Right now, the U.S. debt ceiling is merely a figment of the nation’s imagination. There is no debt ceiling as politicians spend without worry or care.
All this nonsense both sides go through every couple of years is political theater.
But now there is talk of eliminating it altogether, leading to unlimited borrowing and spending.
Speaking in front of the House Financial Services Committee on the Treasury and the Federal Reserve’s economic response to the COVID-19 public health crisis, Treasury Secretary Janet Yellen lent her support to efforts to abolish the debt ceiling.
Yellen explained that Congress is in charge of spending and taxes, so it should be able to have the ability to cover those obligations.
“If to finance those spending and tax decisions, it’s necessary to issue additional debt, I believe it’s very disruptive to put the president and myself, the Treasury secretary, in a situation where we might be unable to pay the bills that result from those past decisions,” Yellen stated.
The U.S. current possesses a national debt of $28.4 trillion, and President Joe Biden is already responsible for about $800 billion of that, despite landing in the Oval Office in January.
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