What is the debt ceiling?
The United States national debt is subject to a debt limit. That limit is $14.3 trillion and right now, our debt is at $14.27 trillion. We will reach the debt ceiling sometime in the next few weeks. Some project that date to be around May 16th or perhaps as late as August.
The projected budget deficit is $1.65 trillion for this year, that’s why we are set to hit the debt ceiling sometime in the next few weeks. With this knowledge, many in Washington realize the seriousness of the situation and yet others do not seem to care one way or the other because they will do what they’ve always done — raise the debt limit and then it’s back to business as usual.
A battle is brewing in Washington over how much to raise the debt ceiling. Some say that they will not sign off on any raise without there being a matched reduction in expenditures. Democrats will not compromise with any reduction in expenditures and the new TEA Party members refuse to accept any raise in the ceiling or any increase in debt. Senator Ryan came up with a plan to cut debt but many on both sides of the isle refused to accept his plan because they said the cuts were too extreme.
According to “Investor Insight” Congress has raised the debt ceiling limit many, many times before, and there is no doubt that it will be raised again… and again and again. Yet every time we face an impending increase in the debt limit, the media makes it out to be a dangerous and potentially apocalyptic battle. Nothing could be further from the truth.
Tell me, does that make sense to you? Do you really think that continually raising the ceiling limit and continuing to spend is the wise thing to do? It may be business as usual in Washington but it’s not business as usual in most households.
Common sense tells me that Republicans, who believe in business as usual, will hold out for more spending cuts to win votes from those who want to increase the debt ceiling. It’s just a game with them because they don’t live in the real world. But most of America lives in the reality that Washington creates for us, and it’s surely not the same reality that they live in is it?
On the other hand, the business as usual Democrats will scream when a Republican wants to cut entitlements. They make ridiculous claims, such as “Republicans will put old people out on the streets without health coverage and food stamps, and leave them abandoned to survive on their own. They know darn well that this is NOT true and it’s not what Republicans want either. What else is new? Right? This is what the other side always does when they don’t like something Republicans do. Typically, they take the point to the furthest extreme and make it so outrageous that any good citizen would reject such a horrible concept. The Republicans become the enemy and Democrats look like the good guys and the people’s heroes.
Haven’t we seen this scenario played out before, over and over so many times, that you’d think by now people would see through it. Unfortunately, they don’t remember. Why not? Well, to be honest, it’s because memories are short and people forget. It usually takes about a year before memory begins to slip from our minds and makes us susceptible to reprogramming. However, sometimes things stick in our minds: such as when Congress goes against the “Will Of The People” because they think they are wiser than we and know what’s best. This is the situation that we have had the past two years. All I can say is: how stupid and how short do they think our memories are? How long do they think they can get away with this?
So what’s the game plan? It’s obvious, if you’ve been listening to the media. Aren’t they the bearer of all the bad news? I predict that they’re going to end up raising the debt ceiling because Americans are too addicted to entitlements.
Washington wants us to think reality is looming disaster if we don’t raise the debt ceiling. The media backs up Washington’s theatrics (all their posturing, debating, and rhetoric about should they or shouldn’t they raise the limit) by warning us of what will happen if they do not increase the limit. Of course they will raise the debt ceiling limit just in the nick of time, it’s what they’ve done for decades.
Republicans will likely get close to nothing in spending cuts because no one wants to see the government shut down – but would that really be a bad thing? What do you do in your own home when your spending reaches a point where there is no more money? You shut down don’t you? You either hibernate until next pay day, until there is more money available, or you go bankrupt. How bad is it to go bankrupt? Ask people who have gone through it and many will say that it relieved the pressure and made debt manageable. Will that same scenario work for government?
Let’s talk about what caused this urgency with raising the debt ceiling and how we got here? We are told it’s because our national debt is soaring out of control and there isn’t much that can be done about it. Do you believe not much can be done about it? Neither do I, because there are several new representatives in Congress who are smart and say we can do something if we do it right now. Probably not! Too much is at risk on the world stage if government shuts down or goes bankrupt.
So is the plan going to be “do something now” or not?
House Speaker John Boehner is making demands in the debt ceiling debate, but Republicans aren’t in charge of the Senate or White House. Therefore, Partisan Rifts Harden on US Debt–Ceiling Deal as Options Get Ruled Out. As a result, GOP rhetoric calm down on debt ceiling demands. Isn’t this what we just predicted would happen? Yep, I thought so!
On May 9, 2011 Tea Party leaders ripped into House Speaker John Boehner, R-Ohio, as well as other House Republicans, saying any vote to raise the debt limit without major fiscal policy changes will amount to selling out the Tea Party, adding the group will work to unseat those who vote for an increase in the next election.
“We’re telling Boehner and all of the House Republicans, they came into office with Tea Party help. We now expect them to keep their promises and hold the ceiling on the national debt,” said William Temple, head of this fall’s Tea Party National Convention. “The Tea Party will not be in a very forgiving mood this fall, nor as the GOP primary season opens, if House freshmen and others elected by the Tea Party cave to Obama. We will find replacements for them this fall.” Read more: http://politics.blogs.foxnews.com/2011/05/09/tea-party-slams-boehner-and-ryan-debt-ceiling#ixzz1M0mgXV5k
Has Boehner and House Budget Committee Chairman Paul Ryan, R-Wis., caved during the 11th hour negotiation? Perhaps Chair of the Congressional Tea Party caucus R-Minn., answered the question for us. She said that the 2011 vote was a missed opportunity, saying the debt ceiling vote offers a chance for a do-over.
“The debt ceiling vote will offer an opportunity that was squandered during the vote for the 2011 Continuing Resolution,” she said in a statement. Read more: http://politics.blogs.foxnews.com/2011/05/09/tea-party-slams-boehner-and-ryan-debt-ceiling#ixzz1M0ninynj
Is Bachmann right? It appears that she may be right because, sadly, most of us don’t expect anything to be done about the out-of-control-spending on which Americans have become dependent. No sane politician, who wants to be re-elected, is going to be the one responsible for cutting entitlements — which is exactly what needs to happen. Nothing else will make much of an impact on the debt, but no politician is going to step out in front of a train until after the 2012 election, and only if President Obama is defeated.
Although the Republicans have control of the House, they have no leverage in the Senate when it’s a face-off between Democrats and Republicans. In other words, it’s all politics and no one with influence really cares about the people who have made their careers happen. Screw the people and they will remember, and their days will be numbered for as long as the people hold them accountable!!
To sum it up, it appears that nothing will change as far as raising the debt ceiling limit, business as usual will continue, the debt will grow and get to a point where nobody will want to buy our debt or loan us money. We are becoming a bad risk to a banker who might loan money to us.
The problem is that the dollar and our economy cannot sustain this situation for any length of time and will go belly up in time because we have outlived our debt’s viability. When that happens, what do you think will happen to the economy? If we don’t raise the ceiling, what do you think will happen? That’s why American Banks are buying foreign currency to replace some of the dollars in their banks. That’s why some states are beginning to come up with their own coin or bond currency to be used in place of the dollar should the dollar collapse. With this knowledge, what do you plan to do about securing your assets and to protect your family?