Re: Re: Re: Re: Re: Scout. - susie by armedescapade
The thing I dont get about the debt ceiling is this: suppose you just decide to tighten your belt and stop raising it.
But the economy is growing at an avg annual rate of 2%. That leads to a growing country with a shrinking budget.
Its like you say in 1970, honey, let'ts cap the household budget starting today and not adjust it for our increasing income or inflation. We are spending $250 a month on food, bills, etc. Lets just keep it at that amount and never spend more.
How would that turn out?
That is why it just makes no sense to me.
The other thing I dont get is, what was going on recently when Vice President Cheney said 'lets start running deficits because it doesnt matter' (paraphrase) and Congress kept increasing the debt limit and noone had anything to say about it. We were at 50ish% debt to GDP then and by the same methodology, about 70ish% today.
The third thing I dont get is, last year when the brinksmanship over the debt ceiling caused S&P to drop our time honored and cherished AAA rating - how does that lead to the Speaker of the House stating this year that he plans to use the debt ceiling for political bargaining to get what his caucus wants?
If the Speaker causes another ratings downgrade due to brinksmanship, doesnt that effect us all on a national level? Why is noone worried about what the Speaker is planning to do in the same way they were not worried when a Vice President said deficits dont matter, lets run it up?
The fourth thing: Congress sets the budget and appropriations. This doesnt change and is not effected by the debt ceiling. If the debt ceiling does not change the budget or appropriations, how is it a power grab?
"The fourth thing: Congress sets the budget and appropriations. This doesnt change and is not effected by the debt ceiling."
You are kidding? The debt affects budget directly the same way it effects you when you burn your credit card and at month end you have to pay at least the interest. So is US, it has to pay interest on ever rising debt obligation or can't borrow tomorrow. To pay that interest it has to budget more and more. You see how debt is effecting the budget. Even if Congress is the "purse keeper" the dimwit child in college (Obama) is running the credit card like there is no tomorrow. In few months they will repossess your house no matter how much you cry. You see why the Constitution says :You Dumb Pres can't stick your finger where the big money matters?
Downgrade is same as failing grade when your dimwitted kid flunks school. It identifies a failure. You ignore it, you live with the fall out. In real life you tighten your belt and cut fat.You can't just raise the rent on the poor family living in your garage in hard times. And you can't get a second job because there despite what your lying leader says there aren't ant jobs out there. Turn the thermostat down and stop buying soda, crackers, ice cream and beer. Don't have to worry about the condoms, Obama is taking care on your wife's side.However, however... the Chinese are not so charitable.