Have the politicians in Washington DC EVER heard of spending CUTS??
It seems like their only "solution" to the deficit problem (and subsequent debt problem) is to borrow more money to pay off loans we already took out. Is it just me, or does this seem idiotic??
http://news.yahoo.com/s/ap/20100120/ap_on_bi_ge/us_congress_debt_limit_11
WASHINGTON – Senate Democrats on Wednesday proposed allowing the federal government to borrow an additional .9 trillion to pay its bills, a record increase that would permit the national debt to reach .3 trillion.
The unpopular legislation is needed to allow the federal government to issue bonds to fund programs and prevent a first-time default on obligations. It promises to be a challenging debate for Democrats, who, as the party in power, hold the responsibility for passing the legislation.
It’s hardly the debate Democrats want or need in the wake of Sen.-elect Scott Brown’s victory in Massachusetts. Arguing over the debt limit provides a forum for Republicans to blame Democrats for rising deficits and spiraling debt, even though responsibility for the government’s financial straits can be shared by both political parties.
The measure came to the floor under rules requiring 60 votes to pass. That’s an unprecedented step that could mean that every Democrat, no matter how politically endangered, may have to vote for it next week before Brown takes office and Democrats lose their 60-vote majority.
phil m…………..But aren’t you always creating MORE debt, never less??
That’s why people need to vote Libertarian or Republican if it’s Ron Paul. You get all the freedoms from the democrats and the fiscal conservatism from the Reps. If people want to know why and how things are going so bad and will get much worse just youtube peter schiff
Ever heard of a balance transfer on a credit card? It pays off old debt, which is typically held at a higher interest rate, while giving you a lower interest rate on the newly made debt.
This frees up cash-flow to pay down the new debt… This is where your beef is. If they aren’t using this newly found revenue to pay down the debt then they aren’t doing anything for the debt itself.
So yes, I’ve heard of it and its common practice…Quite smart too. Why pay 10-15% interest rates when you can get a 0-5% interest rate on the same debt?
Companies and businesses do this all the time. Its apart of running a smart business.
no.
it was wrong under Reagan and wrong all along since then.
but it’s funny that some people only notice it when a pol or party they don’t like is in office.
At the Obama school of Business and Government
That is the way you get out of economic trouble.
Out of money spend more.
Ballooning deficits spend more money
I believe this has been the center point of business thinking for hundreds of years, it works just as well in the government. At least that is what the say at the Obama school of Business and Government
This whole thing really started when the national modo changed from "a penny saved is a penny earned" to "it takes money to make money." The first is a steady increase, the second is a roller coaster ride that has "bubbles" along the route.
Two things on this:
First – the golden rule of money – he who has the gold rules
Second – that is like being in a circular firing squad, everyone loses
The elected politicans are using china as a pawn shop, and sooner or later, there will be a pay day at the banker.
Its stupid
One wonders if the smart political thing to do would be to wait until Brown takes office and then bring the bill for a vote. If the 41 Republicans vote against the bill, the ceiling does not get raised, the US defaults and bonds, etc. tank as countries and investors start to question the government financial guarantee inherent in bonds and T-Bills. Then, in 2012, the Democrats have the perfect campaign topic – the international financial irresponsibility of the Republican party who caused the resulting mess.