Here we go again! Treasury Secretary Jack Lew is warning the government will run out of money to pay the nation’s bills, unless congress yet again raises the federal debt limit. Since 2010, Congress has raised the debt limit a staggering four times, increasing our national debt to over $17 trillion.
As part of the so-called budget deal that reopened the government last October, Congress suspended the $16.7-trillion debt limit through Feb. 7 — this Friday. But like all Ponzi schemes, there comes a time when you have to pay the piper; and come Friday, the government will yet again risk hitting the debt ceiling and damaging our country’s economy even more – if that’s even possible at this point.
Lew, while speaking earlier this week at the Bipartisan Policy Center, warned that if the debt ceiling isn’t raised it will “cause harm to our economy, rattle financial markets and hurt taxpayers.” Ironically, no one seems to understand that racking up trillions of dollars in debt every year is what’s really causing the “harm to our economy. ”
With tax season in full swing, outgoing refund checks mean the government will have even less cash on hand than usual. According to the Bipartisan Policy Center, the government will be unable to meet all of its obligations sometime between Feb. 28 and March 25.
Late last year Jim Rogers, one of the world’s top investors, warned his clients that the U.S. was heading towards an economic crisis that will make the 2008 crisis look like a walk in the park. In an interview with CNBC he said it all comes down to debt. Our country is borrowing somewhere around a trillion dollars a year, and it doesn’t take a super investor to figure out what’s coming.