The Next Fight: Raising the Debt Ceiling
Peter Robinson ·
Jan 13, 2011 at 11:36am
On the floor of the Senate in 2006:
The fact the we are here today to debate raising America's debt limit is a sign of leadership failure. Leadership means that 'the buck stops here.' Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership....I therefore intend to oppose the effort to increase America's debt limit.
--Sen. Barack H. Obama
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Nov '10
Re: The Next Fight: Raising the Debt Ceiling
Were Republicans attempting to raise the debt limit in 2006?
Nov '10
Re: The Next Fight: Raising the Debt Ceiling
What nonsense. The "Debt Ceiling" is nothing but a political smokescreen. It has no effect on government spending one way or the other.
Re: The Next Fight: Raising the Debt Ceiling
Smoking gun! Oops, I mean, err...nice little piece of incriminating evidence. I suppose he'll just have to hope that his views of 2006 aren't too widely disseminated.
One thing we can count on is having the delusional Paul Krugman explain to us all why the situation has changed since '06 and in order to avoid the worst economic crisis since the Great Depression, we must blah blah blah.
May '10
Re: The Next Fight: Raising the Debt Ceiling
Wouldn't it be fun if every Republican that voted no on the raising of the ceiling [the merits of that vote for the moment we can set aside] gave this as their speech? One after another, striding to the podium and delivering this short message: it's a great image. And civil!
Edited on Jan 13, 2011 at 11:56amMay '10
Re: The Next Fight: Raising the Debt Ceiling
I agree. Perhaps someone can change my mind, but it seems the only purpose of raising the debt ceiling is to condone an action already taken.
Jan '11
Re: The Next Fight: Raising the Debt Ceiling
Oh boy, I'm going to be unpopular with my comment - however I wonder if economy can be compared to the story of the ruler and the rice grains on the chessboard. In return for a favour, a courtier (or whomever) asks for only one grain of rice on the first square, two on the second, four on the third, doubling until square 64. As we all know, it would take nearly a millennia of grain production to fulfill that obligation.
Here I am defending Obama(?!?) - saying that it's not his fault that he's stepped in close to the end of the multiple doubling cycles - Bush faced this issue towards the end of his term, addressed with QEI. I think there may not be enough money in the world to soon meet the US debt obligation, much as in the chessboard problem above.
So, yes, one way or another the debt ceiling will be raised because it has to be for the US to march forward. However, the sky may not be the limit.
Re: The Next Fight: Raising the Debt Ceiling
Yes. Bush administration had run out of spending room.
Jun '10
Re: The Next Fight: Raising the Debt Ceiling
Peter Robinson: On the floor of the Senate in 2006:
There, fixed it.
May '10
Re: The Next Fight: Raising the Debt Ceiling
What he said before is irrelevant. That's just the past. This is the present. We are in the middle of the Worst Crisis in the History of the Country. The car is in the ditch. Move to the back seat and quit asking for the keys back. Put down that Slurpee and grab a mop.
Edited on Jan 13, 2011 at 12:28pmMay '10
Re: The Next Fight: Raising the Debt Ceiling
This doesn't halt quantitative easing, i.e., monetary inflation via open market purchases (which is what prompts economic contractions), so who cares Mr. President.
May '10
Re: The Next Fight: Raising the Debt Ceiling
Does it have to be? Really, seriously ask yourself the question.
One, two, three-- infinity. Where does it end?
It ends when we either crash/default uncontrollably, or when we face up to the fact that we cannot even (in the medium- to long-term) pay for the interest on our debt, much less repay the principal, and default on the debt now.
We will default at some point. We may try runaway inflation to stave it off, but even that may be useless because our lenders will quickly demand a corresponding increase in interest rates. The choice we have is to default now in a controlled fashion and get back on the path of fiscal sanity, or be forced to default later under much less desirable conditions.
Either way there will be pain. But we should face up to it and take our medicine now, or suffer much worse pain later on.
Sep '10
Re: The Next Fight: Raising the Debt Ceiling
For me the question is will the GOP cave on this like they did the tax bill. Certainly O used the debt ceiling issue to posture, what pol hasn’t. My money is on the GOP losing on this one also.
Oct '10
Re: The Next Fight: Raising the Debt Ceiling
I really don't understand what the practical purpose of the debt ceiling is. If they don't raise it does that mean that some portion of the debt does not have to be repaid? I've heard some people say if the ceiling isn't raised then the country has defaulted on its debt obligations - is this functionally true? It sounds odd. If someone could give the Debt Ceiling for Dummies overview, I would appreciate it.
May '10
Re: The Next Fight: Raising the Debt Ceiling
But it does effect whether or not the government can actually, you know, write checks. The Treasury does not have the authority to issue any kind of bond, including US Savings Bonds, without the direct authority of of Congress.
They call it a bond sale, but what they are selling is our debt. The government has gotten to the point where they are maxing out all the new credit card applications that come in the mail in order to pay the debts and interest on the cards they maxed out years ago.
No raise in the debt ceiling, no more Treasury sales. No more Treasury sales and they would have to rely solely on tax revenues. Radical, huh?
Aug '10
Re: The Next Fight: Raising the Debt Ceiling
Anybody remember those news items after the 2008 election (1) 16000 new IRS agents and (2) New shotguns issued to IRS agents.
Now what do you think those are for ?
Nov '10
Re: The Next Fight: Raising the Debt Ceiling
How does the debt ceiling affect current non-discretionary spending? That is, if it's not raised, can the govt still meet payroll for its various agencies, pay the sundry entitlements and so on?
I ask as someone who does not know.
Nov '10
Re: The Next Fight: Raising the Debt Ceiling
EJHill
But it does effect whether or not the government can actually, you know, write checks. The Treasury does not have the authority to issue any kind of bond, including US Savings Bonds, without the direct authority of of Congress.
They call it a bond sale, but what they are selling is our debt. The government has gotten to the point where they are maxing out all the new credit card applications that come in the mail in order to pay the debts and interest on the cards they maxed out years ago.
No raise in the debt ceiling, no more Treasury sales. No more Treasury sales and they would have to rely solely on tax revenues. Radical, huh?
Exactly. That is the awful truth they are trying to hide behind the smokescreen.
Nov '10
Re: The Next Fight: Raising the Debt Ceiling
flownover: Anybody remember those news items after the 2008 election (1) 16000 new IRS agents and (2) New shotguns issued to IRS agents.
Now what do you think those are for ?
My best guess is, they are intended to be "enforcers" for Obamacare. Remember, refusing to buy healthcare makes you a criminal, subject to fines and possible imprisonment.
May '10
Re: The Next Fight: Raising the Debt Ceiling
That is hyperbole. I don't think we would go into default-- we would just be unable to pay for certain things we currently pay for. A partial government shutdown in other words.
By law, the government is required to pay debt and interest (bonds) before other things, so we wouldn't necessarily go into debt default. But it's a law Congress could change, and I at least think we actually should go into default and clear all this insane debt from our books. Give the next generation a much cleaner slate instead of enslaving them to yesterday's spendthrift ways.
Jan '11
Re: The Next Fight: Raising the Debt Ceiling
Chris Deleon @1234 - I agree with you - my inexpertly written conclusion of "the sky's not the limit" was not successful in outlining the two eventualities that you did. Cheers.