I just read this at Euro Pacific Capital, Peter Schiff’s company. He says we should eliminate the debt ceiling so our creditors can cut us off:
“Such a development may be the shock therapy our creditors need to finally cut us off for good. If that occurs, interest rates in the United States could finally rise to more rational levels. A significant increase in the cost of borrowing will create the mother of all fiscal cliffs. It’s too bad that Tim Geithner can’t see that one coming.”Pragmatic Capitalism
This is not correct. Schiff misunderstands the design of our monetary system....
Eliminating the Debt Ceiling Wouldn’t Cause Interest Rates to Surge