Raising the Debt Limit

[Howey]

Question: Why are some Republicans dead set against raising the debt limit when everyone with any knowledge of the repercussions is warning against not raising it?

Hell. Even King Ronald warned against such irresponsibility:

The full consequences of a default — or even the serious prospect of default — by the United States are impossible to predict and awesome to contemplate. Denigration of the full faith and credit of the United States would have substantial effects on the domestic financial markets and the value of the dollar in exchange markets. The Nation can ill afford to allow such a result. The risks, the costs, the disruptions, and the incalculable damage lead me to but one conclusion: the Senate must pass this legislation before the Congress adjourns.

Congress consistently brings the government to the edge of default before facing its responsibility. This brinksmanship threatens the holders of government bonds and those who rely on Social Security and veterans benefits. Interest rates would skyrocket, instability would occur in financial markets, and the Federal deficit would soar.

[ekg]

because it's the best way to ensure Obama doesn't get re-elected. yes yes I know, that's cynical, but it doesn't mean it's not true.

Before OBL, I thought there was a better than good chance  they'd raise the limit without hassle and haggle.. sure they'd thump their chest and all, but they'd raise it.. but now, post-OBL, I really wonder if they will. I honestly don't think they want to give Obama what they would call a 'win'... I'd like to think these people know better and know the calamity they are tempting by just waiting to pass it..much less by not raising it, but I really have no trust in the GOP anymore. After some of the things I've seen from them and their supporters in some cases.. I honestly feel that yes, they literally would destroy the country in order to get the Presidency away from Obama and back into their hands.. any of their hands,  including Palin or Bachman's..

what they are going to do now is play some chicken.. the question is, are they playing with the understanding that yes, they will blink and they will turn at the last minute.. or are they playing with the understanding that come hell or high water, country be damned, they ain't moving for shit.

It's going to be interesting to watch the fight.  I hope Obama/Dems hold their position and don't cave into the blackmail.. because I hope the GOP isn't really ready to destroy the country over a black man being in office.. but at the same time, I don't hold much hope for anything anymore so... who fucking knows.

[lil mike]

Just to refresh your memories, Obama voted against the debt limit while he was in the Senate.  Was he willing to destroy the country just to keep Bush from having a "win?"

For some Republicans, this is a short cut to a balanced budget.  I think Bachmann falls in this category.  The government unable to borrow money?  That means they will have to slash spending, a lot and quickly.  The government would have to cut hundreds of billions, immediately.

I personally think that the Republicans have an obligation to raise the debt limit enough to service the debt that we have already accumulated, including the last budget deal that Republicans voted for.  It's the amounts above that I think they should bargain for.

Wait, we passed the debt ceiling today?  Everything seems OK... no mushroom clouds or planes and locusts falling from the sky...

[ekg]

Just to refresh your memories, Obama voted against the debt limit while he was in the Senate.  Was he willing to destroy the country just to keep Bush from having a "win?"

For some Republicans, this is a short cut to a balanced budget.  I think Bachmann falls in this category.  The government unable to borrow money?  That means they will have to slash spending, a lot and quickly.  The government would have to cut hundreds of billions, immediately.

I personally think that the Republicans have an obligation to raise the debt limit enough to service the debt that we have already accumulated, including the last budget deal that Republicans voted for.  It's the amounts above that I think they should bargain for.

Wait, we passed the debt ceiling today?  Everything seems OK... no mushroom clouds or planes and locusts falling from the sky...

you can't seriously NOT know..

[Howey]

Yes. We passed the limit today. According to Geithner, we can go a little longer.

But my question is, why? 

When everyone who's a financial genius is warningus of the consequences?

Republicans too!

Is it really worth destroying the country to make a fucking point?

[ekg]

Yes. We passed the limit today. According to Geithner, we can go a little longer.

But my question is, why? 

When everyone who's a financial genius is warningus of the consequences?

Republicans too!

Is it really worth destroying the country to make a fucking point?

uh..

go back and read the Newt stuff and then ask that question again  

[lil mike]

Yes. We passed the limit today. According to Geithner, we can go a little longer.

But my question is, why? 

When everyone who's a financial genius is warningus of the consequences?

Republicans too!

Is it really worth destroying the country to make a fucking point?

You've already seen my answer.

But Obama did the same thing.  Was he on the verge of destroying the country?

It's interesting, the effects of banging our heads on the debt ceiling are pretty much the same effects that would arise from bond market armageddon, when we can no longer get financing because the bond market no longer believes that we have the ability to make good on those bonds, but you've shown little interest in that issue which is the more severe one.

Why?  Because the debt ceiling problem can be corrected with a simple vote.  Bond-mageddon* can't be.  Once it hits, we're Greece/Spain/Ireland all wrapped together, probably for decades.



*I just made that up!  Redneck trademark... I need to get this in the mail to mail to myself right away!

[Howey]

Greece again?

You've lost all credibility. Might as well just stick with catching spelling errors.

[lil mike]

Greece again?

You've lost all credibility. Might as well just stick with catching spelling errors.

Yes. 

Greece.


Again.  That was our warning.  But I understand why you feel that there is no upper limit to debt and we can go on forever doing the same things. 

[Howey]

Yes. 

Greece.


Again.  That was our warning.  But I understand why you feel that there is no upper limit to debt and we can go on forever doing the same things. 

What's the GNP of Greece equal to? Dallas/Ft. Worth?

[lil mike]

What's the GNP of Greece equal to? Dallas/Ft. Worth?

The relevance is...?