The debt ceiling -- Tupelo's Reed makes sense

We think it's safe to say that everybody in the world within earshot of a television, radio or podcast, understands the United States is on the brink of defaulting on its debts.  A little-known process called "raising the debt ceiling," a necessary step in preventing an economic collapse with world-wide implications -- something referred to by the previous administration who avoided catastrophe seven times by employing it as "housekeeping," has suddenly become a part of the common vernacular.  Kind of like "balanced budget" and "election promises."

We ran across a column by Tupelo's Scott Reed in Sunday's Northeast Mississippi Daily Journal, that was one of the most cogent discussions of the importance of this issue we've seen to date.  Mr. Reed breaks it down in terms everyone can understand.  We particularly note his closing paragraphs:

Raising the debt ceiling was what we have to do to pay our debts and the ramification of not paying our debts is unthinkable.

We are considered the safest investment in the world. If we give the world markets a reason to question that safety, then we will be sailing into uncharted and unsafe waters.

Bernanke said that we have spent years spending money with no plan for paying it back and then we say we will never raise taxes or decrease benefits. Then we complain about raising the debt ceiling.

Does any of that make sense?

The reason the two party system has done so well over the years is that it forces us to compromise on major issues.

One party can’t have it all, but it tends to fall apart when there is no compromise. That is what we seem to have in Washington these days.

The Republicans refuse to raise taxes and the Democrats refuse to cut services, yet we know that we have too little money and too many services.

One of the best things you can do for your investments is to tell your Congressmen and women that we are past the point of good sound bites and we need real change to the system. That will take willingness to compromise and a desire to do what is right for this country.

Not easy, but necessary.
Read more: NEMS360.com - SCOTT REED We need real change to our system

 

Scott Reed is CEO of Hardy Reed Capital Advisors in Tupelo.