Update: Added some great quotes from The New Yorker at the end of the post.

With all the doom and gloom about raising the debt limit of the US government (currently at $14.2 trillion dollars), it’s hard to remember that this is the original issue which started all this hysteria about government spending and whether or not to raise taxes.  I strongly believe that the debt limit itself is useless and does little to control spending.  There are far more useful market incentives to controlling the debt, and it is frustrating to watch this become such a political football when real people are the ones who suffer if the US defaults.

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