from Gold Core:
The US government has once again agreed to increase it’s so-called debt “ceiling” – this time from $18.5 trillion to $20 trillion. The so-called debt ceiling is recognized industry-wide as a complete misnomer.
“The phrase “debt ceiling” sounds austere and restrictive, as if intended to keep a lid on government spending. Actually, the U.S. national debt limit was conceived almost a century ago to do the opposite: to make it easier for Washington to borrow money” (see: Bloomberg Quicktake)
Investment advisers Casey Research yesterday called the debt ceiling ‘a farce’. “Last week, Forbes reported the U.S. government has raised the debt ceiling 74 timessince March 1962. The latest increase – number 75 – should help fund the government until March 2017 or so.”
They highlight just how serious and foreboding these uncontrolled US debt levels are: “With a debt of $18.3 trillion, the U.S. is the most indebted nation in the history of the world. This massive and unprecedented debt load is extremely dangerous. We believe it’s only a matter of time until it sparks the next financial crisis.”
In their article Casey Research point to the extremely low interest rates as another dangerous factor in the US debt game. “The Federal Reserve dropped its key rate to effectively zero in December 2008. Seven years of easy money has made it incredibly cheap for consumers, businesses, and the federal government to borrow money”.
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