Citing the negative effects of political posturing, late last week Treasury Secretary Timothy Geithner recommended that Congress stop placing legal limits on the amount of money the Federal government can borrow. This would mean lifting the debt limit to infinity. In other words: no debt ceiling, and potentially unlimited spending.
TV host Al Hunt asked Geithner whether he thinks the US “ought to just eliminate the debt ceiling.”
Geithner replied: “Oh, absolutely…. It would have been time a long time ago to eliminate it”
Many opponents to Geithner and President Obama argue that putting an infinite limit on debt will remove any check to out of control spending. Others suggest that there will be natural, negative consequences to excessive borrowing that will serve as a natural check.
What do you think? Is this Government Gone Wild?
the US is the only country in the world with an artificial debt ceiling which must be raised by congress every time we want to grow GDP..