Tuesday, April 19, 2011

Why bother raising the debt ceiling?

It strikes me as absurd that Congress and the President even bother to go through with the formality of raising the debt limit. Why have a limit at all when it can be raised at will?

The real debt limit is how much foreigners are willing to lend us before they decide Treasury bonds aren't a good investment anymore. Nobody knows what that limit is, and I just assume that we never find out.

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