Tea Party calls for Boehner to step down
- Thread starter Fred Zed
- Start date
Yet another twist....
Lik ehim or not...I do like that he and OTEHRS...are finally calling for NO MORE DEBT!!!!
Lik ehim or not...I do like that he and OTEHRS...are finally calling for NO MORE DEBT!!!!
Raising the debt ceiling is necessary in order to pay CURRENT obligations. Failing to raise the ceiling will not make those obligations disappear it will simply mean that they will accrue and already very very weak demand will all but dry up. Interest rates will go up which effectively is tax on everyone although regressive in that it will hurt the middle and lower class harder. With high interest rates and lower consumer and business demand employment and business activity will drop and therefore even at existing tax rates government revenue will decline. that is without factoring in a downgrade of the US debt rating which will mean increased cost of government borrowing and therefore a larger portion of a shrinking economy going to service government debt.
Yup those tea party and GOP types have it all figured out.
Yes the Us has a debt problem but it also has a revenue problem. Simply pretending that the US government, even after chopping expenditures, can be run without a tax increase is dreaming. All the GOP cliches wont change that immutable fact.
Since the Dems took control of Congress the spending line has shot out of control:
The revenue line tanks due to the recession (as it always does) - not it was going up even with those crazy racist fascist Bush tax cuts before the recession.
OTB
The revenue line tanks due to the recession (as it always does) - not it was going up even with those crazy racist fascist Bush tax cuts before the recession.
OTB
I wonder if those expensive wars might have had something to do with it? Spending also tends to go up in a recession, both from intentional bailout programs, and from "automatic stabilizers" like unemployment insurance--though I don't know how big a factor that is in the US.
The Tea Party doesn't have that much of a central party structure (hence the "president's" word doesn't mean much). Further it is members of the House of Representatives who matter, and there are not the votes to replace the Speaker.
The revenue starts tanking in 2000, Bush tax cuts did that. Nobody wants to pay taxes, but how do you pay for a unnecessary war! Please tell us how Bush paid for that war in Iraq?Since the Dems took control of Congress the spending line has shot out of control:
The revenue line tanks due to the recession (as it always does) - not it was going up even with those crazy racist fascist Bush tax cuts before the recession.
OTB
Please OTB, we been over that old canard before and you're twisting the facts. Much of the spending had to be done because of things done under Bushes watch, there were two wars to support, started under Bush's watch and the world was going through the biggest financial crisis in '29. Under Bushs the debt spending doubled. Give it a rest.Since the Dems took control of Congress the spending line has shot out of control:
The revenue line tanks due to the recession (as it always does) - not it was going up even with those crazy racist fascist Bush tax cuts before the recession.
OTB
Crazy racist fascist Bush tax cuts?
I don't want to blurb too much on this because i'm tired of discussing it but when i hear Republicans say how spending has shot up under Obama, i compare it to when a person has to clean up after their friends, relative's,co-workers etc, mess they have left through neglect,self destructive behaviour, or incompetence.
The culprits are happy it's done but sooner or later they complain about where all this expense came from, whether it be financial of societal.Such denial
The culprits are happy it's done but sooner or later they complain about where all this expense came from, whether it be financial of societal.Such denial
The financial crisis was caused by deregulation with greed. Guess which party is the champion of deregulation? Always saying "get big bad governmet out of the way, and let business do what it wants!"
Well financial institutions got their way, and look what happenned!
Let's see, Obama wants to raise the Ceiling and the (fringe) Republicans freak out. Their hero, Ronald Reagan, raised the Debt ceiling 17 times during his Presidency. Boner, I mean Boehner should stay as he seems to have some sense.
No, Bush came into office with a big surplus. So he cut taxes, well that's fine, then came 9/11. Two wars later, less taxes coming in, and we're broke!
But it was deregulation that caused a anything goes, wild west approach on wallstreet! Then also throw in oil going up to almost $200 a barrel.
Think about this are you honestly saying that the entire outstanding U.S. debt was repaid in four years!
What you are actually saying is that the U.S. Government had been taken in more money than it borrowed for that year!
Which coincidentally began right after the financial regulations imposed in the 1930's, to prevent it from happening again, were repealed. There is some blame to share though--while Reagan kicked off the deregulatory ball, and while Republicans have been much more aggressive deregulators, Clinton did help it along a little as well.
It seems what happened is the horrors of the 1930's passed from memory, we became over-confident in the after math of the largest bull market in modern history (the previous one being the 1920's) and we made essentially the same mistake.
The only thing that saved the world from spiraling into another Depression was that the Chinese government responded by initiating the largest economic stimulus program in the history of the world.
Canada's only saving grace is our politicians are a little more timid and they were too shy to deregulate as aggressively as the Americans did. Thus when the crisis hit we still had many of the 1930's era protections in place, and that saved our ass. But I don't think that was so much because our government had better foresight--we just didn't get around to it as quickly. Deregulation was a Conservative party policy here, and some of it had begun even under the Liberals.
Actually U.S. tax revenue is more than sufficient to service the current
$14trillion debt. Raising the debt limit is needed to continue profligate spending at least until the POTUS is elected to the 2nd term. Failing to raising the debt limit could result in a downgrade of the U.S. debt not necessarily default right away. And there is always QEIII the U.S. Fed can deploy to keep interest rate low.
Huh? They enacted a law about U.S. Government borrowing, and then repealed it all in the 1930's? Gee I know that I don't really care for that historical period but that surely wasn't in any course or seminar I took either Undergraduate or Graduate.
