It may be emotionally satisfying to refuse to increase the debt ceiling, but not practical when push comes to shove.
Keep in mind that the debt ceiling increase does not provide for new spending. This is for money already spent. That is what it means when you pass bills which have been signed into law for the current year that require 1.4 trillion dollars in borrowing - the DEFICIT - remember. When they say we are borrowing 42% of every dollar we spent - it means we are already committed to borrowing 42% of every dollar we spend.
It is time to stop arguing about closing the barn door when the horse left months ago.
Do we default on government debt on August 2 ? Of course not. We have revenues each month which will cover the truly essential services and debt service. But when we are borrowing $.42 of every dollar we spend, we are going to run out of money during the month for non-essential services. And if you think the caterwauling coming out of Washington has been shrill - just wait until federal employees are being sent home and actual cuts are being made. Can't make a decision now ? We haven't even started the hard questions yet.
I suggest a short term increase of less than 800 Billion dollars to be reviewed when we need to increase again. But real cuts in authorized projects, federal staffing and programs IN THE CURRENT YEAR must be made before another increase can be considered. 800 billion in increase and 600 billion in cuts would take us through the current fiscal year.
Balanced budget amendments can bring mandated tax increases when spending is not cut. I am nervous about that approach - but it will depend upon the drafting of the proposed amendment. In addition, to those who want to make a balanced budget amendment the pivot point of raising the debt ceiling before August 2 - the amendment process will take way too long to be included in the emregency action being considered now. The amendment must pass in Congress by a super majority in House and Senate (unlikely since these people couldn't agree on the Sermon on the Mount or the Bill of Rights) and then the amendment must be passed by a majority of the state legislatures - a process which takes years. In my view - work on the amendment process but do not tie it to the debt ceiling debacle. This is a time for substance rather than symbolism.
But we must require a budget from the Congress. The House of Representatives could within it's own rulemaking powers prevent any appropriations bills from being originated in the House unless authorized by the Congressional budget or required by national emergency.
No consideration of any sort of future increase in debt ceiling should be considered unless there is a current year Congressional budget in place. No CBO scoring of budget impact should rely on decade ahead projections. Current or first year budget impact must be scored in addition to whatever fuzzy math they want to provide. No proposal should be passed unless within the current Congressional budget and fully funded within the budget.
In Lord of the Rings - the Two Towers, Gandalf states "the Battle for Helm's Deep is over - the Battle for Middle Earth is just beginning".
The conversation has been turned to actual budget cuts for the first time in nearly fifty years. Now comes the hard part - we have to prioritize the spending and eliminate agencies and programs that are not truly essential to the provision of legitimate, Constitutional government. GRIDLOCK ? You haven't seen anything yet.
And by the way - I am tired of the liberal talking point that tries to brand the Tea Party Republicans as extremists. They are Partiots and they are the voice of the people - that is the WE THE PEOPLE you used to hear about. Every Congressman of both parties and the 33 Senators that are up for re-election in 2012 had better listen with respect - because these folks are coming for you and we will vote to defend our Country.
And by the way - a short term increase of the debt ceiling is not a political move - it is a recognition that no matching cuts in spending have been made and the no final solution (or attempt just to get by the election) is possible without real cuts - cancelled projects and programs, elimination of waste - in this current year.
That is as plain as I can make it. House Republicans - Pass the bill. Senators - do the right thing for a change. (Dump Senator Reid as Majority Leader would be a start). Send this short term solution to the President. And them get to work on the real questions of what to cut to reach 600 billion in real dollars in this year.
Comments(12)