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July 14, 2011

Getting Down To The Real Reason The Dems Want To Increase The Debt Ceiling

Topics: Political News and commentaries

Over at Townhall, Rachel Alexander cuts right to the quick on the one and only reason why the Dems' would want to fake a debt-ceiling crisis; they don't really want to decrease the debt or stop spending more than our government takes in - they want to continue irresponsible spending:

... President Obama and the Democrats are issuing dire warnings that the U.S. may default on its debts if the debt ceiling is not increased. This is a false threat. If the debt ceiling is not increased by August 2, it is highly unlikely that even one member of Congress would vote to stop paying on debt owed. They would not dare to be seen as voting to stiff other countries on money owed them by the U.S. Defaulting on our debt is a red herring argument Democrats are using to force people into thinking our only choices are raising the debt ceiling or raising taxes by closing tax loopholes. In actuality, once the debt ceiling is reached, it will come down to a choice of either raising taxes or finding areas to cut spending. Democrats don't want to admit that cutting spending is a realistic choice. They are too dependent upon the votes of people who expect handouts.

Treasury Secretary Timothy Geithner, the architect of TARP, who helped get us into this financial mess by racking up our debt level with billion dollar bailouts, claims there will be "catastrophic damage across the U.S. economy and global economy" and a "double-dip recession" if the debt ceiling is not increased. But when the U.S. reached the $14.3 trillion debt ceiling on May 21, there was barely a ripple in the stock market. Instead of the sky falling, the market for U.S. debt barely budged, and Treasury bond rates stayed relatively the same. The U.S. has until August 2 when the money physically runs out to make a final decision. Why should one of the primary persons responsible for getting us into this financial crisis be trusted to recommend how to get out of it? If anything, Geithner should be permanently banned from any position in finance.

This manufactured debt ceiling crisis is nothing new. When a previous $4.9 trillion debt limit was reached in 1995, Congress refused to raise the debt ceiling and nothing happened. The sky did not fall and we did not default on our debt.

Continue reading.

Ms. Alexander is spot-on, and it's time that Americans apply a little common sense in attempting to digest the ins and outs of the debt-ceiling issue. There is absolutely no logical basis for extending the debt-ceiling - unless one wants to spend more than we already owe, and given the fact that we already have a debt crisis, this makes no sense whatsoever. The solution to the debt problem lies in reducing the size and scope of the federal government and reducing spending, not exacerbating our unsustainable debt by continuing to borrow and spend ever-more than we take in. And as Ms. Alexander points out in her piece, increasing taxes will only enable the president's runaway spending to continue ... and raising the debt ceiling is certain to send the U.S. in the direction of economic collapse. There needs to be a change in societal attitudes regarding the responsibilities of government. Government cannot survive if we continue the bankrupting, wasteful and outdated programs that have been implemented over the years.

The big question remaining is whether or not our society is sufficiently 'adult' to recognize the truth ... and the consequences of not doing so.

Related: Detached from Reality (There is a direct connection between the federal debt and the imminent financial crisis. Reducing the current and projected debt has to be the top priority for any serious federal policymaker.)

Posted by Richard at July 14, 2011 11:19 AM



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