Does this Debt Ceiling Debate Confuse You?
If you said yes, You’re not the only one. Basically Congress passed legislation in the past limiting the amount of debt the government can run up, kind of like a spending limit on a credit card. Unfortunately our government is still spending money like they’ve got an American Express Black Card. And we’ve maxed our credit cards, and while the government is trying to find someone to blame for where all the money went and why we have nothing to show for it and how we’re going to pay the light bill as we admire the new rims on our Hyundai. Who do we owe 14.3 Trillion Dollars? We owe ourselves around 9 trillion, and foreign banks and countries make up the other 4 trillion. We’ve borrowed money from Americans by taking loans from the Fed, Retirement Funds, US Households, and the Social Security Trust Fund. To listen to bickering coming out of Washington, we’re going to default on this debt and old people won’t get their Social Security checks in September, China won’t get loan payments, and the dead are going to rise up in a Zombie Apocalypse.
In reality this is just political posturing leading up to the next election. First of all, Social Security payments come from different pool of money, so there won’t be any missing checks in the near future. China and other foreign banks aren’t going to force the issue on the loans we owe, they know if they press the issue and the American dollar is no longer the World Reserve standard, then Hyperinflation, and a World Wide Depression would ensue that would make the Great Depression look like a joke. This goes back to the whole “Too Big To Fail” mentality both parties have been flirting with for years now, that continues to get us in trouble.
In my opinion and this is only from my perspective, but it looks to me like one side wants to cut expenses and not raise taxes, but the expenses they cut will hit the middle and low income citizens in the pocket book. While the other side wants to raise the debt ceiling, and tax the rich, who already pay the lion share of taxes but during the Bush administration got a nice tax break. Raising the debt ceiling and taxing the rich for a limited time is a temporary solution, and America will right back where we are today, shortly after the next Presidential Election. Not raising taxes and cutting social services, will hit the lower/middle class voters in the wallet, and according to Political Science research, when that happens you don’t vote for the incumbent President, whether it was his fault or not. Either way, Americans and our economy are being played like a piece in a political chess match, where either way we lose. Eliminating the debt completely should be the goal for our economy.
Let me conclude my rant with what I think is going to happen, and why you should be mad. I am pretty sure that Nothing is going to really happen, the debt ceiling will be raised, the treasury will print more money and which ever party wins will only have to wait a few years to blame the problem on someone else when this is an issue again, and then make you more empty promises as to how their new candidate can fix it. This is what you’re getting from your elected government, and none of their decisions actually affect them. They don’t care what happens because when all is said and done, they are looking forward to very generous pension packages for life after they get done serving in office (these pensions are more than most of us make as regular income). And they don’t have to worry about medicare/medicaid, because they already enjoy the best medical insurance US tax dollars can buy. But both sides already know this cause they voted it in for themselves unanimously. So pick a side and demonize the other, but neither is watching out for YOU or YOUR best interests in this mess.
Here’s a funny cartoon is saw on Havoconthehill.com (Some language and Sign Language NSFW or kids)
Cartoon and Pictures source: Havoconthehill.com