We currently have the highest inflation levels in nearly 40 years.
Our businesses in particular are suffering with the highest business inflation ever recorded, but Democrats and Republicans alike see no issue in increasing the debt limit and debt spending.
Anyone who is familiar with the stock market or capitalization structures will tell you never to assume debt by buying companies and corporations with a large current debt to working capital ratio or sizable long term debt.
The reason for this is simple and straightforward: a business with a lot of debt is typically a poorly run business—unless that specific industry calls for a lot of debt spending, and even then there are acceptable and alarming levels of debt.
A country is no different, and just as it is generally ill advised to buy a company that has a 60% debt to asset ratio, it would be ill advised to push a country into such highly leveraged territory.
A truly sustainable business has assets and working capital well in excess of its liabilities, and the best of the best can cover debts and liabilities many times over.
In 2020 U.S. debt was 128% of GDP….this is by definition unsustainable. The enterprise that is The United States has assumed a debt that is roughly 30% above its entire production and public spending output combined.
Increased debt spending at this point is a slap in the face to Americans, and a damning sentence for future generations.
People in this country like to make a lot of noise about ‘the children’ and how we need to ‘invest’ in the children because they are our future.
How can anyone make these statements with a serious face while looking at such financial figures?
Mitch McConnell and pretty much all those in government rob us with one hand while simultaneously robbing our children of their future with the other.
This is the net effect of reckless debt spending, and why McConnell now appears to be in trouble with GOP donors:
Mitch McConnell has long been viewed as a powerful figure many in the GOP would fear turning into an enemy.
Now, he's facing an assault from pro-Trump Republicans who are eager to unseat him as the party’s Senate leader.https://t.co/eZwfuqmWMk
— Axios (@axios) December 15, 2021
Raising the debt limit is like applying for more credit cards to cover the existing credit card bills you've already rung up. That should be a clear signal that you're spending too much. https://t.co/KGJzGRdi7X
— reason (@reason) December 8, 2021
GOP donors also are furious with McConnell and other Republicans who voted for President Biden’s $1.2 trillion bipartisan infrastructure bill.
As Axios reported last month, donors have complained it was foolish to help deliver a win to a Democratic president.
In addition, several Senate Republicans have privately and publicly criticized McConnell for cutting a deal with Senate Majority Leader Chuck Schumer to raise the debt ceiling.
CQ:"Pelosi said Wednesday she expects to pass a bill raising the debt limit before Dec. 15. She also said Congress will clear the roughly $2 trillion climate and social spending reconciliation package (HR 5376) before the Christmas holiday.
McConnell just enabled that
— Daniel Horowitz (@RMConservative) December 8, 2021
Sen. Mitch McConnell: "The amount of spending and taxing and debt is really threatening the financial stability of our country." pic.twitter.com/KSxm0RSFKI
— The Hill (@thehill) July 21, 2021
The Federalist had more on McConnell’s reckless deal:
The bill contains two components. One would create a process allowing a “one-time only” increase in the debt limit to pass on an expedited basis in the Senate.
The increase must occur between now and January 15, and must contain a whole-dollar amount increase in the limit. The language means that Democrats could not just vote to suspend the limit, and allow the Treasury to incur unlimited debt between now and a certain date.
The one-time debt limit increase resolution complying with this process could pass after 10 hours of debate and without amendment.