Debt LimitPosted: 2 Oct 13
I’ve probably said a number of these things here before, but I wanted to share with you my latest letter to my so-called Congressman:
I notice the House still isn’t getting serious about a budget; I talked about that yesterday. And of course, the longer you all spend futzing with the continuing resolution, the less time you have to deal with the debt limit. Let me tell you my thoughts on the debt limit. Republicans are very fond of talking about how the government should run its finances like a family or a small business would. I’m actually quite fond of that idea myself.
Do you know what happens when a small business or a family defaults on their credit payments? They get their interest payments jacked up. When you are a talking about an entity with over $16 trillion in debt, any flirtation with default is, to say the least, foolhardy, at worst, stupid. Look, clearly the President grew a spine sometime in the past year and he’s not going to cave to pressure from you guys like he’s done in the past. It’s clear he’s not going to stand for your tea party shenanigans this time around. You and the GOP talk a lot about fiscal responsibility. Well, the responsible thing to do in this situation is to raise the debt limit. Because even 1% of $16 trillion is a LOT of money. Yes, we can’t afford to keep spending the way we do, but we also can’t afford to get our interest rates jacked up for no good reason, either.
It’s also worth noting that the debt is not the fault of the President, it’s the fault of Congress. You pass a budget and the President has to spend it. You pass taxes and other revenue and the President can’t collect any more than that (sometimes you get lucky and your AIG stock goes up higher than you thought, but you can’t count on that). Your spending far outstrips your revenue, so the only way to resolve that is to borrow money. So the President does what he has to do to meet all of his obligations under the law, but Congress throws one more monkey wrench into the works: you also pass a debt limit that doesn’t cover all the spending you required over and above the taxes you’ve approved. Dirty pool if you ask me.
Raise the debt limit without strings or explain in the primary why we’re now paying even more interest when we could continue to borrow at rock bottom rates.