This whole debt ceiling charade has really cast a cloud over the American political process. And finally, the rating’s agencies are getting something right for a change. Moody’s says the USA should just eliminate the debt ceiling altogether:
“Ratings agency Moody’s on Monday suggested the United States should eliminate its statutory limit on government debt to reduce uncertainty among bond holders.
The United States is one of the few countries where Congress sets a ceiling on government debt, which creates “periodic uncertainty” over the government’s ability to meet its obligations, Moody’s said in a report.
“We would reduce our assessment of event risk if the government changed its framework for managing government debt to lessen or eliminate that uncertainty,” Moody’s analyst Steven Hess wrote in the report.”
I won’t get into the politics of this discussion, but the debt ceiling is pointless for one simple reason – it is based on past legislation. The debt ceiling is a lot like eating food and then tying your lower intestine shut. It doesn’t make a lot of sense once you’ve already consumed the meal….It’s time for the politicians to stop wasting time with this political charade and just get rid of the debt ceiling altogether.