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On Raising the Debt Ceiling...

by: Les Carpenter
Rational Nation USA
Purveyor of Truth


Is anybody, and I mean ANYBODY in either party really serious about controlling the explosive rate of debt growth we have experienced since the 2008/2009 meltdown? I really think not.

Mitch McConnell talking to Chris Wallace about raising the debt ceiling.



Below the fold THINKPROGRESS weighs in. Content as expected from a far left publication.

Meanwhile, over at CBS and Bob Schieffer's FACEtheNATION Ted Cruz chimed in and actually made a bit of sense. Assuming of course he, and anyone else is really concerned with debt control or reduction.

BOB SCHIEFFER: Well, now, just a minute. Just a minute. The government is approaching another deadline February 7, when it will run out of money unless Congress agrees to raise the debt ceiling. Will you agree to raise the debt ceiling, or will you demand something in return.

SEN. TED CRUZ: Look, of course, we should do something. We shouldn't just write a blank check. Five years ago, the national debt was ten trillion dollars. That took 43 presidents over 200 years to build up ten trillion dollars in debt. Today, it's over 17 trillion dollars. It's grown nearly 70% with one president in five years.

And if you ask any American outside of Washington, "Should we just keep raising the debt ceiling while doing nothing, to have fundamental structural controls on spending to get Washington's spending problem under control," it doesn't matter if you're talking to a Republican, a Democrat, an independent, a libertarian.

Anyone outside of Washington says, "Of course." And it's worth noting in the past, the debt ceiling has been the most effective lever point for real structural reforms, whether it was Gramm-Rudman, which did a great job of restricting government spending, getting it under control or whether it was the Budget Control Act.

Both of those came through the debt ceiling. And what the president is saying is he just wants a blank credit card to keep growing and growing the debt, and I think that's irresponsible. I think it's irresponsible to our kids and grandkids to stick that debt on them because we can't live within our means.

We'll just have to wait and see. Both the dems and the repubs are certainly going to paint it in a way that makes their opposing party look bad. It is after American politics and these days the nation herdly ever seems to be the top priority. Of course there is lots more below the fold.

On a most telling note top Presidential advisers are telling the media and the people that the President will work with the Congress when he can but will do an end run around them if he must. Translation, the president will work with Congress when they agree with his agenda but will circumvent Congress when they don't agree with his agenda.

Nothing new there folks, and as noted above, really, no one is concerned about controlling the debt explosion much less in reducing the debt. Certainly not the President.

abcNEWS - President Barack Obama will work with Congress where he can and circumvent lawmakers where he must, his top advisers warned Sunday in previewing Tuesday's State of the Union speech.

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"I think the way we have to think about this year is we have a divided government," said Dan Pfeiffer, a longtime Obama adviser. "The Republican Congress is not going to rubber-stamp the president's agenda. The president is not going to sign the Republican Congress' agenda."

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"The president sees this as a year of action to work with Congress where he can and to bypass Congress where necessary," White House press secretary Jay Carney said.

"The president has sort of hung out on the left and tried to get what he wants through the bureaucracy as opposed to moving to the political center," said Sen. Mitch McConnell of Kentucky, the GOP Senate leader.

Added Sen. Rand Paul, R-Ky.: "It sounds vaguely like a threat, and I think it also has a certain amount of arrogance."
Sure seems like the battle lines have been drawn, again. It also sounds like the President is in the mood to try the Imperial Ruler route and he may actually try it this time as he and his advisers probably believe he has enough public support to pull it off. You know, to hell with the Constitution and all.

Anyway, there is more below the fold. One thing is certain, the SOTU Address should be interesting and the republican response even more so.

It is truly unfortunate that we exist in the political environment we do today where the interests of the parties and their agenda are continually put ahead of the greater interests of the Nation.

Via: Memeorandum
Via: Memeorandum
Via: Memeorandum

A Default Averted For Now As The Can Is Kicked Down the Road... Call Me A Skeptic Awaiting Feb. 7th 2014

by: Les Carpenter
Rational Nation USA
Liberty -vs- Tyranny


Questions: Do you trust this man? Do you think this issue is resolved? Is it just me or has the Tea Party left reason for the realm of wishful dreams?



Then there is the following from FDL ... "It would seem that Senator Cruz should be in a more sour mood given that his plan to stop Obamacare is set to be thwarted. Things really seem to be going poorly for Cruz as the Houston Chronicle, one of his home state’s most prominent papers, took back its endorsement of him."

Houston Chronicle - "When we endorsed Ted Cruz in last November’s general election, we did so with many reservations and at least one specific recommendation – that he follow Hutchison’s example in his conduct as a senator.

Obviously, he has not done so. Cruz has been part of the problem."

And this.

"In three week period following Cruz’s speech — even as GOP’s national approval ratings plummeted — conservatives frantically built their fundraising lists and campaign coffers. In the last quarter, Cruz’s political action committee raised in $797,000, nearly twice what it pulled in the quarter prior, and Heritage Action — which has pressured conservatives to vote against any bill that does not undermine Obamcare — collected $330,000."

And finally, again from FDL, this truth. "So while the country got taken for a bumpy ride and the Republican brand collapsed in national polls – Ted Cruz smashed fundraising goals and posed for the cameras to raise his national profile. A party of one?

No wonder Cruz’s Republican colleagues hate him. His tactics have benefited no one but himself."


Of course there still remains some Senate Republicans trying to at least retain some sense of reason and rational thinking.

Visit NBCNews.com for breaking news, world news, and news about the economy

One thing of which we can all be sure. Neither the ugly intra-party republican battle or another partisan battle is yet over. The battle(s) just finished is unlikely to deter the next onslaught by the loonies who believe in their mission to change America back to 1776, 1787, or 1860. The nation has not heard the last of Cruz, Gohmert, Palin, Bachmann, Lee, and legions of complete and utter Malcontents who support them. Via: Reason

The scare mongering continues on the debt ceiling and default

The scare mongering continues on the debt ceiling and default


There is great wailing and gnashing of teeth over the potential for catastrophe if the debt ceiling is not raised, but whether the ceiling is raised or not, the underlying problem will remain to be reckoned with yet again.

We are warned against defaulting on the national debt, which President Barack Obama tells us will have the most dire consequences. However, default really isn’t an issue, as economist and former long-time Federal Reserve System Chairman Alan Greenspan explained: “The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default.”

While Mr. Greenspan’s statement is technically true, printing even more money to pay the nation’s debts has its own set of economic problems, and heaven knows we have enough of those already.

Another reason paying our debt service isn’t a problem is that even if the debt ceiling isn’t raised so that the government can borrow more money, there is more than enough money coming into the treasury each month to pay the interest on the debt multiple times over, although that has its problems, too.

But the best reason is contained in Section Four of the Fourteenth Amendment to the U.S. Constitution, which directs, in no uncertain terms, that "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." The Constitution commands the president to make good the debts of the United States, and that includes both what our nation owes to bondholders, and the sums promised in legislation to those receiving pensions set by law, according to legal scholar Garrett Epps.

What that means is that if the debt ceiling isn’t raised President Obama will be forced to make some tough decisions on what won’t receive funding so those mandated payments can be made, and since much of Mr. Obama’s popularity comes from spending money, there could be some uncomfortable and long days in the White House.

However, the scare mongering about the catastrophe facing the nation and the resulting public outrage will likely force an increase in the debt ceiling for the 80th time since 1940.

President Obama tells us this won’t increase spending, but since it does increase the limit on spending, does anyone really doubt that spending will soon increase, and before long the politicians will want yet another debt ceiling increase.

Sometimes there are compelling reasons for deficit spending, like WWII, the 9-11 attacks, and the banking crisis that threw the country’s economic system into crisis, but most times it is just a bail out from fiscal irresponsibility. Sometimes the ceiling has been raised by a small amount, other times by a large amount, and sometimes it’s been raised temporarily with provisions for a "snap-back" to a lower level.

“Weighing benefits against costs is the way most people make decisions – and the way most businesses make decisions if they want to stay in business,” says the eminent economist Dr. Thomas Sowell. “Only in government is any benefit, however small, considered to be worth any cost, however large.”

And that is the crux of the problem. People who are elected to represent the interests of the citizenry do not use common sense and basic economics when making decisions we pay them to make.

Trying to obtain benefits without considering either the cost or the likelihood of success not infrequently produces bad programs, and bad programs breed and multiply in Washington, DC, and live forever.

The federal government is simply too big, too powerful, too intrusive, too expensive, and too undisciplined, and as a result there are dozens of duplicate programs, and more than a few programs that do not, and never have, achieved success, but are still being funded. And there are billions going to fraud and abuse.

Attempts to reign in waste, fraud and abuse have mostly lacked serious action, and efforts to cut spending to match income likewise have accomplished little.

And atop that lackluster record we have the biggest deficit producer in history in the White House.

At the end of FY2000, four months before George W. Bush took office, the national debt totaled $5.67 trillion. At the end of the fiscal year that Barack Obama took office it had risen to $11.91 trillion. That number is skewed higher due to the $151 billion TARP program President Bush implemented, $147 billion of which was repaid after Mr. Obama took office.

At the end of FY2013 the debt stood just short of $17 trillion. Excluding FY2009, when both Mr. Bush and Mr. Obama held the White House, the president and the mostly-Democrat-controlled Congress added more than $5 trillion to the national debt, with average deficits of $1.163 trillion from FY2010 – FY2013.

It is way past time that government face up to reality and live within its means. The president and Congress must get rid of unproductive programs; eliminate, or at least significantly reduce, fraud, waste and abuse; shut down or downsize federal departments; and implement business-like fiscal standards. In short: do their job.

Nancy Pelosi Showing Again She Has Little if Any Grasp of Reality...

Nancy Pelosi Showing Again She Has Little if Any Grasp of Reality...
by: Les Carpenter
Rational Nation USA
Liberty -vs- Tyranny


This from the Queen of gimmickry.

The Hill - House Minority Leader Nancy Pelosi (D-Calif.) on Friday rejected the House GOP’s three-month plan to increase the debt ceiling.

A spokesman for Pelosi said that the bill coming to the floor next week, which would raise the debt ceiling with the condition that Congress will not get paid if the House and Senate fail to pass a budget, is a "gimmick."

“This is a gimmick unworthy of the challenges we face and the national debate we should be having. The message from the American people is clear: no games, no default,” Pelosi spokesman Drew Hammill said.

He called for a “clean” debt-ceiling increase without conditions.

“We need a clean debt ceiling increase and a bipartisan and balanced budget that protects Medicare and Social Security, invests in the future, and responsibly reduces the deficit,” he said. “This proposal does not relieve the uncertainty faced by small businesses, the markets and the middle class.”

Democrats want a budget that has a “balance” between spending cuts and tax increases.

GOP leaders said Friday that they will hold the debt-ceiling vote next week and that they are backing down from a previous demand that all debt-ceiling increases be accompanied by an equal amount of actual spending cuts.

Instead of concrete cuts, the GOP plan tries to force the Senate to pass a budget for the first time in four years. The GOP is banking that cutting off an unpopular Congress's pay will poll well with the public and be hard for Democrats to oppose.

The Pelosi reaction to the plan is more negative than that of the White House and Senate Democrats.

President Obama’s spokesman said Friday it is encouraged by the GOP shift.{Read More}

Ya know the person is out their when even their own progressive party is in opposition at certain levels.

Via: Memeorandum