If you don’t take out a new credit card to pay off your old credit cards, you’re incompetent!
Dangerously incompetent! At least, according to the editors at Bloomberg:
Five Reasons to Fear the Debt Ceiling
The global economy is facing a bizarre man-made threat: Radical legislators in the U.S., issuer of the world’s most trusted currency, think forcing the government to renege on its obligations would be a good way to shock it into recognizing the error of its fiscally imprudent ways.
Lest anyone take this notion seriously, here’s what would happen if that threat were carried out.
- Global markets will see the U.S. government as grossly and dangerously incompetent.
What? You mean they don’t already see the U.S. government that way?
Fer cry-eye. That almost makes you think maybe the libruls are right about the “wisdom” of the “markets.”
But looky here. Let’s just take a look down memory lane, shall we? Just a few days ago, I mentioned that:
Reminder: the debt ceiling has grown by 9.2% a year, compounded, since 1981.
Wow, man. Nine-point-two percent, compounded annually. Kinda makes you nostalgic for the dot-com boom, huh?
Couple other things. Back in 2006, then-Senator Obama was speaking against an increase in the debt ceiling. He said:
The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. government cannot pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our government’s reckless fiscal policies.
Huh. And that was 2006. How much has the debt ceiling grown since then?
9.3% per year.
Well, that’s not his fault, right? He was only one Senator. Okay, so how much has it grown since he became president?
Well, I’ll tell ya, it’s really slowed down a lot. It’s only grown by 8.4% per year since 2009.
Hey, I get it. Congress passed spending legislation, the president signed it, so now we’re obligated to pay for it. We don’t want to be welchers, do we?
But, holy crap, are you trying to tell me that the world economy might collapse – and, oh yeah, there are people out there saying just that – the whole world might sink into economic Armageddon… Economogeddon… if we don’t keep increasing our debt by over 9% per year?
Yeah, they are saying that. And not only that: they’re saying that, if we don’t keep raising our debt ceiling, we might not be able to pay debts we already have.
If I don’t take out that new credit card, how will I pay off all my old credit cards?
Can I just ask: do the editors at Bloomberg know what the phrase “grossly and dangerously incompetent” means?
Note: I found the historic debt limit data here.