Shut it Down
By Laurence M. Vance
Campaign for Liberty
The federal government has once again reached its debt limit. With the federal deficit exceeding $1 trillion for the third straight year, and the government’s inability to exceed the debt ceiling of $14.294 trillion, there is talk once again of a government shutdown.
This does not mean, however, that the government has ceased borrowing money. Treasury Secretary Timothy Geithner has already said that he will halt investments in two government pension plans so the government can continue to borrow money. He also said that unexpected revenue and bookkeeping maneuvers will allow the Treasury Department to continue auctioning off more federal debt. Geithner adds, though, that if Congress doesn’t increase the debt ceiling by August 2, the government faces the possibility of defaulting on its debt. .....
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