Dr. Martin Hash Podcast

The idea of a Debt Ceiling comes from Article I of the U.S. Constitution, saying that Congress must authorize spending, back when accounting was first confused with economics, and only Alexander Hamilton seemed to understand the imaginary aspect of money. Debt Ceilings are an emotional issue, not really a financial one; it makes no practical difference what the Debt Ceiling is or even the amount of spending, but there are irrational fears at play from some antiquated, anachronistic misunderstanding of money, mixed with a healthy dose of pontification & demagoguery by politicians preying on fear to stay in power.

Nowadays, the politics of raising the Debt Ceiling dominates the news cycle more and more frequently as a way to leverage power; it's how Parties can hold everyone hostage to single political positions; like border control or universal healthcare. In fact, the Debt Ceiling is even more arcane and useless than it sounds because it doesn't limit spending, only government paying for it; a nonsensical farce where congress authorizes the spending but not the payment. Ostensibly this could end up bad but it never has, and never will because there is no limit of extraordinary maneuvering and bookkeeping which can be used to circumvent its intent, which is to limit the power of government; nothing can do that.