Abolish the debt ceiling

[Politico]

Who do you feel is unable to understand what the debt ceiling is?

Everyone here who thinks the ceiling is about increasing debt.

 

[Staidhup]

Greece did that, see what it got them, or do you read?

 

[Quantum Windbag]

Who do you feel is unable to understand what the debt ceiling is?

Everyone here who thinks the ceiling is about increasing debt.

What do you think it is about?

 

[Rshermr]

Who do you feel is unable to understand what the debt ceiling is?

Everyone here who thinks the ceiling is about increasing debt.

Then I absolutly agree. Except that I believe a large number of these people believe that not increasing the debt ceiling will cause economic problems for this president. Or they are blindly posting the dogma of those that would do so.

 

[Rshermr]

Who do you feel is unable to understand what the debt ceiling is?

Everyone here who thinks the ceiling is about increasing debt.

What do you think it is about?

I know exactly what it is about. But you will never tell us what you think it is, will you windbag?

 

[Quantum Windbag]

Everyone here who thinks the ceiling is about increasing debt.

What do you think it is about?

I know exactly what it is about. But you will never tell us what you think it is, will you windbag?

I am still waiting for you to defend the study you think proves I am stupid, nothing else you do or say matters until you do that.

 

[Rshermr]

What do you think it is about?

I know exactly what it is about. But you will never tell us what you think it is, will you windbag?

I am still waiting for you to defend the study you think proves i am stupid, nothing else you do or say matters until you do that.

But of course you did not read the study. But if you do not want to discuss issues with me, then that would be a really good thing.

 

[Quantum Windbag]

I know exactly what it is about. But you will never tell us what you think it is, will you windbag?

I am still waiting for you to defend the study you think proves i am stupid, nothing else you do or say matters until you do that.

But of course you did not read the study. But if you do not want to discuss issues with me, then that would be a really good thing.

You never posted a link to the study, all you posted was a story about the study that pointed out some of the flaws of the study.

 

[oldfart]

The debt ceiling is about living within our means so we don't end up like Greece you perfect 1000% liberal idiot!!!

Uh, Ed the debt ceiling is not about living within your means, it's about paying your bills after you have recieved the goods.
Don't want you to be confused wih deadbeats now do we?

Well since it's inevitable the sooner the better.

Are you commenting on abolishing the debt ceiling or Ed being confused with deadbeats?

 

[oldfart]

Greece did that, see what it got them, or do you read?

Well actually Greece didn't do that. They have no debt ceiling to raise. The only countries with a debt ceiling are the United States and Denmark. Everyone else passes a budget appropriation and has their Treasury pay the bills.

 

[MisterBeale]

In case anyone cares. . . .

WHEN DEFICITS STILL MATTERED

Prior to 1980, the world was simple and it made sense. When the government ran deficits, the Federal Reserve then would print money to pay for them. This money printing would cause inflation, and inflation would push up interest rates. The whole process was captured in the simple equation below.

Deficits = Money Printing = INFLATION = HIGHER INTEREST RATES

In the graph below, you can clearly see the link between deficits and money printing. Notice how every time the US runs a deficit (blue line) the money supply grows (yellow line).

Deficits = Money Printing

The next graph shows the link between government deficits and inflation pre1980. Notice the surges in inflation (yellow line) after each major deficit (blue line).

Deficits = INFLATION

The relationship between deficits and inflation was well understood

Try searching Google Archive News for deficit spending inflation and read any of the millions of article written before 1980. You might be surprised to see how universally the deficits/inflation link was accepted. Articles claiming "deficits don't cause inflation" were the lunatic fringe.

further on. . .

With the threat of inflation declared dead, the US proceeded to run massive budget deficits…

…AND IT WORKED — MAGICALLY

After 1980, the old, common sense formula underwent a drastic change:

Deficits = Money Printing = NO INFLATION? = LOWER INTEREST RATES?

The link between deficits and inflation was broken. When the US ran massive deficits in the early 1980s, inflation fell.

Deficits = NO INFLATION?

Although the inflation and interest rates came down, the first part of the formula remained the same. The government never stopped printing money to finance its massive deficits.

Deficits = Money Printing

What did change was that this printed money stopped producing inflation and pushing up interest, as seen below in the chart below.

Money Printing = FALLING INFLATION? = LOWER INTEREST RATES?

Amazing isn't it? After 1980, no more painful budget decision making: the US could now print all the money it wanted without any inflationary consequences! Deficits stopped mattering.

Why deficits stopped mattering : Magic or Conspiracy ?
Par Eric de Carbonnel - Market Skeptics
Publié le 01 novembre 2010
17754 mots - Temps de lecture : 44 - 71 minutes
http://www.24hgold.com/francais/contributor.aspx?article=3180997226G10020&contributor=Eric+de+Carbonnel

 

[Rozman]

It appears that the only other nation on the face of the earth that has a debt ceiling is Denmark. I see no useful purpose that it serves. If we want to cut spending, we cando that in the budget. The Constitution says that the federal govenment can on spend what Congress has authorized. Section 4 of the Fourteenth Amendment holds that the debt of the United States is "not to be questioned", whatever that means.

So folks, why not just abolish the debt ceiling? If Congress approves a budget, it could simultaneously approve paying for it.

Problem is the Democrat party hasn't passed a budget in years....

 

[EdwardBaiamonte]

Wow amazing how many people have no clue what the debt ceiling is. Actually looking at the boner everyone pulled on election day no it's not.

Who do you feel is unable to understand what the debt ceiling is? Pretty simple concept.

I suppose he is refering to the people wo believe that the debt ceiling has something to do with the level of spending.

of course there is a debt ceiling issue because liberals want to spend more than the ceiling. Accordingly with a ceiling the level of spending would stop dead!!! Isn't thinking fun???

 

[Rshermr]

Who do you feel is unable to understand what the debt ceiling is? Pretty simple concept.

I suppose he is refering to the people wo believe that the debt ceiling has something to do with the level of spending.

of course there is a debt ceiling issue because liberals want to spend more than the ceiling. Accordingly with a ceiling the level of spending would stop dead!!! Isn't thinking fun???

Jesus, ed. That was profound. So, since there has been a debt ceiling for well over a hundred years, and it has never stopped spending, do you think maybe you should rethink your primes? Nah. Just post some more dogma, ed, you poor delusional con.

 

[AmyNation]

Get rid of it. It doesn't serve any purpose any more.

 

[MisterBeale]

Jesus, you try to educate, and ignorant don't give a shit.

 

[EdwardBaiamonte]

So, since there has been a debt ceiling for well over a hundred years, and it has never stopped spending, do you think maybe you should rethink your primes?

dear, Newt shut down the government over the debt ceiling. It has never worked because liberals are perfectly stupid and don't care about bankruptcy or spending well beyond our means.

Republicans , for example, have introduced 30 Balanced Budget Amendments since Jefferson's. Liberals have killed them all dead and, surprise, we are now 16 trillion in debt heading to 50 trillion.

Why not just make liberals illegal as the constitution intended?