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IPFS News Link • Government Debt & Financing

Unlimited Debt Leads to National Bankruptcy

• https://www.fff.org, by Jacob G. Hornberger

For those people who are advocating an increase in the debt ceiling, there is no maximum amount of debt that is too much for them. As far as they are concerned, the federal government should continue adding to its debt burden indefinitely into the future, no matter how high the debt becomes.

How do we know this? Because they never tell us what their particular debt maximum is. Every time the new debt ceiling is reached, they pound us with all sorts of dire things that will result from a "default." But once they succeed in raising the debt ceiling, it's always back to business as usual, with massive spending exceeding tax revenues, which means more borrowing and more debt.

But the statists don't care about that. They know that U.S. officials can just keep borrowing the difference and adding to the federal debt load. They also know that when the debt ceiling is reached again in three years or so, they can pull out the old "default" scare and use it again to achieve another lifting of the debt ceiling. They do that every time a new debt ceiling is reached.

How long do the statists propose that this go on? They don't say. They never say. They just don't care. As far as they are concerned, the federal government should just keep adding onto its debt load indefinitely into the future. For them, there is no maximum amount of debt that the federal government should not exceed. In fact, if the statists had their way, there would be no debt ceiling at all.

Why is there a debt ceiling? Because even Congress is implicitly acknowledging that too much debt is a bad thing, even a dangerous thing. When Congress enacts a debt ceiling, it is saying: "We have borrowed too much money as it is. This is the maximum amount of debt that the federal government can now incur."


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