GOP must not allow Obama and big spenders in both parties to blow through spending caps

Washington Times ^ | Sunday, October 18, 2015 | Stephen Moore

[expat_panama]

It hasn’t gotten much attention, but two big budget showdowns are looming in Washington in the weeks ahead. The first is what to do about raising the $18 trillion debt ceiling. And the second is whether to retain the spending caps/sequester cuts in the 2016 budget.

[snip]

President Obama has made his demands clear. He wants to bust the spending caps this year and he wants a debt ceiling extension from Congress with no strings attached.

[snip]

Some on the left argue that we should not even have a federal debt ceiling — that the government should have a rubber stamp to borrow at will. For the big spenders in both parties, this would conveniently eliminate one of the last checks and balances against runaway spending.

So the answer is no. Fiscal conservatives should demand reasonable conditions to reduce future borrowing in the future.

[snip]

Second, the debt has already grown by $7 trillion under Mr. Obama.

David Malpass, the respected New York-based economist at Encima Global, and I have drafted a plan that would provide reasonable restraints this time around. Currently the publicly held debt to GDP ratio stands at a 74 percent of annual GDP. It is expected to drift up to closer to 100 percent of GDP over the next 24 years. That’s a danger zone for sure.

[snip]

The White House and many on Wall Street, who care only about their own profits, will whine that this is fiscally irresponsible. Actually, borrowing $500 billion to $1 trillion a year is what is dangerous and irresponsible. If Republicans won’t fix the borrowing behavior of a runaway government, they are enablers and deserve at least half the blame.

[expat_panama]

Spending is the problem, not corporations, not the Federal Reserve. We need to cut spending.

[riverrunner]

But they don’t want to cut spending all they want to do is spend more and expand government.

[Cringing Negativism Network]

We need to cut spending, but we also (badly) need to bring back jobs to America.

We need to do both, at the same time.

Bring back Americans jobs.

[expat_panama]

GOOD MORNING --a happy Monday Pennant Day! 

Last Friday's "up in lower volume" was also a classic pennant signal (bullish) although if it fails we can also point out that prices had been declining (falling wedge/triagle) so it was a bearish signal.

Metals futures are grumpy (-0.60%) but hey they've got to do some profit taking sometime w/ that neat run they've been having (gold'n'silver back up to where they were last June).

Our only econ report is NAHB Housing Market Index (ho hum) so we got more time for this and other threads:

• Trump Says Yellen Keeping Rates Low To Protect Obama
• Number Of Chinese Billionaires Rose By 242 In Past Year, Overtaking US For First Time
• Wal-Mart’s Worst Stock Crash In 27 Years Is Another Sign That The Economy Is Rapidly Falling Apart
• The Poor in the US Are Richer than the Middle Class in Much of Europe
• What Could Raising Taxes on the 1% Do? Surprising Amounts
• High-income Americans pay most income taxes, but enough to be ‘fair’?
• Rich Nations Lose Emerging-Markets Motor
• If we don’t understand both sides of China’s balance sheet, we understand neither

[Diana in Wisconsin]

You so funny American Soldier Man!

Government won’t cut spending. Ever. That’s ONE thing you can take to the bank - ‘cept you can’t, ‘cuz Mother Government took all your cash. ;)

[1010RD]

Holding firm on spending is a big plus to the markets long term. It will give the next POTUS, hopefully a Republican, the opportunity to lower taxes without blowing up the deficit.

[Joe Boucher]

“Cut spending”?
How about eliminating about 65 percent of the federal worthless gub mint???

[mikeus_maximus]

Hey, WT: Are you seriously asking the same party to reduce gov’t spending that elected 2 Bushes and is pushing for third?

Ahahahaha! The US is a one party nation— the blind optimists who prop up the GOP just haven’t caught on yet.

[EQAndyBuzz]

“But they don’t want to cut spending all they want to do is spend more and expand government.”

What they want to do is say that they wanted 10%, got 5% and brag that they cut government by 5%.

[expat_panama]

...elected 2 Bushes and is pushing for third...

We'll probably be hearing a lot more of the old "bush's fault" song'n'dance on these threads as time goes on.  Just the same, our real goal is not more GOP bashing, what we need is to cut taxes and spending. 

If I'm going to fast here I can repeat that a few more times.

[silverleaf]

The problem is - they already blew through the “ spending caps” This is why the debt clock was frozen for 6 months ... The bills they incurred must be paid or defaulted ... Once default occurs we will be entering new territory .... Obama has us held hostage .... As distasteful as it is, Congress must act to pay our bills ...and all must know that Congress has been complicit complicit complicit ....... Will Boehner be in Jamaica by November when the Ebt cards don't reload?

[Carl Vehse]

"GOP must not allow Obama and big spenders in both parties to blow through spending caps"

The GOPe-controlled Congress will let Traitorobama and his regime to do whatever they want.

[citizen]

This is why the debt clock was frozen for 6 months ...

HAHAHAHAH...debt clock. Debt ceiling.

We all know there isn't a functional debt ceiling. At best, it serves as somewhat of a curb to runaway spending. Tho it's about as effective as my automobile hand parking brake would be at slowing an overloaded 18-wheeler on a 6% down grade.

[expat_panama]

We all know there isn't a functional debt ceiling.

It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so.

Mark Twain

[citizen]

Mark never got an eyeful of these modern Republicrats.
They are quite accomplished at fooling most of the people all of the time.

[expat_panama]

Ah, so we pretty much agree that the hang up isn’t limiting spending but rather the folks that insist they’re on our side that can’t seem to cut spending like they’ve agreed to.