Bruce Bartlett: 5 Myths About The Debt Ceiling

The Washington Post:

In recent months, the federal debt ceiling -- last increased in February 2010 and now standing at $14.3 trillion -- has become a matter of national debate and political hysteria. The ceiling must be raised by Aug. 2, Treasury says, or the government will run out of cash.

Read the whole story: The Washington Post

Comments

[Matt12]

11:08 PM on 07/10/2011

Let it be dead and let them (GOP) carry the coffin
The neo cons who fancy themselves Republicans and their friends who control the Democratic Party don't care about the African American community. They just want your children to fight in wars to support Israel’s policies.
1) It wasn't created by the NY establishment
2) Poor little Israel needs to continue to grow rich and powerful
3) The wars neo cons created are about supporting the US' greatest ally ever, Israel
4) African Americans are irrationally dependent on entitlements
5) Senior has to face the fact that the US needs to divert the money to Israel, not to them. So, give it up already

Bonus: Illegal immigration is responsible for all the ills of the "too big to fail" institutions. .... Don't even ask.

[Genders]

07:22 PM on 07/09/2011

what tripe. false equivalency: it's Democrats too???? "One democrat...." complained to Bush. The GOP is actually threatening our economy, and have already damaged it.

[ruffdeezy]

11:16 AM on 07/09/2011

There would be no default because the treasury takes in 175 billion a month from taxing people. This is more money than what is required to pay the debt coming due. They could go weeks or months past Aug 2 without default while they come up with a coherent plan to balance the budget before raising the ceiling. They just want to raise it now so they can blow more money. Cutting the deficit by 4 trillion, or by 1/4 or less of the projected deficit over that time frame is very poor and weak leadership.

[Genders]

07:22 PM on 07/09/2011

The Treasury does not tax.

[RacerX]

09:24 PM on 07/08/2011

I followed the link at the bottom to: Five myths about cutting the deficit - published on Nov 28, 2010.
http://www.washingtonpost.com/wp-dyn/content/article/2010/11/24/AR2010112402521.html

Most of it I agreed with. This I disagreed with: "No solution to this problem is going to be politically popular."

A solution that favors the middle-class would be wildly popular. The middle-class built America. The middle-class fought WWII. The middle-class created the American dream. Policies favored the middle-class and the country was healthy.

I may disagree with the Tea-Party often but I sure share their frustration about our leaders - they are screwing us. There's no one watching out for the middle-class.

Time for the middle-class to do what's right. Find a leader that represents our interests and put him in the White House. We can be the 3rd party!

[ReedYoung]

01:29 AM on 07/09/2011

You're exactly right, except for one thing. 3d parties cannot start at the White House. Obama is the best candidate in 2012, for all his flaws. We need more Liberals in Congress, and real Liberals, not Blue Dog Dinos who don't understand basic economics and believe in tinkle-down because, I don't know, they assume Republicans must be right about something. They're not. Republicans are wrong about everything. At least it's easy to remember though.

[Genders]

07:23 PM on 07/09/2011

The progressive Caucus: http://cpc.grijalva.house.gov/
Read their budget! It's the only one that solves the problems.

[RacerX]

10:45 PM on 07/09/2011

I did. It does. Already a fan. Keep fighting the good fight!

[Dean Parisian]

04:26 PM on 07/08/2011

For the real skinny on naked shorting go here..........

www.deepcapture.com

[Mao Meow2]

01:41 PM on 07/08/2011

Please retitle this two opinions, two red herrings, and one lie about the debt ceiling.

[iam99]

11:27 AM on 07/08/2011

Naked shorting is a crime of fraud, but along with other frauds has been given a pass by the SEC and Justice Dept. when it has occurred on Wall Street.
But, can enough naked shorting destroy the nation's economy?

[ChasG]

12:25 PM on 07/08/2011

Naked short selling has been given a pass. Are you referring to before or after the SEC announced in late 2008 that naked short selling of any public company was prohibited?

[iam99]

06:57 PM on 07/08/2011

And, derivatives?

[nmcginni]

12:59 PM on 07/08/2011

Someone has to have the stock/bond to short or it can't be 'borrowed' to short. A few times I couldn't short since there wasn't any stock available.

[GulfportM]

11:21 AM on 07/08/2011

Let's see on May 16th we were told by Geitner, Buffet Et al. That the world economy would crash if the US did not raise the Debt Ceiling. It is July 8. This proves that the Debt Ceiling has nothing to do with the false choices being presented one of which is a "Default" on debt obligations.

[KidSampson]

11:37 AM on 07/08/2011

That's because the US hasn't missed any interest payments. If that comes to pass, the results will indeed be dire.

[Ldyforce6]

03:24 PM on 07/08/2011

And it won't take long for the interest rates on business loans (if you can get one) and consumer loans (what out for those "adjustable" rates) to go WAY up.

So let's see, they will give you tax cuts so you can pay more in interest...I get it now!

[iam99]

11:17 AM on 07/08/2011

Are all of the R's naked shorters?

[nmcginni]

01:04 PM on 07/08/2011

Probably through their PACs or off shore accounts.

The one admitting shorting the US is Eric Cantor who has $1,000 - $15,000 in the Pro Shares Ultra Short 20 + Treasury Fund.

[GulfportM]

11:15 AM on 07/08/2011

I like the way Steve Forbes has put it. We are being given "False Choices" by the Media, Congress and the White House in regards to the Debt Ceiling and any connection to some sort of default. As has been posted many times the Debt service is less than 10% of the Incoming Revenue.

There is also plenty of income to cover SS, Medicaid/Care and Military payroll as well coming into the Treasury to pay these obligations.

[ChasG]

12:28 PM on 07/08/2011

There is enough revenue on average to pay about 55% of government costs. Who would be paid and who would not if the government went NSF?

[HLL]

11:08 AM on 07/08/2011

Re-post, because facts cannot be repeated often enough! ☮

10 Inconvenient Truths About the Debt Ceiling:
1. Republican Leaders Agree U.S. Default Would Be a "Financial Disaster"
2. Ronald Reagan Tripled the National Debt
3. George W. Bush Doubled the National Debt
4. Republicans Voted Seven Times to Raise Debt Ceiling for President Bush
5. Federal Taxes Are Now at a 60-Year Low
6. Bush Tax Cuts Didn't Pay for Themselves or Spur "Job Creators"
7. Ryan Budget Delivers Another Tax Cut Windfall for Wealthy
8. Ryan Budget Will Require Raising Debt Ceiling - Repeatedly
9. Tax Cuts Drive the Next Decade of Debt
10. $3 Trillion Tab for Unfunded Wars Remains Unpaid
http://crooksandliars.com/jon-perr/10-inconvenient-truths-about-debt-ceiling

"You know, Paul, Reagan proved deficits don't matter."
~ VP Dick Cheney, 2002
http://www.ontheissues.org/2004/Dick_Cheney_Budget_+_Economy.htm

During Bush Presidency, Current GOP Leaders Voted 19 Times to Increase Debt Limit by $4 Trillion
http://thinkprogress.org/politics/2011/04/14/158424/republican-leaders-debt-limit-hypocrisy/

[shankapotomus]

01:32 PM on 07/08/2011

You forgot Obama has raised the national debt 36% in two years.

[Youcantstandthetruth]

02:51 PM on 07/08/2011

That is false. You need to go back and retake 2nd grade math and stop attributing Bush's last budget deficit to Obama. Nice try

[shankapotomus]

01:36 PM on 07/08/2011

You forgot to mention Obama's yearly budget was as high as what Reagan spent in 8 years.

[Youcantstandthetruth]

02:50 PM on 07/08/2011

Ouch another false claim. Reagan spent close to 6 trillion over his 8 years. He increased the budget deficit, taking it from about 1 trillion to 2.8 trillion. And didn't unemployment hit what, 10.1% under Reagan before he started a stimulus program?

[Hooponopono]

11:00 AM on 07/08/2011

This just focuses on the debt ceiling by itself. Every invester in every stock market all over the world is now wondering if and when to get out if the Republicans force default. Before default you could see a stock markiet crash that will make 1929 look like the good old days. What amazes me is.....surely Repubicans have loved ones.....or do they?

[jamdcts]

01:06 PM on 07/08/2011

They eat their young...

[iam99]

10:52 AM on 07/08/2011

It isn't required to be a partisan question.
So we pay or bills, or do we not?
Is your word good, or no?
Where we go from here will be determined by the answers here.
Where do you want to end up?

[bronncohowie]

10:42 AM on 07/08/2011

I hope the President reads this and tells the GOBP/teabaggers to go to H*LL !!

[BPCentrisAmerican]

10:48 AM on 07/08/2011

I find it interesting how the original Reagan gun-slingers are now longer in lock step with the GOP.

[Altario]

02:36 PM on 07/09/2011

I hope the President reads it, too. And reads his quote, and remembers how damaging it is to the future to keep spending like a drunken sailor.

[bronncohowie]

07:53 PM on 07/09/2011

The people who spent "...like a drunken sailor." were your GOBP/teabaggers from 2001-2006. Two unfunded wars, two rounds of unfunded tax cuts, unfunded mandates, unfunded big pharma giveaway, tax breaks to oil companies to develop "alternative fuels". This is what the debt is all about today. Obama has ONLY spent $787 Billion on the Stim. The ACA does not kick in until 2014.

[Pleneras]

08:04 AM on 08/22/2011

You mean spending on the citizens vs the corporations and haliburton & Co. right? Because it's your party who wasted all our surplus created by our party. Keep lying to yourself.

[Miss Muffett]

10:34 AM on 07/08/2011

I especially liked the myth about the debt ceiling being a partisan issue. In fact, Obama himself threw a fit about raising the debt ceiling back when he was still a senator and Bush was in office. And now, we have some of the strongest proponents of raising that debt ceiling, railing against it like its going to destroy us. Do we have the most ineffective, dumb government on the planet right now, or what??