When corrupt politicians do as they are told by their keepers on Wall Street and in the boardrooms of S&P 500 mega-corps.
House Republican leaders were slated to propose a bill this week linking a debt ceiling increase to conservative issues. Under the new proposal, the debt ceiling would be increased from $18.1 trillion to $19.6 trillion, and would likely extend through 2018.
However, new reports out of Washington suggest that internal support for the bill from Republican lawmakers is divided, and it is unlikely to go to the floor. Where things go from here are unclear. If it gets down to the wire, Republicans willing to play ball may have to seek Democrat support, but this would likely void any concessions to spending as originally proposed.
Congress is likely on the brink of another deadlock, similar to 2011 or 2013, in which debate will rage on even past the Treasury’s deadline of November 3. The end result is obvious: the limit will be increased. However, in the meantime, there is likely to be no shortage of brinkmanship as both parties do their song and dance.
This week’s chart shows the parabolic increase to the statutory debt limit from 1970 until today. The chart also includes the potential $19.6 trillion ceiling as described in the most recent proposal, as well as the lawmakers in control during each time period.
What is clear from this data is that over the past, the debt limit will increase no matter who is in control. While there may be minor differences, the ceiling as well as federal debt have reached unprecedented levels as a result of both parties. That is why the United States now has 29% of total sovereign debt and also the 2nd highest national debt when measured in terms of debt-to-revenue.
If a compromise isn’t reached, at some point the United States government would become unable to make payments on spending it has already committed to. The result would be a default on its debt obligations.
There is no point to a perpetually extended barrier. It’s like an alcohol saying “I’ll only have one drink” always followed by “One more won’t hurt.” In fact I thought they had suspended the debt ceiling farce a few years ago. But I guess some things never change in Washington.
“It’s a fucking joke.” – The Comedian
Repukes, continuously using teaspoons to attempt to empty out oceans.
Feel free to use Demoncrat instead, they are both doing it.
Our money is debt, it originates as Fed issued (debt) notes to the Treasury.
If we quit issuing more and more our money will begin disappearing through the shrinkage by interest on it and we will eventually have no money at all.
Ever wonder what that “Federal Reserve Note” stamped on our currency means?
It’s not going to be an easy or pleasant thing to solve when it finally reaches the point where it has to be solved one way or another.
A pity the Founding Fathers failed to say anything about our money supply when they wrote the Constitution.
Why don’t we just default on this debt since all this ….money ….was created as debt on a computer screen ?We are going to do it eventually anyhow.
I know bad things would happen but that’s a given.
The end result of an exponentially rising national debt is worse than anyone can visualize.
Anything rising exponentially will eventually rise straight up *** and crash **** where upon the entire structure of debt collapses and since we already know that a credit correction cannot be done in an orderly manner, at the least comes WWIII as the super powers fight over the charred and scattered bit that remain to be found.
At the minimum, WWIII until there is nothing left to pick over in the ruins and there are a whole lot fewer rats in the box.
Joyfully yours..
MA
Obama previously requested that CONgress turn over the function of approving the Debt Ceiling to the Pres., which was turned down.
At some point in the future, it will be passed into law by CONgress – that will be an affirmation that the joke is on us.
Yes, Anonymous, too bad our Founding Fathers had not put something in there about our money, such s it should only consist of gold and silver. What a pity. :o(
odious debt. it aint the peoples debt its theirs
I finally woke up in the nineties, there is no difference between the Ds and Rs.
Kabuki theater. The R’s will blink, then fold like a cheap suit, like they always do. Some will do so because they have no spine. The rest will do so because they have no principle.
Either way, Uncle Sam will run up the credit card until the dollar collapses. Then the real fun begins.
@Muck!
So happy to see you here! Hugs and love to you and your family! (prayers too, figure it only matters if I believe, you don’t need to!)
I snicker when I listen to the news about the “looming debt ceiling crisis”, the dems blame repubs and rebubs blame dems and we all know the ceiling will be raised just in time to avert a disaster.
There is nothing else they can do but kick the can and head the country towards disaster.
All we can do is try to figure out how to survive the disaster.
Someday you’ll look back on 80 Trillion and laugh. Shit, you’ll be able to pay off an 80 Trillion tab with a Ruskie dollar you got for sucking off a Russian soldier in a vintage American made Humvee owned by the Iraqi Middle East security forces.
@El, now THAT is funny, well done.
More kabuki theater from the right… who use the “Debt Ceiling” for political leverage when they have already passed the spending for the debt in question… and or have reduced federal income by gifting lower taxes to their wealthy handlers.
And the Peanut Gallery feigns indignation at the ridiculously mis-characterized event! It serves zero purpose as long as deficit spending is approved every year by congress, which of course goes unnoticed until the bills have to be paid.
It’s the spending, and the tax breaks for the wealthy that have to be addressed, but why bother when you can fire up the dolts in the GOP base by complaining, and blaming the other side, after the damage has been done.
another straight from the horses mouth