What raising the debt ceiling means and how it will affect you...
I hope everyone realizes that by raising the debt ceiling we're essentially using a credit card to pay off another credit card and it's solving and avoiding absolutely nothing, it's just delaying and worsening the inevitable.
I'd also like to point out, our inflation would have to go up to 20% to match the 70's, which we all lived through, and if the cost of loans goes up, it'd be a good time to get into cash because in the 70's you could buy CD's that paid you 14% interest, rather than the 0.8-2% interest that you're getting now, which is actually losing you money.
Is it the end of the world? Probably not. Will prices of things go up? You bet your sweet ass they will. Interest rates will go back to realistic levels, inflation will rise and things will be much more expensive. So, your $6 happy meal will be $8 or $9. Save your cash.
The sad thing is, the government has f'ed the economy so hard that we are actually correcting back to NORMAL by having these things go up and we're all freakin' out like it's the end of the word. It's not normal to have interest rates at 1-2%! It's not normal that anyone and their brother with a part time job at the crab shack can take out a $400,000 loan on a house. The government is losing a crap load of money because interest rates are so stupidly low. Medicare and Social Security will be broke in a couple of years if we don't drive interest rates back up. Way up.
So, will rising the debt ceiling help us? We won't default on our loans, but we are essentially taking another loan out to pay the first loan. It's stupid. We'd be better off taking it in the face right now and working through it than delaying the inevitable, which will be much worse.
Pay off your loans now. If you have an adjustable rate loan, get it fixed NOW. You will be fucked if you don't. Save money now because bills are going to rise. All of them. Be prepared!
Invest in peace...
