The Debt Ceiling is Not the Issue. The Debt is.

Exactly!

The Small Investor

As the shutdown continues into a second week, the public is starting to see the debt ceiling issue on the horizon.  Unfortunately the facts have become clouded in half-truths and distortions created for political reasons.  The goal is to get the public scared and thereby gain leverage.  Here are the facts:

Fact 1:  The first fact is that there is no reason for the US Government to default if the debt ceiling is not raised.  Current payments on the debt are about 1/8th of what the government brings in each year.  It is possible a debt payment could be missed if the government spends the money on other things (which may have already been done), causing a cash flow problem.  But this is kind of like a family spending all of the income from a month on a vacation before paying all the credit card bills.  There is plenty of…

View original post 565 more words

Advertisements
This entry was posted in Current Events, Historical Data, Other Blogs and tagged . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s