Secretary Lew sent a letter to Congress on July 29, 2015 to warn of a need to raise the Debt Limit from $18Trilliion. It also suggested removing the debt limit altogether. It seems like every three to six months this again becomes a major issue and bone of contention.
According to the Treasury website:
The debt limit is the total amount of money that the United States government is authorized to borrow to meet its existing legal obligations, including Social Security and Medicare benefits, military salaries, interest on the national debt, tax refunds, and other payments. The debt limit does not authorize new spending commitments. It simply allows the government to finance existing legal obligations that Congresses and presidents of both parties have made in the past.
Failing to increase the debt limit would have catastrophic economic consequences. It would cause the government to default on its legal obligations – an unprecedented event in American history. That would precipitate another financial crisis and threaten the jobs and savings of everyday Americans – putting the United States right back in a deep economic hole, just as the country is recovering from the recent recession.
Congress has always acted when called upon to raise the debt limit. Since 1960, Congress has acted 78 separate times to permanently raise, temporarily extend, or revise the definition of the debt limit – 49 times under Republican presidents and 29 times under Democratic presidents. In the coming weeks, Congress must act to increase the debt limit. Congressional leaders in both parties have recognized that this is necessary.
Suspension of debt ceiling (Wikipedia)
The No Budget, No Pay Act of 2013 suspended, for the first time, the U.S. debt ceiling on February 4, 2013 until May 18, 2013. During the suspension period, Treasury was authorized to borrow to the extent that it “is required to meet existing commitments”. On February 12, 2014, the Temporary Debt Limit Extension Act was passed, suspending the debt ceiling until March 15, 2015. At that time, the Treasury Department may take extraordinary measures.
However, Bi-Partisan Policy Center in May 2015, issued the following RELEASE “Debt Limit Update: Strong Tax Season Moves Most Likely X-Date Window to November/December.”
In other words we will again be entering the highest sales volume months of a year with the same problems and threats of shutdowns as we have had happen every year in the recent past. I certainly hope Congress can get off its arse, exercise bi-partisan common sense, and get all of the major issues resolved when they return. In fact, I believe they should not be allowed to leave at anytime in the near future until each major issue has been addressed and either signed by the President or overridden by Congress.
Every time this happens we hear the words “remove debt ceiling.”
Let’s take a quick look at Australia. December 2013, Australia became the first country to get rid of their debt ceiling. It was touted at the time as a “brilliant idea” and that others like the United States should follow their example.
However, a July 2015 commentary by Stephen Koukoulas certainly does not seem to reflect the assurances of that having happened. In fact his commentary highlights just the opposite.
“Australia’s foreign debt is high and it is rising. It seems certain that it will rise further in the next couple of years. It could again be an issue for financial markets, ratings agencies and policy makers alike. If so, the consequences could be severe for the economy, with a sharply lower Australian dollar and policies aimed at increasing savings.”
Of course, their debt is in billions while ours is already $18.1 TRILLION. Hardnox and other sites have pointed out day after week after year just how out of control these people are in spending above their income.
-unnecessary billions spent on unnecessary bases and consulates around the world –corrupt contractors and billions over budget
-bloated federal government payroll and unrestricted spending by the executive branch
-pork belly add ons to important bills
-flagrant fraud and backroom deals by members of congress which keep popping up daily
-the millions of dollars spent on entertainment, trips abroad and across the country by Obama and family
-grant and low cost or guaranteed loan money handed out willy nilly to any company who mentions “climate” or “green energy” many of which have defaulted, declared bankruptcy or simply dissolved back into the woodpile
-volumes of funds and equipment being left overseas by CIA and others or being given out to UN or every country despite our own deficit
-Obamacare leeching funds from several other sources such as Social Security and Welfare, or
-the as yet unknown billions upon billions of dollars being projected to house, cloth, feed, and educate ILLEGAL aliens.
OBAMA PROMISES TO CUT FEDERAL SPENDING AND THE BUDGET DEFICIT:
–In an October 2008 presidential debate with McCain, Obama said: “But there is no doubt that we’ve been living beyond our means and we’re going to have to make some adjustments. Now, what I’ve done throughout this campaign is to propose a net spending cut.”
–Also in 2008, Obama said it was “unpatriotic” for the Bush administration to have added $4 trillion to the national debt in eight years.)
–“[T]oday I’m pledging to cut the deficit we inherited in half by the end of my first term in office. This will not be easy. It will require us to make difficult decisions and face challenges we’ve long neglected. But I refuse to leave our children with a debt that they cannot repay – and that means taking responsibility right now, in this administration, for getting our spending under control.” – President Barack Obama, Remarks, 2/23/09
— “This is big – the President today promised that by the end of his first term, he will cut in half the massive federal deficit we’ve inherited. And we’ll do it in a new way: honestly and candidly.” – Macon Phillips, The White House Blog, 2/23/09
As it stands now, I wouldn’t trust these jokers, Especially Obumski, with a blank checkbook for any reason. We have to live within the means we bring into our homes or suffer the consequences. These federal bureaucrats need to consolidate committees, agencies, and positions, slash their payroll and live within those same means.
Given the current problems we are having here, can we honestly trust this out-of-control government with unlimited spending? Not no; but, HE*&^%^& NO.