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Scrap debt ceiling, it serves no purpose
Scubidu
#1 Posted : Monday, January 21, 2013 9:03:55 AM
Rank: Veteran


Joined: 9/4/2009
Posts: 700
Location: Nairobi
The title of an article in back of the Business Daily. Can't seem to find the link...

excerpts from the article...

"The national debt ceiling is a level imposed by law stating how much debt the Government can carry at any given time. Raising the debt ceiling like is also happening in the US, becomes necessary when government expenses exceed revenues, and there is need for borrowing to plug the deficit."

"But the rising recurrent expenditure is evidence that debt ceiling is an unsuccessful method of restraining spending by government. The US is, for example, grappling with a similar problem, where the debt ceiling has had to be raised so many times it has almost become a routine, yet it has not cut spending."

"Some economic commentators have argued that restricting budget deficits is a more efficient way of avoiding debt overload than putting an artificial ceiling. Others have argued that the debt ceiling is ineffective against pressures for fiscal spending, that is does nothing to prevent the government from living beyond its means."

interesting points.
“We are the middle children of history man, no purpose or place. We have no great war, no great depression. Our great war is a spiritual war, our great depression is our lives!" – Tyler Durden
emlyn ngwiri
#2 Posted : Monday, March 18, 2013 3:04:14 PM
Rank: Member


Joined: 8/12/2010
Posts: 129
Location: nairobi
Indeed.

Could the sovereign bond that Githae intends to issue reduce the level of indebtedness considering the level of GDP and GNP is quite high?
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