01-07-2013 06:32 AM
Looks as though the politicians will be quiet for a few weeks. The D-day for a government shutdown is 52 days away with the debt ceiling debate. We won't have any serious jawboning until we get a lot closer to that date.
This is what they will be arguing about if we put it in U.S. household terms
Annual Family Income $21,700
Money Family spends $38,200
New Debt on Credit Card $16,500
Total Debt on Credit Card $164,00
Can anyone justify those numbers?
Let's see them try. The last time we had this discussion they trimmed spending 385 billion which would be like paying $385 dollars to the credit cards in the above scenario. How is this going to end?
01-07-2013 06:51 AM
The president says there will be no negotiation on the debt ceiling. Congress either raises the debt ceiling or they don't. They will not hold the president hostage because there will be nothing offered as ransome.
Although there will be negotiations in how they deal with the deficits and what options are on the line. The president says no budget cuts without accompaning revenue increases. Boehnor and McConnell claim that any additional revenues are off the table. So it looks llike a deadlock.
The president didn't respond well during his first debt increase. He capitulated and gave them rewards for their intransigence. I think he l;earned that paying ransome just encourages more such ventures. The best response to that is to yield nothing and they will ruin the countries credit rating at their own peril.
Be aware that government spends nothing that congress hasn't voted on and approved. I never did think it was agood idea to tell your bankers that you refuse to pay your obligations. Yes bankers would rather you borrow more to stay current on your obligations.
In my opinion, it is ludicrous to print money and pay interest on it. Once the money is printed it already is in the economy and what inflationary impact that has will be realized. Why pay interest on it to add the debt? The public pays the cost in inflated prices and that shpould be enough. Who is reaping the profits from those interest costs? The fed?
01-07-2013 08:01 AM
Did you know what happened 163 years ago this fall... back in 1850?
California became a state.
The people had no electricity.
The state had no money.
Almost everyone spoke Spanish.
There were gunfights in the streets.
So basically nothing has changed except then the women had real boobs and the men didn't hold hands.
That, my friends, is the history lesson for today.
01-07-2013 10:00 AM
Who was it that stated back in March of 2006 this little gem?
"The fact that we're here today to debate raising America's debt limit is a sign of leadership failure. Leadership means 'The buck stops here.' Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better. I therefore intend to oppose the effort to increase America's debt limit."