S**t my economist says #5

When is a debt limit not a debt limit?

The United States has a government debt limit of $14.3 trillion. This limit is there for the very good reason that rocketing debt causes economic crises.

So it is rather strange to hear President Obama warn that an economic crisis will ensue if the Republicans in Congress do no allow him to keep borrowing and adding to the national debt. It’s especially strange given that the rating agencies are now starting to worry about the ballooning of American government debt, previously regarded as the safest investment in town.

Either way, there seems very little point in a spending limit that doesn’t limit spending.

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