As predicted here several weeks ago, there was a last minute debt ceiling deal. After much gnashing of teeth and pounding of gorilla chests, a plan which will cut up to $250 billion a year in spending was ok’ed by the two parties (after assuring it has enough loopholes to drive several locomotives through, of course). The budget for this year is almost $4 trillion, so the cuts will be modest indeed.
An elephant has labored mightily and brought forth a mouse. The pretend and extend will continue!
William Banzai is positively giddy (to the tune of Celebration by Kool and the Gang,
There’s a drunken debt party going on right here…a debt ceiling elevation to last throughout our bankrupt years.
So bring your subprime dimes and your taxes too we’re gonna celebrate our new debt ceiling with you !
Come on now people let’s all celebrate and have a debtor’s celebration we go elevate and have a really good time.
It’s time to burn cash together it’s up to you watch you treasure everyone around the world come on…
Come on you people have to be smarter than this. This debt ceiling thing is nuts because in order to continue growing our economy we must continue raising the debt ceiling FOREVER. This is not what should happen. The problem is not Republicans and Democrats, well lets be serious it is, but really it is the private banking corporation that runs our monetary supply. End the Federal Reserve and the fiat, fractional banking system and then we would talk about progress. Sure we would suffer for a while but we should suffer for being greedy. But those who know how to grow their own food and have energy independence then we will be all set .
Ahem, did you read the post. Because that’s basically what I’m saying too. The title is sarcastic!
Imagine if you as an individual earned $60,000 a year and spent $100,000 a year, and your only plan for the future was to rely on an increase in your credit card limit each year to accommodate your growing debt. This year, your debt is almost four times your annual income – you have $230,000 in credit card debt. Yet you’re considering taking time off and earning less next year.
Crazy, huh? Yet that is exactly what our central government is doing. It spends 2/3 more than it makes, and relies on debt to perpetually make up the difference. Now we spend so much on INTEREST on the debt that it’s our fourth biggest expense.
Oh no, we can’t cut spending. We need to spend more!
Oh no, we can’t raise taxes. We need another tax cut!
And the debt continues to skyrocket.
A financial adviser to a family that lived this way would counsel them to slash spending, raise revenues, and sell everything that isn’t nailed down. S/he would tell them that they’re going to have to make some sacrifices to get back to solvency. That family vacation? The fancy shoes for the kids? You can’t afford it – you’re shopping the thrifts stores and scratch-and-dent aisles for the foreseeable future. New car? I don’t think so; find a good used car and pay cash. S/he might even tell them that their sanity is more important than their credit score, so they should default on their debt (i.e. not pay their credit card bills). After all, you only need a good credit score if you intend to get MORE DEBT.
Of course, the head of the family considering this advice doesn’t have to get elected next year…