The Debt limit and you

flag

My fellow Americans [or anyone who is curious how backwards we can be] most of us are hearing a lot about the government shutdown and the impending budget which was not passed. There is a lot of blame going around for what is wrong and who is at fault, but most people don’t understand what is going on.

Let’s break it down and while I am bias, I will try to leave you to draw your own conclusions at the end.

The Debt Limit

Now most people don’t know this but the debt limit isn’t real thing,the government can [and almost always will] borrow whatever it wants. It isn’t credit card or bank account we don’t actually have to ask for money, the money is not actually [physically] there it is just a bookkeeping issue.

The debt limit as we know [and love!] it now was created in the 1930’s and in 1939 congress set a general limit to government spending. [Source] It is raised every time we get close to it and we are only one of two democracies that have a debt ceiling [hello Denmark, looking at you] or more accurately, we approve the spending separate from the borrowing, confusing, no?

The President and the budget

Congress loves to blame the president for the budget or the ‘reckless spending’, but did you know that he doesn’t have control over the spending? Yes, he can create a budget but congress can alter it or throw it out and make their own budget, which is usually what happens anyway.

When the budget is passed the president is forced by law to spend every dime that it calls for; because of this, he is typically forced to ask the congress to raise taxes to make up the difference.

Now it doesn’t take a genius to figure out that if taxes collected are less than our spending we need to borrow money to make up the difference. Which, if we don’t, then we go into default. That means people don’t get paid, which makes the world market uneasy about trusting the US dollar since people don’t want to ‘hope’ it is going to be worth something.

The solution

The obvious solution would be to allow the spending required for the budget without needing to ask for it, kill two birds with one stone. OR just do away with the debt limit all together and watch congress complain about the budget that they made and passed. But in any case the funds that the budget needed would be there and we wouldn’t have this problem.

The reality

Now that the simple solution was pointed out, you are probably wondering why this wont happen. It’s simple

Politics

Yep, all this fuss, the government not being able to pay anyone, the uneasiness this is causing on the market as the rest of the world watches the US hit it’s debt ceiling time and time again only to raise it at the last minute. All of it is caused by politics.

The debt ceiling was created as a way to slow down government spending and now it is being used as political weapon for the minority in congress to complain about something it doesn’t like. Then turn around and blame the majority for needing to increase spending [which again, is set by congress].

This does not benefit you, me, or anyone else. This means that the men and women in the armed forces need to be worried that they are not going to be paid. Disabled vets like me and other people who are disabled; we won’t be getting a paycheck either.

In the end, we the people lose all because congress is playing games like schoolchildren. The people in congress have lost touch with reality and the only people that we can vote to send to congress are people who never had to live the life you or I had to have.

So what do we do now? We wait and keep our fingers crossed that the people running the government, the ones with the most money, not the most brains, figure out that they are there to serve us and not themselves.

I had a dream, once… but then I woke up.

Still confused about the debt ceiling, then here is a quick video that explains it a little better.

Advertisements

14 responses to “The Debt limit and you

    • Of course you are, because as a one woman congress you control the spending and I being the president have to beg to credit card companies to keep letting me have money to pay for your budget. 😉

  1. I can’t decide what’s most disappointing about the whole thing: That it could all be avoided if people acted like adults, that they created this mess that they’re forcing on the general public, or that we have no real way to elect change. The saddest part is definitely all the government employees and vets that this all affects that no one in congress seems to give 2 shits about. They’re playing political chicken with people’s livelihoods, and the only people capable of losing aren’t involved in the game.
    Side note, I am not involved in the budgetary, spending, lending, presidential or congressional decisions at my house. Haha

    • Well the system is flawed but so are we and the people who sit in congress will be getting a paycheck either way [not that they even really need it].

      Haha it’s probably for the best that you aren’t involved. 🙂

      • Yes, I should never be in charge of money for people. I don’t mind not being in charge of it. If we want money left at the end of the month, I shouldn’t be the money-guy.

  2. *applause* Great video although I had a bit of bother getting onto it the first couple of times I tried. Thought you’d been ‘blocked’. No paranoia here. 🙂
    Great explanation. Thanks for sharing.x

  3. Pingback: Despite shutdown, most federal spending continues until debt limit is reached | The Great Tribulation is Coming·

  4. Pingback: … POTUS is lying [Debt Default] … « Lake Erie Conservative·

  5. Pingback: Dallas Clarke's Judicial Watch » Government Shutdown? Well Duh, We Can Run Our Government With Debt-Free Money.·

What are your thoughts?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s