Last Year’s Debt Ceiling Fight

I was watching “Meet The Press” yesterday and during David Gregory’s interview of Mitch McConnell,¬†Gregory was hounding McConnell on whether or not he would use the debt limit as a bargaining tool over the next month. Fair enough, but one thing he kept repeating kept grating against my skull. He kept implying that the reason the US rating was downgraded after the last round was simply because the fight happened in the first place. This is ridiculous. The debt was downgraded because we as a nation have a negative cash flow of about $100B per month and no viable plan to even marginally address this problem. Gregory kept implying that if only Republicans had not made the debt limit an issue, our credit rating wouldn’t have been downgraded. Financial ignorance is nothing new, and since McConnel didn’t call him on it, it’s a pretty safe assumption they are in the same boat. Looking at the facts, it’s a wonder US debt isn’t rated as Junk.

Full Disclosure….a few years back I liquidated about $1k of savings bonds my kids had received from their grandparents for college and purchased silver dollars. I have no regrets.