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Friday, July 15, 2011

Should We Be Concerned About the Debt Ceiling Debate?

During the hay day of credit card largess, it was a common ploy for the credit card companies to extend your credit limit. Did that mean you were obligated to charge more? Of course not. Did most people take advantage of the additional credit? Yes they did. Will the government take advantage of the opportunity to borrow more if the debt ceiling is raised. Probably. Remember, the government is made up of people just like  us.

Reaching our debt ceiling is not the same as defaulting on our debt. When you reach the maximum on your credit card, what do you do? You stop spending. You have no choice. But what about this threat that our credit rating will be lowered and consequently it will cost more to borrow money, not just for the government, but for all of us. No loans for small business to expand and hire more employees. Sorry, but hasn't that been true since the economic crisis began? Has anyone mentioned that our government's biggest creditor, China, has already lowered our credit rating as of  last year?

Personally, I say a pox on both of their houses, Republicans and Democrats alike. Are they just trying to divert our attention from the fact that the economy still sucks? That people are still out of work in large numbers, and that the  housing market is flat.

You may say that I don't get it, that I'm simplifying the issues. Hey, what can I say, I'm a little bit simple.

Sharon

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