February 6, 2023

The U.S. debt ceiling is the maximum amount of money the government can borrow via issuing bonds. It is intended to maintain fiscally responsibility. But as it is today, the debt ceiling makes little sense.

See, the government already hit the ceiling of $31.4 trillion. Once that’s blown past, “extraordinary measures” keep the country paying its bills for a couple more months.

The citizens who’ve been paying attention know the debt ceiling is now just a political circus. This year is no exception, especially as the Republicans control the House of Representatives, which is where spending bills originate.

Due to the uncertainty that’s created, financial markets are almost always victims in debt ceiling fights. If the U.S. were to default on its debts, all hell would break loose. But we all know the spending limits are political weapons and that the clowns in Washington D.C. stop fighting just in time to avoid deadly defaults.

So, what’s the point?

For years, I’ve said the federal government should balance the budget, live within its means, and stop increasing the national debt. Yet, the federal budget goes up every year, and the debt grows. Whichever party is in power spends.

Meanwhile, measures intended to control U.S. debt (like the debt ceiling) fail regularly. So, we should probably just get rid of it, right? Isn’t that especially true if the limit keeps being raised?

With the national debt spiraling out of control, something needs to be done…that is, if we care about the future of the nation.

Schedule a Free Consultation!