Bill raising federal debt limit squeaks through the House

The Washington Times ^ | 6/28/2002 | By Amy Fagan

[George Frm Br00klyn Park]

The House last night barely approved a Senate-passed bill that would raise the federal debt limit, sending the proposal to the president's desk despite loud objections from House Democrats.

The proposal, approved 215-214, would provide a $450 billion increase in the current $5.95 trillion cap on federal borrowing. The Democratic-led Senate passed it, 68-29, on June 11.

[George Frm Br00klyn Park]

All, As you can see, the treasury has been breaking the "$5.95 trillion" legal "federal debt limit" {the law???} the last five months.

By the way, as far as I know, this "Public Debt to the Penny" does NOT include "off budget" {off the books???} debt owed by federal godgov. But, no matter. NOW, they will be able to borrow MORE money for your descendents to "service". There is NO chance that the federal godgov will pay this debt in YOUR lifetime. Leave it for the kids. OUR legacy. Ain't we nice???? Peace and love, George.

[Thane_Banquo]

Well, the choice was between raising the debt limit and defaulting on the federal debt. When a government defaults on its debt, it destroys an economy. We'd have been back in the 1930s.

[George Frm Br00klyn Park]

Guys, The Democrats WILL use this as an election issue. WHY were the Republicans NOT able to do so when Clinton raised the limit??? IMHO, because the bird of prey with two wings {RepOcrats Internationale} were in "bipartisan compromise" mode back then. Peace and love, George.

[steve50]

More choices than that. How about spending cuts. The Farm Bill comes to mind, we must indebt our children to pay ADM not to grow food?

[George Frm Br00klyn Park]

"When a government defaults on its debt, it destroys an economy.

TB, Borrowing at this level destroys people, business, and governments, and is the REASON for "defaults". As I wrote, the treasury had been "breaking" the limit already without consequence. Why not STOP THE SPENDING???? They are borrowing money for essentials. such as "servicing" the debt. Something like Enron, Global Crossings, WorldCom, and many other now bankrupt entities. And, federal godgov's book keeping is similar. But, not to worry, the money changers, merchants, and their affilliates and investors will save US in their magnanimous benevolence. Peace and love, George.

[MurryMom]

Guys LOL!!! MurryMom is insulted that you intended to exclude her from responding. Where is the Equal Rights Amendment when we really need it?

The Democrats WILL use this as an election issue. WHY were the Republicans NOT able to do so when Clinton raised the limit???

When Clinton raised the limit, everybody understood it was only a temporary measure. If Clinton had stayed in office there would have been no need to raise the debt limit again. Instead, because of the foolish giveaways by little Dumbya to his wealthy campaign contributors, no end to the sea of red ink is in sight now.

[Bill Davis FR]

republicans and democrats are united...there's no difference between the two parties...they both want power and spending is "the power"...

[George Frm Br00klyn Park]

"If Clinton had stayed in office there would have been no need to raise the debt limit again. Instead, because of the foolish giveaways by little Dumbya to his wealthy campaign contributors, no end to the sea of red ink is in sight now."

MM, LOL! Now, if you REALLY believe that, I've got some old bridge deeds laying around here somewhere you might be interested in. I'm SURE I can find them. Peace and love, George.

[HiTech RedNeck]

Hey, you two ought to have a reunion. Haven't seen either of you in a coons age.

[SteamshipTime]

The government is as bankrupt as a laid-off security guard with an upside-down mortgage. The debt is so large it can never be paid off. You can't even get a straight answer on how much is owed. If you'll look at the breakdown of the national debt, you'll notice that the Social Security Trust Fund and the Medicare Trust Fund are not listed on the schedule of interagency debt.

The only rational thing to do is to stop incurring future obligations and start selling off government assets to satisfy current obligations. Anything else is just worsening what is going to be a very hard fall.

[Thane_Banquo]

Social Security Trust Fund and the Medicare Trust Fund are not listed on the schedule of interagency debt.

That's because there is no trust fund for either program. Current payouts are financed by current tax payers. The idea that you pay FICA and they put it away in an account with your name on it is fallacious.

[Willie Green]

Guys, The Democrats WILL use this as an election issue. WHY were the Republicans NOT able to do so when Clinton raised the limit??? IMHO, because the bird of prey with two wings {RepOcrats Internationale} were in "bipartisan compromise" mode back then.

Friends, neither Beltway party is going to drain this swamp, because to them it is not a swamp at all, but a protected wetland and their natural habitat. They swim in it, feed in it, spawn in it.

-- Patrick J. Buchanan, "A Plague on Both Your Houses"

"I am not among those who fear the people. They, and not the rich, are our dependence for continued freedom. And to preserve their independence, we must not let our rulers load us with perpetual debt. We must make our election between economy and liberty, or profusion and servitude."

--Thomas Jefferson to Samuel Kercheval, July 12, 1816

[cynicom]

This debt will never be repaid, it will be cancelled and chaos will rain down upon us.

[SteamshipTime]

There are Social Security and Medicare trust funds (they even have official trustees) which, thanks to working Baby Boomers, were taking in more than they were paying out. As you correctly note, that excess cash didn't just lay there. It was loaned to the government which, for many years, has spent more than it has collected in non-FICA taxes. The "excess" payments to SS/Medicare were, as you know, counted as a "surplus" even though the federal government issued an IOU for their receipt. The multi-billion dollar deficits which we have run for many years have been papered over by borrowing from these and numerous other trust funds (you'd be surprised how many there are).

George Bush and the current Congress have spent so much money that even these debt-swapping shenanigans are not enough, so the debt limit has been raised to allow the Treasury to auction more public debt. Using debt to service debt is the classic characteristic of a debtor who has exhausted all his capital stock; he no longer has any income-producing assets. Every dollar received is already committed to servicing debt and current obligations can no longer be paid out of current cash.

The only reason the scheme stays afloat is because the Federal Reserve banks count these notes the government sells as assets against which they extend loans to you and me which are repaid in real value. However, as any accountant would quickly spot, the books are still not balanced. Eventually, the scheme, which is exactly the same as Enron's, must collapse as the debtor runs out of Peters to rob in order to pay Paul.

Unless government proceeds to declare its own bankruptcy and allow its creditors to seize its assets, we are going to wake up one morning and find our handsomely engraved currency and imposing looking Treasury instruments are worth less than a roll of Charmin.

[monday]

"Well, the choice was between raising the debt limit and defaulting on the federal debt"

NO!!!! The choice is congress can balance the budget or run up debt so that our taxes go towards interest payments instead of defence and other necessacary gov't functions. Congress and the President have chosen the latter, don't you dare make excuses for them. There is none.

[weikel]

The fiscal burden of government just went up again in the "land of the free". Where we are taxed higher than serfs were.

[monday]

I don't understand why this isn't the top story. No one seems to be talking about it.

[weikel]

After college Ill save up my money and get outta this country before it collapses. Russia seems like its headed in the right direction.