Is there really a "debt ceiling" or did it actually dossapear a long time ago?

Yes except for the fact that by law, congress can only increase the deficit as high as it is allowed by law, which is whatis being referred to as the "debt ceiling". He is correct that logistically, the United States can borrow just about as much money as it wants but legislatively, increasing the federal debt requires a bill to be passed, otherwise the treasury is not allowed to pay out any additional money, which could result in a default, and has already resulted in a credit downgrade.

By law, the government has a credit limit just as you do with your credit card and when that limit is reached Congress has to either increase it or the government has to stop spending more than it takes in. Default is not a problem because the Constitution requires that the interest on the debt has first priority on government spending. Today, with interest rates near zero, the interest is about $1 billion/DAY. If interest rates go up, as would happen with inflation, that would go up and other spending would have to be cut back.

LOL

Sure some people really missed history classes...

The Weimar Republic (Germany) tried to do it to pay the WWI war debt in the '20s...

... and in ONE year the Mark's value passed from 320 to 4,210,500,000,000 per US DOLLAR

https://en.wikipedia.org/wiki/Hyperinflation_in_th...

Edit:

" the real threat is inflation, not default."

Wrong, it's BOTH.

If the country default, that means no money to pay for public services, public employees and for the yearly interest on the public debt.

That turn in a lower rate of the American debt, which turns in higher interest to borrow money through bonds.

I agree with Ted Cruz, the federal reserve should be investigated from top to bottom. When they print money, they are playing with fire and it goes way beyond just printing money to pay our bad debt off.

You people have all drunk the 0bama Kool Aid.

It's really more symbolic now. I think it should be abolished. Nothing, including republican obstructionism, should ever be allowed to endanger the credit and investment potential of the US government.

It looks like you are looking through a sky light now.

http://www.politifact.com/truth-o-meter/statements...

sick just sick - thanks capitalism