Posted on 07/26/2011 5:36:01 PM PDT by all the best
Currently, the big show in Washington, DC, centers around raising the debt ceiling. Congress began setting this ceiling in 1917 so that the Treasury could independently issue debt. The debt ceiling is like the limit on your credit card, except the federal government sets the limit on itself. When President Nixon took us off the gold standard in 1971, the national debt was $400 billion. The increase in the national debt last year alone was four times the entire debt in 1971.
Both Democrats and Republicans tell us that not raising the debt ceiling would have a negative — even catastrophic — effect on the American and world economies. They are in agreement on this. The only matter of debate is what concessions are necessary in order to establish a bipartisan majority to pass a bill raising the ceiling. Democrats seem to want larger cuts and tax increases, while Republicans want smaller cuts with no tax increases. The multitrillion-dollar cuts that they are discussing only occur over a ten-year time frame and do not balance the budget, so no one except Ron Paul is really discussing the kinds of budget cutting that would actually help the economy.
What we really need to do is to lower the debt ceiling. If Congress passed legislation that systematically reduced the debt ceiling over time, the economy could be rebuilt on a solid foundation. Entrepreneurs in the productive sectors would realize that an ever-increasing proportion of resources (land, labor, and capital) would be at their disposal, while companies that capitalized on the federal budget would have an ever-declining share of such resources.
Congress would have to cut the pay and benefits of its employees (FDR cut them by 25% in the depths of the Great Depression) as well as the number of such employees.
(Excerpt) Read more at mises.org ...
It’s like trying to fornicate your way out of having aids
Two other paths to consider:
1. Pass new legislation setting the debt ceiling at $14.3 Trillion (where it is right now). Makes a nice statement.
2. Don’t pass anything. Ceiling remains at $14.3 Trillion. Cuts in the next year WILL TOTAL by definition $1.65 Trillion.
On a side note, I’m concerned that once the regime is forced to “cut”, that it finds a back-door way of debt ceiling increase. Consider CA’s issue of IOUs. Consider delaying payment on some bills, but taking the services or products. There are ways to obligate oneself without the formal debt ceiling increase.
bump.
The Austrians rightly point at federal regulatory agencies as one place to cut. Right now, FAA is working with 4,000 employees on furlough - yet the skies are save and air traffic controllers are on the job (and hopefully awake). Could we have 4,000 more employees than we really need at FAA?
Go look at Rand Paul’s proposals for cuts across the board in federal spending. Some may be more practical than others, but let’s get started: http://www.campaignforliberty.com/blog.php?view=41227
"Should the debt incurred by the United States be the direct result of one administration's actions, the reimbursement of that debt shall become the sole responsibility of that administration. Should that administration be unable to reimburse such debt by the end of their tenure, the reimbursement of that debt shall be carried out though the incarceration of appropriate parties for the appropriate periods."
In other words, the United States could send their president(s) to jail along with others who are ultimately responsible for the debt that they personally produce during their administration; potentially for life!
Is the debt limit..... A LIMIT?.......
The truth is there is no number.. no limit..
There ARE no limits.. THAT should change..
As far as I'm concerned, they can send my two Senators and Representative (and staffs) home without pay.
Very good article by Mark Thornton. Thanks for posting.
ROFLMAO, al baby!
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