A decent writeup on what the debt ceiling actually IS…and its history…can be found here but it doesn’t take a rocket scientist to get the general idea.
A cap on what we can owe, as a nation, seemed like a good idea once; moving the cap, NOT based on revenue and GDP but rather on the political aspirations of those we entrusted with our checkbook, is where we went wrong. And, as of Monday morning on May 16, 2011, we’ve just topped our self-imposed $14.294 trillion debt ceiling… yet once again. Read that a second time:
We’ve just topped our self-imposed $14.294 trillion debt ceiling.
The U.S. government is expected to hit the $14.294 trillion debt ceiling Monday, setting in motion an uncertain, 11-week political scramble to avoid a default.
The Treasury Department plans to announce Monday it will stop issuing and reinvesting government securities in certain government pension plans, part of a series of steps designed to delay a default until Aug. 2.
The Treasury’s moves buy time for the White House and congressional leaders to reach a deficit-reduction agreement that could clear the way for enough lawmakers to vote to raise the amount of money Congress allows the nation to borrow.
Gene Sperling, director of the National Economic Council, said reaching the debt ceiling “should be a warning bell to the political system that it’s time to get serious about preserving our full faith and credit.” The Obama administration says a default would tip the U.S. back into a financial crisis.
And, in this mess, who gets punished first? Anyone? Why, the States of course:
Geithner, who has already suspended a program that helps state and local government manage their finances, will begin to borrow from retirement funds for federal workers. The measure wonâ€™t have an impact on retirees because the Treasury is legally required to reimburse the program.
Your President believes the only solution to our debt crisis is to borrow more. His Treasurer agrees…to the tune of 2 freaking trillion dollars. The real travesty with Geithner lies in his nearly orgasmic idea of routinely diddling with America by the trillions while our allegedly fiscally conservative GOP wrings its hands, hoping for a couple electoral scraps in exchange for letting these two clowns ()Obama & Geithner) keep DOING this to us.
So, here we are. All those people so willing to continue sucking off the Government teat while the rest of us pay for it should be happy. Of course, given this costs them nothing, I doubt they’re even aware…or, at best they just don’t give a rip-it ain’t their concern.
I can assure you of one thing, though: if the debt ceiling goes up under Boehner’s watch, there’s going to be a whole lot more hell to pay than the $2 trillion being called for. A lot more hell.