Why do We Have a Debt Ceiling?

[Puppycow]

And what really happens if they don't raise it? Does that mean the US would default, or something less drastic?

George Will on the debt ceiling:


I think they would choose to first not pay federal employees and the military rather than not pay bondholders.

In fact, I vaguely recall this happening back in '94. I was in the Navy at the time, and IIRC, our pay was delayed. We still had to come to work though, of course.

 

[A Laughing Baby]

As far as I understand, it only exists so that every so often, people who are spending hawks can cast a vote against it to show they REALLY MEAN BUSINESS, but with the understanding that everyone is probably going to vote for it since if it didn't get raised we'd be in a state of default as a nation. Now, when you get a load of people who want to cast that meaningless symbolic vote all at once, it gets interesting.

In 1994, and please correct me if I'm wrong, it wasn't a debt ceiling issue, but just a general shutdown of the Federal government, right?

 

[Toontown]

The debt ceiling was a failed paper attempt to curb profligate politiker vote-buying and efforts by radical leftist ideologues to collapse the system by bankrupting it.

Investing in a guillotine would have been a far more effective measure. A guillotine and a battalion of Marines specially trained to seize and summarily execute ceiling-busters would have been sufficient to keep the politikers in line. The lopped-off heads could be shrunk and placed in a trophy case in the vestibule of the White House as a grim reminder to the politikers.

Or maybe just a better class of voter and a better class of politiker would be a better solution to the "spend till we drop" syndrome. Certainly less bloody and icky.

But you know...if bloody and icky is what it takes, then bloody and icky it will have to be. Some fundamentals are not optional.

 

[The Central Scrutinizer]

It's a charade.

 

[A Laughing Baby]

The debt ceiling was a failed paper attempt to curb profligate politiker vote-buying and efforts by radical leftist ideologues to collapse the system by bankrupting it.

Investing in a guillotine would have been a far more effective measure. A guillotine and a battalion of Marines specially trained to seize and summarily execute ceiling-busters would have been sufficient to keep the politikers in line. The lopped-off heads could be shrunk and placed in a trophy case in the vestibule of the White House as a grim reminder to the politikers.

Or maybe just a better class of voter and a better class of politiker would be a better solution to the "spend till we drop" syndrome. Certainly less bloody and icky.

But you know...if bloody and icky is what it takes, then bloody and icky it will have to be. Some fundamentals are not optional.

www.tips.fbi.gov

 

[MattusMaximus]

Interesting. I plan to read more about this tonight; I'm starting to smell bs... or is that Scrut?

 

[Puppycow]

In 1994, and please correct me if I'm wrong, it wasn't a debt ceiling issue, but just a general shutdown of the Federal government, right?

You are probably right, but, are there no creative ways to avoid issuing more bonds? A general shutdown of the Federal government would be preferable to defaulting on our debts I think. I'm not saying it's a good thing, just less bad than defaulting.

ETA:
Nobody gets their social security checks or paychecks or whatever until the crisis is resolved. When the seniors and other people get angry, blame the people who voted against raising the debt ceiling. In '94 it worked against the republicans.

Whatever you do, just don't default on the bonds. That's the one thing that can never, ever happen, even once.

 

[A Laughing Baby]

Whatever you do, just don't default on the bonds. That's the one thing that can never, ever happen, even once.

This is the part a lot of the freshman congressmen don't understand and are now having to attend GOP sponsored classes to make sure they understand how bad an idea it is to do that.

 

[MattusMaximus]

This is the part a lot of the freshman congressmen don't understand and are now having to attend GOP sponsored classes to make sure they understand how bad an idea it is to do that.

LOL... I cannot wait to see how the Tea Party goofs handle having to actually govern as opposed to whining about the government. This is going to present the Republican party with some internal difficulties, methinks.

 

[The Central Scrutinizer]

LOL... I cannot wait to see how the Tea Party goofs handle having to actually govern as opposed to whining about the government. This is going to present the Republican party with some internal difficulties, methinks.

The Republicans basically used the Teabaggers as useful idiots. Now that they hold power, I suspect they'll quickly be marginalized.

 

[Puppycow]

http://us.mobile.reuters.com/article/idUSTRE70B38620110112?ca=rdt

71% oppose raising the debt ceiling. But very few want to cut things like Medicare or Social Security.

 

[The Central Scrutinizer]

http://us.mobile.reuters.com/article/idUSTRE70B38620110112?ca=rdt

71% oppose raising the debt ceiling. But very few want to cut things like Medicare or Social Security.

Or defense, if you're on the nut right.