surely this is exactly analogous to a credit card customer who's making the monthly payment on time every time, but who needs to request a higher credit limit at regular intervals.

We all know how that ends, so why would we expect the same situation scaled-up a gazillion percent to end any differently?

OldSouth said...

And Members of Congress are shocked at the reception they receive when they return home in August 2009?

Anonymous said...

Why didn't any of you care about this 8.5 years ago when it all started? Bush cut taxes, raised spending, and then started 2 endless wars; that's when it could have all been changed. Its too late now, the dice has been cast.

Anonymous said...

"...the dice [sic} has been cast."

Unintentionally accurate malapropism.

Anonymous said...

"Why didn't any of you care about this 8.5 years ago when it all started?"

Gee, I thought we were going to get away from all that bad Bush stuff. Not Bush x 4.

Nola said...

That makes perfect sense. "Bush did bad, so it's okay for Obama to do worse." It's like this: say when I got married, my husband had $10,000 in credit card debt. And I told him, well, baby, it's perfectly logical for us now to go into $40,000 credit card debt, because, hey, you screwed up in the past! Doing something bad a hundred times does not make it good. And just because something starts doesn't mean everyone has to continue marching off the cliff.

Bruno T said...

It started way before Bush 8.5 years ago. Remember Ross Perot trying to warn us?

But don't let me ruin your "Bush ruined the world" conspiracy theory.

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