Tag Archive: United States public debt

Yes, the Debt Ceiling Matters

There is an effort on to pretend the debt ceiling is no big deal. We won’t default, they say, because Obama can simply re-direct spending to make sure our debts get paid. Why, hitting the debt ceiling could be a good thing, forcing the government to live within its means and balancing the budget in one fell stroke.

There are multiple problems with this line of thought, the primary one being that this would … Read more

Of Ceilings and Coins

Ugh. Do I have to write about this again? Apparently.

Let’s be clear. Hitting the debt ceiling is a seriously stupid idea. The debt ceiling was never intended to be a debt control measure. It does not, in fact, limit the amount of debt we can run up, only the amount we can pay to creditors for things we’ve already authorized. Here’s Ezra Klein on what will happen if we crash the debt ceiling.

The

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Our Shrinking Debt

This is good news:

U.S. debt has shrunk to a six-year low relative to the size of the economy as homeowners, cities and companies cut borrowing, undermining rating companies’ downgrading of the nation’s credit rating.

Total indebtedness including that of federal and state governments and consumers has fallen to 3.29 times gross domestic product, the least since 2006, from a peak of 3.59 four years ago, according to data compiled by Bloomberg. Private- sector borrowing

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The Worst is Yet to Come

Building on Rich’s post on debt, I stumbled across this article that summarizes Harrisburg, PA’s recent attempt to declare bankruptcy. Essentially, the city got themselves $310 million in debt (that’s $6,000 per resident) on an incinerator. Yes, a fucking incinerator. They took on a bad obligation, compounded it by signing a deal with the lowest bidder for renovation (lowest bidders always cost more) and are now trying to impose a commuter tax to get … Read more

Consensus! The debate is over…

Well, not really but that’s how they operate on the left, so I wonder how they will react to this revelation:

The majority of economists surveyed by the National Association for Business Economics believe that the federal deficit should be reduced only or primarily through spending cuts.

The survey out Monday found that 56 percent of the NABE members surveyed felt that way, while 37 percent said they favor equal parts spending cuts and

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Was the WH behind the S&P and Moody credit rating hit job?

When I saw the news yesterday that Moodys put the US rating on a downgrade watch and that was also followed immediately by Standard & Poor’s pushing the same narrative, I immediately became suspicious of the timing and this idiotic warning. Remember that Moody and S&P where the people that kept telling us that all those mortgage security packages, replete with bad loans almost guaranteed to go south, repackaged through Freddie and Fannie, where … Read more

The Democrats’ Latest Joke

Apparently, the Democrats are putting the finishing touches on their first budget proposal in over two years. And … well, it was not worth the wait:

Senate Democrats have drafted a sweeping debt-reduction plan that would slice $4 trillion from projected borrowing over the next decade without touching the expensive health and retirement programs targeted by President Obama.

Instead, Senate Democrats are proposing to stabilize borrowing through sharp cuts at the Pentagon and other government

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The Constitutional Question

Hmm. Now this is interesting:

Growing increasingly pessimistic about the prospects for a deal that would raise the debt ceiling, Democratic senators are revisiting a solution to the crisis that rests on a simple proposition: The debt ceiling itself is unconstitutional.

“The validity of the public debt of the United States, authorized by law… shall not be questioned,” reads the 14th Amendment.

“This is an issue that’s been raised in some private debate between senators

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Social Security system is in deep trouble

As our political class is locked in a fight about government, with one group begging for cuts while the other refuses to let go of the idea that the problem is government isn’t taking enough money already from people, to tackle our out of control spending, one of the items I am afraid isn’t being discussed is the need for serious and massive SS reform. Social Security is in real bad shape. How bad? Well … Read more