The Debt Ceiling Charade

American Thinker ^ | Monty Pelerin

[ventanax5]

The circus surrounding the debt ceiling makes interesting theater but all the babble is irrelevant. How the debt ceiling is eventually resolved only changes the timing and extent of the economic collapse. In that sense, it has no bearing on the ultimate fate of the nation. But what a spectacle! Politicians fight for political points while blaming the opposition for unreasonableness, cruelty, and wanting the world to end. Journalists keep score as to which side is winning as if they were covering a major sporting event. Economists propose solutions to problems they still don't understand. The irreverent H.L. Mencken must be chuckling in his grave over this theatre. Politicians are making P.T. Barnum proud with a performance only equaled by Nero and his fiddle.

[Rockitz]

This “negotiation” now is all about politics and how the public perceives who will take the blame for the coming depression, which is inevitable. Unfortunately, Obama has the media on his side and should easily be able to hang this on the GOP. If the GOP does nothing, Obama could easily be defeated in 2012, but it will probably be too late to save the country by the time that happens. Obama’s fatalistic policies are scary and I’m convinced this is what he wants- a nation that is counting on the government to save them so he can redistribute wealth to his heart’s content. Possibly Mitch McConnell understands this and that’s why he’s pushing his plan. God help us!

[KTM rider]

Obviously McConnell wants to join Obama as one of the greedy heinous criminals who have destroyed this nation for political madness of historic proportions

[Owen]

The eventual point is that they can’t stop it.

The Democrats had power for 2.5 years and never once passed a comprehensive tax increase. If they wanted one, why not pass one then?

Most important of all, this 10 year stuff. No one should care about it. All that matters is FY 2012. Will the GOP slash spending in the FY2012 budget? It can.

Will it? No. There is more leverage in the debt ceiling increase. If they won’t do it as part of that, then why would they do it in the appropriations bills?

[goodnesswins]

Like Rush said....it’s just something the Dems use all the time....”The Debt Ceiling” is the pinata that the Democrats use to batter the GOP....every couple years....like clockwork. If there is a CEILING...how come we are hitting it every year or two!!!

[unkus]

Most people in this country are in for a very unpleasant and rude awakening. Their Hope and Change is going to be ugly and uglier.

[Jim from C-Town]

Most of this we on this website either know tis or have suspected it for years. Some we have said ourselves, but when you read the entire article and it is laid out in black and white with verified numbers...It just scares the living hell out of you.

[Jim from C-Town]

In other words the boat is sinking and there ain’t enough life boats. Most if not all of us do not qualify for saving, and if you where smart enough to save anything, the government will come to get it in a last ditch effort to keep from facing reality.

[andyk]

All one can do is move items around, an exercise akin to furniture rearrangement on the Titanic.

If that point comes, and the debt ceiling is not raised, and we have to prioritize revenues, I do not consider that akin to "furniture rearrangement on the Titanic". On the contrary, it is an acceptance of the cold hard reality of our profligate ways. It is the first of many steps.

[Lurkina.n.Learnin]

I think they should raise the debt limit by 500 billion but lay down the marker on september 30 when the continueing resolution runs out. I would tell the dems that all that will pass the house is an 75% continueing resolution. If the dems don’t like it then they should do their job and get a budget through the senate. If they think that is too much for some programs they would have to take more out of something else to get the money for whatever they think is necessary.

The way Harry Reid and Obama do things is put it off until the last minute and the scream the sky is falling. No budget through the senate in 800 days is totally unexceptable.

[unkus]

In other words, we’re in for some nasty times?

[Republic_of_Secession.]

Just rearranging the deck chairs on the Titanic now.

[PieterCasparzen]

WE ARE SPENDING $3.8 TRILLION AND ONLY TAKING IN ABOUT $2.2 TRILLION IN 2011. THE DEFICIT IS PROJECTED TO BE $1.6 TRILLION.

I drew up a neat list in another post that cut over $1 trillion in spending without touching defense, SS or medicare. It’s easy, but Washington DC does not want to lay off hundreds of thousands of Federal employees.

But if we did that, we’d save the ship and within a few years the economy would be booming the government would be well on it’s way to starting to pay down it’s $15 trillion in debt to a more reasonable level.

Comparison of nObama’s first year and current year

NOTICE THAT THE 2011 DEFICIT IS MORE THAN TOTAL CORP AND INDIVIDUAL INCOME TAXES COMBINED IN 2008. DOES THAT BIG OF A DEFICIT MAKE ANY SENSE IN JUST THREE YEARS ?

U.S. Federal Government Spending Comparison, 2008 and 2011
Figures given in billions of U.S. Dollars

Category_______ FY 2008 FY 2011 INC/(DEC) INC/(DEC) %
Pensions_______ 659.8_____793.2_____133.4____20.22%
Healthcare_____ 671.4_____882.0_____210.6____31.37%
Education______ 101.8_____129.8______28.0____27.50%
Defense________ 729.6_____964.8_____235.2____32.24%
Welfare________ 322.3_____495.6_____173.3____53.77%
Protection_____ 47.1_______60.7_______13.6____28.87%
Transportation_ 77.6_______94.5_______16.9____21.78%
General________ 20.8_______33.2_______12.4____59.62%
Other__________ 99.3______158.4______59.1____59.52%
Interest_______ 252.8_____206.7_____-46.1____-18.24%

Total__________ 2,982.5____3,818.9____836.4____28.04%

U.S. Federal Government Revenue Comparison, 2008 and 2011
Figures given in billions of U.S. Dollars

Category_______________ FY 2008 FY 2011 INC/(DEC) INC/(DEC) %
Ind. Inc. Tax___________1,145.8__956.0___-189.8_____-16.56%
Corp. Inc. Tax___________304.3____198.4___-105.9___-34.80%
Social Ins. Taxes________900.2____806.8____-93.4____-10.38%
Ad-valorem Taxes_______140.1____132.9_____-7.2___-5.14%
Fees & Charges___________0.0________0.0_____0.0
Bus & Other Rev__________33.6_____79.5_____45.9___136.61%

Total___________________2,524.0___2,173.6___-350.4____-13.88%

Surplus/(Deficit)________-458.5__-1645.3__-1,186.8____258.84%

[himno hero]

Obama can put the polish to HIS turd to the best of his ability , but the fact remains,,,, he is the largest single contributor to the deficit/debt issue and now wants his credit card limit increased. Adolescent , irresponsible spending has got him to the point where he wants to invoke a crisis as per party policy... don’t waste a crisis. Worst part is he doesn’t want to accept any responsibility.

Letting him get his way, even one iota, will be the greatest act of fiscal irresponsibility of American politicians of all times. As we speak , many are talking of the de industrialization of America, increased unemployment///// who needs more debt or taxes under those circumstances? Then we have another group talking about a “post America”

The root of the problem is in the White House.
Small business/ the private sector cannot move under his philosophical constructs....let alone a orchestrated post America.

Its not in the debt ceiling//// its in the White House!

[Cobra64]

I just sent this email to McConnell:

What is wrong with our party. Another commission? Reaching across the aisle? It never ends with you people caving in to an avowed Marxist. It's pathetic.

You just don't get it. We are fed up with gutless, spineless, politicians in the Gutless Old Party.. You could learn a lot from Paul Ryan, Marco Rubio, Sarah Palin, and Jim DeMint.

At least they love our country and have the guts to fight for what is right in saving our Republic.

If you cave in again, you can go to bed knowing you've allowed the destruction of America.

Regards,

Xxxx Xxxxx

.

So send emails to McConnell, Cantor and Crying-John Boehner.

[asinclair]

Hmmm...about a decade ago, my bank informed me that my line of credit for my small business was being reduced from $5K to $1K, and I had to pay the overage *now* or pay a fat penalty for each month I was over my new credit limit. No gradual, thing, but POW. It took quite a bit of work, a lot of selling off assets, and a lot of "doing without" to reduce my balance (ballooned by the penalties, of course) under the new limit. (It helped that that I landed a big consulting contract at the time, so I could pay off the overage.)

Interestingly, my bank was one of the first in line for TARP in 2008.

We as the voters are having a hard enough time convincing our elected representatives not to raise the debt ceiling. It would be a real hard task to convince Congress in general, and the Senate in particular, to lower the debt ceiling. My bank could do it because it was "their" money. It's our money the Congress and the current occupant of 1600 Pennsylvania Avenue is spending, yet we can't cut the ceiling on the government line of credit. Can you imagine the howling?

By the way, there are a lot of assets that the government could sell to make up the shortfall, and selling those assets could not only cut overhead costs but also increase tax revenue for both the States and for the Feds. Something to think about. Especially since those same assets could go for fire-sale prices when the situation gets worse, because wealth will be depleted enough to lower the value of those assets -- there would be fewer Americans with wealth enough to buy the stuff.

One thing that will save money: have those clerks, who don't see the public and who survive layoffs, work at home. Not only will we save money on office space, but it is a "green" thing to do by eliminating commuting, not to mention reducing the need for roads, parking lots, and pollution in Washington DC.

Here's another thing that will save money: Congress meets virtually. The representatives stay at home, near the constituents, instead of taking up separate residence in DC near the professional lobbyists. You cut down on travel back and forth (especially for the gentlepeople from California) so they have more time to do their job, they could do their work from Web sites that are open to the public, and the staff requirements would be reduced because the bulk of the staff would be at home, not DC.

Obama wants new taxes? There is another pot of untapped money: campaign contributions. When he talks "shared sacrifice" why doesn't he raise this as a source of money for debt relief?

[NoControllingLegalAuthority]

Based upon the chaos we are watching in Washington, DC, there is no way to avoid a complete financial collapse of the United States of America.

Politicians will not administer the bitter medicine required to save the country.

There is no sanity left in government. All is madness.

There is now no escaping the collapse because the cowardly leaders want to nibble around the edges when a phalanx of bulldozers is needed to stop runaway spending.

Those politicians who caused our nation's collapse will unsuccessfully try to hide from the wrath of the people when the firestorm quickly moves into the streets.

The liars and con men of government will be subjected to summary justice.

We have been led by a national capitol city full of Bernie Madoffs.

It will be every-man-for-himself anarchy.

The entitlement mentality will not die a quiet death.

[unkus]

Well said.