The real debt limit isn’t our own restriction on how much we’re willing to borrow, but the lenders’ restriction on how much they’re willing to lend.
And we hit that several years ago.
Something more than 30% of our so-called debt isn’t really debt, because nobody’s willing to buy it. Instead, it’s manufactured from whole cloth, via “quantitative easing”.
In other words, it’s not debt, it’s inflation of the money supply. Printing money like it’s worthless paper.
And there isn’t all that much space between our printing money like it’s worthless paper and the rest of the world deciding it’s worthless paper. And when that happens, expect Weimar-style inflation.
In truth, I’m surprised it hasn’t happened already.
Why,pray tell, is it so urgent after the election !?
looking at the above money velocity graph however, it appears that this increase in the money supply has not yet filtered into circulation though. Where is it? who has it and what are they doing with it? I have a theory.
And if you wonder why that is a problem, think about how it will feel if your money is worthless, buys NOTHING....food, gas, medicine, ammo.
Companies out of business. No jobs. Expect violence as Homeland Security tries to restore/keep order.