Posted on 01/04/2011 2:58:39 AM PST by Scanian
White House Council of Economic Ad visers Chairman Austan Goolsbee is warning of cataclysmic results if the new Republican House majority holds back on raising the nation's debt limit.
"I don't see why anybody's playing chicken with the debt ceiling," he says. "If we get to the point where we damage the full faith and credit of the United States, that would be the first default in history caused purely by insanity."
Blah, blah, blah.
Or, taken another way, a collapse is coming -- but what kind of collapse?
Not raising the debt ceiling could cause a default. But so, eventually, will trillions in new borrowing every year.
The national debt today sits at $13.9 trillion and could hit the $14.3 trillion ceiling -- approved just last February -- as early as this summer.
The GOP insists on serious spending cuts before the ceiling is raised again.
Which is exactly right.
As the November elections proved, no issue unites Republicans, Tea Party activists and ordinary Americans more than opposition to the out-of-control spending of the last two years.
Goolsbee might listen to the sage words of a senator from 2006:
"[The vote to raise] America's debt limit is a sign of leadership failure. It is a sign that the US government can't pay its own bills [and] that we now depend on ongoing financial assistance from foreign countries to finance our government's reckless fiscal policies . . . "
An insane Republican?
No, that was then-Sen. Barack Obama
(Excerpt) Read more at nypost.com ...
They were not in charge of the Loot at that point.
If we defaulted on the national debt we wouldn’t be able to borrow any more money.
and that is a disaster because?.....
We are going to default—the only question is when and how.
After that the government will be substantially reduced in size and will have a balanced budget.
Win. Win.
It would be better to have a plan to get from here to there—but that is really asking a bit much from the folks inside the beltway who love to spend other people’s money. So we will do it the “modern” way—accelerating as we crash into the wall—and then announcing that it was “unexpected”.
The first option I see is spending cuts followed by elimination of interest payments to the Federal Reserve.
The sooner we get this over with, the better...before it’s 20 trillion.
If the debt ceiling is not raised then spending plateaus out. It’s not like we can’t get along with just a measley 14 trillion.
Gotta start thinking of all those incidentals we can’t afford.
Or, Democrats and the GOP will declare an emergency, and suspend ‘parts’ of the Constitution. ‘Technical parts’.
( well, Ok, so they skip the public declare part. )
And this idiot claims that it will be “Catastrophic” for the economy and the country if we do not raise the limit, so they can keep spending up to that new limit and beyond. Which they did several times last year. (Omnibus spending bills equaling over 2 Trillion)
And spend they will. Raise the limit, spend it as fast as they can because they now have more to spend, once they go over that mark, (Half way through the year) pass more “Omnibus” spending bills which they claim does not count to finish out the year.
Repeat, raise the limit, spend it, pass obnibus bills to keep the government running you know, raise the limit, keep spending,........What the hell! This is easy!
Stop the insanity. Default and rebuild. We are way past due for a Federal Bankruptcy.
Constitution? What Constitution?
A default would only occur if available funds were not spent to service the debt. So what the White House is saying is that they would rather default on the debt than cut the outlays of the massive nanny state.
Frankly, I have ceased to see a default as a bad thing. When someone’s spending is out of control and they have no will to bring it under control, it is always the creditors that take the first step in reigning it in.
There is nothing else imaginable that would force massive cuts in the nanny state like a bond offering failure.
Perhaps its time to cut off the Twinkie supply to the 400 pound woman. Yes she will scream that she is being starved, but we all know that she is a long way from that.
Not going to happen, granted there still is millions of dumb obama supporters still waiting for their “feed” ration the better brained Americans have been stockpiling and reducing frivolous spending.
Of course the desperate liberals are all in a panic that frivolous spending or bling buying has slowed, well perhaps a lot of people are looking ahead.
Has anyone read the books by Forrest MacDonald regarding the founding fathers and what happened to them after the American Revolution,the ratification of the Constitution and the development of the United sates of America?
I bet anyone that Barack Obama has never read any books regarding the founding fathers of the United states of America. he probably has never read the Federalist Papers and Anti Federalist Papers (2 separate books). nor the books written by Forrest Macdonald regarding the Constitution, Constitutional Convention.
I honestly believe the only books he has ever read in his life are books that talk only about how bad america is. how to deal with the ending of a country and how to wallow in your own self hatred. he probably never ever read the Bible, (unless Jeremiah Wright read it to him).
It takes two to play chicken.
Why the H should any modern person be expected to read drivel about old-time, slave-owning, white elitists? /s
Now that the Fed is buying bonds, there never will be a bond offering failure. They will just continue to steal from us all until it all collapses.
Including the one Chavez handed him.
I thought they could just print more money. It’s worked so well so far/s/.
The problem with a default is you’re assuming that the politicians are enough of a bunch of grownups to accept that no more borrowing means they are cut off from funds. It doesn’t always (or even generally) work that way. These are the people who have the ability to print money. They will simply try to inflate their way out of the mess, and the consequences of that are disastrous.
And the next time the GOP is in charge they’ll do the same thing.
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