Posted on 04/21/2011 10:07:26 AM PDT by rightwingintelligentsia
The United States has surpassed $14trillion in debt for the first time in history while continuing on a course to hit the legal limit on the national debt in less than one week, while Democrats continue to battle the GOP on raising the debt ceiling to avoid a new financial crisis. House Majority Leader Eric Cantor warned Democrats that he is willing to let the U.S. default to creditors if GOP demands for massive cuts to spending and budget process reforms are not met by President Obama and House Democrats, who are seeking to increase the debt ceiling to avoid another economic crisis.
‘With the debt-limit window fast approaching, House Republicans have made clear that, if the President and our Democratic colleagues refuse to accept serious reforms that immediately reduce federal spending and end the culture of debt in Washington, we will not grant their request for a debt limit increase,’ Cantor said is a statement Wednesday.
(Excerpt) Read more at dailymail.co.uk ...
I propose we cut 10 times the amount that was in the last budget deal and reduce federal spending $3.8 billion... but I am just bold like that.
The US cannot tax it’s way out of this. Only cuts, BIG cuts in the budget can stave off complete economic collapse. Even that might not be enough, this late in the game.
There is no other way. Our Glorious Leaders need to get a clue.
If you reduce federal spending, you don't need to raise the debt ceiling, right?
The only reason you need to raise the debt ceiling is because you INTEND to continue to spend more than you have, right?
Will the GOP support raising the dent ceiling? Of course.
The GOP is not serious on this issue.
We can default now and deal with a major crisis, or we can continue on and deal with total devistation later.
I opt for the former.
Sadly, I think you're right.
It's like this. You hit the limit on your credit card. The bank won't raise the limit. You are still earning money. You haven't defaulted, you just can't borrow any more.
It is better for us to take the bitter medicine now than later. We are eventually going to be forced to take it. We might as well do it somewhat on our terms now, while we are still strong enough to do so.
Those numbers....and the way the Ponzi scheme works means that the entire argument about the budget between the GOP and Dems is like a couple arguing about Drape color or fixing a fence while the house is burning to the ground.
The sheep are having arguments that might have mattered 70 years ago.
Right now, events are spiraling out of control. Raising or not raising the debt ceiling will have little effect (same as the paltry “cuts” that are being argued about).
Europe is a zombie at this point (held together by the Fed, if rumors are true). China is caught in a vicious trap, and they either have to accept our exported inflation (and all of the rioting that goes along with it), or destroy their export economy, and rely on their own domestic economy (which isn’t happening). Japan was in serious trouble before the tsunami — now it is just a question of time. Meanwhile, the world is abandoning the dollar, bit by bit.
The only important questions now involve surviving the fallout. And, as you say, our leaders are vigorously debating the color of drapes.
Quite correct.
Lenders would know that the US is serious about limiting the debt. The lenders would appreciate that the debt limit has been reached and will not be breached. Seems like the kind of debtor that lenders would be happy to deal with.
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