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Re:" When you point out that you can't continue on this path of debt creation to stimulate jobs, because govt. created jobs are paid for by taxes paid by private business and private workers,..." is the tax payer myth. The govt creates money but businesses use money. Only deficit funding grows the economy and after 1971 USA is free to deficit spend without restrictions of the old balance (tax = spending - "govt_debt"), and change to the new balance (Federal Deficits = Net Private Savings+ net imports). Govt and private sector are on opposite sides of the equation. In short, (govt debt) is (peoples' anti-debt) and (govt surplus) is (peoples anti-surplus)! USA does not need to depend on taxes to fund anything. All deficits end up as private wealth anyway. All the above have been proved with real data from the treasury and fed. http://pshakkottai.wordpress.com/2012/07/31/cumulative-deficit-vs-household-net-worth/ The debt ceiling is totally imaginary after 1971 even though it gives an opportunity to the congress to do nothing. If spending is cut and taxes increased, the economy will suffer a depression.I repeat once more: Govt debt is peoples' savings. People own the money and collect interest. The govt has borrowed the money from itself and has to do NOTHING. The fed and treasury are both arms of the govt. See this plot of deficit vs. GDP in http://pshakkottai.wordpress.com/2012/05/25/188/ Did R&R use the old balance in addition to cooking excel?