DEBT LIMIT - A GUIDE TO AMERICAN FEDERAL DEBT MADE EASY IN 3 MINUTES

[JDPriestly]

5. If that guy could print his own money, then he could raise his debt limit.

How much stuff he would get in return for his money when he spent it might (probably would) change, but he would not have to ask anyone for permission to raise his debt limit.

That's what differentiates the family budget from the federal budget. Our Constitution authorizes Congress to print our money. It requires Congress to pay our debts. So, the size of our debt does not limit what we spend. It determines how much money we print.

The size of our debt determines how much we can buy on the market, but as long as those from whom we buy stuff are willing to sell us stuff for the money that our Congress allows our Fed to print, we can continue to print money.

We should not be worried about having our credit cut off. We should be concerned about having to pay more of our dollars for what we buy.

At the moment, prices are not rising precipitously. If they do, interest rates will go up, and then we will get more for the money we loan. For example, if interest rates go up, those who borrow from the Fed -- like banks, will have to pay higher interest rates on the money they borrow. And then, they will borrow less from us, but we might earn just as much if not more from the money we loan.

The guys in the video don't look too bright. And if they really think that the roles they are playing instruct Americans about our national debt, then maybe they aren't.