Why is the debt ceiling argument idiotic?
There are more births than deaths everyday, so more money must be created to balance the increased demand.
There is only one way in our societies to create new money, and that is through debt and credit, Government or private.
The problem we are having right now is not a liquidity issue – the amount of money in circulation – it is a velocity problem – how many times and how fast money changes hand.
Too much wealth is concentrated into too few hands therefore not enough money is circulating stimulating the economy.
The debt ceiling will have to be raised more often as this trend continues.
It is absolutely dishonest to pretend that it is adding to our grand children’s debt, National debt rolls over every 7 years.