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Video: Raising the debt ceiling is bad for the economy

With congress back in session this week their main focus is whether or not to raise the debt ceiling.  As I stated last week look for the progressives and left to employ a number of scare tactics to sell the public the snake oil that not raising the debt ceiling will cause economic calamity.  By making this claim they’re being very disingenuous and here’s why.  We don’t have a revenue problem we have a spending problem and left is intoxicated with spending. They have no desire to cut spending because it is through spending the expansion of government can occur.  By not raising the debt ceiling it forces them into an uncomfortable position of having to cut spending for certain programs.

They’re yelling from the roof tops that we will default on our obligations if we don’t raise the debt ceiling.  This is only true if we decide not pay on our interest for the debt first.  When the debt ceiling is raised what we’re saying is we need to accumulate more debt using barrowed money from China and other sources to pay for programs we can’t afford.  Does this make any make any sense at all?  The below video capture how raising the debt ceiling is actually bad for our economy.

Call, write, or email your elected official this week and let them know how you feel.  They really need to hear from us about this issue.  This debt ceiling debate is huge and we cannot just give up our position.  We hired these Republicans for a reason and it’s time for them to start doing the work of the people.

Liberty forever, freedom for all.

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  • Jim at Conservatives On Fire May 3, 2011 at 2:10 PM

    We still have too many Big Government Republicans to get the job done, in my opinion.It’s a shame because it really is a pay me now or pay me much much more later situation. If the debt ceiling were not raised, Wall Street would take a big hit. A lot of people would be hurt. We would probably enter a deeper recession. It all needs to happen. I have said many times if you have dug yourself into a deep hole, the first order of business is to stop digging.
    Jim at Conservatives On Fire recently posted..Obama Wants To Kick Some Big Oil ButtMy Profile

    • John Carey May 3, 2011 at 9:00 PM

      Jim we should not be using wall street to measure the economic pulse of the nation. Wall street has been propped up with the fed’s printed money, companies have been propped up by the government, banks are all but under the control of the feds, their is no outside money entering the market. I believe all these factors have created the illusion that the stock market is fine, when the reality is that it has been to manipulated by the fed it’s giving us a false reading. We cannot continue to devalue our dollar because sooner or later it becomes worthless and when this happen whether you are in the stock market or not the value of your investments, savings, and dollar will be worth less. When this happens all things become more expensive and inflation goes through the roof. The root cause of all this is out of control spending and the printing of money. I agree that we still have too many big government Republicans to make a dent, but we must face the reality as a people that things are going to get much worse if they don’t get their spending under control.

  • Matt May 3, 2011 at 10:16 PM

    Sadly, Jim is right. There are too many NeoCons in power to really reverse this in the short term. They simply have no political will to reverse the problem.

    The left loves the spending, as you point out. Not only does it grow government, but it also fosters the dependency that they need to keep their client groups voting for them. Also, that very dependency will cause the client groups to resist, sometimes violently, any attempt to cut off their sustenance from the nanny state.
    Matt recently posted..It’s Offend a Feminist Week!My Profile

    • John Carey May 4, 2011 at 6:34 AM

      I agree that there are way too many establishment Republicans to change much of anything. This is why I’ve always been a strong proponent of the answer coming from the people and local governments. Even the states have become so dependent on the federal cheese they are going to have problems breaking the cycle.
      John Carey recently posted..Video- Raising the debt ceiling is bad for the economyMy Profile

  • Country Thinker May 4, 2011 at 9:54 PM

    I don’t know if you saw my piece on this a week or so ago, but the whole “debt ceiling” debate is ludicrous. That said, even if we accept the goofy federal accounting rules, you can be sure that an immediate $1.5 trillion cut (on an annualized basis) would have a real effect – both economically and politically. I really don’t know who has the final say as to who has the “final say” as to which bills get paid and which don’t, but I think the Treasury does. If so, expect the admin to cut SS checks by, oh, 30-40% and say “see what the GOP did to you!”

    I understand the principle behind the fight over the debt ceiling debate, but practically speaking it looks like it has a lot of potholes.

    • John Carey May 5, 2011 at 11:13 PM

      It does, but they’re injecting politics into it. The reality is we can cap this thing now and start cutting the waste now. If politicians want to use it to score political points then we need to expose them for doing this.

      • Country Thinker May 7, 2011 at 2:32 PM

        What I’m saying is the government funds about 60% of its operations right now. Failing to raise the debt ceiling would be the equivalent to an immediate 40% cut in spending. I’m all infavor of that, but it would be too drastic. By my rough calculations, the Treasury could pay for SS, M/M, interest, and maybe a quarter of the defense budget. Everything else would go to zero. We would have to end the Afghanistan War immediately, close the majority of our bases, halt road contruction, etc., etc.

        Don’t get me wrong, I’m all for doing these things, but it needs to be done gradually. Doing it in one day would be a political disaster, and discredit the small government movement.

        Just my opinion!

  • Bob Mack May 4, 2011 at 10:18 PM

    The debt ceiling isn’t a ceiling at all—it’s a retractable roof.
    Bob Mack recently posted..Life Goes On…and On…and OnMy Profile

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