Increased spending has had predictable effects on deficits and debts. The federal budget deficit is now ten times greater than it was four years ago. Extra spending accounts for about three of every four added deficit dollars since 2007, while lowered revenue accounts for just one of four. The $14.3 trillion federal debt, equaling nearly the entire U.S. annual output, roughly matches the debt-to-GDP ratios of such basketcase economies as Portugal and Ireland. When the president insists, “We’re not Greece, we’re not Portugal,” he is only half right.
As a pressure tactic, claiming that America would default on its debt if it didn’t borrow more proved quite effective. It framed an act of fiscal incontinence—borrowing trillions more atop a $14.3 trillion debt—as an act of fiscal prudence. The president got the borrowing power that he sought largely by selling recklessness as responsibility. Such disciplined, propagandistic talking points are the stuff of hardball politics. But once the deal has been struck, why continue the charade?
The president attained what he privately sought (more borrowing). In doing so, he may have ensured what he publicly sought to avoid (a credit downgrade). America’s credit problems stem from unsustainable debt. The debt-limit agreement seems to contain some sensible, though modest, spending cuts, and it rejects the fool’s bargain of shrinking a private economy through new taxes that has already been shrunk through a recession. The main effect of the debt-ceiling agreement is, unsurprisingly, to increase the debt ceiling.
Our creditors understand that increased borrowing is just more of the “medicine” that got America sick in the first place. The fallout of following the president’s course to avert a costly credit downgrade may ironically be a costly credit downgrade.
Daniel J. Flynn is the author of Blue Collar Intellectuals: When the Enlightened and the Everyman Elevated America, forthcoming this fall from ISI Books. He writes a Monday column for Human Events and blogs at www.flynnfiles.com.
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The sad thing is it now becomes the Republican's fault also because they agreed to it.
Let's see, I'm running out of money to pay my credit cards, I should ask for an increase to my credit limit rather than curb my spending. After all, I still need to "provide for those less fortunate" (my family needs to eat and have shelter) and "these are debts we've already racked up (Electric bill, gas, water, etc.) so I MUST increase my borrowing capacity. Now then, that money I have earmarked to help that new guy in another state and the addition I want to make on the garage and oh yeah, don't forget my belief that I should spend more so those around me may find work in it….Does this makes sense to anyone? Pay for necessities but…
STOP the out of control spending. Period!
SCARY……
Is this REALLY our AMERICA??????
Know the TRUTH about the Government Health Care Bill H.R.3200 – Key Points http://www.youtube.com/watch?v=HcBaSP31Be8
An inferior health care plan that no one wants and CANNOT afford to pay. The threat to jail and/or fine those who don't purchase the government enforced plan.
Massive spending as if there is no tomorrow. Fighting wars we have no money for. Massive borrowing. The Massive giving away of Billions of dollars every year to other countries, including the oil-wealthy Middle East, Hamas-controlled Gaza and the Palestinian Authority organization who fill their war chests, build mansions and laugh all the way to the bank with free infidel money. Whilst in America, homeless shelters are filled to capacity; tent cities have sprung up all over the U.S. filled with desperate, jobless, homeless, NEGLECTED Americans.
Massive debt. The massive printing of paper money out of thin air to DELIBERATELY create out-of-control inflation. There is no question that the total DESTRUCTION of America's economy is planned. The results will be horrifying. In the once wealthy and great nation of America, millions of Americans will become destitute, hungry and homeless with no money or resources to help them.
and now those who disagree are being called terrorists!!
Organic, non-gmo avocado, fruit and nut trees and berries must be planted in all of our nation’s cities’ and towns’ parks to help the many millions of Americans who will soon be in a desperate struggle to survive.
Watch it. And weep for our great nation and people:
FALL Of The Republic – The Presidency Of Barack H Obama – The Full Movie HQ http://www.youtube.com/watch?v=F8LPNRI_6T8&fe…
And you can thank the partisan IDIOTS in Washington for it all . Raising the debt ceiling ,as Reagan did 18 times ,and Bush 7 times didn'tdo the damage , the game of russian roulette -thanks to the teabaggers has already damaged the stock market . Raising the debt ceiling with a plan to cut spending , a BI-PARTISAN PLAN , is NOT going to destroy America .However the attitudes and brinkmanship of these partisan schmucks just may do it . And while you're sitting on the streetcorner eating a can of dogfood , you can argue your partisan bullsheet .