This may be exactly what they’re all thinking but never say. The mayor of New York now has said it and you have to wonder whether anyone is going to point out not just that he’s wrong but also explain why.
While saying the federal deficit does indeed need to be curtailed, Mr. Bloomberg argued the United States could owe ‘an infinite amount of money’ and there is no specific amount that would cause the country to default.
‘We are spending money we don’t have,’ Mr. Bloomberg explained. ‘It’s not like your household. In your household, people are saying, “Oh, you can’t spend money you don’t have.” That is true for your household because nobody is going to lend you an infinite amount of money. When it comes to the United States federal government, people do seem willing to lend us an infinite amount of money. … Our debt is so big and so many people own it that it’s preposterous to think that they would stop selling us more. It’s the old story: If you owe the bank $50,000, you got a problem. If you owe the bank $50 million, they got a problem. And that’s a problem for the lenders. They can’t stop lending us more money.’
But as the first of the comments asked, “If the government can borrow an infinite amount of money, why are we still paying taxes?”