Just a few reminders of just how ridiculous this entire debt ceiling/budget/FoodFight/WWE-Fake-Wrestling-Match nonsense really is.
First, The Classical Liberal.
So, what exactly is the debt ceiling? Put simply, it's an arbitrary limit set by Congress on the amount of money the U.S. government can borrow. The theory behind the debt ceiling, which was enacted during WWI, was that it would limit government borrowing and keep it from growing out of control.
Well, um, that sure didn't happen, did it? Each and every time the debt burden got close to the ceiling, Congress simply voted themselves some wiggle room (since 1962, Congress has voted to raise the ceiling 74 times without a single reduction).
CALLER: I was wondering, Mr. Limbaugh, what do you think if Washington and the government doesn't come up with a budget, is there a good chance that I will not be getting my Social Security check next month?
RUSH: Totally up to Obama.
RUSH: I'm gonna give you some numbers on this. Your Social Security check should be made with ease. There is money. In fact, one of the ways that it happens is that Treasury bonds, by law, will be sold and redeemed and the money used to fund Social Security payments.
RUSH: That is a matter of law. It's certainly a matter of choice. It has nothing to do with running out of money.
Politicians will argue that when the US Treasury loses this ability then the US will default. This is however, technically incorrect. The US Treasury will be able to pay all of its $30 billion dollars in bondholding due the month of August at the expense of other programs from direct funds received from taxation. This would stop the US from going into a technical default and buy the Congress time to get its act together.
"The fact is we will pay our debts if it’s the last dollar we have. There are enough assets in Social Security and Medicare to pay the benefits of those programs for several years. Other programs can be funded from tax revenue. There certainly will be disruption...But this is not a deadline we should rush and make a bad deal and do something that cuts benefits from seniors without giving them better choices."
Teh Roxxor Robert Stacy McCain:
You know why the markets aren’t in complete panic over Obama’s reckless debt-ceiling brinksmanship? Because they don’t take it any more seriously than I do. It’s so transparently a phony political kabuki dance — a show-bizzy publicity stunt whereby Obama depicts himself as the Only Adult in the Room — that investors simply can’t believe anyone could be that stupid.
But “political reality” operates to different rules from humdrum real reality. Thus, the “debt ceiling” debate is regarded by most Democrats and a fair few Republicans as some sort of ghastly social faux pas by boorish conservatives: Why, everyone knows ye olde debt-limit vote is merely a bit of traditional ceremonial, like the Lord Chancellor walking backwards with the Cap of Maintenance and Black Rod shouting “Hats off, strangers!” at Britain’s Opening of Parliament. You hit the debt ceiling, you jack it up a couple trillion, and life goes on — or so it did until these GOP yahoos came along and decided to treat the vote as if it actually meant something.
And that's it, kids.
We are officially in a Democrat-managed fantasy land. Barack Obama, Harry Reid and Nancy Pelosi had a grand plan in the aftermath of the 2008 presidential election. The scheme entailed giving our money, our kids' money, our grandkids' money and our great-grandkid's money to a narrow collection of favored union hacks, crony capitalist suck-ups, racial grievance specialists and the bureaucrat class. When in the 2010 midterm elections the American public expressed it's deep-seated nervousness with the Donkey-Puncher Party's Mark McGwire on steroids spending, St. Barry of the Sacred Pantscrease decided he would simply ignore the public and continue as if the GOP House majority didn't exist.
That's why this is occurring. The President can yakkety-yak about protecting seniors or getting corporate jet owners to pay their fair share. Dude can go on prime time TV and make his lame-ass campaign sloganeering disguised as an actual policy speech. None of that matters.
The President has caused this fake as hell media-driven crisis. He wanted this to occur. Most of all, he wants enough Americans in full-on panic mode over this so he can paint the Republicans as wild-eyed maniacs and beat them in 2012.
It's always been about politics for Barack Obama. It's never been about making the nation stronger, getting the economy moving, putting people back into the workforce or even just keeping Social Security as is. With this man, the modus operandi is always getting as many people as possible to be dependent on government so he can than use those folks as a bought and paid for voting bloc for his reelection. Spending, deficits and debt don't even kinda enter into Obama's calculations.
Meanwhile, America is quickly coming to the point where her debt is going to be 100% of our GDP. That spells doom for...well...everything.
But whatever. Let's keep pissing our pants over Obama's manufactured crisis. That doesn't totally play into his hands and help his flagging political fortunes or anything.