I'm sure most of you guys were well aware of Ben Bernanke's segment today at U of Michigan.
During the interview he said
"Raising the debt ceiling ,which Congress has to do periodically, gives the government the ability to pay its existing bills. It doesn't create new deficits, it doesn't create new spending,"
By raising the debt ceiling, wouldn't that technically mean the government would be using additional borrowed funds to pay for its activities?
Can someone please explain to me how this makes sense or maybe I'm just slow or dumb.
yeah, wondering about that too... looking forward to an answer to this one...
First, you're confusing the 'debt ceiling' for the 'deficit' spending congress is entitled to do. Just go to this page... not very well written but it's there. http://www.poynter.org/latest-news/top-stories/140352/7-mistakes-journa…
He's just trying to make the argument that Congress has already approved the spending, so raising the debt ceiling to allow all that spending to occur doesn't mean we're authorizing more spending.
It's a stupid argument that people are repeating now to try to justify our nation's financial incompetence and unwillingness to be responsible for our own decisions.
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