I sometimes wonder if Reagan could win a Republican primary today, despite being invoked early and often — few politicians seem to grasp who he was. In a radio address on September 26, 1987 Reagan said the following about the debt ceiling:
Unfortunately, Congress consistently brings the Government to the edge of default before facing its responsibility. This brinkmanship threatens the holders of government bonds and those who rely on Social Security and veterans benefits. Interest rates would skyrocket, instability would occur in financial markets, and the Federal deficit would soar. The United States has a special responsibility to itself and the world to meet its obligations. It means we have a well-earned reputation for reliability and credibility—two things that set us apart from much of the world.
Here is my message to Congress and especially those who are attempting to hold our nation hostage: grow up and pass a resolution immediately that eliminates the debt ceiling.
As I’ve stated earlier, the debt ceiling is an arbitrary number and a relic of the gold standard – it is not needed and is being used by both parties to advance agendas that they can’t otherwise find support for. The United States Government is not revenue constrained and does not EVER have to default on its dollar denominated debts.
Scott Dauenhauer, CFP, MSFP, AIF