Professor James Galbraith sat down with Aaron Task to discuss the debt ceiling and the absurdity of the current debate earlier today (video below). Galbraith says that the US government is becoming a place of black mail where politicians strong arm one another in order to push their ideology forward. He says:
“We run the risk, first of all, of turning our government into a series of blackmail negotiations, where the full faith in credit of the United States government … becomes a kind of football for the various political agendas: the Republican agenda but also the President’s agenda on a long term deficit deal.”
More importantly, Professor Galbraith notes that the debt ceiling is entirely illogical and should be removed. He says:
“The debt ceiling needs to be taken off the table. It needs to be recognized that this is not something you tinker with [and] that it is inappropriate to call into question the obligations of the United States government.”
This whole charade has done absolutely nothing to improve the standing of the average American. Instead, it has diverted attention from what our politicians should actually be focusing on. Instead, they are using a phony law in order to grandstand, generate attention and waste everyone’s time and money.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.