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Debt limit fight coming

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POSTED: Wednesday, October 9, 2013 - 5:54pm

UPDATED: Monday, October 14, 2013 - 12:00am

Part of the problem with the national discussion on the debt limit, is that most folks don’t understand it.
It seems some members of Congress don’t either.
When the House of Representatives passed the so-called Ryan budget two years ago, it would have raised the national debt one trillion dollars in 10 years.
The debt limit would have to be raised to accommodate that spending…that spending that had been authorized.
That seems to be the issue most Americans don’t understand according to the latest polling.
The debt limit hike was always just a formality, since everyone knew it isn’t authorizing more spending, but simply paying for what has already been approved by congress.
The National Journal poll shows 62% of Americans believe a debt ceiling hike authorizes more spending.
Only 28% understood it’s to pay for spending that’s already taken place.
Then there’s the new point of view that a default wouldn’t be so bad.
The short answer is, nonsense. But to explain, we had a minor, accidental default back in 1979, when a glitch in a Treasury Department computer missed the deadline on $122-million in T-bills.
Just that small whiff of fear in the market cost the US $12-billion in borrowing costs.
The 2011 debt fight cost us our triple – A bond rating, but a true default would raise the cost of loans, not only to Uncle Sam, but for your car or house. It would plunge the market immediately, and return us to recession if not worse.
Both sides understand that.

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Truth: RAISING THE DEBT CEILING MEANS THAT THE US CAN PAY INVOICES ON THINGS THE HOUSE HAS ALREADY "BOUGHT"...it does not mean that there will be new taxes levied on American citizens. For heaven's sake, posters...do your homework before you start screaming "the sky is falling"...again, raising the debt ceiling is ONLY for paying for things the House has already invoiced...again, raising the debt ceiling is ONLY for paying for things the House has already invoiced...get your facts straight!!

Mr. Gray makes some good points. There have already been unintended consequences to this comic opera. Interest on T-Bills is rising due to speculation about the debt crisis. All other rates will follow this upward trend. Do you think an increase in interest rates at this time will help the economy? Will an increase in mortgage payments cause another wave of foreclosures? Congress better start thinking about the long term effects of their political posturing.

Their telling us that raising the debt ceiling does not mean we are deeper in debt. They tell us they need the money to pay bills already due. An elementary student is taught if you go over your budget, you are in debt! Obama says our deficit is lower than it has been in years. This does not compute!! They are spending money they do not have, PERIOD!!

The President is right that the deficit, that is the amount of red ink in our budget every year, is going down. It is half the figure in the last Bush budget, and the first Obama budget. But the poster is right, it is still red ink. But it is going in the right direction. The budgets in the 90's took awhile to balance, but they ultimately did. It came from increased revenue in 1993, and budget discipline later with the Republican Congress and Clinton Administration.

There may be a fight, but the right is going to lose...not only on the immediate issues, but in the election cycles in 2014-16...the repub/tea swillers are going to be kicked to the curb by Americans who have been laid off, who can't feed their babies, who don't get SS checks (a possibility if the gov't. remains shut down on Nov. 1), Medicare coverage, vet benefits, and all the other programs that benefit Americans...if you tea party devotees think we won't remember, you have mush for brains!

No matter which side of the issue you support...either the crackpot side of the deaf, dumb and blind tea swillers or those extremely concerned and totally innocent folks who really know what's going to happen next Thursday should the economy go completely over the cliff...SS checks will stop Nov. 1. military/vet benefits will end, Medicare recipients will suffer, and on and on...believe it folks...the elderly, vets, young, old, sick, out of work, homeowners, etc....thank your rep. tea wacko's!

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