Washington's Debt-Ceiling Debate – A Political Sham

I have to tell you that - as a former international merchant banker - I want to laugh out loud when I hear the dire predictions of how the United States will have to default if Congress doesn't raise the nation's debt ceiling. With a little Wall Street-style creative financing - even when the government's outstanding debt level reaches the official limit of $14.3 trillion sometime around the end of March - there's no reason why the country can't go on borrowing as if nothing has changed. The debt-ceiling debate is something you're going to hear a lot about in the days and weeks to come. The Obama administration just yesterday (Monday) introduced its fiscal 2012 budget proposal - a spending plan that's certain to ignite a firestorm of debate between Democrats and Republicans. And those arguments about next year's spending plan will absolutely feed into a heated showdown over the federal debt ceiling . But the two sides are arguing about the wrong thing: It's the country's debt load - not the debt ceiling - that has to be addressed. And I can prove it to you. Like a consumer who's in over his head, Uncle Sam has several alternatives available before his creditors arrive to repossess his vehicles and cut up his credit card. By highlighting some of the "debt dodges" that are available, I will show you that the dire near-term predictions aren't anything to fear. Long-term, however, this country really does need to slash its debt-load. But that requires a real commitment, not political maneuvering. To see through this "political theater," please read on...
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