The Great Entitlement Abyss and the Debt Ceiling

Last week our government borrowed $52 billion perhaps for the last time at the Treasury trough. We cannot borrow anymore legally, unless the debt ceiling is raised. The debt ceiling is an amount set by Congress to limit the indebtedness (aka reckless political spending) of our country which includes taxpayers like you and me. It is true, as Dr. Bernanke suggested, that the “government has a printing press” that serves to feed debt toward the debt ceiling. We all remember Dr. B and his now infamous speech in 2002 that reassured us all that deflation could always be easily dispatched through the government’s printing press.

Written by Michael A. Berry, Ph.D. - [ Discovery Investing Web Site ]