venturer9 Loc: Newton, Il.

As Obama explained in another of his recent speeches, "Raising the debt ceiling, which has been done over a hundred times, does not increase our debt."

I won't even pretend to know what he and his speechwriters meant by that one, but the fact that raising the debt ceiling "has been done over a hundred times" does suggest that spending more than it takes in is now a permanent feature of American government. And no one has plans to do anything about it. Which is certainly banana republic-esque.

http://news.investors.com/ibd-editorials/092013-672042-obama-calls-congress-a-banana-republic.htm?p=full


Are there any "real" economists as members of the forum.... I actually find it very difficult to understand how we can raise the debt ceiling (ie the amount we can be in debt if I understand it) and not face raising the Debt?

I think that would be similar to me calling my Credit Card Company, asking for a raise in the amount of debt I can have... and then just looking at my statement each month and say... well, dang me.... I bought another $2000.00 this month and it actually raised the amount of money I owe... HOW DID THAT HAPPEN....

Mike

tlbuljac Loc: Oklahoma

It probably happened because your wife ran up the charges and didn't tell you....LOL

mtclicker Loc: Montana

Hey mike. Raising the debt ceiling does not increase debt. Utilizing it does. Just a play on words.

mwoods222 Loc: Newburg N.Y,

Just how stupid are we ?

MIKE GALLAGHER Loc: New Zealand

Not sure about that. Ask one of the politicians or someone from the Fed. They've all been talking about it amongst themselves so pick any of them.
Mike

ole sarg Loc: south florida

It is simple the debt was already incurred. Raising the debt limit allows the fed to sell notes to cover what was already spent. Thus, the debt is not raised but paid for.

BTW the Office of the President does not incur debt only the Congress can do that. Thus, you don't go to war on a credit card. You don't reduce taxes because you may balance the budget. In short, you don't do what Bush did!

Under OBama the debt has been declining at a faster rate than after WWII!

Try reading and thinking about what folks on the right are saying because it is a bunch of horse puckey!

ole sarg Loc: south florida

No not at all like calling the credit card company to raise your limit on the card. You have already spent the money to the limit but cannot meet the bill. Now you have a choice, you can be a dead beat and not pay, you can go to your rich uncle and borrow the money, or you can get a second job or a big pay raise.

Ambrose Loc: North America

He's kinda right actually...The debt ceiling is a legislative restriction on the amount of national debt that can be issued by the Treasury. Expenditures are authorized by separate legislation and the debt ceiling does not actually restrict deficits - it only restrains the Treasury from paying for expenditures that have already happened.

This is why Congress must see to it that the debt ceiling should be raised - not doing so is what caused us to lose our AAA rating in 2011. Once again, Republicans in Congress are attempting to use the debt ceiling as a bargaining chip. The point is clear, I get it - but they are messing with all citizens livelihood and hurting our country as a whole by doing so.

Yes - the deficit needs to be reduced (like either party will ever make that happen), but for now, Congress has to quit messing with our lives and - like it or not - raise the debt ceiling.

AUminer Loc: Brandon, Ms

The debt IS NOT declining.

ole sarg Loc: south florida

Actually you are right the I used the wrong term. The deficit is declining which will in the long run mean that if it continues to do so the debt will decline.

Lawmakers gearing up for what is shaping up as another bitter partisan clash over the nation's borrowing limit later this year must reckon with a new fiscal reality: The federal deficit is shrinking fast.

http://www.cbsnews.com/8301-505123_162-57584449/feds-u.s-goverment-deficit-is-plunging/

A Congressional Budget Office study released today forecasts that the annual U.S. budget gap -- the difference between what the government collects in revenue every year and what it spends -- will fall this year to $642 billion. That's $200 billion less than the non-partisan forecasting arm of Congress was predicting only three months ago and down sharply from the deficit levels that swelled as the economy contracted following the housing crash.

KW Conch Loc: USA

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