Why the Very Notion of a Debt Ceiling Makes No Sense in the Current Debt-Based System.
The current system, that is unfair and not fixable, is that of an infinite increase in debt on pain of a complete collapse of the economy.
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On May 1, 2023, Janet Yellen warned that the U.S. could run out of steps to pay its debt obligations as early as June 1, 2023.
Nothing to worry about for those who follow this political show that happens year after year, with the same outcome every time: a debt ceiling increase.
A little over a week ago, it seemed that Joe Biden and Speaker of the House Kevin McCarthy were close to an agreement to raise the debt ceiling in America.
And then, in yet another twist in this political show, it was revealed late last week that the two sides had drifted apart again. It seems that Democrats and Republicans are keen to continue this dangerous game as close as possible to the June 1, 2023 deadline.
In the last few hours, we have learned that Joe Biden and Kevin McCarthy have resumed their discussions.
I won't try to scare you with false suspense: a political agreement will be found to raise the debt ceiling in America. Sooner or later. It can't be any other way, because otherwise, the current system would collapse.
Rather than scare you, I'd rather explain why the very notion of a debt ceiling makes no sense within the current system.
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