Debt Ceiling is not made of Glass!
By: Dr. Phil Taverna
There has been so much talk about the debt ceiling, but most of it appears to be false.
The liberals want you to think that if we donâ€™t raise the debt ceiling we will default on all our bills. And the conservatives seem to think that if we donâ€™t raise the ceiling nothing will happen, well almost. And Oâ€™Reilly thinks that the ceiling has to be raised at least once as long as there is a ton of spending cuts and he believes that the economy canâ€™t handle a tax increase. Do you really want to trust politicians to cut spending, and will Obama want to cut spending in a decade instead of tomorrow?
The debt ceiling is a limit imposed on the amount of debt that the federal government is allowed to spend in excess of the revenues collected. In English that means that congress has self-imposed overspending. So when people talk about a balanced budget amendment you should laugh in their faces. Letâ€™s say the Federal government has self-imposed an annual budget of $2 trillion dollars. In English that means that the federal government will spend at least $2 trillion dollars in the next budget calendar no matter what!
It is understandable that when they originally passed this baloney ceiling, that at times the revenues did not meet the expectations so as a result the Feds would spend more than they take in. This is really not a problem if we had responsible politicians. It is kind of like using a credit card when there is not enough cash in the checking account.
But liberals and some other types of politicians see this as a paper goose that laid the golden egg. Why not spend all the money! In the politiciansâ€™ districts, state or whatever there is always a hand out that could be useful to win an election or a good payout. Like a great college for their children, tuition free, or a job for a relative.
So naturally as the campaign finance laws are written, the end result is that the more the government spends the better the chances are of getting re-elected or to benefit from a favor in return.
So the debt ceiling is not made of glass. And obviously true politicians want to raise the ceiling as many times as they can. They donâ€™t pay for the spending you do, one way or another.
So the problem is that people really donâ€™t understand the problem. In as few words as possible, almost all governments spend more, sometimes much more than the revenues collected.
It seems it would just be common sense that you donâ€™t raise the debt ceiling. It feels like people are confused between debt ceiling, annual budget, and national debt. The government will still be allowed to spend trillions annually if you donâ€™t let them raise the debt ceiling.
So in other words if you donâ€™t raise the debt ceiling then the annual budget must be reduced to equal or stay below the debt ceiling. So the only way that Obama and his liberal cronies will default is if they out spend the revenues collected by an amount greater then what will fit under the debt ceiling.
In simple terms if you raise the debt ceiling its like being on a diet and your best friend invites you over for a giant hot fudge sundae. So if you planned/budgeted to have only 1000 calories a day like a annual budget if you eat that sundae and I am sure it will taste great, then you will break the debt/diet ceiling.
So when Obama and the liberals are forced to make a decision, the debt ceiling will help them to stay on a diet. Without the debt ceiling the liberals will try to outspend revenue by as much as possible. Please keep in mind the liberal politician like Weiner is not concerned with increasing the national debt. They really donâ€™t care! If they give away enough favors while they are in office, they will be well rewarded when they retire. And in most cases, they will be exempt from all those evil taxes they have planned for you and the rich.
Think of it this way, every dollar that the politicians spend over budget or over revenue collected goes right into the national debt as a dollar owed. And the federal government needs to borrow money to pay for that dollar. And of course the interest alone on the dollar comes due each and every year.
So the debt ceiling says annually you liberals canâ€™t outspend this ceiling. Remember it is not really outspent. It is more like overspend past what the revenues dictate.
Letâ€™s say you want to buy a car. It will cost you $300 bucks a month. Your budget says you can spend comfortably $250 a month. If you buy that car, you are outspending your revenue. What you need to do is borrow more to artificially create cash to pay for the car, or you have to make more money.
So the liberals contrary to Bill Maherâ€™s dopey interpretation are outspending the revenue and there is a limit on the amount they can borrow. It is called the debt ceiling. And obviously the community organizer Obama is too stupid to figure our how to create more jobs which would create more revenue for the liberal politicians to spend.
So its simple donâ€™t ever raise the debt ceiling. The liberals must understand that the national debt has skyrocketed under their liberal programs since Jimmy Carter. If you raise the debt ceiling they will create even more debt. It is time that the liberal politicians learn that there is a limit to how much over-budget/revenue they can spend each and every year.
Unfortunately when you are not looking they will figure out a way to spend money in spite of the debt ceiling. I think it was called Obamacare.
Draw the line and hold fast. Let the liberals like Obama and Hillary try to break the glass ceiling! On Election Day we will teach them how to repair all the damage they caused!
Dr. Phil Taverna owns and operates his own website.