The US debt ceiling has long been a source of political posturing and maneuvering, with each party using the threat of a potential debt crisis to gain an advantage over the other. Despite the political rhetoric and media attention surrounding the debt ceiling, the truth is that the US is an economically and militarily powerful nation, with close allies and a dominant position in the global economy. This, combined with the fact that the debt ceiling has never been a real barrier to government borrowing, makes the debt ceiling more of a political tool than a real emergency.
To further elaborate, the US economy is vast and diversified, with a GDP of over $21.4 trillion as of 2020, making it one of the largest economies in the world. This economic might, along with the US military strength, provides a great deal of stability and influence to the country. Additionally, the US dollar serves as the world’s reserve currency, meaning that other countries hold large amounts of US dollars to protect their own economies. This further reinforces the stability of the US economy and makes it less likely that a debt crisis would have a significant impact on the global economy.
The support of the US close allies also adds to the lack of real urgency surrounding the debt ceiling. The US has long-standing political, economic, and military relationships with countries such as Canada, Australia, and the European Union, and these allies are unlikely to abandon their support even in the face of a debt crisis. This further enhances the stability of the US economy and makes it less likely that a debt crisis would have a significant impact on the global economy.
Furthermore, the history of the debt ceiling itself demonstrates that it is more of a political tool than a real emergency. As previously mentioned, the debt ceiling has been raised 80 times since its creation in 1917, and it has never been a real barrier to government borrowing. This shows that the debt ceiling is not a permanent or insurmountable barrier, but rather a political tool that can be used to extract concessions from the opposing party.
While the debt ceiling may seem like a critical issue at the moment, the truth is that the US debt ceiling is more of a political game of power than a real emergency. It is a tool for politicians to gain leverage and exert their power, but it has little impact on the underlying causes of the national debt or the government’s ability to pay its bills.
Because at the end of the day, there is no other country out there at this time that can be a threat to the US hegemony. Libya’s Muammar Gaddafi tried with his push for the middle-east to adopt the gold standard and it did not end well for him.