Welp, congress passed a bill to raise the US debt ceiling, so all is right in the world! Or perhaps not. I'm no economist or congressman, but the entire system seems like a fabrication with nothing solid or backing that resembles any sort of reality.
For example, last Thursday CNN made THIS one of the headlines with regards to solving our problems with raising the debt ceiling. Essentially it proposed that the Treasury could mint two ONE TRILLION DOLLAR COINS that we could then take loans against. How can we just print without anything tangible to back it up? The coins aren't really worth a trillion each...unless there's a really expensive metal that hasn't made the periodic table yet.
I understood the minting process when we were backed by a gold standard, but these days, that is long gone. Money seems to be an idea, almost an afterthought, and I question its future legitimacy.
To top that, how does the US gain global financial confidence by raising the amount of debt we can incur, without ever paying it off? (this isn't the first time we've done this - and the vote is estimated to only last us through Thanksgiving!)
How will we ever stop this exponential debt crisis without making significant cuts? I understand that we may have to even cut really good things. But a few years ago, Kate and I decided we were tired of having debt, so we made a budget, stopped doing some of the things we "needed" to do, and have now been debt free for several years. This is how it works in real life! And now our chains are gone, and that feels good.
Right now, Kate and I are hoping to take a European vacation for our 10 year anniversary, which is coming up. That's a really good thing! BUT, if our budget becomes too tight, we can't do these really good things, we have to take care of our budget, and will have to put it off until it makes sense financially. That's how the world operates in reality - good things are put on hold when there's no money to back it up. Unless of course you can print trillion dollar coins...