Maintaining Moderation of Limits on US Debt Highly Likely What We All Agree On
Posted by HCN on Friday, December 20, 2024
As Friday winds down, the issue of whether to abolish debt ceilings, or raise it at very careful incremental amounts has Capitol Hill stirring.
There are certain common sense/ grand vision factors, involved, in strategizing just what is or are the best move or moves, when it comes to limits. Of course, some top political and financial influencers know these. Some of it is put into easy to understand words, summarized.
Picture this, the debt ceiling is abolished, and spending occurs lavishly, such as through a dramatic move, maybe to pay for an advent like a covid-type epidemic relief, an international conflict (well there is a tension about Ukraine and Russia, where Ukraine keeps getting US money, who knows what the next amount might be or might be requested), or a combination of spending, such as each of hundreds of jurisdictions in America spend just $5 more than they ordinarily would have on any given day, it goes for about a week, everyone says the few bucks won't hurt anything and now's the time to seize making things better, and lo, one morning, billions or trillions of dollars has amassed as an aggregate, well beyond a wildfire that can ever be put back under control.
So, even if the 'debt ceiling' per se, as in the official debt ceiling legal instrument, is abolished, the conceptual debt ceiling, as in there is a common sense line in the sand, that at some point, someone needs to say, that's enough spending, or we're spending too much too fast, might have to occur.
In another aspect, respect is given to the input of higher ranking military officials on national financial matters. Keep in mind, some of those officials have been looking at financial numbers for hours every day, for decades. They know the trends, and the what-ifs. They also understand vulnerability concepts to strong levels. When money is needed to protect and defend, money is needed; simple, put the shields up you need when it's raining arrows of fire, and if the shields do not go up, the palace burns; the shields might have a cost, an operating cost, maintenance, manpower, etc. The holidays, when soldiers are already less attentive, is no time to be vulnerable.
Possibly to be continued
--'Moderation always the key', the age old adage goes
There are certain common sense/ grand vision factors, involved, in strategizing just what is or are the best move or moves, when it comes to limits. Of course, some top political and financial influencers know these. Some of it is put into easy to understand words, summarized.
Picture this, the debt ceiling is abolished, and spending occurs lavishly, such as through a dramatic move, maybe to pay for an advent like a covid-type epidemic relief, an international conflict (well there is a tension about Ukraine and Russia, where Ukraine keeps getting US money, who knows what the next amount might be or might be requested), or a combination of spending, such as each of hundreds of jurisdictions in America spend just $5 more than they ordinarily would have on any given day, it goes for about a week, everyone says the few bucks won't hurt anything and now's the time to seize making things better, and lo, one morning, billions or trillions of dollars has amassed as an aggregate, well beyond a wildfire that can ever be put back under control.
So, even if the 'debt ceiling' per se, as in the official debt ceiling legal instrument, is abolished, the conceptual debt ceiling, as in there is a common sense line in the sand, that at some point, someone needs to say, that's enough spending, or we're spending too much too fast, might have to occur.
In another aspect, respect is given to the input of higher ranking military officials on national financial matters. Keep in mind, some of those officials have been looking at financial numbers for hours every day, for decades. They know the trends, and the what-ifs. They also understand vulnerability concepts to strong levels. When money is needed to protect and defend, money is needed; simple, put the shields up you need when it's raining arrows of fire, and if the shields do not go up, the palace burns; the shields might have a cost, an operating cost, maintenance, manpower, etc. The holidays, when soldiers are already less attentive, is no time to be vulnerable.
Possibly to be continued
--'Moderation always the key', the age old adage goes
