Lower the Debt Ceiling
By Melancton Smith • Monday January 14, 2013 5:29 AM PDT •
From the New York Sun:
That is the headline on the 30th anniversary issue of Grant’s Interest Rate Observer, which this morning is, as it has been every other week for the past generation, being savored among the savvy. The latest headline sits atop one of the newsletter’s classic editorials. “Since 1917,” it quotes its analyst, Charley Grant, as reporting, “the ceiling has been raised 107 times. Expressed as a compound annual rate of growth, the debt ceiling has risen by 8.4%, the nominal GDP by 6% Twenty-nine more years on this track and the debt ceiling would be the size of the GDP.”
Grant’s also quotes President Van Buren as saying that the “creation in time of peace of a debt likely to become permanent is an evil for which there is no equivalent.” It is Grant’s view that it would “do the quality of debate a world of good if someone would move to reduce the ceiling, not to raise it.”
Would that our statesmen had the courage to listen to Grant’s on this one.