A new Congress with Repubs in charge in the House and right on cue these people are fixated on the debt ceiling and will not vote to up it unless some of their demands are met.
We will hear from the lard ass, big mouths in the House go on and on about the debt and will spread crap on what it means to us mere peasants.
To help the average person understand this I found an interesting bit that could explain this complex issue…..
Republicans in Congress are threatening once again to force the US to default because they lack the votes to enact their preferred fiscal vision.
Yes, it’s debt ceiling season once again. For those not following along at home, US law imposes an arbitrary limit on the amount of money the government is allowed to borrow. Historically, this was intended to make borrowing easier. Today, it is a tool for brinksmanship, with Republicans threatening to block paying the bills they already voted to incur unless GOPdemands for unspecific spending cuts are met.
The last time a real debt ceiling face-off happened in 2011, the US had its sovereign debt rating downgraded and incurred more than a billion dollars in economic losses. So let’s set aside the hypocrisy and political posturing and ask a simpler question: Is there a debt crisis that would justify holding the economy hostage?
And the answer is no. Markets are not worried about the US paying its debts, and there are no bond vigilantes appearing out of the woodwork.
Absent the specter of the European debt crisis or a Republican party united on fiscal issues, the politics of debt reduction sit differently. Some Republican politicians, like Trump and Senate leader Mitch McConnell, are already warning that the cuts for popular but expensive programs such as Social Security and Medicare implied by a debt default aren’t going to help the party gain power in the next election. Republican member of Congresthoughts on the debt issues Nancy Mace told NBC over the weekend spending must be cut but couldn’t name a single target for reductions. Instead of cuts, conservative Democratic Senator Joe Manchin is pushing to lift the limit on taxable Social Security wages.
I am sure there is a troll in weeds waiting for his/her opportunity to offer up their spurious thoughts on the debt issue.
One question….how will the debt ceiling effect you? (I do not want to hear what some politician thinks….I want your belief).
What about the proposal to eliminate the IRS and income tax?
Stay tuned for I shall cover this issue soon.
I Read, I Write, You Know
“lego ergo scribo”
4 thoughts on “Debt Ceiling–Right On Cue”
Well said as always. The fact is, much of the social safety net helps those who live in these Republican districts, and also, there hasn’t been a single coherent plan laid out that addresses spending – as for eliminating the IRS and enacting a 30% tax on everything: doesn’t hurt me but for a vast majority this would be much much worse economically.
I will be posting tomorrow on the new ‘Fair Tax Act proposal……fascinating. chuq
Nobody is likely to ever call in the national debts of major western countries. They rely too much on the interest they charge them!
Best wishes, Pete.
The debt could managed with less war chuq