Saturday, December 26, 2009

US debt ceiling up again to $12.4T

It’s a bit disconcerting to learn “The bill permits the Treasury Department to issue enough bonds to fund the government's operations and programs until mid-February. The Senate will vote again on the issue Jan. 20Yahoo News). At this point, the lack of any debt-reduction proposals has become sadly expected.

LAURIE KELLMAN (AP) then went on to say “Obama must sign the measure into law to prevent a market-rattling, first-ever default on U.S. obligations.” Given that Bernanke could literally create as much USD as he wants, American treasury debt would always make good on its obligations, the risk lies in speedy inflation.

So why would the Associated Press plant fear of default into the readers? It’s to probably rally support for the (reckless or intentional?) excessive borrowing by the few people who run American congress. How will this end? Badly I bet.

0 Reflections: