By the Way…… I’m back at the keyboard.
Over the last few years, a portion of our great country finally got shaken out of their quiet little automaton lives. Spending by both parties at all levels of government has risen by massive amounts with this year running approximately 43% as deficit spending. I sure wish I could get away with that in my household budget.
Dear Visa,
I know my card is maxed out and I only pay the minimum payment each month, but…….
Would you please raise my credit limit?
What? Are you STOOOOOPID?
But that is EXACTLY what the gub-mint is doing. Spending nearly twice their income, only paying the interest on the debt, borrowing more each year and now asking to have a higher debt limit. President Barack Husein Obama is threatening that if Congress does not increase the $14.294 trillion national debt ceiling, the nation will default. Recently Treasury Secretary Timothy Geitner wrote in a letter to Congress, Failure to raise the limit would precipitate a default by the United States.
Note that the Administration is not saying that if we continue to borrow trillions of dollars year on end without ever presenting a plan to repay the debt, we will default. But that if we do not continue borrowing, we cannot meet our obligations to creditors.
Default is nothing more than a scare tactic. Just like a consumer credit limit, if the debt ceiling is reached, this will simply mean that the Treasury cannot issue new debt (no more purchasing on the VISA). The existing debt could still be refinanced, but interest owed on the debt would have to be paid (first by the way, it’s always interest first then principle) out of revenue and the budget would also have to be balanced immediately. That is not a default. That is standard household and corporate budgeting. ONLY the gub-mint can print more money to pay their debt, which makes our funny colored paper worth less at the same time.
BIG spending cuts need to be made. It’s gonna hurt but continuing down the road of increased spending and borrowing will hurt much worse. Of the $2.173 trillion in revenues, $430 billion would have to be dedicated to paying total interest owed on the national debt, including to the Social Security and Medicare trust funds. That would leave $1.743 trillion to pay for the remaining $3.612 trillion of the budget, requiring approximately $1.869 trillion of immediate cuts.
The real default will be when the Chinese refuse to loan us more money and says we need to repay what we have already borrowed. Then we start giving away chunks of our country as payment since our currency will be devalued to the point of worthlessness when that happens.
If you supported the Constitutional values that ushered Conservative and Tea Party candidates into office last November, your job isn’t through yet. We must keep up the pressure on our elected representatives to follow the limits placed on government by the Constitution and to be wise stewards of our money. Too many of them feel it’s their money and they can give it back to us if we behave to their liking.
Start making phone calls and sending e-mails now.
Get to know your Senators and Representatives.
Tell them Thank You when they vote responsibly.
Give them feedback on all issues, don’t just call to be against things.
Educate yourself with real facts, use multiple sources and verify everything you can.
Please fee free to share my posts with friends as we need to continue with the amazing grass-roots efforts that gave us such a needed victory in Nov 2010.
Read and study, get good information, contact your representatives and senators.
Educate yourself and VOTE!!!!!