The first step toward fiscal discipline: Cut up the credit card

Source: Garrison Center
by Thomas L. Knapp

“In 2015, Congress temporarily did away with the US government’s fictional ‘debt limit.’ I call that limit fictional because it’s not really a limit. Every time the government gets close to it, Congress raises it. It’s as if signs on the highway changed to display a number five miles higher every time you got within a mile of the existing ‘speed limit.’ So anyway, Congress decided to stop pretending the limit actually exists, through March 15 of this year. After that? The Congressional Budget Office forecasts that the government can continue to operate until this fall without busting the new debt limit, but US Treasury Secretary Steve Mnuchin is already asking Congress to raise it ASAP. I’ve got a better idea: This time, Congress should refuse to increase the debt limit, and in fact should provide for that limit to automatically decrease as the existing debt (now closing in on $20 trillion) is paid down.” (03/10/17)