The debt can only be as large as it is now because interest rates are near zero. Let the economy get going again, even enough to put money market rates at 3 or 4%, and suddenly the feds will be faced with paying hundreds of billions in annual interest. There's no way they can raise it -- we're well above the hump in the Laffer curve already. That leaves either the printing press, or repudiation of the debt. In either case we are then a banana republic.

So there IS a limit, even if the only ratings company that tried to call them on it got punished for doing so.

At some point, someone has to draw the line and say "No more!" Hitting the limit and leaving that limit in place may be the only way, or best way, to do that.

cave man...cave-in-man...caveman...

Love!

Jan

Cut spending, departments and people. DO NOT INCREASE THE SPENDING LIMIT. limit:1 a : something that bounds, restrains, or confines

Caveman - that's awesome!! 😄

And to complete the analogy, if they refuse to increase your credit limit you are the able to convince others that the issue is with the bank and not with your spending habits.

i don't understand why there is a debate, the debt limit is not a limit. the debt is the debt and it will just keep getting bigger as it will NEVER EVER be paid down.
say what you want but remember when you are 100 years old you will still hear that we have to raise the debt limit.

No Salty- you are correct. I just called my bank and told them I was going to hit my credit limit on my cards pretty soon. Since I don't have the money to pay them down, they just need to raise the limit.

Hi Salty, you do understand it correctly, and in THEIR eyes you owe them an apology.

Ten days away, and not seeing/hearing this in the MSM, including FOX. (I know... FOX / MSM is a different thread).

No Salty, no apology owed.That's exactly how it will go. I wonder if they will even bother with that charade. It has worn so thin, especially right on the heels of the HS 'crisis'.

Time for some tough talk from the Republicans. Then, of coarse, Boehner the caveman will raise the limit just as Obama wants him to.

Apparently, the word "Limit" has some other meaning in the halls of government. For some reason, to them it means an occasion to blame everyone else for the problems that they themselves created, and the only solution available at the last minute is to create more problems by spending even more money that we don't have. And then they can all pat themselves on the back for 'narrowly averting a crisis'.

Do I understand this correctly or do I owe them an apology?