Democrats Propose $1.9T Increase In Debt Limit

[Purveyor]

Source: Associated Press

(01-20) 14:37 PST WASHINGTON, (AP) --

Senate Democrats on Wednesday proposed allowing the federal government to borrow an additional $1.9 trillion to pay its bills, a record increase that would permit the national debt to reach $14.3 trillion.

The unpopular legislation is needed to allow the federal government to issue bonds to fund programs and prevent a first-time default on obligations. It promises to be a challenging debate for Democrats who, as the party in power, hold the responsibility for passing the legislation.

The record increase in the so-called debt limit is required because the budget deficit has spiraled out of control in the wake of a recession that cut tax revenues, the Wall Street bailout, and increased spending by the Democratic-controlled Congress. Last year's deficit hit a phenomenal $1.4 trillion, and the current year's deficit promises to be as high or higher.

Congress has never failed to increase the borrowing limit, but it will take 60 votes to pass the legislation under an agreement by top Senate leaders.

---SNIP---
"We have gone to the restaurant. We have eaten the meal. Now the only question is whether we will pay the check," said Finance Committee Chairman Max Baucus, D-Mont. "We simply must do so."




Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2010/01/19/national/w131715S99.DTL

[Mari333]

1. why dont they just all go jump off a cliff until waiting til the next election to do so

god, what a bunch of incompetent wads of nothing.

[Ian David]

2. Reagan says deficits don't matter. n/t

[NoNothing]

3. Guess what?

Reagan was wrong. Big surprise, I know.

[KansDem]

4. Yeah, tell it to my bank...

Since it was a bank holiday, I made a substantial deposit thought my bank's ATM on Monday to cover some expenses I would have on Tuesday. It was cash.

Come Tuesday the expenses went out of my account, but the cash deposit the day before still hadn't registered on my account--the result: $30 "overdraft fee."

:wtf: I know the bank needs to wait a day or so with checks but this was cash!

Deficits do matter as far as my bank is concerned, let alone what St. "Where's the Rest of Me?" said...

[kenfrequed]

5. Anything but taxing the rich

Absolutely anything!

[taught_me_patience]

6. $14T... WTF.. that's almost 100% of GDP

We're starting to reach critical levels here. Why not cut back some of our outrageous military spending?

[bossy22]

8. it would destroy alot of jobs

plus there is no political will

[taught_me_patience]

10. The destruction of our currency

and subsequent inflation if we don't get things in check will destroy way more jobs.

[Better Today]

7. Time to set HCR aside, and raise taxes on the rich.

[Wizard777]

9. That's political suicide.

[MetaTrope]

11. Did I just dream that the government had a surplus once upon a time?

How many centuries ago was that, again?

[bemildred]

12. We got big plans, eh? nt

[Wilms]

13. With the upcoming Yemeni War and Occupation, it's only prudent to plan ahead.

[Skink]

14. Paygo doesn't mean much if they keep raising the limit.

Although if money being sent out is used a as stimulus then probably OK.

[Psephos]

17. You can delete the last six words and improve the accuracy. n/t

[Political Heretic]

15. Brilliant. Now there's a real political winner for 2010

:sarcasm:

[OhioChick]

16. Political suicide n/t

[proud2BlibKansan]

18. That will help get votes in November

:sarcasm:

[SandWalker1984]

19. When will Congress realize you can't keep spending $$ you don't have

The author of this article made some very valid points --


2010: Giant Gathering Storm Clouds, by Jim Willie
1/06/2010
http://financialsense.com/fsu/editorials/willie/2010/0106.html

"Not a single meaningful reform has taken place on US soil, which guarantees the continuation of the credit crisis is assured.

No substantial reduction of US home loan balance sheets.

No return of US manufacturing.

No liquidation of dead US banks.

No removal of Goldman Sachs from control of the USDept Treasury.

No disclosure of US Federal Reserve disbursements of over $1 trillion.

No steps to restore the Glass Steagall Act to create firewalls between the financial sectors.

No effort to prosecute for $trillion bond fraud.

No initiative to bring to light the deep criminal lace to Fannie Mae and AIG, now protected under US Govt aegis.

No attempt to rein in military spending and endless wars."


There's one other statement made by Mr. Willie I found very informational:
"The United States is being recognized internationally as a rogue nation moving headlong toward communism, run by powerful syndicates, whose most prominent foreign policy is explained by military hardware."


If the Democrats want to show all of us how fiscally responsible they can be, then here's their "to do" list to start fixing what's broke.

[OnlinePoker]

20. About the time the people stop asking the government to pay for things

[Mojorabbit]

22. communism? nt

[Crowman1979]

21. There's a few wars you can stop, that will help pay for it.

Is it that hard to put the weapons down. Or do the retired generals and DoD salesmen have them in their pocket.

[DissedByBush]

23. I think this is a record

The Democrats will be party who finally put our debt above our GDP.

The Repugs will use that fact ruthlessly at the next election.