Friday, July 29, 2011
If No Abolition, Then At Least Link Debt Ceiling Changes To Budget Passage
So, nobody at all is responding to my and Moody's call to abolish the debt ceiling, and probably nobody is going to follow up on the semi-wacko coining large platinum coins scheme either. So, while this will not avoid the current oncoming train wreck, if all these people want to hang onto this silly anachronism of a debt ceiling, then the obvious thing to do is to in the future tie changes in it to passing a budget. So, when Congress actually passes a budget, it should make sure that the financing for that budget is in place, either through taxes or borrowing. Part of making sure the latter is in place is to make sure the debt ceiling (if there is one) is high enough to accommodate that borrowing, preferably with some wiggle room for an unexpected deficit surge due to an unexpected decline of the economy. Why do we not see any politician proposing this obvious remedy for the future in the face of what Moody's predicted, a likely default due to "political gridlock in the Congress"? Mandating spending while witholding the ability to pay for it (or finance the paying for it) is the utter height of irresponsibility.