Okay ladies grab your bloomers…..the debt theater is set to begin…we will hear all about spending, debt ceiling and anything else they care to throw at the cameras…….we will hear person after person on the Tube tell us all about how crappy the other side’s position is……and we will pick our sides by what our fav commentator has to say on the subject…….
But before we do that…..do you know what the debt ceiling is?
Once a little-known aspect of the U.S. government’s fiscal management process, the debt ceiling exploded into the public consciousness following the intense debate that took place in the summer of 2011. As its name would suggest, the debt limit is simply the maximum amount that the U.S. government can borrow at any given time. Currently, the limit is set at $16.394 trillion. Each year, the government spends more than it takes in, and this gap must be funded with debt, or more specifically, bonds issued by the Treasury. By law, however, the Treasury can’t issue new debt once the country is at its borrowing limit – and this limit, or ceiling, needs to be agreed to by Congress.
The debt limit doesn’t authorize new spending; instead, it provides the funding to pay for spending commitments that Congress has already made. Since the Treasury can’t issue new debt once the limit has been reached, the government would be forced to slash spending if it exceeds the borrowing limit. The result would be a partial government “shutdown” and a debt default (or the failure to make interest and/or principal payments on time).
Let me emphasize one point…….
The debt limit doesn’t authorize new spending; instead, it provides the funding to pay for spending commitments that Congress has already made….have you got this?
Just thought I would help you understand the debt ceiling issue before it becomes an endless stream of one liners, and sound bites…….
Personally, I do not see the need for the debt ceiling…..I mean since it has been around it has NOT done anything to curb spending….and that is a whole other post……but to tie debt ceiling to spending talks is just a political game…….and all it will do is give the media something to fixate over for a couple of months and in the end…….after all the drama they will kick it down the road (damn…I hate that term….but in this case sums up the antics really well)……and we will await the next round of total lack of seriousness by our politicians…….makes me proud.
You should have said,
“Okay ladies and gentlemen, grab your Boehner’s…”
I don’t know why, but it would have been funny. But John Boehner needs to get those Republicans in line. We shouldn’t raise the debt ceiling, but there needs to be a comprehensive plan that reduces spending and increases revenue. Tax loopholes need to be closed. Screw Grover Norquist. We’re not going to get out of this mess without some concessions on both sides.
The debt ceiling is what prevents us from becoming the Weimar Republic, you know.. .that great example of Keynesian economics.
I have two points I would to make that I think you failed to consider.
1. We don’t need to issue bonds to pay the interest on our national debt. The US government takes in twice the amount needed to pay our monthly interest payments. The bonds are issues to keep government workers paid and contracts current. Yes we would need to shut down the government with out the bond sales, but SSI, Medicaid, Medicare, the US Military and our national debt interest payments would all be covered.
2. The Democrats have been the party of “No” when it comes to a budget for almost 4 years. The debt ceiling would be a none issue if we passed a balanced budget and showed the American people that the government was serious about lowing our debt burdon. But Harry Reid likes operating from one crisis to the next, so he refuses to vote on a House passed budget.
FL, the budget argument is a bit stale……would you offer a budget when a group have said that you would get nothing from them? This is what I bitch about……it is revenge for past deeds….which is a cycle that will not be broken no matter who is prez…..the only way to get past all this game is to get a whole new way of governing…….and I do not see that….too much special influence and personal agenda for anything for the country to be important……..we can bitch about the other side but they are both as worthless as a toothless rattlesnake…….
You can say that all you want, still does not make it true. Right now it is the Democrats that are doing nothing productive to help our country. The GOP just agreed to the Demcorats plan to raise taxes on every working American. Are the Democrats now willing to offer spending cuts? Nope. The President goes out and uses the SOTU to ask for more taxes.
The Republicans have tried to give, but the Democrats are doing nothing to return the favor.
Got an easy question for you lobotero… does the United States government have a federal spending problem? Do we spend too much money on a federal level?
FL, I will answer as I perceive the questions……it has a spending problem because it has little income…..2) do we spend too much at the federal level….do you mean on bureaucrats or programs? I would say that programs, some of them, could be eliminated….I am sure they are not the same ones that you would but…….
I am sorry but I heard him say that entitlements would need to be reformed and in DC reform means cuts……I have given my solutions on numerous occasions not many would be tolerable to you…..
The current Democrat leadership in Washington has not “reformed” anything to do with the federal government by cutting. “Reform” in their vocabulary means increasing reach and additional regulations.
“it has a spending problem because it has little income” Thats a poltician’s answer. Lets see if you are willing to answer a question with a simple yes or no: Do you feel we need to increase the amount of federal spending?