Here we go again. . . . . . . .Should we raise the Debt Ceiling again???
Drue-AFCL
2012/05/16 02:36:51
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45 votes
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10 votes
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18% | |||
so it doesn't look so big...
The federal government once again has reached the limit of its legal ability to borrow money, meaning it cannot issue new Treasury debt without action by Congress to increase the debt ceiling limit. As of this month, our “official” national debt- which doesn’t include the staggering future payments promised to Social Security and Medicare beneficiaries- stands at $14.2 trillion.
The debt ceiling law, passed in 1917, enables Congress to place a statutory cap on the total amount of government debt rather than having to approve each individual Treasury bond offering. It also, however, forces Congress into an open and presumably somewhat shameful vote to approve more borrowing. If the new Republican majority in the House of Representatives gives in to establishment pressure by voting to increase the debt ceiling once again, you will know that the status quo has prevailed. You will know that the simple notion of balancing the budget, by limiting federal spending to federal revenue, remains a shallow and laughable campaign platitude.
It is predictable that Congress will once again merely delay the inevitable and raise the debt ceiling, after the usual rhetoric about controlling spending, making cuts, and yes, raising taxes. We have heard endless wa...
The federal government once again has reached the limit of its legal ability to borrow money, meaning it cannot issue new Treasury debt without action by Congress to increase the debt ceiling limit. As of this month, our “official” national debt- which doesn’t include the staggering future payments promised to Social Security and Medicare beneficiaries- stands at $14.2 trillion.
The debt ceiling law, passed in 1917, enables Congress to place a statutory cap on the total amount of government debt rather than having to approve each individual Treasury bond offering. It also, however, forces Congress into an open and presumably somewhat shameful vote to approve more borrowing. If the new Republican majority in the House of Representatives gives in to establishment pressure by voting to increase the debt ceiling once again, you will know that the status quo has prevailed. You will know that the simple notion of balancing the budget, by limiting federal spending to federal revenue, remains a shallow and laughable campaign platitude.
It is predictable that Congress will once again merely delay the inevitable and raise the debt ceiling, after the usual rhetoric about controlling spending, making cuts, and yes, raising taxes. We have heard endless warnings about how irresponsible it would be to “shut down the government.” The implication is that sober, rational, mature pundits and politicians understand reality, while those who oppose raising the debt ceiling limit are reckless ideologues who will harm the economy just to make a point.
But like any debtor that has to reduce its spending, the federal government simply needs to establish priorities and stop spending money on anything other than those priorities. Interest payments on our federal bond debt likely will amount to about $500 billion for fiscal year 2011, an average of $41 billion per month. Federal tax revenues vary by month, but should total around $2 trillion to $2.5 trillion for FY 2011-- an average of perhaps $180 billion per month. So clearly the federal government has sufficient tax revenue to make interest payments to our creditors. For now, those interest payments represent about 12% of the total federal budget.
What nobody wants to admit is this: even if the federal government has only $1.5 trillion remaining to spend in 2011 after interest payments, this is PLENTY to fund the constitutional functions of government. After all, the entire federal budget in 1990 was about $1 trillion. Does anyone seriously believe the federal government was too small or too frugal just 20 years ago? Hardly. So why have we allowed the federal budget to quadruple during those 20 years?
The truth is, in spite of how cataclysmic some might say it would be if we did not pass a new debt ceiling, it is hardly the catastrophe that has been advertised. The debt ceiling is a self-imposed limit on borrowing. The signal congress sends to worldwide markets by raising the debt ceiling is simple: business as usual will continue in Washington; no real spending cuts will be made; and fiscal austerity will remain a pipe dream.
When our creditors finally wise up and cut us off, we will be forced to face economic realities whether we want to or not. It would be easier to deal with the tough choices we face now, on our own terms, rather than wait until we are at the mercy of foreign creditors. However, leaders in Washington have no political will to admit that we cannot afford to continue spending without any meaningful limit. They prefer maintaining the illusion and putting off reality for another day
Congressman Ron Paul
http://paul.house.gov/index.p...
“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure,” he said. “It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. … Leadership means that ‘the buck stops here.’ Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt and a failure of leadership. Americans deserve better. I therefore intend to oppose the effort to increase America’s debt limit.”
Since the American debt is impossible to pay back, and it's getting tot he point where even the printing presses are straining to print enough money to pay the interest does it really matter anymore?
In the hope there is a glimmer of sense left, cutting spending would be a great idea to look into before the United States loses it's position of global reserve currency.
It's like this... Imagine you owe the bank $10 million... and you have only $20,000 per year income, zero assets. Obviously no chance you can ever repay that $10 million debt.
So do you then worry if you should borrow even more? Maybe another few $ million?
Sure, why not? It will all end soon. It won't be nice.
If we don't there will be alot of suffering going on, that's for sure.
And guess who will be suffering ?????
Not our political leaders, lol, Noooo, who will be suffering are We The People, as always.
But not before our political leades go once again through the circus of buffoonism.
Where they will act like the children they are before millions of Americans who will vote them into office again.
So who is the fool here???
The foolish political leaders, or the people who follow and support them.
Think about it, and think hard if your able!!!!
By voting for another form of government that put's the power back in the hands of the people. The Green Party.
But I suppose that is not what we want as we keep voting in the same logic time and time again.
We know it's gonna suck and it'll probably be worse than anything this nation/world has ever faced. But it's gonna happen and the only way to survive it is to go through it.
This was a set up from the debt ceiling debate last summer. It also explains Obama and the democrats insisting on running the government on Continuing Resolutions. This upcoming debate over the debt ceiling was politically timed by Obama and the democrats to happen during the height of the campaigns.
Obama is hoping he can turn this against the republicans as he tried to do the last time but all polls are indicating that the majority of the public have little confidence in Obama overseeing the fiscal and economic health of the country. Look for the Demonic-Rats to add some pork or garbage into the mix that the republicans are not going to go for and then for Obama to claim the republicans caused another downgrade. Yes I said another downgrade because Moody's and S & P have already warned that failure to get spending (deficit spending) under control will result in another downgrade.
A credit downgrade would play into Obama's plans also since under the criteria outlined under PDD 51 anything that threatens the financial security of the United States can be considered justification for a presidential dictat...
This was a set up from the debt ceiling debate last summer. It also explains Obama and the democrats insisting on running the government on Continuing Resolutions. This upcoming debate over the debt ceiling was politically timed by Obama and the democrats to happen during the height of the campaigns.
Obama is hoping he can turn this against the republicans as he tried to do the last time but all polls are indicating that the majority of the public have little confidence in Obama overseeing the fiscal and economic health of the country. Look for the Demonic-Rats to add some pork or garbage into the mix that the republicans are not going to go for and then for Obama to claim the republicans caused another downgrade. Yes I said another downgrade because Moody's and S & P have already warned that failure to get spending (deficit spending) under control will result in another downgrade.
A credit downgrade would play into Obama's plans also since under the criteria outlined under PDD 51 anything that threatens the financial security of the United States can be considered justification for a presidential dictatorship. Another downgrade and the U.S. may or may not be able to continue to finance it's debt at any rate lower than the Pay Day loan places which would ultimately be a debt we could not service (make the payments on) without making the cuts we should have years ago. When all the freebies for freeloaders is cut off or reduced severely the freeloaders will take to rioting in the streets expanding Obama's justification for martial law and a dictatorship.
Anyone that has kept up with the recent executive orders of Obama and other things such as the FAA being pushed to work out the logistics of 30,000 DRONES over U.S. soil (drones which can be equipped with tear gas and weapons) probably can see how all of Obama's actions (or lack thereof) have been carefully orchestrated to set up his dictatorship. Obama and the democrats have set up the "Perfect Storm" in which they will remain in the "eye of the storm where it's nice and calm" while everyone else faces the devastation and the liberals have supported it and done all they can to advance it through lies and deceit with enthusiasm.
Start making your list of all those supporters so when it happens you can a least be sure to tell them Thanks a lot dumbass..................