Monday, May 23, 2011

Raise the Debt Ceiling or Default? Is that exactly True?

Am I one of the few people on the planet that sees this issue as a false either/or argument. To say either we raise the debt ceiling of default by August is a dishonest statemet to me. Why? Let me put this in tiny words so Congress, our economically challenged of the country, can understand. I will even use small numbers so Congress and others who believe this argument might can understand. I will even explain it in just six simple points.

1. Congress has passed a long list of spending desires called the budget. The total amount of money needed to pay for all their programs is, lets say $1000 (a little number). As the year goes by tax money comes in, and it becomes clear were only going to see about $700 in revenue.

2. The difference is $ far the entire argument is about voting to get authority to borrow the extra $300...The problem is, we already owe way to much. In fact we currently owe so much we are having trouble paying for it.

3. The left and their propaganda media outlets want to keep the issue solely on the schemes to get that extra $300...they refuse to even discuss what NOT getting the money really means. They, in a round about way, lie about it.

4. They pretend not getting the money means we cannot pay our bills and the entire financial world will collapse.

5. They refuse to note that we already have money to pay for the 70% of our DESIRED spending and that desired spending is something totally of their own creation. If we do not raise the extra money we can, dare I say, take a look at the desired/planned for spending and simply not spend the extra $300. Oh my goodness what a strange concept. That is exactly what every American household has to do!

6. The trillions  in existing debt is simple paid for with existing revenues. The new schemes and promises are what is in jeopardy. Congress has to exercise leadership. They have to set priorities and learn to say no. They have to live within their means. They have to act just like the average American household in that respect. This is not asking too much!

Note, no where above in 5 or 6,  is their default. There is just leadership, priority setting and less spending. Sounds very logical doesn't it? Maybe that is the problem. The liberals in D.C. seem to be the opposite of logical. Not spending as much as Congress desires or has promised is not default. The impact is political one, not economic one.

Related Posts:

CBO Predictions Motivation for Lawmakers?
Ryan Budget Plan Basics
S &P's Negative outlook on US Debt
America's Financial Demise?

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