Short answer: 100% Long answer: Strap in, a bit of a deep dive coming up. This is, as always, a bit of an oversimplification of a complicated concept. But, here goes First things first, let’s get one thing out of the way: the “debt ceiling” is not about restricting spending. It’s about paying debts that we already owe. The entire idea of the debt ceiling is fairly absurd, as it’s effectively saying that, while the Congress + President may well agree to spend $X amount, putting ourselves into $X of debt, we’ll stop paying after an arbitrary point. It’s like saying that your family will keep spending on the credit card, but refuse to pay anything beyond $10,000 (or some equally arbitrary point). US debt, in the form of T-bills and bonds, is historically seen as literally the safest investment in the world for the simple fact that the US pays its bills. A T-bill or a bond is, in effect, the US issuing a promise that, in return for $X now, we’ll eventually pay the buyer $X+interest. And, u...
Comments
Post a Comment