Thursday, January 17, 2013
Again the debt ceiling fight
The U.S. government is to default on its obligations as the debt ceiling limit will be reached on February 15, 2013 (as reported today on some newspaper). Will it default on the debt and let the economy go back to recession, wreck the money markets and the world economy and damage the credit worthiness of the U.S. is the question we should be asking the Congress who hold the purse in this case. Although the Republicans are holding up this budget fight as they say that they will fight to have spending cuts in place before agreeing to raise the debt limit but everybody in the Congress and White house have a stake in this and it should not become a political fight or point scoring. The debt obligations will have to be paid one way or the other but the credibility will be damaged if the debt limit is not raised. Now the question arises, why this ceiling in the first place have. Is it like a political blackmailing that we have to have this fight every time we reached this limit? Why not eliminate it so that we focus our battles on other matters. But I guess it is in the interest of the Congress whatever party is in charge to force the executive to listen to their demands even if it damages and hurts the economy. It is like a household says that we are not going to raise our debt and will not pay any obligation if I don’t have the money, then why borrow in the first place. The fact is that the U.S. government spends more than it generates revenues and always will (unless we miraculously wipe out our debt overnight). This fight should not take place as we are all Americans and not only Republicans and Democrats and it is time now to eliminate this absurd debt limit ceiling permanently.