
The US Debt Ceiling Explained
The financial markets have built us a system wherein society, including governments thrive on debt. The simple premise being that the more you borrow to spend, the brighter the chances for an improving economy. Old-school thinking on the contrary is of the opinion that economic growth does not necessarily have to be based on debt and borrowing, but that's a different story. It is no wonder then, that money printing, or Quantitative Easing has become the primary tool for Central banks across the world to boost the economy. Ever heard of the phrase 'Do not live beyond your means?' Well that doesn't apply at a government level. Just so you know, the current US Debt Ceiling is at $US16.7 trillion which the Treasury Department alerted that it could be hit by mid-October 2013.
The Debt-GDP ...