Monday, July 11, 2011

The Debt Ceiling Controversy

A lot of people are threatening the end of the world if Congress doesn't raise the debt ceiling. But there's an important question that should be asked.

By how much?

If it's so damn important, why haven't we heard anything specific about how much they want to raise it? Also, if $14 trillion isn't enough, what will be? $30 trillion? $100 trillion? For how long?

The Paul Ryan plan is by far the most aggressive budget plan that's getting any serious attention, and it's going nowhere. But even the "drastic" Ryan plan will take 30 years to balance the budget, even using ridiculous assumptions that "exclude interest." How long will it take to actually pay down the principal? What if interest rates go back up toward historical averages? What if they went up to the level they were at when I was born?

Do people really think we can keep borrowing indefinitely? Do they think we can get away with never paying it off?

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