[From the class of 09]

So hasn't really been brought up here (just everywhere else)...but anyone have thoughts? Next week keeps getting closer. I can't imagine that they will really let us default on our national debt but if they do they all deserve to be fired. There seems to be plenty of blame to go around but the Republicans (Tea Party) jokers seem to have their fair share of blame in this mess.

Also when I first read the idea of a balance budget amendment idea I lol. Rep Goodlatte's got jokes

[From the class of 09]

The specific numbers for August look something like US bills:$307b, revenue:$172b. So we are talking huge cuts if thats how it plays out and thats just for August. It's apparent that we need to fix our spending habbits in the long term. But it doesn't help our problem to just stop paying our bills now (which could happen next week).


http://www.nytimes.com/2011/07/28/us/po ... ted=1&_r=2

[From the class of 09]

1) We won't stop paying our bills. This is political theatre.

2) We could just send a nicely typed letter to Ben Bernanke informing him that we will not be paying the Federal Reserve back since they have been the primary buyers of US debt over the past 18 months. Why pay a pseudo-government agency back for US debts? Just limit the default to them.

Interesting idea I looked and the Fed has somewhere around $1.4t of US debt on the books assuming 3% average interest rate makes the payments $42b still leaving $90b unpaid in August.

Also interesting note from the Fed Reserve website...

Interest paid on debt owned by the Federal Reserve adds to government spending, though the Fed ultimately gives most of it back to the U.S. Treasury at the end of each fiscal year.

Don't you love government accounting.

They have to raise the ceiling or someone won't be paid. Although I still think they will over the weekend.

[jbock13]

I defer to CongressWOMAN Shelia Jackson Lee. "Shut it down, shut it down".

[Sly Fox]

Please don't ever reference that congresswoman on this site ever again. She gets far too much attention as it is.

** Shaking my head in shame of some of our Houston legislators **

[ATrain]

Can we just abolish the fed? Ben Bernanke seems to think that only inflation is good, and that any deflation is bad. What we have happening as a result of QE1, QE2, and soon QE3 is increasing commodity prices that are outpacing wage and job growth, giving the American people less money to spend, which reduces demand, which reduces manufacturing...and we all know where that goes.

Also, Obama can raise the debt limit himself based on a clause in the 14th Amendment of the Constitution.

Finally, I'd just like to say the NFL looks more mature than Congress right now.

[From the class of 09]

Can we just abolish the fed? Ben Bernanke seems to think that only inflation is good, and that any deflation is bad. What we have happening as a result of QE1, QE2, and soon QE3 is increasing commodity prices that are outpacing wage and job growth, giving the American people less money to spend, which reduces demand, which reduces manufacturing...and we all know where that goes.

Also, Obama can raise the debt limit himself based on a clause in the 14th Amendment of the Constitution.

Finally, I'd just like to say the NFL looks more mature than Congress right now.

If you had the loan payments the size the US government does you would be all about inflation too.

Also, agree with the NFL statement. Our elected officials (I'm looking at you Tea Party) remind me of a 5 year old who starts crying cuz they can't get their way and hold end up holding their breath till they pass out.

[From the class of 09]

If he used the 14th amendment to raise the debt ceiling, the House would be calling for impeachment hearings.

I would respect him for at least doing something, especially something as ballsy as that.

[From the class of 09]

You would respect him for blatantly wiping his butt with what's left of the Constitution? If the Congress doesn't have the power of the purse, what's left for them to be but a debating society? I suppose you would have applauded Lincoln as well.

More for putting the country first (default isn't helping anyone) even at the risk of loosing his job. Maybe (not sure why the 14th is so broad if it only wanted to reference the civil war) he should be impeached after the fact but hopefully it would buy enough time for the rest of the idiots in Washington to figure it out. IDK why the republicans suddenly act like raising the debt ceiling is such a big deal since it's happend twice as often under their watch.

[ATrain]

You would respect him for blatantly wiping his butt with what's left of the Constitution? If the Congress doesn't have the power of the purse, what's left for them to be but a debating society? I suppose you would have applauded Lincoln as well.

More for putting the country first (default isn't helping anyone) even at the risk of loosing his job. Maybe (not sure why the 14th is so broad if it only wanted to reference the civil war) he should be impeached after the fact but hopefully it would buy enough time for the rest of the idiots in Washington to figure it out. IDK why the republicans suddenly act like raising the debt ceiling is such a big deal since it's happend twice as often under their watch.

The Repubs are acting like its such a big deal b/c they needed something to get back in power, and that was their plan.

And yes, the House may call for impeachment hearings if Obama uses the 14th to raise the debt ceiling but there aren't the votes in the Senate to remove him from office.

[From the class of 09]

Fiscal irresponsibility is the reason the Republicans lost power in the first place. Now, a small group of house Republicans are *shocker* sticking to their promises, which got them elected. No more increases. Cut the spending.

I can appreciate that this small group was voted into office pledging not to raise taxes and cut spending. However raising the debt ceiling doesn't have to involve tax rates or the budget in general. The Republicans decided that they wouldn't just raise the ceiling (as they have in the past) they needed budget cuts (on the budget they previously passed) for every dollar the ceiling is raised. So now they are playing chicken with the worlds largest economic engine at stake.

As Atrain said the NFL is acting more mature.

[From the class of 09]

Just raising the debt ceiling doesn't necessarily involve the budget. Except that the only reason to raise it is so that we can borrow and spend more money.

They already passed a budget in April. Now they have to pay for it. They can worry about next years budget after. They normally set a budget in the fall and adjust (raise) the ceiling in the spring if needed it's a screwy system but that's how it's been for a while.

[ALUmnus]

I love this mantra that to be an adult is to compromise. Doing the right thing is so childish.

[jbock13]

Please don't ever reference that congresswoman on this site ever again. She gets far too much attention as it is.

** Shaking my head in shame of some of our Houston legislators **

Sorry couldn't help it

[From the class of 09]

I love this mantra that to be an adult is to compromise. Doing the right thing is so childish.

It's adult to do what you agreed to in the first place. This congress passed a budget in April that ran at a deficit. Now they have to pay what they agreed to in April by raising the ceiling. If you want to say whats right or wrong as far as spending goes, fine in September they start the 2012 budget process all over again and tell your congress peeps not to run at a deficit.

At some point they have to agree to a ceiling increase and it will be much smoother and cheaper if they do it on this side of a down grade.

[ALUmnus]

You know, you can't just keep doing something the wrong way just for consistency's sake. The sooner you make the change to correct the wrong, the better.

And when you "commit" to a budget, you are committing to staying at or under that budget. Spending less is not breaking the commitment.

[From the class of 09]

You know, you can't just keep doing something the wrong way just for consistency's sake. The sooner you make the change to correct the wrong, the better.

And when you "commit" to a budget, you are committing to staying at or under that budget. Spending less is not breaking the commitment.

Again I'm fine with them cutting spending (if they can) but inaction on the ceiling means that bond holders (many think they will be the first paid) SS, Medi's, military and/or all the rest won't be paid. You don't stop paying your CC bill when you decide to get out of debt, neither should the country. Because now you just have more fee's and higher interest rates on the same debt and there isn't credit counciling that will settle $14t.

I still think they figure this out over the weekend but if they don't they all deserve to be fired

[Sly Fox]

I love this mantra that to be an adult is to compromise. Doing the right thing is so childish.

Post of the Week candidate.