The U.S. Debt Limit; Just More of the Same

Building upon the last post, here is interesting news about the U.S. debt limit:

Obama to Seek $1.2 Trillion Increase in U.S. Debt Limit Dec. 30
http://www.bloomberg.com/news/2011-12-27/obama-to-seek-1-2-trillion-increase-in-u-s-debt-limit-dec-30.html

My favourite line in the article is this:

“Obama may have little difficulty financing a fourth consecutive year of $1 trillion budget deficits after the U.S. government received record demand for its bonds in 2011, pushing longer-maturity Treasuries to their best performance since 1995.”

It’s just so matter-of-fact.  The way that governments in the early 21st century pay for its services is simply by selling high-performing debt (translation: by selling the future wealth of its citizens).

I can’t wait to see what happens in three days time.

Peace

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