In order to avoid an uncomfortable situation in which the federal government runs out of money next year, Democrats have called for raising the national debt limit an additional $1.8 trillion. Keep in mind, this used to be a “debt limit” though now it seems to be a mere suggestion in the face of President Obama’s wasteful spending programs.
WASHINGTON — A House Democratic leader says Congress will have to permit at least $1.8 trillion in additional federal borrowing next year to avoid a default on the U.S. debt.
Maryland Rep. Steny Hoyer said an increase in the so-called debt limit would have to be in the neighborhood of $1.8 to $1.9 trillion in order to allow the government to borrow enough money to keep operations afloat through December of next year.
Democrats are struggling to pass an increase in the $12.1 trillion debt before the end of the year.
To win the votes of moderate “Blue Dog” Democrats, Hoyer pledged to advance strict budget rules aimed at offsetting tax cuts or new spending programs next year with offsetting cuts or revenue hikes.
It is very dangerous to me seeing that our government needs to go deeper in debt to avoid default next year on our debt. Essentially we are borrowing more to keep up with our rate of borrowing. Someone needs to stand up and change this disaster-in-waiting. In the current situation, the answer to everything coming from the Democrats is higher taxes, new fees and increased regulation. They have no intention of cutting spending, they only intend to increase control and taxation.
At a rate where we are borrowing to pay for our borrowing, I am astounded that our political leaders dare to show their faces in public when they are asking the American people to “tighten their belts” during this “deep” recession.
More on the national debt in general from Truth in the Elections:
Nonpartisan financial experts tell us that our nation faces a unique set of pressures (to spend increasing amounts on health care, to sustain retirees’ benefits with fewer active workers, and to fund the growing amount of interest on the national debt) that could culminate in a massive economic crisis.
Bob Bixby, the head of the Concord Coalition, points out that no one can predict when this crisis will erupt—or if it will unfold as “a long, slow erosion in the standard of living.” To each of us, that would mean less choices in life, less freedom, and less of the things we take for granted each day.
With its shaky financial position and dozens of unfunded promises, the United States also faces threats to national security. With its financial assets in quicksand, the US would be less able to compete on an international level and less able to counter threats from competitors abroad. As our nation slips deeper and deeper into debt, it loses its flexibility, its power, and even its ability to operate on a very basic level.
The bottom line: the national debt matters because we, the people, are the ones who pay the bills. We are the ones who will be impacted by a financial crisis. That’s why it is crucial to spread the Truth in 2010.
When the debt “limit” can be changed at anytime, I guess it really isn’t a limit per se.