Everyone Is Wrong About the Debt Ceiling But Me
James Poulos ·
Jul 6, 2011 at 8:58am
Could that headline possibly be true? Let's see: David Brooks -- wrong. Rand Paul -- wrong. Our friends and adversaries on the left -- wrong. Congressional Republicans -- ? It's still too soon to tell. Here's my view on the debt ceiling. Prove me wrong that I'm the only one right!
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Jan '11
Re: Everyone Is Wrong About the Debt Ceiling But Me
Nicely spoken, but still spoken too nicely! :) Republicans need to employ the "ABC" stategy - assess, blame, and criticize. Obama can be cornered using his own words, he says there are some that "want to kick the can down the road when it comes to solving the larger problems". Shine the light back on him, and say that Republicans want to solve the problems now, and not just pave over problems as is the usual tactic of the Democrats.
My personal opinion is that the US has been in stealth default for a while - eg with raiding of social security and replacing the money with IOUs. The time for being polite is over - time to adopt the Breitbartian strategy of bravely showing our colors!
Jun '10
Re: Everyone Is Wrong About the Debt Ceiling But Me
Erik Larsen:
My personal opinion is that the US has been in stealth default for a while - eg with raiding of social security and replacing the money with IOUs.
When exactly did this happen? I hear people refer to this supposed "raiding of the lock box" all the time, usually it's liberals who claim it was all Reagan's fault.
So far as I can tell the "trust fund" has been 100% invested in "interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States" since 1935. In other words it was never "raided," it has been IOUs ever since FDR started the program.
Nov '10
Re: Everyone Is Wrong About the Debt Ceiling But Me
"Stealth default" might be better characterized as the ponzi scheme of entitlements.
Jan '11
Re: Everyone Is Wrong About the Debt Ceiling But Me
Joseph, I think I was being lazy and you are correct. One could also state that printing of money/QEs are a form of stealth defaults. DJ, entitlements - oh man when those chickens come home to roost it isn't going to be pretty. From what we've seen in Wisconsin about even minimal incursions into union territory I'm not optimistic
Aug '10
Re: Everyone Is Wrong About the Debt Ceiling But Me
They were all out of step but Jim.
Nice simile at the end. How do you do that with a (sort of) straight face?
May '10
Re: Everyone Is Wrong About the Debt Ceiling But Me
There's no bottom to how much one can owe in IOUs. They are good until two conditions are met: (1) creditors don't believe you truly intend to pay them back, and (2) those creditors are willing to do something about it.
We have already met the first condition. It's the second condition we're waiting on.
When you're the most powerful, influential nation in the world and other nations have all dug their own pits of IOUs, it's difficult to imagine anyone calling your bluff. The illegitimacy of our government's financial practices might ultimately have to be punished by its own citizens.
"We are the ones we've been waiting for." Obama should have ended that statement with "... to pay us back."