Will America Suffer If We Don’t Raise The Debt Ceiling?

Print Friendly, PDF & Email

First, what does this question mean?  Here is what it means:

Will America suffer if we don’t let the rest of the world know that we are willing to borrow more money?

Now we can answer the question.

First, some countries would be unhappy that we are unwilling to borrow more money because that would mean that they would make less money.  They would make less money because they would not collect interest on additional money that they would have loaned us.  Second, some countries would be happy because that would mean that America’s ability to pay existing debt would not be diminished.

Now, there is a third group of countries that are harder to figure out.  These countries both want us to borrow more money and want America’s ability to pay existing debt to remain as strong as it is.

So, what does all of this mean?

What other countries will do cannot be predicted by anyone.

However, we can predict what other countries will probably do based on their past behavior.  This is the only smart basis for deciding whether to raise our debt ceiling.

So, what will other countries probably do?

Other countries are not stupid.  They know they will be paid the money that is due them if we do not raise our debt ceiling.  Therefore, they will not panic and they will continue on a steady course.

Now, some of you will ask:

But what about the markets going crazy if we don’t raise our debt ceiling?

This won’t happen.  How can we be sure it won’t happen?  Markets don’t go crazy.  Markets exhibit sudden, dramatic changes in buying and selling patterns.  The impact of such changes depends on whether people invest (“spend”) less or invest (“spend”) more.  Now, here’s the failsafe:

If people invest more, we are fine.  If people invest the same amount, we are fine.  If people invest less, our government simply needs to:

  1. Cut spending.
  2. Implement some version of the Quarantine Solution.

Now, why would cutting spending and implementing the Quarantine Solution solve our problem?

  1. Cutting spending means we need less money.  This, in turn, means that we don’t need to borrow more money.  This, in turn, means that we don’t have to raise the debt ceiling.
  2. The Quarantine Solution assures that we have more money coming into the economy without raising anyone’s taxes.  This, in turn means that we don’t need to borrow more money.  This, in turn, means that we don’t have to raise the debt ceiling.

Now, some of you will say:

But what about all of the financial experts’ and financial leaders’ predictions of dire consequences?

Well, first notice what type of financial experts and leaders we are talking about.  They are what we love to call “financial mystics.”  What is a mystic?  A mystic is someone who claims psychic abilities.  Now, let’s think about this.  The financial experts and leaders predicting dire consequences are financial mystics.  Let’s say we all agreed this is true.  Are we supposed to, then, just follow their leadership?  No!  Why not?  Because history has proven (and, for those of you who believe the Bible, the Bible teaches) that people who claim such mystical powers are right half the time and wrong half the time.  The bottom line is that the financial mystics would just be lucky if their predictions came true.

Now, anticipating a question of many, what proof is there that the prophets of doom are “financial mystics”?  Very simply:

  1. They provide no real basis for their beliefs and conclusions to the general public.
  2. They provide no real explanation of the trains of thought that lead to their conclusions to the general public.

Now, we will address the last defense of the hopelessly enamored (“love-inflamed”).  These are the devout believers in the financial mystics.  The hopelessly enamored do not operate by reason.  They operate by faith.  Now, operating by faith isn’t necessarily a bad thing but you must have a basis for your faith.  What is the basis for their faith in the financial mystics?  Consider:

  1. The financial mystics have gotten our country further into debt.
  2. The financial mystics have created more national debt than all previous financial experts and leaders combined.
  3. The financial mystics promised considerably greater, economic progress than the country has made.
  4. The financial mystics have devalued our money, which means you can’t buy as much as you could in the past.

Well, those are the essential, economic facts. There is much, much more we can say.  Now, what is our conclusion?  We stated it above but here it is again for your convenience:

  1. Cut spending.
  2. Implement some version of the Quarantine Solution.

One final note:

Anyone who doesn’t follow our advice is….wait for it….wait…wait…here it comes…is a stupid moron!

This entry was posted in Uncategorized and tagged , , , , , , . Bookmark the permalink.