This chart is rather mundane, but the revival brand of fire breathing conservatives on Capitol Hill will fill the airwaves with talk about the US debt ceiling. It will have to be raised (currently at $14.29 trillion) or the US will face default on its obligations, now approaching the danger zone of 100% of GDP. The event was routine, but raising it now is good for some
pontificating soundbites. The wingnuts seem to keep forgetting that a Democratic president balanced the books before the Charlatan was installed and started two wars. The fact is that voting for deficits, but against Treasury borrowing by not raising the debt limit would increase the cost of federal borrowing since bond purchasers would factor in the increased risk of default by demanding higher interest rates on US securities. Max Keiser is a hard money fanatic that touts returning to gold and silver, but
his take on the debt ceiling is entertaining as well as informing.
