The Debt Ceiling?

[lurkingdirk]

Of course the debt ceiling should be raised. It's part of doing business right now, and until this nation is in a better situation financially, this is a necessary step.

Let's all remember that under the previous administration they raised the debt ceiling no less than FIVE times. And now the GOP is bitching and moaning about it? Blasted hypocrites.

Also, if you look closely at what the GOP hardliners are saying, they don't disagree that the debt ceiling has to be raised. They just want something for this vote. It's partisan politics at its absolute worst.

 

[saschaxx]

Raise it or dont raise it. Sooner or later they´ll get you american idiots at your azz !

http://www.truthin2010.org/

And if only HALF of the truth is correct, nothing of all private things do belong to their owner and this will hit about 90% of the US-citizen . But I think therés a bit more but half of it correct ...

Someone should have kicked Bushbaby in his azzhole instead of voting the dumbazz again. Looord in heaven, there was a man ( named Bill Clinton ) where the budget was BALANCED .
So well I don´t fucking care if you raise or dont or whatever ... EVERYONE of you is in debt with about 245 K - $ , ....so 100 K - $ more or less, who cares ?
And your problem is : You own the debt to a (very) big number to China , ...and I´m sure they want their money back sometimes, ....cash on the table.

Just wait a second while the voice of Sheila starts talking .
And this is a site located in the USA .

 

[Rey C.]

This is something that came up when I was discussing this with friends and family this weekend. How many of you know of or have been in a divorce situation?

What do you tend to see in the aftermath? The husband decides that he's not going to pay the credit card bills, cause "the bitch shouldn't have bought all those shoes to begin with!" And the wife decides not to pay the mortgage, cause "the bastard didn't care enough about the house to even take out the trash once a week."

While they play the blame game, doing their best to one-up and destroy each other, their credit scores plummet. And no matter which one "wins", neither can buy so much as a candy bar on credit after the divorce is finalized. So their current spending is now in check. But the interest rates on their CURRENT DEBTS sky rocket. And because of the higher interest rates, their future spending is negatively affected, because the interest portion of the payment is now higher. Whether we're talking about the government, a business or an individual, amortized, scheduled payments are a function of the term, the principal... and the interest rate. That's it. That's all. Not that hard to figure out. Math knows no ideology. It is what it is... and that's what it is. Anything that causes any of those variables to move up or down causes the payment to move up or down.

So fuck around and cause the interest rates to be increased... and the amount that taxpayers will have to pay annually, in order to just service the debt, WILL go up. That is a mathematical fact. Assuming the term remains constant, you could reduce the debt principle, but if the interest rate rises enough, your payment would wind up being higher! Remember the credit card example.

Anyway, I call bullshit on this foolishness anyway, because a LOT of the same people who are prepared to drive this economy off a cliff (again) now, were the same ones who approved every debt ceiling increase that Bush asked for. But as I said, I am in favor of cutting spending (and eliminating some of these needless welfaresque tax breaks for the wealthy), so that we can not just reduce the deficit, but actually get to a surplus sooner than later. Only with a surplus, and using that surplus for debt reduction, can we finally address the debt. Having smaller deficits (which is all ANY OF THEM has proposed so far) doesn't feed that bear.

But this is not the way to do it. And this is the primary reason why I usually stop hanging around friends once they get divorced. Life is too short to have to listen to overly emotional, irrational people, who have lost the ability to consider long term consequences.

 

[saschaxx]

There´s someone able to addup 1+1.

http://www.chinadaily.com.cn/cndy/2011-07/13/content_12889286.htm

 

[Trident1]

No we shouldn't.

 

[saschaxx]

...but you will.

Same like we idiots will throw good money after bad money ( Greece , maybe some others ) , and we will do it again and again and ....instead of making a clear cut and sortout anything that stinks. Just to save that fucking Euro ....!
And the US with their grand-mouth tells them Greece : * we´re helping you .... *
Is it allowed to ask : With WHAT are they helping ? They better help THEIRSELVES , .... azzholes !

Some good questions ( and answers ) here :

David Gewirtz

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I’ve spent the past week or so trying to get my head around this whole “debt ceiling”debate that’s raging in Washington. Clearly,it’s important,but what does it really mean?

As it turns out,if the politicians screw up,it could be bad. Real bad.

Think of the debt ceiling as America’s credit limit. The only difference is that the people we’re borrowing money from don’t set the limit,Congress does. At it’s most simplistic,if we hit the debt ceiling,we can’t borrow any more.

This is not necessarily a bad thing,unless,of course,we need to pay for stuff and we don’t have enough money to do so. We spend on a lot of things,including our soldiers’salaries,social security checks,and all the other outflows that the U.S. has to make on a constant basis.

We also spend on a lot of stupid things and this,it seems,is the core of the debate. The Republicans think some of what the Obama administration is spending on is stupid. The Democrats think that what the GOP wants to spend on (mostly tax cuts for the super-wealthy) is stupid.

Congress,being one of the checks and balances (and run pretty much by the GOP) wants to put a ceiling on debt. This is both because they’re completely against the Obama administration’s spending practices and,because,if it all goes horribly wrong and the economy tanks further,they can blame the incumbent President during an election year. Yay,patriotism!

By contrast,there’s some debate among Constitutional scholars (and their always lucid research team,the blogosphere) whether or not Congress can legally impose a debt ceiling. Section 4 of the Fourteenth Amendment to the Constitution has this handy little phrase:

The validity of the public debt of the United States,authorized by law,including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion,shall not be questioned.

Some people take that to mean that debts are always paid,and therefore,if we have to borrow more (even if it’s borrowing to pay debts —talk about stupid!),we’ll do so.

This is,in fact,probably true. For support,let me point you to an article in Esquire called The Debt Debate’s Real Doomsday Scenario. It’s written by Tom Junod,who does not profess a party affiliation,but from his writing,it seems clear he’s not exactly on the GOP’s side this week.

In any case,Junod points out that the Treasury will pay our debts. The whole “full faith and credit of the United States”thing is at risk if we don’t,and nobody really wants to see America’s credit rating downgraded.

What this means,according to Junod’s piece,is that —assuming the debt ceiling isn’t raised as President Obama would like —the U.S. will pay its debts by pulling money from other operational budgets. In effect,we’ll stop writing checks to anyone other than our creditors,until we can meet our credit obligations.

I can’t tell you if Junod’s read is correct. I’m neither a Constitutional scholar nor a banker. But I am something of an expert on national security and here’s where I start getting concerned.

China is America’s largest creditor. You can see it coming,can’t you? Yeah,I know you can. Let’s play this out.

If China is America’s largest creditor,and we’re going to have to pay our creditors before we pay for anything else,then who are we going to pay before we pay our social security recipients,our soldiers,and pay for all of our other operation expenses?

Yep. China.

If you’ve ever wondered why I have so little regard for our politicians of both parties,this is one example. Their bickering,their constant efforts to put party before country,and the overwhelming influence of lobbying organizations have screwed up our nation’s priorities.

Is there a way out of this mess?

I outlined a lot of ideas in How To Save Jobs,but those approaches require substantial changes in how we prioritize our national interests.

So why am I telling ZDNet’s tech audience?

The bottom line is this. If our politicians don’t solve this bitter dispute,we’re likely to be sending money that might otherwise go to you,your employers,your schools,your military,and many other services that you rely on to China.

Call your Congressional representatives. Tell them to stop bickering and resolve this one way or another before we wind up paying China before Americans.

Read more: http://nfcdata.com/blog/2011/07/14/...before-we-pay-our-own-soldiers/#ixzz1SRGkpOun