Tuesday, October 08, 2013

Fiscal Responsibility?

Reasonable people seem to be agreed that failure to raise the debt ceiling would be insane because “it would be irresponsible to make the U.S. default on its debt.” All Democrats and even many Republicans agree on that. All economists agree on that as a matter of economic principle.

President Obama has warned that the dent ceiling must be increased because, “the country will no longer be able to meet its financial obligations unless its borrowing power is extended by Oct. 17.”

The only ones not wanting to raise the debt ceiling are a handful of idiots who wear boots or loafers because they don’t know how to tie their shoes.

Now that we have that established, let’s think about what “reasonable people” are saying. They’re saying that we cannot pay our debts unless we borrow more money. Think about that for a moment. In order, they say, to avoid destroying the world’s economy due to the world losing faith in our ability to pay our debt, we need to borrow money to pay our existing debt. Because without borrowing more money we can’t pay our debt, the admission of which would crash the world’s economy.

They’re saying that we cannot pay our bills without borrowing more money which is the very definition of “insolvency,” but they don’t call it that, they call it “maintaining the full faith and credit of the United States.”

There is an enormous contingent raging about the “irresponsibility” of failing to raise our credit limit so that we can continue borrowing money to pay our bills, but it’s only that little handful of idiots who don’t know how to tie their shoes who are concerned about the irresponsibility of a government that for all but one year out of the last seventy has been spending borrowed money.

We have utterly destroyed the meaning of “fiscal responsibility.”

1 comment:

bruce said...

I wear loafers because my feet swell up from standing on them. The hypocrisy abounds from all sides in this one.

We are doing exactly what the insolvent countries in Europe are doing, that we and others are nagging them for doing.

Everyone wants services and programs but don't want to pay for them, because they want "low taxes".

The fiscal cutters harp about overspending, but they don't truly cut from everywhere. And they are unwilling to raise taxes.

The fiscal spenders want to raise taxes to create more spending programs. And of course, not to cut the ones we already have.

It will come to a head at some point, because there will be too much spending on too little income that cannot be papered over with "debt limit increases". There will have to be tax increases or drastic spending cuts or (most likely) both. It should be happening now, if not earlier than now. But it will happen sometime, of it will be another depression. Or something akin to that. It will not be pretty.

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