Kicking the Proverbial Can: Covering Debt with Debt

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If you are following the debate on the debt ceiling and are still on the fence, Jim Sinclair gives the issue a degree of rationality the layman is glad to see.

The idea that an increase in the debt ceiling is a solution to anything is nonsense. The event would be simply a can kick forward for a very short period of time. Increasing debt is not a solution to a debt problem. It actually makes the problem worse It is an act of extending your Federal credit card borrowing line so you can use it to pay your mortgage.

Essentially, raising the debt ceiling is a political ace-in-the-whole used quite frequently by politicians to cover what has become an unconscionable degree of spending.  But this time is different because the government’s has maxed out its credit line.  And this is the point. For consumers, a maxed out credit card with no way to pay is a recipe for bankruptcy.  What makes the government any different?

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About Jeremiah Dow
I have a B.S. in Politics, Philosophy, and Economics with a minor in Economics. I finished school in 2010 and am currently working on independent research in various areas including political and economic philosophy, government, and history. I am also currently looking for work in research, particularly the social sciences dealing with public policy work. I aspire to a top-level graduate institution, but would first prefer some professional research experience. Some of my primary influences are Ayn Rand, Noam Chomsky, and Howard Zinn among others.

2 Responses to Kicking the Proverbial Can: Covering Debt with Debt

  1. Pingback: What is it About Economics…The Debt Deal Examined « kapitalcon

  2. Pingback: The Financial Crisis, Foreseeable and Preventable « kapitalcon

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