The Debt Ceiling, is it Obama's fault? Bush's fault? Who's fault is it?

reply to post by Wrabbit2000

Please, explain to me this concept of accumulation of debt in a responsible way, as a starting point?

It sounds like you are personally against debt, and that is fine as your preference, but it doesn't make debt bad.

There is good debt and bad debt. And as long as you have a decent debt to income(revenue) ratio, you are using your debt wisely.

I can't really educate you in a small post how you use debt in a responsible way, that is just something you need to educate yourself on. The national debt is currently not an issue, credit rating companies don't think it's an issue (our credit was downgraded due to the Republicans debating on defaulting on our debt, not because our debt), and other countries don't think it's an issue.

In our economic system, if you want to grow you need to leverage debt. If you don't, you will stagnate and die. Every major corporation leverages debt, every millionaire and billionaire leverage debt. It is considered a very stupid thing to not leverage debt.

You are getting caught up on large numbers, but you are not recognizing that our revenue is also a large number.

So I answered your question, now please answer mine.

How does the debt ceiling prevent the United States from increasing their debt?

reply to post by AlienScience


Good lord your thinking is exceptionally dangerous to this nation and it's how we're on the verge of total and absolute collapse, across the board. People blame the Fed...and I say that is part of it. The mindset you subscribe to is how politicians have justified the decisions taken to lead us here.

As I have explained before as..not educating people (that arrogance you show is staggering..it truly is), but sharing historical factual scenario? The Soviet Union collapsed from economic self destruction of *DEBT*. On this thread, I have shown a number of other catastrophic outcomes from *DEBT* on the level of nations.

High debt among nations NEVER...EVER...ends well. It has directly led to the fall of world powers in our own time and it's been the fall of powers across time. This isn't "theory". This isn't "opinion". This is historic fact. As much as some want to make the fact the ocean is wet or the sky is blue a point of debate these days for pure amusement. Some things are, in the end, plain and simple FACT.

DEBT IS A BAD THING. This is FACT. Unless, and ONLY unless you are HOLDING the debt. Then, interest is yours and you become rich by it. The one PAYING the interest (Over 200 billion this year...up to 600 billion annually by the end of this decade) is screwed. WE are PAYING the interest.


It blows me away how this isn't so self evident, it hurts. The U.S. by way of the International Monetary Fund, World Bank and others have been USING this SAME system of debt to all but enslave smaller nations for over 50 years. It's been by way of Dams or Roads or Power projects they go into debt to the IMF or directly to the U.S. for at rates and terms they can NEVER pay off.

This is how we've screwed half the world for over half a century.

Now I'm supposed to be told we should TAKE the screwing and ALSO believe that's NOT what it IS?! C'mon... You can't make a life of doing something, as the U.S. has ...then turn around and say having it DONE to US isn't the same thing in reverse.

Deny Ignorance. Really. It's refreshing.

*** Correction. I hadn't shared this on this thread yet... (minor edit)

Worst examples of Hyperinflation in History

The debt ceiling doesn't PREVENT debt accumulation. Nothing in economic reality can stop that now with compound interest at work...but erasing it will insure our self-destruction on the express train down.

reply to post by xuenchen


Agree its the fault of Congress. I like to see them all post a bill to do away with the Federal Reserve Banks
Repeal the 1913 law and hand it back to Congress. I thought this is why we fought a war with Britain and won our Independence. Looks like to me we have been re-taken over by the British again.

AlienScience
The debt ceiling is an old and antiquated leftover from before we had a world economy.

The debt ceiling is a misnomer anyway since it doesn't restrict debt at all, it only restricts paying for our debt that we have already incurred.

America is one of only two nations that still use a debt ceiling, it needs to be done away with.

This is an idiotic statement. You are correct that the limit has been rendered meaningless because it is always raised, but that is a symptom of a corrupt and cowardly congress not because it is not needed.

You are dead wrong about it being used for existing debts - that is 100 percent incorrect. I know Obama recently stated the same thing but that only once again shows what an incredibly bold liar he is. It is needed to authorize the issue of more debt. If they did not extend the limit the government spending would be restricted to strictly taxable income. This is the way it should be with the exception of extrordinary circumstances. They can pass any budget they want but if the debt limit is not raised it's not all going to get spent.

Debt has been used since the 80's to falsely inflate the economy by pulling demand forward. This is just like an ignorant college student maxing out a bunch of credit cards to live high on the hog. It's great for awhile as they can live well past their means. It always catches up with you in the end.

If you are one of the fools who believe debt is meaningless you are going to be in for a rude awakening.

Auricom
reply to post by boncho

 

Bush started it, Obama could have ended it. But he didn't. He did the exact opposite. Like much of his pre-election lies he promised to uphold. Obama is just Bush 2.0. Not better, not worse, just another brick in the wall of idiocy.

Those two unfunded wars that are really not off the books and that cost trillions of dollars wasted apologies to those who were are in either theaters. That wasn't about you in the least.