Raising the Limit on the National Credit Card

Ruby Slippers ^ | 12/11/09 | Mary Sue

[Ruby Slippers]

One month before Obama was elected as President of the United States the National Debt Clock, a digital counter near Times Square, ran out of space to track the national debt. This was after a Democratically controlled Congress had promised in 2006 during their first 100 hours in control they would drain the swamp, break the link between legislation and lobbyists and beyond that:

"All the days after that: "Pay as you go," meaning no increasing the deficit, whether the issue is middle class tax relief, health care or some other priority."

Today that same debt clock reads slightly over $12.1 trillion reflecting an increase of close to 2 Trillion dollars since October 2008. While the clock in Times Square found a way around the debt that became too large for their clock, Congress now ponders a solution to a debt too large for their self-imposed limitations.

[BradtotheBone]

http://usdebtclock.org

[YankeeReb]

I heard a couple of GOP congressmen were going to attach an amendment to the 0bamacare bill that would not allow for the raising of the debt limit. What happens if they don’t raise the debt limit?

[jimpick]

No no it’s legal to steal from the public if we say so were the government.

[Ruby Slippers]

The power to borrow additional money was taken from the treasury with the 2nd Liberty Bond Act of 1917. If the Congress doesn't increase the debt limit treasury can't borrow any additional money to fund increased spending. If they don't raise the limit, they would have to raise taxes or decrease other spending in order to spend anything else since they are likely to hit the borrowing limit at the end of this month.

Congress of course doesn't want to either raise taxes themselves and certainly don't want to decrease spending so they are hoping the increase in the debt limit will fly under the radar or they will only suffer the consequences now in public opinion hoping the public will forget by midterms.

Ed Morrissey points out Kent Conrad is leading a group of moderates who wants to increase the debt limit only if an independent panel is appointed to focus on deficit reduction with powers to force tax increases or spending cuts through Congress. Not only is this is a flagrant admission they can't do the job they were elected to do, they will empower an unaccountable body of elites to do the job for them. Ultimately the task force would give them the tax increases they are so desperately seeking but don't have the courage to vote for.