Posted on 07/28/2011 2:36:47 PM PDT by SeekAndFind
A friend whos been watching the absurd machinations in Congress asked me what happens if we dont solve the budget crisis and we run out of money to pay the nations bills?
It was only then I realized how effective Republicans lies have been. That were calling it a budget crisis and worrying that if we dont solve it we cant pay our nations bills is testament to how successful Republicans have been distorting the truth.
The federal budget deficit has no economic relationship to the debt limit. Republicans have linked the two, and the Administration has played along, but they are entirely separate. Republicans are using what would otherwise be a routine, legally technical vote to raise the debt limit as a means of holding the nation hostage to their own political goal of shrinking the size of the federal government.
In economic terms, we will not run out of money next week. Were still the richest nation in the world, and the Federal Reserve has unlimited capacity to print money.
Nor is there any economic imperative economic to reach an agreement on how to fix the budget deficit by Tuesday. Its not even clear the federal budget needs that much fixing anyway.
Yes, the ratio of the national debt to the total economy is high relative to what its been. But its not nearly as high as it was after World War II when it reached 120 percent of the economys total output.
If and when the economy begins to grow faster if more Americans get jobs, and we move toward a full recovery the debt/GDP ratio will fall, as it did in the 1950s, and as it does in every solid recovery.
(Excerpt) Read more at businessinsider.com ...
“Short people got ....”
For sure that one doesn’t...
The Second or the Third Reich Solution?
Need a more modern example? Well, it's working really good for Moo-gabby, where Z$1,000,000,000,000, a few beans, and 8oz of hot water will get you a cup of coffee.
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