Tags: david | skarica | us | economy | debt | ceiling | default

Debt Ceiling Has Pushed US Back Against the Wall

By David Skarica   |   Thursday, 09 Jun 2011 01:03 PM

The United States can sometimes be a weird and wacky place. It likes to march to the beat of its own drummer.

For example, when most British Commonwealth countries broke away from the British Empire, most of them retained British common law. However, the United States did just the opposite when becoming independent and went to a republic form of civil law.

No country in the world outside of the United States has a debt ceiling. When countries go through a debt crisis, it is their own financial failings that force change — not some artificially introduced debt ceiling.

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Being from Canada, I can tell you that when Canada started to get its act together in the early to mid 1990s, it wasn’t because we were up against a debt ceiling.

Moody’s downgraded Canadian debt and years of socialism and overspending had left the country with high levels of unemployment.

Canadians’ backs were up against the wall — and not the ceiling — and they were forced to cut and scale back government.

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Because of these changes and after flirting with crisis, Canada now has one of the strongest fiscal positions in the world.

Has the debt ceiling kept politicians from spending? No.

Has it kept the national debt from getting out of control? No.

I want the U.S. government to cut back as soon as possible.

However, this will only be done when the United States reaches a crisis point. Some artificially introduced debt ceiling that is just going to be pushed upward again in a few years isn’t going to do it.

About the Author: David Skarica
David Skarica is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He also writes the Gold Stock Adviser. Discover more by Clicking Here Now.

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