LR Podcast: The Real Problem with the Debt Ceiling

A lot has been made of the recent raise of the U.S. government debt ceiling. There are plenty of pros and cons. Most conservatives would agree that we could have and should have done better. That’s a subject that other pundits and experts can debate. The “debt ceiling crisis” and the looming default on the debt that has been so far averted, are just symptoms of a greater problem, our out-of-control federal spending and the debt. It’s really very simple, if you don’t increase the debt, you don’t have to increase the debt ceiling.

One problem preventing the GOP from doing the right thing and getting a better deal, was the prospect of fighting an uphill battle against the mainstream media over public opinion. ⁠An article in the Daily Signal⁠ describes how the a compliant mainstream media perpetually siding with the Left on such issues helped cause the problem.

President Biden tried to lay the blame of any prospective default on the debt at the feet of the Republicans. But why was it necessary to raise the debt ceiling in the first place? Because the previous Congress, a Democrat-led Congress, passed a budget that blew though the existing ceiling and the Democrat President signed it.

The debt ceiling wasn’t the real problem, the deficit spending was. Our debt was. Because of exploding federal spending since 2020, the Federal Reserve was forced to print more dollars. With each new dollar printed in excess of the old total, each individual dollar became worth less. According to Modern Monetary Theory, since the US Dollar is the world’s reserve currency, not all of those dollars will stay in the American economy, thereby avoiding a lot of the inflation.