The American Spectator : Obama’s Debt Limit Game

Text Size

Obama’s Debt Limit Game

The sky’s the limit for his ceiling and spending plans.

“I won’t play that game.” That was President Barack Obama a few weeks ago, referring to the previous round of negotiations over raising the nation’s debt limit.

He has already begun his campaign to sell the public on the notion that raising the debt limit is vital to the nation’s economic recovery and failure to do so will be a calamity. His Amen Chorus of Democrat politicians will echo this again and again in the weeks ahead, dutifully reported by the “mainstream” media, as if Obama’s assertions were irrefutable facts. They aren’t.

Every day, the U.S. Government takes in about 60 percent of the funds it needs to pay its bills. It borrows the rest, either from outside investors, such as the Chinese, or by printing money, all of which must be paid back.

What does failure to raise the debt limit mean? First, it means the government cannot borrow any more money. This does not mean it will “default” on its current debt, as Obama & Company will imply. There will be enough cash on hand to service the current debt. The government will also be able, for a time, to pay most of its bills to run itself; however, without new infusions of cash it will begin to be unable to run everything. It will be forced to cut back on non-essentials.

There is a better way to decide which spending can be dispensed with and it can be done not hastily, but deliberately and in advance. This is where the Republican majority in the House of Representatives can finally use leverage with Obama. It should develop a budget bill that spells out specific cuts to be made, from very big issues such as Medicare and Medicaid, to less big ones such as cutting duplicative programs spanning several departments. The result should go forward to the Senate. It would be constructed so that for every dollar the debt ceiling is raised, one dollar of spending cuts would be enacted. The one would be tied to the other. Thus, if the Senate amended the bill to eliminate some of the cuts, the House would reduce the debt ceiling by an amount equal to the value of the cuts the Senate had eliminated. In short, no spending cuts, no debt limit increase.

Obama will be betting that his usual full-time campaign mode will persuade the nation (in addition to fawning reporters) that he can save us all, if only those nasty Republicans can be shamed into giving him what he wants. What he wants of course is not only an open-ended debt limit raise but no limits on spending of any kind. How will it be paid for in future? As he has shown us, he thinks higher taxes are the way to go.

Raising taxes on “millionaires” is one thing; raising them on the average workers is another. On January 1 the payroll tax cut of the last two years ended. It was not part of the deal passed by Congress and signed by Obama last week. Thus, every American worker and his/her family is seeing an immediate paycheck reduction. When people get less for the same amount of work, they aren’t happy. When things go well generally, presidents tend to get the credit; when they don’t, they get the blame. Let’s see if Obama’s new campaign litany falls on willing ears or deaf ones.

About the Author

Peter Hannaford was closely associated for a number of years with the late President Reagan, beginning in the California Governor’s office. His latest book is Presidential Retreats.

Letter to the Editor View all comments (82) | Leave a comment Leave a comment

TLP| 1.7.13 @ 6:31AM

You guys say you wanna Cut Spending?

Well, here's your chance.

We have a DEBT CEILING for just that reason. Because our Political Class is populated, almost exclusively, by Men and Women of Weak Moral Fiber, who can no longer be TRUSTED to take care of the Money that we give them. (In truth, the money they take from us, at the point of a Gun.)

The Bible tells us that The pursuit of Money is the root of all Evil. And, one need look no further than to his or her Local Representative, Congressman, Senator, or President, to see the Truth in that.

If we're not gonna abide by our own rules, then there really are no rules, and we are living in Anarchy. If you stay on top of the News - Drudge - you can already see how the Fabric of our Society is becoming more tattered, every day. And, why wouldn't it be? People have eyes. When they see the Law MAKERS breaking the Laws, with Impunity, they follow suit. Every major U.S. City (other than New York) has become a No Man's Land, whenever the Sun goes down.

A lot of us have been waiting for our Linguini Spined Republican Call Girls, to grow a pair with some hair on'em, and Draw a Line in the Sand. Now, they don't have to. It's already there.

The trick is to get them to refrain from wiping it away with their High-heels, and Drawing another one, further ahead, ala Bugs Bunny.

John Navratil| 1.7.13 @ 8:59AM

TLP,

I'll be interested to see the reaction from the hourly worker when he gets his next pay check. Anyone want to bet that O's popularity takes a dive? It will be hard to suppress a degree of schadenfreude.

No, TLP, that's not German for tits ;)

NedB| 1.7.13 @ 9:41AM

The reaction is already staring. You should see what they are saying on huffington post in the comments. The conservatives are rubbing it in. :D

TLP| 1.7.13 @ 11:00AM

Is it German for the pretty kitty, down below?

Drunken Sailor| 1.7.13 @ 11:20AM

Lurk at the democrat underground site. It is both funny and pathetic that they are just now understanding this.

Von Mises Jr| 1.7.13 @ 11:37AM

The 2% increase in Social Security will be noticed by all, but the real zinger comes in 2014. If you earn under 138% of the poverty line as a family and your state expands Medicaid, then you will have coverage. But if your family earns above approximately $30K and you don't have a Cadillac health plan, you either must buy one or get fined 1% of your Gross Income by 2014 that escalates to 2.5% in 2016.

So if your family earns $100K with a husband and wife each earning the average $50K and neither has an approved plan, you will owe Barry and Nancy $1,000 more next year and $2,500 more in three years to add to the over $2K you pay more in Social Security and Medicare taxes. Welcome to ObamaLand you stupid ass liberal drones.

Stan Redmond| 1.7.13 @ 11:40PM

Like it matters? He's already elected. And Obama could have announced plans to execute 5 cute puppies per day after his election and his fools would still have voted for him and found a way to blame Bush.

squalis| 1.7.13 @ 10:06AM

OK, I'll bite. Why did you exclude NYC?

TLP| 1.7.13 @ 11:03AM

Because their Crime Rates continue to go down, and they've got the most Professional Cops in the World.

Just, don't drink the water or kiss the Prostitutes.

Leave that to Pesco.

Pecos Pete| 1.7.13 @ 11:18AM

Thanks a lot. Not.

TLP| 1.7.13 @ 2:47PM

You're like Albert.

What would I do without you?

Purp| 1.7.13 @ 12:03PM

" Every day, the U.S. Government takes in about 60 percent of the funds it needs to pay its bills. " - Now tell me that isn't a "funding" problem. It is more than it is a spending problem.

And the debt ceiling is an artificial device that Congress put on itself, and has never not raised due to the dire consequences of not doing so.

It's just a matter of paying the bills. You don't NOT pay bills today you have already incurred.

It's just stupid to put the economy, the confidence in the United States and the health of the Republic at risk by a bunch of squabbling politicians worried more about reelection than their own country.

This is not to be used for blackmail. It won't work.

RonRonDoRon| 1.7.13 @ 2:03PM

"the debt ceiling is an artificial device that Congress put on itself"

Actually, no. Prior to using debt limit legislation, Congress had to approve each issuance of debt with a separate vote. The Constitution gives only Congress the power to authorize debt.

The debt limit process was instituted to provide more flexibility, while maintaining Congress' sole authority over debt issuance. The left is now arguing that the flexibility should be unlimited, which is just another way of saying that Congress should abdicate its Constitutional mandate of debt authority.

Personally, I think Congress has already abdicated too much of its legislative power, handing it over to the Executive branch regulatory agencies.

Purp| 1.7.13 @ 4:36PM

When the Congress authorizes the dismantling of the $Trillion/year American Empire (promoted by REPUBLICAN Ron Paul), which just about eliminates any deficit, then I would listen to your left vs right dogma.
But - I would refer you to the 14th Amendment to the US Constitution which clearly states "The validity of the public debt of the United States, authorized by law, including debts (but not limited to) ... shall not be questioned. " and
"Congress shall have the power to enforce, by appropriate legislation, the provisions of this article".
Congress authorized the spending, now it has to follow through, period. There is no choice on the debt repayment. Anything else is UN-Constitutional.

mike 3/505| 1.7.13 @ 5:58PM

authorizing the spending is NOT the same as incurring debt. All congress needs to do to avoid default is to a) Pay the debt service (currently 25-30 B/month) & b) prioritize the remainder of monthly revenue (approximately 180B/month towards constitutionally enumerated programs like the military, pensions and Social Security & Medicare which are not Constitutional, but still need to be paid until properly eliminated. We can furlough the Department of Education, HUD, EPA and a whole host of other agencies that do more harm than good.

chuck| 1.7.13 @ 2:30PM

Actually purp, it is a funding problem. Only half of the country is paying the bills, and the other half, your half, is sucking off of the rest of us.

Time to tax the poor. Instead of taxing everything above the poverty line, set taxes on the first $50,000 that everyone makes, and allow everything above that to be tax free. How much more productive would people be if they could keep 100% of everything they earned above $50,000?

Tax the poor, they're the ones using all the services, make them pay for them.

TLP| 1.7.13 @ 2:49PM

What are you, and your two brothers, doing?

He's a Guy, who thinks he's a Girl.

You can't reason with him.

Purp| 1.7.13 @ 4:30PM

I'll wager I pay more in taxes than you even make - so your snarky comments are just disrespectful, but expected.

You sound like a good shill for the rich, throw your kind under the bus. Wonderful idea, crush the poor and middle class - they aren't worth much, right? Does that include your Grandmother? Your Mother? How about your daughter or son?
Nice one, Chuckles.

TLP| 1.7.13 @ 5:06PM

I'll wager you're a destitute Homo, on the upper west side, wondering how you woke up with your head in a Gay Bar Toilet, last night, with your pants pulled down, and dangling from a Ceiling Fan.

John Navratil| 1.7.13 @ 9:30PM

TLP,

Whether this wedger is hot,
or whether this wedger is not,
I'll wager this wedger
is some kind of felcher
whether you wager, or not!

(May the gods of blogs strike me for the ad hominem - I couldn't resist.)

Controse| 1.8.13 @ 1:12AM

Now this is thinking outside the box. Talk about making work pay. Man I love your idea. The more you make the less your taxed. Finally a progressive tax system I can support.

CJW| 1.7.13 @ 3:09PM

Purp the Village Idiot

Now purpie descends into racism:

"Oh, and YOU'RE a LOSER ... can't even beat the black man... you're so awful... hahahaha (that's for your last line, you wanna dish it out, then take it)"

Can't even beat the "black man?" So you believe blacks are inferior and easy to beat.
Keep posting moron, you provide fresh material every day.

You are truly an idiot and a racist

Pecos Pete| 1.7.13 @ 3:36PM

Violet: For someone who has told us time and time again about your vast business experience and high earnings with several university degrees, you sure don't understand federal budgets, common law, contract law and Generally Accepted Accounting Principles.

A debt is not a debt until it has been contracted. We have a $16 Trillion dollar debt that has been contracted. So, yes, let's pay it off for it has been contracted. However, many federal expenditures have not yet been contracted, else why would the upcoming sequestration of expenditures be lawful?

Another good example is the upcoming vote for ... what is it now ... $39 Billion ... for Sandy Relief (which, by the way is mostly pork). Not contracted yet. Spending this money will increase the deficit and the national debt. There are literally thousands of wasteful federal projects in the federal budget for which contracts have not yet been executed. Even when a contract has been executed, most of the time there are escape clauses that provide for termination of the contract.

The "bills" that the federal government has contracted are being paid. The discussion is over the increasing rate of expenditures, and the need to eliminate duplicate and wasteful projects, which, if contracted, will require more revenue.

Purp| 1.7.13 @ 4:48PM

Well PP - you don't know all you think you do. Snarking at me is soooo useful isn't it? But it is childish.
So what expenditures that are "Automatic" are not contracted for? Can you list them? They don't include Social Security or Medicare I might add, nor Obamacare.
Your "However, many federal expenditures have not yet been contracted, else why would the upcoming sequestration of expenditures be lawful?" statement doesn't include those entitlement expenditures - didn't you know that?

Eliminate waste and fraud - sure - but you have to pay for watchdogs and waste/fraud police to do that too. So pony up.

I'd be alittle bit careful on the sniping about the Sandy Relief. NY, NJ and Conn supply gobs of money to the rest of the country, far more than they get back. Gulf and East Coast residents that get hit by hurricanes every year, drought stricken and flood-prone areas of the country ought to consider that also before you aren't willing to help those people. If you are selfish with them now, what do you think will happen when you need it? And you do, more often.

Stan Redmond| 1.7.13 @ 11:49PM

Obama is expanding the debt ceiling to pay for debts we have not incured. He has admitted this several times using the buzzword "investments."

Controse| 1.8.13 @ 1:07AM

So what is your plan to stop this insane spending? What is so hard about understanding we can't afford this big a government anymore? People are let go by business all the time when the business is going broke. Government in America is going broke. People have to be let go. We have to stop this insane spending.

Meowmeowoofwoof| 1.8.13 @ 7:04AM

Purp, the debt ceiling limit is like the engine warning light in your car. Your car will still run, but you know trouble is ahead if you " ignore " the warning. What is " stupid " is borrowing 40% of everything you spend and thinking tax receipts can match that. Sir, we're burnin 4 billion a day on the credit card. The fed is buying 70+ % of the debt at auction. The president is either a economic moron, or he is a transnational neo-marxist progressive implementing Cloward/Piven. If you look at his communist parents, friends, wife, and associates, you at least have to consider the latter. See you in streets. Regards, :::::^^::::: meowmeow

Occam's Tool| 1.7.13 @ 1:10PM

Ya know what, Tim---it's good to have you back. I do hope you noticed we missed you and love you. (sniff)

Screw raising the debt ceiling. Leave it where it is, and let Obama and his merry group of morons start cutting spending. Totally agree with you, Tim.

Tim, you are right about the cities. That's why I live out in rural NW Minnesota. I get grass fed beef sent to me by UPS, my clothes from Walmart or the men's store in my small town, my kids are homeschooled, and there is water on my property.

Maybe once a year I go to the Twin Cities. But I don't watch most of today's movies, my bookstore is Amazon.com, and between my kids, wife and work I don't have all that much leisure time anyway.

In short, I'm letting the cities go away, as I have little need of them except for specialized medical services.

Not everyone can do this; I'm lucky I can.

TLP: have you thought about moving to Fargo or Grand Forks, ND? The winters are not as bad as you would think, and the small cities (both with populations under 100,000) have good economies, minimal crime, and access to good Universities for the kids.

I expect Boehner will bend on the debt ceiling, and my favorite Rep is going home.

Purp| 1.7.13 @ 1:34PM

Come back to reality instead of Right-Wing World.

The Debt Ceiling is not authorization of future spending, it is agreement to pay the current bills.

Spending reductions in the future do not affect what you have to pay today.
OMG, this is such a stupid excerise, risking the domestic and world economy and the trust in the United States - for what? No wonder R's lost.

RonRonDoRon| 1.7.13 @ 2:13PM

I think that Republicans should pass a bill stating that interest payments must be given priority over other spending when we hit the debt limit.

If the Senate Democrats are serious about avoiding default, they will pass it also. If the President is serious about avoiding default, he will sign it.

Purp| 1.7.13 @ 4:49PM

Really? Feed your kids or pay your credit card bill each month? Which would you choose?
Or wouldn't you find another way?

RonRonDoRon| 1.7.13 @ 4:58PM

Not all of the spending is about feeding kids. Starving kids could also be made a priority. I'm guessing your position is that there is no Federal spending that is not absolutely essential.

CJW| 1.7.13 @ 3:09PM

Purp the Village Idiot

Now purpie descends into racism:

"Oh, and YOU'RE a LOSER ... can't even beat the black man... you're so awful... hahahaha (that's for your last line, you wanna dish it out, then take it)"

Can't even beat the "black man?" So you believe blacks are inferior and easy to beat.
Keep posting moron, you provide fresh material every day.

You are truly an idiot and a racist

Anthony| 1.7.13 @ 4:28PM

Come on daddy, just because I maxed out my credit card, you still have to pay it off. DADDY!!!!

Purp| 1.7.13 @ 4:50PM

Who's "I" ?... you and me, us together. There is no us and them. It's US! You are daddy too... LOL

RonRonDoRon| 1.7.13 @ 5:01PM

So, basically, we're all daddy and we're all children. Like a family where no one has any sense of fiscal responsibility.

Anthony| 1.7.13 @ 4:51PM

Purpie say, DADDY, you have to pay off my maxed out credit card.
DADDY, I SPENT THE MONEY, I CAN'T RETURN THE STUFF...
DADDY, ARE YOU LISTENING TO ME!!!

Anthony| 1.7.13 @ 5:01PM

Daddy to Purpie: Who's WE honey?? Pay your own damn bills, I didn't spend it, and I sure as hell didn't tell you to either.
Pay your own bills or daddy will be forced to spank you. (That will get Purpie turned on!!!)

Meowmeowoofwoof| 1.8.13 @ 7:11AM

Purp, we on the right are not for default. We are for cutting the 40% of credit card spending that is taking us into a financial vortex we might not be able to escape. You are engaging in classic Alinsky " straw man " arguments. Darth Soetoro has taught you well. See you in the streets. Regards, :::::^^::::: meowmeow

Al Adab| 1.7.13 @ 2:02PM

O?T:
I was particularly impressed by the Calif Congresswomen D the other day (sorry I forget her name) who said she just couldn't understand why all the concern about the debt. "We can just print the money" she said.

RonRonDoRon| 1.7.13 @ 2:40PM

I grew up in Moorhead, MN (across the river from Fargo, ND - you no doubt know that, but I mention for others). It was a great place then, and even better now.

I might consider moving back, if not that my two kids were raised mostly in California and will probably stay here. I would definitely consider moving to the somewhat milder climate of extreme southwest South Dakota (love the Black Hills).

I would hesitate to recommend the ND climate to anyone who didn't grow up with it - many would find it unbearable (I may have grown too soft myself). To someone who has the family/financial flexibility, I would say try it for a year and see if you can handle the winter.

I've compromised by moving about as far north in CA as one can without being in Oregon. I don't think there's any real advantage to moving to Oregon, and moving east to the desert doesn't appeal.

Aristocat| 1.7.13 @ 6:39AM

Harry Reid has been playing possum for years, not passing a budget in hopes that the House Republicans would be blackmailed into continuing the massive Pelosi budget of 2009, and every year he has been right.

Purp| 1.7.13 @ 12:07PM

Well, then why doesn't the House pass a budget in concert with the Senate? Oh, because they would have to compromise. We can't have any of that, so they don't.
Who's to blame on that one? Hmmm?
Nonetheless, we all suffer when the Republicans will not negotiate.
They created the fiscal cliff for themselves, the sequester and now setting up more "cliffs" to dive over. How irresponsible can they be?

fmm| 1.7.13 @ 12:42PM

The house has passed budgets which you well know and the senate has declined to even look at them. To paraphrase; "Who's to blame on that one?" Tooooo easy.

Occam's Tool| 1.7.13 @ 1:21PM

And not even the socialist from Vermont would vote FOR the Obama budget, purp. Like fmm says, too easy.

Al Adab| 1.7.13 @ 2:06PM

Senate under Reid hasn't brought a budget to a vote in going on four years. The GOP House should pass a balanced budget and let Reid hold that one hostage.

Too many of certain persuasion simply play the blame game instead of addressing the concern. Plenty of blame on both sides to go around. Lets identify the ones who want to propose a proper budget and give them our support. Hmmmm?

Purp| 1.7.13 @ 4:56PM

What Budget? I thought he doesn't have a budget?

Purp| 1.7.13 @ 4:55PM

Did you miss the part where the House "in concert with" ... Going it alone, knowing full well your colleagues in the Senate won't ever bother to look at the budget bill because it so radical and right-wing is a political trick that worked on you. They did nothing.
America sees it and they will continue to lose in 2014 following their childish "My way or the Highway" methods.
I suspect they will cave each time this year because most of the country opposes their childish tactics instead of exploring pragmatic solutions to our problems. They look worse and worse each time they do.

CJW| 1.7.13 @ 3:10PM

Purp the Village Idiot

Now purpie descends into racism:

"Oh, and YOU'RE a LOSER ... can't even beat the black man... you're so awful... hahahaha (that's for your last line, you wanna dish it out, then take it)"

Can't even beat the "black man?" So you believe blacks are inferior and easy to beat.
Keep posting moron, you provide fresh material every day.

You are truly an idiot and a racist

Stan Redmond| 1.7.13 @ 11:50PM

Reid won't even bring a house budget to the table. Why didn't the house pass a budget when democrats had both?

Louis Jenkins| 1.7.13 @ 8:59AM

Indeed, the proof is in the pudding, and it tastes really bad. How many more cliffs are going to pop up? Shut the government down. Then maybe we'd be safe for a spell and have time to catch our breaths.

Pecos Pete| 1.7.13 @ 9:15AM

Shut the government down? That won't happen until Pigs Fly.

The National Debt will be increased. There will be no spending reductions. Taxes will be increased. Pigs don't now, and never will, Fly.

PS: And buried in whatever legislative solution related to the National Debt will be a sub-sub-section on Gun Control.

fmm| 1.7.13 @ 11:26AM

And lots more pork which is one reason why pigs can't fly.

Purp| 1.7.13 @ 12:11PM

As rightly it should be on all accounts.

The R's have lost the argument, and America wants balanced deficit reduction, not complete annihilation of the government. Sensible, but slower reduction than the TeaPoopers want... but that's the way it's going to be - if they want to be relevant ever again.

CJW| 1.7.13 @ 3:10PM

Purp the Village Idiot

Now purpie descends into racism:

"Oh, and YOU'RE a LOSER ... can't even beat the black man... you're so awful... hahahaha (that's for your last line, you wanna dish it out, then take it)"

Can't even beat the "black man?" So you believe blacks are inferior and easy to beat.
Keep posting moron, you provide fresh material every day.

You are truly an idiot and a racist

Pecos Pete| 1.7.13 @ 4:40PM

Exactly what CJW wrote X 10!

Purp| 1.7.13 @ 4:57PM

you shouldn't encourage the retarded ones.

CJW| 1.7.13 @ 7:26PM

Purp the Village Idiot

Now purpie descends into racism:

"Oh, and YOU'RE a LOSER ... can't even beat the black man... you're so awful... hahahaha (that's for your last line, you wanna dish it out, then take it)"

Can't even beat the "black man?" So you believe blacks are inferior and easy to beat.
Keep posting moron, you provide fresh material every day.

You are truly an idiot and a racist

ncatty| 1.7.13 @ 10:54AM

There are enough squishy Repubs to combine with the Dems to pass a new debt ceiling. It will be the same coalition that passed the budget deal. We are watching political history, the implosion of a major political party. What will emerge from the wreckage?

Purp| 1.7.13 @ 12:17PM

Let's hope a less radical, more rationale Republican party more toward the mainstream and not the far right-wing ideology.
It has failed, and if they stay there, they are doomed.

CJW| 1.7.13 @ 3:10PM

Purp the Village Idiot

Now purpie descends into racism:

"Oh, and YOU'RE a LOSER ... can't even beat the black man... you're so awful... hahahaha (that's for your last line, you wanna dish it out, then take it)"

Can't even beat the "black man?" So you believe blacks are inferior and easy to beat.
Keep posting moron, you provide fresh material every day.

You are truly an idiot and a racist

Von Mises Jr| 1.7.13 @ 3:24PM

Hey look, Perp is back from his night job working outside the Lincoln Tunnel.

Purp| 1.7.13 @ 4:57PM

At least I have a job ... not like you.

CJW| 1.7.13 @ 7:26PM

Purp the Village Idiot

Now purpie descends into racism:

"Oh, and YOU'RE a LOSER ... can't even beat the black man... you're so awful... hahahaha (that's for your last line, you wanna dish it out, then take it)"

Can't even beat the "black man?" So you believe blacks are inferior and easy to beat.
Keep posting moron, you provide fresh material every day.

You are truly an idiot and a racist

Simon Templar| 1.7.13 @ 3:17PM

This has nothing to do with ideology, no one is calling for "complete annihilation of the government," seventy five percent of Americans want significant cuts in spending, your messiah has openly said he will not stop spending, spending is not a problem, and he will refuse to cut anything. Reality and facts are irrelevant to useful idiots like yourself. Unless you are somehow connected to powerful elite that run this nation and the new tyranny to come, I really can not understand the depth of your stupidity and self delusion. You are in for a world of hurting.
There are five economic bubbles that will burst in the next five years that are going to make the great depression look like a walk in the park.

Simon Templar| 1.7.13 @ 3:24PM

Purp, I suppose I should really not be surprised as there actually exist many more people like yourself that do not have a clue what is happening. The crap you pump out every day here is astonishing.
This is not some political fairy tale or every mans opinion is equal. This is basic economics. We either start coming up and enacting policy that encourages massive economic growth without govmint spending and false stimulus or we are going to face something never seen on a global scale.
There is not enough money that can be taxed from the rich, the middle class, or anyone to pay for this level of insane spending.
You refuse to acknowledge one apolitical fact. this is going to have enormous economic consequences.

Simon Templar| 1.7.13 @ 3:36PM

This government for the last 40 years has been spending recklessly and stealing from the national treasury and future Americans at a pace and depth that can no longer be sustained. What is it that you do not get about that fact? This is why there is nothing left to pay for any of these programs like social security and medicare. The easy money, bail outs, corruption, theft, insider trading, government expansion that includes a gigantic military complex running trillions to fund, and the excess in all levels of society has created several horrific economic bubbles that are going to burst and bring all of this down crashing, both parties have brought this on us.

Purp| 1.7.13 @ 5:00PM

You're right - but not the spending on entitlements like Social Security and Medicare.

Funny, but the Red States get most of the entitlement money ... so you're advocating hurting yourselves. Okay let's go with that.
I sure don't need to fund your States.

Oh, and your bubbles - some more right-wing conspiracies? Like Birtherism? Or 9/11 was a government plot? hahaha ... and you call me stupid?

Simon Templar| 1.7.13 @ 5:17PM

You really are a hopeless idiot.
Your false messiah ran on a campaign where he shouted at Bush for his Debt, his spending and said it was unconscionable. You forget that? The ridiculous notion that Red states which are the least populated states and the least urbanized are getting most of the entitlement money is absolutely stupid and false and irrelevant. No one is proposing cutting away all social security spending or doing away with all entitlements. You are an idiot beyond belief, and really do not want a serious and honest conversation.
We already have had SEVERAL BUBBLES, MORON. The dot com, the housing bubble, and stock overvaluation. Idiot. They are not conspiracies and the ones I am referring to, of which you apparently are completely ignorant, are coming by all economist projections. Get a book an read, something that is not being touted by a politician or one of your masters in the govmint.

CJW| 1.7.13 @ 7:27PM

Purp the Village Idiot

Now purpie descends into racism:

"Oh, and YOU'RE a LOSER ... can't even beat the black man... you're so awful... hahahaha (that's for your last line, you wanna dish it out, then take it)"

Can't even beat the "black man?" So you believe blacks are inferior and easy to beat.
Keep posting moron, you provide fresh material every day.

You are truly an idiot and a racist

cicero| 1.7.13 @ 4:27PM

". . . one dollar of spending cuts for every dollar the debt ceiling is raised." Rediculous. Don't raise the debt cieling. The first thing that would happen is that the government would shut down "all nonessential services". Of course, if they weren't essential, they shouldn't have been a cause of government spending in the first place. After that, there would be heard a big silence about the land. Guess what would happen? NOTHING! If the government and the newspapers shut down on the same day, only the beaurocrats would know about it. The rest of us would go about our business.
All of those other service providers that are subsidised by the Feds - schools, colleges, Michigan Internatioanl Speedway, etc, would have to adjust their spending to what they trick the people into paying for what they do. Sounds like a plan to me.

cicero| 1.7.13 @ 4:57PM

Simon - I agree on the bursting of bubbles. The college bubble will come soon. Cities like Detroit, and states like Illinois and California will cause the public pension bubble to burste soon, too. The medical bubble has been leaking air for past few years, and will slowly collapse. Our major cities, packed with the urban poor who have consistently elected and reelected charlatans already have unemployment rates that exceed what occurred during the 1930's, and with skyrocketing rates of adult illiteracy, can only expect it to go higher. What others were you considering?

Simon Templar| 1.7.13 @ 5:33PM

cicero,

I have been doing some serious reading lately and their is a growing number of economist and financial analyst in the private sector that are quietly discussing what is coming on the horizon. These are not cheerleaders, quacks, or government or media hacks but serious investment companies and financial analyst. You will not find these in your local newspaper columns, the talking heads on Fox or anywhere else. These are coming economic events that have grounding in past economic history.
They are as follows and will precede in this order:
Another Real Estate collapse, private debt and discretionary spending collapse, stock market collapse, dollar collapse, government debt collapse.

Simon Templar| 1.7.13 @ 5:42PM

I suggest you start investigating this for yourself and your family. If you have any doubts, the consider this. Major universities, national governments, and billionaires have been quietly buying millions of dollars of gold, buying foreign currency, and selling stocks at an alarming rate over the last 6 months. You can look this up yourself.
This should be all the hint you need. They are not going to announce this on the 6'oclock news for idiots like Purp and the rest of the ignorant public.
This will be global, not just the US.

Simon Templar| 1.7.13 @ 5:52PM

The current administration knows this is going to happen and they are trying to stave it off with massive government spending to buy time to figure out what to do as they are not sure what to do. They are re-inflating these bubbles with easy money to keep them going. This is why they are printing money like crazy, spending like mad, and keeping interest rates near zero. This is way beyond ideology. Boner and the GOP know this, this is why they have been acting rather strange and will not cut spending.

Kingofthenet| 1.7.13 @ 5:47PM

President Obama should have a couple of those TRILLION Dollar coins made into Medallions on Big Ass Gold Chains, slap them on the Table and say, Paid Bitch...

Simon Templar| 1.7.13 @ 5:55PM

Yeah, and your President Comanche can shoot off a few rounds and celebrate! Then we can all go out and buy some BIG ASS Fries!

Moron.

mike 3/505| 1.7.13 @ 6:20PM

"Red States get most of the entitlement money."

Purp,

You know what that means?That means people in Red states pay the most into the kitty. let me help you..Entitlements are those programs that are paid for, either in cash or in kind, by taxpayers. social Security & Medicare are entitlement paid for in cash, by taxpayers for their own (alleged) benefit. another entitlement is military pensions & retirement healthcare. those are paid for "in kind," for 20 plus years of dedicated military service.

MedicAID, PELL grants and food stamps are NOT entitlements. They are charity...simple income/wealth transfer vehicles from makers to takers, for the benefit of looters.

In short, entitlements are essentially property.

Hope that straightened you out on this.

mike 3/505| 1.7.13 @ 6:22PM

Edit Button Please!

Pecos Pete| 1.7.13 @ 9:10PM

Purp, the Violet of TAS, is a waste of time.

HB| 1.10.13 @ 10:32PM

Hitler and the Nazis had plenty of nice apartments, homes, and majestic estates to parley among the national democrats after the former occupiers of said dwellings were deported to concentration camps. Cash for cars was short termed, and only a muse to distract the dupes who believe the liberal/progressive news woman. After there is no longer an industrious, inventive, and productive sector in American cyber space, there won't be anyone left to steal from. Hear here, Obama Osama.

Cole@PaydayLoans@ Online | 1.14.13 @ 8:33AM

To be honest, I did not realize that if the debt ceiling is going to rich its top, we may have such bad consequences. But really, higher taxes are not the best solution. Practice shows that it has never worked in the past that is why I do not see any reason why it should do any good today! You say that raising taxes on “millionaires” is one thing; raising them on the average workers is another. It’s all same things. An average worker will not be able to pay it eventually and millionaires will choose to move to another country and transfer their assets over there. So how does it work exactly?