Mises Daily, by Russell Lamberti Originally published Saturday, December 14, 2013
Last week, The Week ran an opinion piece by John Aziz which argues that America (and all other
nations for that matter) should keep borrowing until investors no longer want
to lend to it. To this end, it is argued, the US should scrap its debt ceiling
because the only debt ceiling it needs is the one imposed by the market. When
the market doesn’t want to lend to you anymore, bond yields will rise to such
an extent that you can no longer afford to borrow any more money. You will
reach your natural, market-determined debt ceiling. According to this line of
reasoning, American bond yields are incredibly low, meaning there is no
shortage of people willing to lend to Uncle Sam. So Washington should take
advantage of these fantastically easy loans and leverage up. Here’s part of the key paragraph from Aziz:….To Read More….
My Take - Just a reminder! The national debt in 2013 was 17 trillion dollars. In seven years it's soared to just under 27 trillion. Where did all that money go?