US debt limit raised to $8.96 trillion

The 8.96 trillion is a big number thats thrown around alot. If you've taking some economics classes you'd find out its very misleading and takes into account debt that's not even really bad debt (aka government in debt to itself). Also if you look at the ratio of GDP growth to Debt growth you'd find that our ability to pay the debt has been going up, not down.

Nevertheless, the crowding out effect will happen. Less money will be available to be loaned out to businesses and economic growth will ultimately slow a little. Its all tradeoffs and there's really no right answer.

Jam it back in, in the dark.

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Or we'll see rising interest rates and inflation.

Exactly what i implied, because obviously if there's less money for the private sector then interest rates would go up. Hence, why i said there would be less investing.

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Which is why I asked if paying "short term debt with long term debt" made sense to anybody

It does, but like everything else it involves a trade offs. Putting payments off till later isn't necessarily a bad thing. Of course you'll dissagree, but economically it really doesn't hurt us that much. It just means we'll have to pay back more later. A simple now versus later problem, and when those occur government loves the later. It's not really right or wrong.

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But maybe the effects of increasing taxes could hurt the economy more then the amount the debt will burden us later on. Of course, knowone can really know this but its a valid point to bring up.

This thing is sticky, and I don't like it. I don't appreciate it.

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Why not just spend less? These record deficits aren't happening with nothing driving them.

If you're talking about the government, I agree. But lets be honest, spending less doesn't work with politians. They only know increase so they can get re-elected and be considered a good president. Thats the way I feel anyways. Since most people are to stupid to understand sacrificing things now, for better things later they can get away with it. Knowone does anything unless the problem is right at their feet.

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If the current population isn't paying it, then all its doing is passing the buck to the next generation to be taxed more heavily to pay it off.

Not necessarily true. As long as productivity increases with the debt, technically there won't be a higher burden. But (feels repetitive) its impossible to tell if this will happen so there's a good chance you're right.

But you know, the bigger problem is social security. Buts thats for another topic

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