Joe Doakes from Como Park emails:
Federal debt has stopped going up. It’s stayed the same for three weeks.
Well, maybe. Federal debt subject to the debt limit law has stopped increasing. Makes me wonder: does that mean the government stopped borrowing money to meet its obligations, or that it’s simply borrowing the money “off-book?” I’m suspicious.
If government can operate with the debt frozen and we simply froze the debt at that number for the next 100 years, inflation would turn it into a trivial amount. Can the solution to overspending really be that easy?
Joe Doakes
I’m going to guess the Fed just lost the emails for the past three weeks’ debt numbers.
The numbers are being routed through Hillary’s private server.
I’m thinking “accounting tricks”. Lots of articles out there about it–government accounting seems to make Enron look honest in comparison sometimes.
Michelle hasn’t turned in her receipts for the Japan trip yet.
As I remember from previous debt limit discussions, the government has money in the bank. What happens when the limit is reached is the Treasury stops borrowing but keeps paying the bills, so the account balance starts to slip. Once the debt limit is extended (or temporarily suspended), there is a flurry of initial borrowing to return that balance to “safe”
Personally, I’d like to see the debt limit held in place. I fully admit that it would provide a shock to the country, but ultimately it is a de facto BBA, and the country is bad at noticing things before a big shock. I’ve been hearing about the debt and deficits, social security insolvency and non-discretionary spending all my life. EVERYONE admits “Reform” is needed. The people that actually step up and propose reform are pilloried for be “extremists” until they capitulate. Just remember, when we’re where Greece is, there won’t be a Germany to help us limp along until we decide to bite their hand for not “helping” enough.
Americans aspire to Libertarianism, even as they appreciate the comforts of Socialism. The tension in that dichotomy is a big part of what makes Americans who we are. On the other hand the expectation of Americans is they can have as much government as they want without paying for it.
the comforts of Socialism = slavery.