Posted on 01/11/2013 5:40:11 AM PST by SeekAndFind
If Congress does not raise the debt ceiling, the result will be no different than the Jones family deciding that they have maxed out their credit cards; and that if they continue borrowing and spending over their means, there will be significant pain to the family at best and bankruptcy at worst.
The economics of government is no different.
Mr. and Mrs. Jones want to be able to provide for themselves in their retirement and hopefully leave a little something after they are gone to provide a better life for their children and grandchildren. They understand living in the moment and not planning for the future is a plan for failure.
The economics of government is no different.
The Joneses know if they stop borrowing they will not become destitute, or default on their loan payments and obligations, because they will continue to work and earn income. (Just as the government will still take in tax revenue) They know that if they reallocate and budget, which includes paying the interest and some of the principle on their credit card debts, and live within their means - nothing disastrous will happen!
The economics of government is no different.
The Joneses know they have a spending problem -not a revenue problem, and their extravagance must end. They will have to define what is essential for the family to provide stability. This will not be fun or easy, but the Joneses know their free spending choices have costs and they have decided personal responsibility to their accounts now is better than painful accountability later.
The economics of government is no different.
(Excerpt) Read more at realclearmarkets.com ...
It will be like a junkie going through withdrawal. There may be some screaming and discomfort but ultimately it will be beneficial.
No, The Jones family took loans against their house so they could keep paying the credit card bills mand spending, eventually they walked away from their house and moved into rental house (much cheaper) letting the bank foreclose on the worthless house .
RE :”The Joneses know they have a spending problem -not a revenue problem, and their extravagance must end. “
They didn't get second jobs too?
Lets file this with the library of bad analogies.
The spending is CR they pass, the debt limit is borrowing the money to pay for the spending.
In the end they (House Rs) might better luck on making a stand on the CR than the debt limit, but my guess is they don't want to take a stand on cutting specific spending as that would be unpopular, they just want to take a symbolic stand against the debt, till they give in again.
Another Kabuki dance
It was house members saying dumb stuff like this on camera that gave Dems ammunition to beat them in the 2011 debt limit standoff, O got his 2 year getting him through the election.
Rather than saying dumb stuff like this they should have been making the case on TV for smaller debt limit extensions, like in 2 month increments.
Don’t the Joneses know that if they could find something round, like, say, a checker from a checkerboard set, or a piece from a backgammon set, and scrawl “$1 Trillion” on it, they would be wealthy beyond their dreams?
Except that unlike the 'Jonses' the government can monitize its debt by printing money and more money. The government still remains. Only the Jonses starve to death. (Ref: Zimbabwe, Germany, Argentina etc)
Fiscal cliff bump for later......
And, of course, it will be primarily the Democrat party moocher base who will be the ones going through withdrawal if the people who do the "appropriating" have the guts to make sure of that. That would be the GOP-controlled House.
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