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 Going Deeper and Deeper Into HockPosted on Mar 16, 2006Truthdig says: Congress just raised our debt ceiling--the amount we’re allow to borrow--by $781 billion. It was either that or default on our treasury notes. This is the fourth debt-ceiling increase since Bush took office--some $3 trillion in total. Dick Cheney may have said that deficits don’t matter, but try telling that to the next generation of Americans, who are going to have one helluva credit card bill to pay off.
Washington Post: Congress raised the limit on the federal government’s borrowing by $781 billion yesterday, and then lawmakers voted to spend well over $100 billion on the war in Iraq, hurricane relief, education, health care, transportation and heating assistance for the poor without making offsetting budget cuts.
On vote after vote in the House and Senate, lawmakers demonstrated the growing gap between their political promises to rein in spending and their need to respond to emergencies and protect politically popular programs. The votes followed last weekend’s GOP leadership meeting in Memphis, at which virtually every speaker called on the party to renew its commitment to fiscal discipline and to control federal spending and the deficit.
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Washington’s Overrated ‘Old Hands’
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By fish, March 18, 2006 at 9:24 pm #
(Unregistered commenter)
While I typically relish any talking point that makes this administration look bad, the truth is that the debt ceiling has been raised every year except one (2000) since 1969. There is a legitimate discussion as to whether this administration is letting the deficit rise too quickly, but this article is written to imply that by raising the ceiling every year, Bush and co. is doing something extraordinary. That is clearly not the case.
Report thisBy W. White, March 18, 2006 at 9:11 am #
(Unregistered commenter)
RE: R.A. Earle comment #5422.
You are right, there is no collateral, only fear. It works the same as a big borrower of a bank; a default can devastate the bank so more is shelled out, in hope of a business turnaround. Trouble is, without collateral, one cannot recall and liquidate part of a loan in an orderly fashion. When fear-based loan blows, duck, for it will be a Lulu.
As to a repayment plan, the most popular Fed. note is 15 years, and at my age, that means the next generation pays for what we spent. Sorry.
Report thisBy R. A. Earl, March 17, 2006 at 8:48 am #
(Unregistered commenter)
A couple of questions:
Q1. What, exactly, is the US Government using as COLATERAL for all these “loans?”
Q2. What, exactly, is the repayment plan?
For those taking notes, may I suggest the following answers:
A1. Nothing.
A2. There is none.
You have to understand the “big leagues” banking system.
First, the really big banks DO NOT actually have the money they loan to you. You go in, grovel and plead and sweat and finally they agree to loan you $10,000. The loans officer turns to his/her computer and transfers $10,000 to your account. Do you really think that $10,000 actually came out of the bank’s pockets? That $10,000 didn’t even exist before it was typed on the computer screen and landed in your account. But YOU are real, and OBLIGATED to work your ass off for the next umpteen years to pay back the bank what it didn’t own in the first place, PLUS A WHOLE WHACK OF INTEREST they didn’t earn. Nice set up, eh? The banks not only don’t have to have money, they don’t even have to print it anymore… they just type it on a screen.
Secondly, I submit no country or organization in its right mind would actually “loan” the US a dime. The US Government just enters a few more billion into the treasury account by creative accounting measures, and VOILA!… more money to continue the war, etc. All the fuss in congress etc. is a smokescreen… it’s meaningless.
Finally, I submit any actual “money” the US has borrowed, will NEVER be paid back, at least in cash. I submit the US will likely just agree NOT to invade the lender’s country or in some other way to invoke the “protection” racket on a grand scale.
And anyway just WHO is going to foreclose or send the US into bankruptcy?
Got the picture?
Report thisBy TW, March 17, 2006 at 7:34 am #
(Unregistered commenter)
maybe the only surprising thing about this is that they’re not raising the debt ceiling by more than this. We’re right at the limit now, and racking up deficits at a rate of close to $400B a year - so a less-that-$800B bump will buty them two years or less. do they really want to have to do this again shortly before the NEXT election? or are they figuring, the Dems will be in charge then anyway, let them take the rap for lifting it two years from now?
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